When you’re researching franchise opportunities, sometimes the warning signs are obvious: shrinking systems, high turnover rates, unhappy franchisees. But it’s not always so cut and dried. Sometimes what looks like a green light at first glance might actually be a red light — or at least a yellow “slow down and ask more questions” light.

Take growth, for instance. Growth is important to franchising; there’s no doubt about that. That’s why year-to-year growth is one of the biggest factors considered in Entrepreneur’s annual Franchise 500 ranking. If companies didn’t want to grow, they wouldn’t franchise in the first place. But is growth — especially rapid growth — always a good thing? Continue reading.