Franchise Glossary
Renewal Term
What is Renewal Term in franchising?
The option to extend the franchise agreement after the initial term expires, typically for an additional 5 or 10 years. Renewal is not automatic. It usually requires signing the then-current franchise agreement (which may have updated terms), demonstrating good standing, and in some cases paying a renewal fee. Buyers should understand what "then-current terms" means: the agreement you renew into may be materially different from the one you originally signed.