4/05/2005

Ten Franchise Purchase Red Flags

"Thinking about buying a franchise? Nolo has ten franchise red flags that should cause you to potentially consider investing your time and money elsewhere:

1. Questionable profitability.
2. High start-up costs.
3. Encroachment.
4. Lack of legal recourse.
5. Limited independence.
6. Royalty payments.
7. Inflated pricing on supplies.
8. Restrictions on post-term competition.
9. Advertising fees.
10. Unfair termination."

See this Business Opportunities Weblog post for the link to the Nolo article.