Consider the self-interest of the franchisor. The franchisor invests NOTHING to get a store open, and yet starts making money the day the store opens, even if the franchisee is losing tons of money. The franchisor's primary motivation is to get as many stores open as possible. It is NOT to make franchisee's profitable. Therefore, a franchisor will almost always err on the side of being too optimistic about the potential of a new location. My strong recommendation is for a new franchisee to buy an existing operation. I cover this subject in an entire chapter in my "49 Insider Secrets…" eBook (www.49franchisesecrets.com [1]).
Links:
[1] http://www.49franchisesecrets.com