When purchasing a franchise, most candidates are not aware of the various “freebies” that franchisors offer. If you don’t ask, most don’t discuss “freebies” because they cost the franchisor money. The following items inform you of the various “freebies” that many franchisors may offer.

Freebie #1: Vet Fran Discount– If you’re a Veteran, the majority of franchisors offer a VetFran discount which can range from 10%-20% off the franchise fee. This “freebie” could result in saving thousands of dollars in your initial investment. Unfortunately, I’ve been on many calls when the franchisor never discussed this discount until the candidate asked. This year, we’ve discovered that many franchisors are waiving the entire franchise fee if you are a Veteran. If you ask, you will usually receive these “freebies.”

Freebie #2: Larger Territories– In the Franchise Disclosure Document, Item 12 defines the franchisees territory. Most candidates do not realize that you can negotiate your initial territory for a larger size. In our consulting firm, we’ve advised our candidates to request another zip code/or county for no additional fee. The Result: The majority of franchisors have agreed to this “freebie.” Know the size of your territory and ask for an additional zip code / or county before you sign the agreement.

Freebie #3: Right of First Refusal– When a candidate is interested in a territory, most individuals forget to inquire about the right of first refusal. This means that if you purchase a territory and another franchise candidate inquires about your surrounding territory, and then purchases the surrounding territory, you will not be able to expand your franchise. However, if you request for the right of first refusal in the franchise agreement, the franchisor must first come to you and confirm if you are interested in the surrounding territory. Most franchisors will concede to this request, however, they will require that you perform to all the terms of your agreement.

Freebie #4: Transfer Fee Waived– When a franchisee deceases, there are fees to transfer the agreement to a new buyer, even if it a relative or spouse. Confirm that no transfer fees are due if your spouse or relative is the beneficiary.

Freebie #5: Travel Accommodations for Discovery Day and Training– Most candidates fail to ask the franchisee to pay for their travel accommodations for Discovery Day and training. Depending where the events take place, these costs could add thousands to your initial investment. However, many times the franchisor may pay for these costs. These “freebies” are worth asking for.

Freebie #6: Training Fees for Managers and Employees– Many times you can have a second person go to training but there are costs involved. Find out how many individuals can attend training and ask if additional personnel can attend without any additional fees.
The list with “freebies” can go on and on but when discussing any of these items with a franchisor, confirm all these items in writing, otherwise, they will not be enforceable. Using a franchise consultant makes this process much easier for a candidate to discuss with the franchisor before the agreement is signed.