The devil is in details.
When you sign a franchise agreement, you are entering a long-term partnership. But how carefully have you read the fine print—especially the language around fees?
One seemingly minor word can cost you thousands.
Take marketing fees, for example. I have seen franchise agreements where the contract stated the franchisee must spend “at least” $200 per month on certain marketing expenses. Sounds manageable, right? But here’s the kicker: That “at least” phrase gave the franchisor the belief it force the franchisee to spend even more. Suddenly, a predictable $200 monthly budget turned into an open-ended expense.
Another example: Some agreements include broad language about royalties or technology fees. You may assume that these fees are fixed or capped, but if the language leaves room for interpretation, you may be setting yourself up for a future surprise—one that could sink your business.
So, what’s the lesson here? Don’t skim. Don’t assume. Read the language about fees with a microscope. Every word matters, and one misstep could cost you big.
Before you sign, always consult with a franchise lawyer who can help you avoid these pitfalls and ensure your budget aligns with reality.
That’s how you protect yourself.