Incentivizing Franchisees to Renew Franchise Agreements

01/05/2015

Our client was having trouble convincing franchisees to remodel their tired restaurants prior to their scheduled renewal and remodeling dates. We helped the client to structure a program that would provide incentives to franchisees for renewing their franchise agreements early, thus assuring a new 20-year term, while also accelerating the remodeling of the restaurants. We prepared the various agreements incorporating these incentives, amended the franchise disclosure documents to disclose the incentives, and coordinated the filing of amendments in the franchise registration states so as to minimize interference with pending transactions. The program resulted in hundreds of franchise agreements being renewed or extended and early remodels completed.