Why It May Be Unwise To Buy A Franchise From an article in Blue MauMau News for Franchisees and Franchisee Wannabees Six points to contemplate when buying a franchise

Must Follow The Franchise System Owners are required by contract to follow the system. No lone fish wanted here.

Soaring Royalty Fees Every sale has a set percentage that goes to the franchisor, no matter the expense. High royalties hurt profits.

Higher Material Costs Some franchises require materials and supplies to be bought strictly from them to preserve quality standards, then charge more than market price.

Lack of Financing You are on your own. Most franchises do not provide financing to help you buy one.

Absence of Territory Control Sales halved with new store down the street. You begin losing money. Ouch! Franchise Unit #1 Franchise Unit #2

Franchisors Do Not Know Your Area… ... as well as you can. Franchisors can choose the wrong location or the wrong services and products for your neighborhood.