Checklist

Ten franchise red flags worth slowing down for

A red flag is a prompt to investigate, not an automatic verdict. The response to a reasonable question often tells you as much as the issue itself.

  1. Pressure to sign or pay before advice.
  2. Earnings claims without a clear basis.
  3. Reluctance to provide the agreement early.
  4. Only selected franchisees may speak to you.
  5. Frequent closures explained away without evidence.
  6. Unclear territory protection.
  7. Large mandatory purchases with limited resale value.
  8. Support described warmly but not contractually.
  9. Costs keep appearing late in the process.
  10. Your concerns are answered with urgency rather than facts.

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