Richard

By all means, don’t even think of buying a franchise of any kind until you see the actual performance statistics, the P&L statements, the tax returns, etc… and try to actually work in any franchised business you would buy to see if there are “donated hours” of work by the owner(s) that don’t show up in the business records.

Under law, franchisors can sell new franchises without disclosing unit performance statistics to new franchisees (this is a premeditated flaw in regulation) but when you buy an existing store, you don’t have to buy unless they furnish you with their performance statistics and their business tax statements. Even then, have a CPA reconcile the figures, and LET THE BUYER BEWARE. Owners don’t generally sell “profitable” stores!

THE UPS STORE Franchisees: Drop-Offs Can Drop Dead

As the wife and mother of those who thought the UPS Store Franchise would be, as promised, an “unprecedented” opportunity, they found out the hard way that it was just that —an unprecendented opportunity to lose a lot of money, and a real American Nightmare.

As for Johnny’s Lunch. Sean is the expert around here —but in my research, I have found that businesses that have been around for a long time and then decide to franchise, may be trying to lay off their losers, minimize their risk, and protect their bottom lines.

I’m sure Sean will weigh in on this.

Carol