Franchising is often times regarded as a sure way to make money. With a solid business plan, training and ongoing support provided by the franchisor it seems like a sound investment. The franchise system usually works especially if the franchise has been in business for a long time. You can see that other franchisees have succeeded and will do so for more years to come.
This is the perfect scenario but you know we do not live in a perfect world. You would think that business owners want to protect their trademark and business first and foremost. They should make sure that their franchisees have everything they need. They should make sure their franchise business is always running smoothly. Besides it will reflect on the business owner if even a single franchisor closes shop. It will give him a bad reputation which will greatly affect his business.
Given this some franchisors still choose to oversell their business. These are fly by night businesses who only care about taking your money. When this happens franchisees usually compete for the same location. They do not care if you choose a location which will compete with another franchisee. All they want to do is take your money and leave you hanging when problems arise.
You should always do your research before you enter into any investment. Take a look at the track record and credibility of the business owner. It is best if you can talk to some franchisees and ask for feedback. This will not only save you from putting your money in a bad investment but also keep you away from a mess you might not get out of.