Should I worry that the franchise I'm interested in is closing some locations?
Okay -- seriously, this is very troublesome indeed. This franchise system has lost about 13 percent of their franchisees over the past two years. To make matters worse, this is a net number so if they added any new franchisees during that period then their loss percentage is even higher.
Without even knowing the reason for this amount of franchisee losses, you should walk away. It is probably a host of different reasons but that doesn't change the reality of all these failures.
There are lots of other franchises that don't have this sort of failure rate and you'd be a lot safer looking into one of them, especially in today's tough economic climate.
Jeff Elgin has almost 20 years of experience franchising, both as a franchisee and a senior franchise company executive. He's currently the CEO of FranChoice Inc., a company that provides free consulting to consumers looking for a franchise that best meets their needs.