What’s the usual length of a franchise agreement?

According to the latest NatWest/British Franchise Association survey, the great majority of franchise agreements in the UK last for five years.  On the face of it, a franchisee wants the agreement to last for as long as possible because that guarantees him a franchise business on the terms that he has agreed. The downside is that circumstances change and, although a lengthy franchise agreement gives security, it can also be a straightjacket. It is for this reason that five years seems to suit both franchisors and franchisees. At the end of the five-year period the franchisor will offer a renewal on, quite possibly, different terms to those previously enjoyed by the franchisee. On renewal, the franchisor is able to update the agreement so that it complies with then current legislation. The downside from a franchisee’s perspective is that the changes could be less beneficial than those in the original franchise agreement. Some franchise agreements last a lot longer than five years. For instance, retail franchises that require very heavy investment, such as McDonald’s or Burger King, often grant franchises for the duration of the lease of the premises 20 years.