The franchisor's audited financials include a going-concern warning. Ask franchisees: have you heard anything about the franchisor's financial stability? Any changes to support or services recently?

Signs of reduced headquarters staffing, delayed tech updates, or reduced field support — early indicators of a financially stressed franchisor.

The agreement includes a 2-year, 2-mile post-termination non-compete. Ask franchisees: did you fully understand this when you signed — and do you feel it's fair?

Whether franchisees feel trapped. High non-compete terms reduce exit flexibility.

Cure period is only 10 days. Ask: have you ever received a default notice? How did the franchisor handle it — were they reasonable?

A short cure period combined with aggressive enforcement is a serious risk. Look for franchisees who feel supported vs. managed by threat.

How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?

Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.

If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?

Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.

What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?

Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.