Consider all your costs before diving into this venture. First, know what you can afford. This means not only understanding franchise fees and royalties, but net worth and liquidity requirements. If this investment will necessitate financing, determine eligibility conditions needed to qualify.

Franchising is an investment like any other business. Fees can range from hundreds to hundreds of thousands of dollars. You will need cash reserves to live on until income and profits start coming in. Remember, lower franchise fees are not necessarily indicative of low profits and vice versa.

When exploring costs, there are two sides to every coin. There’s your financial responsibility and there’s the understanding you must have about the financial performance of the brand. As you move through the discovery process, you can study the Franchise Disclosure Document (FDD) to learn more about the management and the brand’s culture. Check for financial stability and growth with a good overall performance record. Item 19 in the FDD outlines the brand’s financial performance and indicates the transparency level of the brand.

Take a look at the brand’s unit growth. See how many franchise locations have opened in recent years; if there have been closures, find out why. What are the average sales per unit? How many units are still operating? Invest in a franchise that provides solutions with the potential for long-term growth. Fads are short-lived. Your investment strategy should aim for continued growth, so you want to partner with a franchise concept that fills an underserved niche in the marketplace.

Plus, research the vision of the franchisor: What are their ultimate goals, and have they achieved them or are they on their way? Keep in mind, a young brand may not have had a chance to build up the same type of brand recognition as a veteran franchise, but it can still be a strong contender as it grows. Brand recognition can serve a franchisee well by providing standards, and customer loyalty. You have options, to join a brand or help build a brand.

As with any business, having experience is advantageous. But starting a new business, even under the guidance of a proven operating system and model, can still be challenging. You want to make sure the franchise you are researching has a good training system in place to prepare you for opening and operating your franchise location. After all, it’s in the franchisor’s best interest for you to be successful — it helps grow the brand.

After the grand opening, find out how much ongoing support the franchisor supplies. Is the brand’s infrastructure designed to assist you throughout the life of your agreement? Find out how the franchisor keeps you informed about the latest innovations, answers your questions in a timely manner, or provides needed technical support. Here’s where a conversation with current franchisees will be beneficial. Find out how supportive the franchisor is and how strong the networking community is within the brand. Does the franchisor listen to the franchisees and act accordingly?

Communication is very important in business. Hearing from the franchisor about the vision of the brand keeps franchisees motivated and passionate about their ownership. When seeking out a profitable franchise, you want to look for strong corporate leadership that values you and maintains a personal touch, thus creating a positive culture.

To grow your business, efficient marketing strategies are essential. You will likely be paying a marketing or advertising fee to the franchisor, so make sure it’s an effective one that works at a local level as well as for the overall brand.

From the beginning you need prospective customers to know you’re out there, and you need consistent messaging to keep them coming back. Establishing a strong presence in the market is done through smart strategizing of traditional and social media.