Franchises: What to Watch For
It's a brief article, and it highlights three specific issues:
1 - Lots of litigation and closures - Noting that franchisors have an obligation to disclose any current or past litigation in the franchise offering circular;
2 - Too many bad reviews - Recommending that potential buyers interview a variety of current owners of the franchise to get their honest take; and
3 - High-pressure sales tactics - Which ought to speak for itself.
A lot of this is common sense, but I've heard many stories from all of you over the years about clients who bought a franchise first, then asked questions later. That's the wrong order to do things.