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 requires mandatory arbitration. Ask: have you ever had a dispute with the franchisor — how was it handled? Did you feel you had recourse?

Franchisees who've been through disputes. Understand if the arbitration process felt fair or heavily stacked toward the franchisor.

The agreement includes a 2-year, 10-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.

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.

The Item 2 business experience section doesn't show prior franchise system experience in leadership. Ask: how does the corporate team support franchisees who are struggling operationally?

Whether they have franchise-specific field support, franchise advisory councils, or prior experience navigating the franchisor-franchisee relationship.