Another reason to consider low royalties suspect is that they’ve got to make money somewhere – if it’s not in the royalty it’s in the equipment, lease, product mark-up, kickbacks, somewhere…

Here’s another case study in unhappiness:

Read how Cuppy’s Coffee / Elite Manufacturing have taken and spent tens of thousands of dollars from the retirement savings of a disabled Vietnam Veteran and former police officer, David Morgan:

CUPPY’S COFFEE: An Interview With Franchisee David Morgan

Talk about bad victim selection from a PR standpoint… Was there anyone’s money these guys wouldn’t collect?

First, there was an earnings claim by the franchise or which wasn’t contradiction to the idea 19 disclosure in the Cuppy’s UFOC.

Second, the promise of low royalty rate typically signals that the franchise or does not intend to support you past the buildout.