It would be wise to talk with existing franchise owners and learn first-hand whether they are satisfied with the level of advertising and marketing support and whether the franchisor lives up to all terms of the agreement. Federal laws require every franchiser to provide this disclosure document which contains 20 categories of information, including investment costs, background of key executives and a list of current and former franchisees. There are also franchise fees - up front payments that are made to the franchisor. In addition, some companies charge fees for bookkeeping and other support services. If a building is owned by a third party, the franchisor may hold the master lease.
Some leases stipulate that all equipment is leased from the franchisor.
Finally, pay close attention to buying trends. New franchising opportunities are popping up each day and while there is inherent risk in buying a fledgling franchise, there can also be enormous benefits to getting in on the ground floor.