Some franchisors seem to act in like highway robbers. They mistreat their franchisees and want to take the largest slice of profits. So how can you ensure that you do not end up buying the wrong franchise business?
A franchise business should be like a partnership where both parties gain. But some operators seem to treat their franchisees as cash cows and continuously milk them for all they are worth. They promise everything at the start but fail to deliver.
The first step in determining the franchise is by examining the franchise agreement very carefully. A decent franchise lawyer can help here. If it is too much in the favour of the franchisor then stay way from this opportunity!
Bear in mind that often the franchiser can agree a letter of variation to the standard franchise agreement. If after reading the agreement there are only a few points that disturb you now is the time to bring to the table. Make sure that you negotiate hard to remove these clauses or agree a more favourable compromise.
The second check you should do is look at how many lawsuits the franchisor has fought with existing or previous franchisees. This will give you a fair idea...