Continuing royalty payments after termination are often an overlooked financial trap in a franchise agreement.

When you sign the deal, you agree to pay franchise royalties as part of the agreement. But what most franchisees do not realize is that these payments can continue even after termination of the agreement. This leaves you financially exposed long after you have cut ties with the franchisor.

You need to review the agreement with precision. Many contracts include clauses that force you to keep paying even if the franchise ends early. If the termination is due to a breach or if you decide to leave the franchise early, the franchisor can still demand royalties. You could be paying without receiving anything in return.

But here is the key: these terms are negotiable. Do not just accept them. Work with franchise legal counsel to eliminate or limit these ongoing payments. It may not always be possible, but reducing them can save you from significant loss.

Take control of your financial future. Negotiate these post-termination royalty clauses if possible.

Do not let these royalties haunt you.