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Watch out for signs that a franchise opportunity is not good

On Behalf of | Apr 1, 2021 | Franchise Law |

Owning a franchise can offer you many potential advantages. The most valuable possible benefit is receiving high returns on your investment in the business opportunity. Many franchise owners in Florida enjoy a lucrative income from operating franchised businesses.

Unfortunately, not all franchise opportunities result in success for the franchisee. Sometimes, it is possible to avoid an unsound franchise by looking for warning signs that indicate it might be a bad investment on your part.

What are some red flags to look for in a franchise?

In most cases, it is wise to consult with an attorney experienced with franchise law. Cultivating such a partnership gives you insight in to how a franchise works and which opportunities look good and which look bad. In the meantime, we have provided a brief list of some potential warning signs for you to watch out for when researching your franchise.

  • Poor reviews associated with the franchise or franchisor
  • Poorly organized franchise infrastructures
  • A high turnover rate of franchisees associated with the business
  • High-pressure sales pitches delivered by the franchisor
  • An overall lack of support and training for your franchise
  • The franchisor demands extremely high fees upfront
  • Lack of available documentation on the part of the franchisor

While there is never a guarantee that a new franchise will grow and become successful, caution can help you avoid potentially unsound opportunities from the outset. Forming a relationship with a franchise law attorney can help you identify unsound opportunities while also giving you an advocate to protect your interests if a franchise dispute arises. We encourage you to explore more of our firm’s blog and website for more information about franchise law.

Zarco Einhorn Salkowski | Attorney group photo

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