we don’t negotiate synonyms with “we don’t negotiateâ€‌ ......

Download We Don’t Negotiate Synonyms With “We Don’t Negotiateâ€‌ ... –Don’t USED CAR SELL them (i.e.,

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  • We Don’t Negotiate Presented by

    Eric Riess Attorney, CPA, Co-Founder, Board Member,

    Franchise Broker Lathrop Gage

    eriess@lathropgage.com eric@thefranchiselegacy.com

    Cell 618 580 1937 Work 314 613 2504

    mailto:eriess@lathropgage.com mailto:eric@thefranchiselegacy.com

  • This Is The No B.S. Zone

    • If you’re not open to honesty, it’s time to hit the bricks (aka, I look good in a skirt but I’m no cheerleader)

  • Synonyms With “We Don’t Negotiate” • We really don’t have to • We really don’t want to • We are defensive • We are belligerent • We don’t give a crap about your concerns • Our crap doesn’t smell • We don’t really know what our FDD means • We haven’t even read our FDD • We really haven’t thought it through • This deal is not going to happen

  • We Don’t Negotiate

    • Broker’s and Franchisor’s Shared Goal

    – To make sure the deal happens / to make sure the “buy” happens

    –WITHOUT negotiation

  • We Don’t Negotiate • How do you get the candidate to not want to negotiate

    even if the FDD was prepared by a lunatic (i.e., a franchise attorney / franchise “developer”) and pushed upon the candidate by an idiot (i.e., a franchisor)?

  • Guiding Toward NOT Negotiating • Managing the candidate’s EXPECTATIONS

    – RELAX the candidate – Make sure the candidate knows WHY franchising is one sided

    (hint: it’s not “just because that’s the way we do it in franchising”)

    – Explain the VALID and HONEST reasons why a franchisor would not want to negotiate (see, the first 2 synonyms above / don’t gotta / don’t wanna)

    – Listen to the candidate’s legitimate concerns and LEGITIMATELY ADDRESS them – Don’t USED CAR SELL them (i.e., don’t lie)

  • Guiding Toward NOT Negotiating • Managing the candidate’s EXPECTATIONS (Brokers)

    – Take them through the FBA PROCESS

    – Manage the expectation toward EXPLANATION

    – Refer them to someone who ACTUALLY DOES THIS for a living

    – Ask to BE INCLUDED in the process with their professional consultant

    – Ask if you CAN SHARE their concerns with the franchisor

    – Prepare the franchisor to give an EXPLANATION OF WHY’S AND THE WONT’S

  • Guiding Toward NOT Negotiating • Put YOUR TIMETABLE AFTER everyone else’s

  • TOWARD Negotiation • Can you spot NON-defensible provisions in an FDD?

    – You can only renew for 1 renewal period

    – We can change your Territory upon renewal

    – We can refuse to renew you for prior breaches even if you fully and timely cure them

    – We can prevent you from leaving the value of your business to your loved ones

    – We can compete directly with you within your “Protected Territory” even though we control your prices, marketing, methods and own all your customer data

  • Spotting Non-Defensible Provisions – You have to indemnify us for our own negligence

    unless the Supreme Court of the United States finds us grossly negligent

    – You have to pay a renewal fee of more than $5,000

    – We can change your royalties during the term

    – We can terminate you for as little as 2 breaches

    – We can buy you at any time for a formula price

    – You have to achieve a minimum royalty that more than 1/3 of our franchisees are not achieving

  • Spotting Non-Defensible Provisions – You have to wholly update your franchised

    business more often than every 10 years

    – You have to not compete with us or any of our franchisees within a 50 mile radius of us or any of our franchisees even though your “Protected Territory” is limited to a 1 mile radius

  • Get OVER Yourselves

    • We had the Number 1 attorney in the world prepare our FDD.

    • We spent a ton of money to have a “franchise developer” prepare our FDD.

  • Look In The Mirror

    • Be honest about what you see . . .

  • Other Issues Of Negotiation

    • It’s illegal (it isn’t)

    • If we negotiate for one we have to change for all (you don’t)

    • Negotiating the same provision over and over does not create a new offering (it does)

    • The State of California (you do)

    • The state of the franchisee family

  • The Franchisee Family • If it’s good for one, offer it to the entire family

    – In exchange for mutual releases – In exchange for extended terms – In exchange for more value to the system – In exchange for good will – Then use the process as the 11th synonym:

    We have gone through this with our attorney and KNOW that our offering is better than our competitors’

  • The Modification Agreement • The parties have entered into that certain franchise agreement

    of even date herewith (the “Franchise Agreement”)

    • The parties wish to modify the Franchise Agreement

    • Other than as expressly provided in this Agreement, the Franchise Agreement remains fully enforceable as originally drafted

    • Notwithstanding anything to the contrary contained in the Franchise Agreement: (a) . . . (b) . . . (c) . . .

    • Applies to renewals and replacements

    • May be signed and delivered in counterparts and via electronic mail

  • Discussion Eric Riess

    Attorney, CPA, Co-Founder, Board Member Franchise Broker

    Lathrop Gage eriess@lathropgage.com

    eric@thefranchiselegacy.com Cell 618 580 1937

    Work 314 613 2504

    mailto:eriess@lathropgage.com mailto:eric@thefranchiselegacy.com

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