How do I determine the income potential of a newer franchise?

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Opinions expressed by Entrepreneur contributors are their own.
Finding the income potential of a very new franchise without a significant track record of operations that you can check is a very difficult task.  You could consult a tarot card reader or a crystal ball, but your best bet is to gather as much information as you possibly can from the one unit they have open and then trust your gut.  It can be very exciting to be one of the very first franchisees in a new system but there is no question that the risk is greater since the system is not proven yet.  If you have a good level of comfort in a truly entrepreneurial situation, this might work for you.  You might want to consider looking into some other options in order to get a good contrast you can use to compare opportunities and weigh relative risks.  In the archive section of the expert articles at Entrepreneur.com is a more detailed analysis of the risks and rewards of getting involved with a new franchise company if you'd like to hear more.
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