Negotiate Foreign Franchises

Establishing foreign franchises takes more work than establishing domestic ones, especially when it comes to negotiating. The key to negotiating is building a trusting relationship. Make sure your foreign prospect understands their obligations – and you understand yours. Language is often a barrier, so review everything – and then review it again – to avoid miscommunication. Keep cultural differences in mind when you’re negotiating. It’s not uncommon for people to want to establish friendships before getting down to business. Be flexible. Fees will likely be a bone of contention. Instead of setting a bad precedent by reducing the fee, add items to make the front-end fee more palatable:

• Extra training
• More on-site support
• Translation of materials
• Additional advertising
• Discounts on initial inventory