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There are a number of key things you need to consider when planning to buy a franchise.

What you should consider before buying a franchise

• Assess yourself to see what kind of franchise, if any, will suit you. See should I buy a franchise?
• Find out what franchise opportunities are available and draw up a shortlist. See find out about franchise opportunities.
• Assess a franchise opportunity carefully, ask questions and talk to other franchisees.
• When you find a business, investigate its financial prospects. Base this on thorough research of performance figures. Include an analysis of three years' accounts - if they have been trading for that period - and management figures.
• If you'll need to raise finance, ask your bank if it will consider a loan for the type of franchise you're considering. See advantages and disadvantages of bank loans.
• Do your own market research into the business and the competitors in your area. See market research and market reports.
• Draw up a business plan. See write a business plan: step-by-step.
• Check the franchise agreement and get professional advice from a solicitor and an accountant. See the franchise agreement for a franchisor.

However, it is advisable to make sure you don't:

• take up the first opportunity before investigating alternatives
• allow yourself to be hurried into making a decision
• pay any non-refundable deposit
• commit yourself before you're completely sure
• assume a business will work in your area just because it works elsewhere
• rely on the forecasts provided by the business selling you the franchise
• sign any agreement without legal advice