Franchise negotiation

Franchise negotiation is the process of agreeing the terms of a franchise relationship before signing, such as fees, territory, term, renewal, site selection and personal guarantees. Franchisors often present standard terms, but some points can usually be negotiated, especially for experienced or multi-unit franchisees. Negotiated changes should be recorded in writing.

How BC law treats it

Under BC's Franchises Act, SBC 2015, c 35, the franchisor must deliver a disclosure document at least 14 days before the franchisee signs or pays anything (s. 5). This is a disclosure lead time, not a cooling off period; after signing, the only statutory exit is rescission for disclosure failures (s. 6). The Act also imposes a duty of fair dealing (s. 3).

What it means for your business

A franchisee should negotiate key terms before signing, as the agreement will be difficult to change afterwards.

Risks and common mistakes

Verbal promises during negotiation are often excluded by an entire agreement clause, so important assurances should be included in the written agreement.

For the full explanation, see our entry on Franchise agreements.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.