Retirement Agreement

If you have a franchisee up for renewal who is hesitant on signing on the a new fee structure and wants to wind down on the amount of work they are taking you can offer then a retirement agreement.

A retirement agreement allows you to reduce the below fees by the same percentage (up to a maximum of 50%) from the current rates for the division:

Base Fee
Compliance Discount
Advertising Fee

All other fees are set to the current rates for the division.

It is good practice to have the renewing franchisee sign a renewal agreement (on current divisional rate fees) so they are on an up to date agreement and then we have the retirement agreement separate for the reduction.

This allows for you to increase fees if they wish to take more work again.