Back when I first started buying businesses 50 years ago, I actually started out with franchises. And over the years I've seen a lot of crooked franchise sellers and parent companies. Some of them, it would seem, are in business for the sole purpose of screwing you over. I know that sounds harsh, but it amazes me what some franchise companies try to get away with.

Luckily, the thing that you have going for you today -- we didn't have in place 50 years ago -- is you have the franchise agreement. This is basically a document the states and federal government require the company put out there that spells everything out about the company (even things they'd rather you not know about) on paper.

And if you're looking at buying a franchise...and if you want to save a ton of time, money and frustration...the first thing to look at in this document is the lawsuit section.

Why?

Because what happens today when somebody