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Before You Buy a Franchise: Red Flags That Could Cost You Everything
Description
Episode 145: Buying a franchise can be a major investment—but a great brand doesn’t automatically mean a great business.
On this episode of Pursuit of Profit, franchise attorney Robert Einhorn reveals the red flags prospective franchisees need to watch for before signing a franchise agreement. He explains why due diligence matters, what to look for in the Franchise Disclosure Document, and why talking directly to existing and former franchisees may be the most important step you can take.
If you’re considering buying a franchise, listen before you sign and book a free consultation with Cliff and Justin: https://uniqode.net/Book-Free-Call
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Timestamps:
02:25 - Why is your firm known as "the great equalizer"
10:10 - Franchise associations
12:12- Case study: Dickies
16:06 - Can a franchise recover?
16:49 - Why people buy what others tell them not to buy
18:53 - 3 things to do for due diligence
28:01 - Item 20
29:02 - Case study: Jack in the Box
33:55 - Case study: ReBath
41:36 - Case study: Subway vs. Jersey Mike's
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Links:
Zarco Einhorn & Salkowski Attorneys at Law
Watch the Pursuit of Profit on YouTube!
Book a free consultation with Cliff and Justin: https://uniqode.net/Book-Free-Call
Learn more about Franocity: https://qrcodes.pro/VVKKzV
Welcome to Pursuit of Profit, the franchise business podcast hosted by Cliff Nonnenmacher, Franchise Consultant, co-founder of Franocity, and co-author of “Beyond the Brand.” Each episode delivers raw, unfiltered insights for aspiring franchisees, multi-unit operators, franchisors, and entrepreneurs who are serious about building wealth through franchising. Cliff shares real-world strategies on buying a franchise, running a franchise business, and scaling for long-term success. No fluff, just straight talk. Together with his business partner and fellow co-author Justin Guevara, Cliff has helped hundreds of people navigate the world of franchising through Franocity's 100% free consulting services. Their mission is simple: help you achieve financial freedom through franchise ownership and live your life fearlessly.