- Do not sign any agreement without having it reviewed by your attorney and accountant.
- Do not pay for any circular you request.
- Promises made by a franchisor may not be binding unless included in the final franchise agreement.
- Record ALL conversations with each franchisor -- include date, time, person talked to, promises, questions and their answers.
- The UFOC does not mean the government has reviewed and/or approved your franchise.
- Do not be pressured into signing an agreement: It's in the salesman's interest to create a sense of urgency that may not be real. Remember: Trade shows and franchise brokers are in business to sell franchises.
- Talk to lots of franchisees including those the franchisor doesn't recommend or who have recently left the system. Include some in similar geographic areas, some who've been in business 3-12 months, and some who've gone through a renewal cycle and have been in the system for many years.
- The Franchisor must give names of all franchisees who left the system in the past 3-5 years.
- Never underestimate the start-up costs of getting into the franchise. Make sure you have enough funds to carry you until the business makes a profit.
- Don't assume that because a franchisor is a member of the International Franchise Association (IFA), it is a "reputable" franchisor.