Neither blindly. The funds must be committed for the application to succeed, but a signed unconditional agreement before a refusal leaves him owning a territory he cannot operate. The workable middle is an escrow or a conditional agreement negotiated with the franchisor before signing anything.
Negotiating the sequence
Raise the visa contingency with the franchisor at the first commercial conversation, not at signing. Ask whether this franchisor will accept an escrow that releases the territory fee on visa issuance and returns it on refusal, or will make the agreement's effective date conditional on the visa. The FAM recognizes an escrow that is irrevocable on approval as a qualifying commitment.
The location lease is harder to make conditional, so it may be signed with a start date that follows the expected consular timeline, or with a break clause. Once the agreement and escrow are executed and the funds deposited, apply at the consulate; do not book the interview before the money is committed, because the application will be refused for lack of investment. Do not give the franchisor an opening date that assumes a particular visa issuance day.
If the deal changes after application, for example the franchisor substitutes a different territory, that is a material change and must be disclosed and reviewed before he proceeds.