• If disputes arise, is arbitration or mediation provided? Required?

• Once your agreement ends, are you bound by a no-competition clause?

• Can you later become a passive investor and turn over the operation to a partner?

• Does the franchiser sell franchises too close together or open company-owned competitors nearby?

• If the franchiser charges advertising fees, is the advertising in your area?

• Under what terms may the franchiser take over your facility?

• Is training and support provided on-site? If not, who pays travel costs?

• Are expenses factored in when calculating profits?

• Are there restrictions on site selection, design or appearance?

• Are goods and services restricted?

• Are hours of operations, signage or uniforms regulated?

• Must you conform to accounting or bookkeeping procedures?

• Is your territory limited? Will that make it difficult to open outlets or move?

• How many terminated franchisees are there?

• When buying an existing outlet, how many owners operated it before and for how long?

The most candid sources of information are current and former franchise owners. Here are some of the questions to get answered:

• How long they operated?

• What were their total investments?

• Were there hidden costs?

• How long before they earned a reasonable income?

• Are they satisfied with the franchisor?

• What were their backgrounds?

• Were the training and ongoing support satisfactory?

• Was the advertising program satisfactory?

• Did the franchisor meet contractual obligations?

• Would they invest again?

• Would they recommend the investment?