Frustration runs prevalent when, as a franchisor, you invest a lot of time and money courting a prospective franchisee only to have the deal blow up in the final stages.

The temptation to go national out of the gate when launching a new franchise will be strong. If you haven’t filed in a registration or filing state, you are not allowed to talk to interested parties in that state. Even for a small operation, the possibility of turning away prospects in a neighboring state will leave a bad taste behind.