Buying a franchise is serious business. No one needs to mention that a mistake can be costly in time, energy and, of course, good old-fashioned money. With this in mind, we recommend the following:

11. Know yourself
Success comes easier when you choose a business that is compatible with your personal attributes and interests. Do you have good work habits? Can you manage other people? Will you follow the franchisor’s proven formula? You need to know yourself.

12. Start with adequate working capital
You must have sufficient capital. Once you are open for business, you will need to have the operating funds recommended by the franchisor plus money set aside for your family budget.

13. Analyze the market
Do some of your own research. Investigate the industry and the franchisor's place in it. Then, compare your market area to what seems to be the ideal location. Next, survey the competition and identify their strengths and weaknesses. Finally, develop a business plan that includes the necessary advertising and promotional dollars.

14. Visit the franchisor's headquarters
Take time to meet the franchisor's key management personnel at their headquarters and the field representative assigned to your territory. The visit will provide valuable insight and give you an opportunity to verify statements by the franchise sales representative.

15. Carefully read the UFOC
Be sure that you understand each item of the Uniform Franchise Offering Circular (UFOC). As you read this government mandated disclosure document, note the areas that seem confusing and unclear. List your concerns and clarify which duties, obligations and responsibilities belong to whom. If it is not spelled out, get it in writing. Oral promises are not enough.

16. Contact franchisees
To get a true picture, guard against relying solely upon information provided by franchisees introduced to you by the franchisor. You need to contact a large cross section of other franchisees listed in the UFOC. The section on "Past, Current and Future Franchisees" is a valuable place to start.

• Ask franchisees what they like best about the franchise.
• Ask franchisees what they feel needs improvement.
• Ask franchisees if the franchisor has a reputation for honesty and fair dealing.
• Ask franchisees about the quality of the franchisor's ongoing support assistance and training.
• Ask franchisees if (knowing what they know now) they would buy the franchise again.