BizSugar.com › Legal › 10 Red Flags of Problem Franchisors

Let me start this article with a preface: This list is not definitive, and it is not absolute. I am aware of many legitimate and trustworthy franchisors whose systems meet at least one of the criteria listed below. Like any enterprise, it is reasonable for franchisors to have a few faults. However, as a general matter, a franchisor that has multiple issues with the criteria listed below may show signs of systemic degradation or illegitimacy, and potential franchisees should think carefully, ask lots of questions and seek professional guidance before committing to a franchise system that raises too many of these red flags.