This session will address the inevitable tension between a franchisee’s expectation of a right to renew and transfer and the franchisor’s expectation that it can impose conditions on renewal and transfer and introduce new terms.

Session Objectives:

• Discuss the ability of a franchisor to impose or enforce conditions on the right to renew and transfer.
• Explore the legal basis for why franchisors can (and often do) increase royalty rates, change system standards, introduce new technology, change incentive programs, impose obligations to refurbish the franchised business, mandate upgrades, reduce protected territory, and alter other material terms at renewal and transfer.
• Assess state law impact on the renewal and transfer process, including the implied covenant of good faith and fair dealing on the renewal and transfer process.
• Identify key negotiation points for franchisors and franchisees and the importance of strategic preparation for negotiations.