1. Failure to Disclose All Necessary Documents and Details
   The franchisor who does not properly disclose all relevant details to the potential franchisee is probably trying to hide something. The franchise may not be profitable or the franchise may be a scam. Before you sign anything, be sure you learn all of the relevant information, make sure all of your questions are answered fully and be certain that all relevant details are clear.

    

2. High-Pressure Sales Tactics
   You should never feel pressured to buy a franchise or to make your decision quickly, for any reason. Remember that you are making an investment and you should be cautious with your decision.

    

3. Claims of Minimal Risk and Promises of Unrealistic Profits
   There is a large amount of risk associated with buying a new franchise. Even the franchisor with the most successful chain cannot legitimately promise that you will make money. Be wary of any franchisor who guarantees that you will definitely make a lot of money with little risk.

    

4. Unjustified Start-Up Fees
   Initial fees are sometimes very high, but be sure you know where your money is going. Fees that seem too high may very well be just that. Many crooked franchisors have sold franchises and disappeared with the initial franchise fee.

Source: New York State Office of Attorney General