Turnover rate is 675% — above industry average. Ask existing franchisees: do they plan to renew? Would they buy this franchise again?

Unprompted enthusiasm vs. measured or reluctant responses. Ask about year-2 and year-3 revenue vs. projections.

9 units closed in the most recent FDD period. Ask franchisees: what actually drove those closures — was it market conditions, operations, or franchisor decisions?

Franchisees who left voluntarily vs. those terminated. Any pattern by region, years in system, or franchisee profile.

The agreement includes a 2-year, 25-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.

The FDD does not include audited financial statements. Ask: do you have any visibility into the franchisor's financial health? Have you ever been concerned about the company's stability?

Even anecdotal signals — changes in leadership, delays in royalty statement processing, reduced marketing fund activity.