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I agree that a substantial amount of the useful information prospects receive during the due diligence process will come from existing franchisees. Of course, this should not dissuade prospects from asking tough questions of their potential franchisors. If a franchisor--especially a new one--is not willing to give you a straight answer on a fundamental aspect of the franchise system (apart from the obligatory restrictions on Financial Performance Representations), this itself may be a sign of things to come. With a 10+ year relationship hanging in the balance, you need to feel confident that your franchisor is capable of following through and has your best interests in mind.
Toggle Commented Sep 13, 2010 on Being The 1st Franchisee at The Franchise King Blog
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Sep 13, 2010