I was putting together a blog post about a new franchisor (David Bradley Chocolatier ) who just sold its first franchise when I noticed that the company website states that there is a $25,000 franchise fee, 2% marketing fee, and no royalty.  Later it states that 95% of the franchisee's inventory will be supplied by the company's plant in Windsor.

This strikes me as a big red flag, as either the franchisor will have no revenue to support the system (unlikely) or they are planning to make money by marking up the product.  What do you think?  Does this approach ever work?