Examine your income and interests

Potential franchisees must understand their interests — in order to select a concept that will excite them — as well as their finances. Consider your credit score, net worth and liquid assets in deciding whether you can afford to buy a particular franchise.

I recommend: Whether your new business is a franchise or not, you'll need financing to get it up and running. Consider applying for a small business loan from the U.S. Small Business Administration (SBA), which also offers a franchise registry that helps streamline the loan application process for potential franchisees.

Research your options

Even if you have a particular franchise in mind when you start your search, you should be aware that there are hundreds of options on the franchise market. Consider your target market and geography to narrow down your choices to those that will best flourish in your community.

I recommend: Browse hundreds of franchise opportunities online at FranchiseSolutions.com or Franchise.com. Or, explore your options and meet dozen of potential franchisors at the National Franchise and Business Opportunities Show held all year long in cities across the country.

Review the UFOC

Perhaps the biggest challenge — and most important step — of researching franchise opportunities is collecting information about potential franchisors. Lucky for franchisees, the government requires franchisors to make available certain investment information, distributed in the form of a document called a Uniform Franchise Offering Circular (UFOC).

I recommend: FranData.com lets you search its library of more than 18,000 UFOC documents from 4,500 different franchisors.

Consult other franchisees

Before committing yourself to a particular concept, be sure to ask current franchisees about their experiences.

I recommend: Find out what other entrepreneurs think of their own franchising decisions when you visit FranSurvey.com to review the results of hundreds of opinion surveys given to existing franchisees at more than 2,400 franchises in 75 different industries.

Make a decision

Once you've selected a franchise, arrange to meet the franchisor in person. Obtain a franchise application and be sure to go over any last-minute concerns with your attorney. If you reject the franchise, start the process over again!

I recommend: There are the three national associations dedicated to franchisees — the International Franchise Association, the American Association of Franchisees & Dealers and the Franchisee Association — that can help you make and negotiate your final decision.