Before you rush into a new business venture it pays to take a step back and consider the answers to some crucial questions.

1. Is the brand well known?

Let’s start with the basics – the brand. That’s what most people will search for – a well-known business identity that gives them a head start when marketing their own business.

Of course there are emerging franchise brands that appeal to franchise buyers wanting to get in to a new business idea at an early stage, but for many franchisees the great attraction is the opportunity to align with a recognised brand, one that might even be a household name.

There are advantages to both business types – you need to identify how risk-averse you are, and what best suits your needs.

2. Do you understand the concept?

You need to be very comfortable with the franchisor and the head office team, and with the business model. You will be investing your future into the brand so there is a lot at stake.

Every successful business will have a point of difference and an identifiable profile. Are you sold on the idea? You need to be able to sell this to your family and to your friends.

3. Will the business model make money?

You want to be profitable, above all else. As a franchisee operating under the banner of this brand you will need confidence that you can pay your bills, pay back your loans, and make money for your future.

This question sits closely with the brand and concept considerations: the whole package needs to have something different from competitors.

It is easier to spot an established model that is already making money for its franchisees than to identify a winner from the starters’ line-up.

There have been a number of court cases where failed franchisees have been awarded substantial damages because the franchisor or their representative has misled them before the purchase about the income and profit that can be made.

Check everything the franchisor tells you – check with other franchisees, check with your accountant, check with leasing agents or landlords, do the sums yourself.

Of course you also need to ensure you are paying the right price for the business. A strong business model can still fail to meet your profit goals if you are encumbered by an overly-high investment for the franchise in the first place.

4. Is the franchise set up with full training on hand?

Initial and ongoing training are essential in today’s business environment. A significant proportion of new franchisees look for strong training in their franchise packages. Many franchised networks will operate an online training program that allows you to stay ahead of the game in your own time.

5. Will the franchisor be supportive?

As competition hots up in most sectors – either from increased activity from new brands or because business is tightening up – you need to be aware of how to navigate your way through a new trading environment.

A good business development manager or area manager can share with you the best practice garnered from across the network and point out ways to improve business performance.

Is the franchisor innovative and visionary? The best business can be overtaken by more agile and flexible models so you want to find a franchisor who is not only responsive to the market but looks ahead to see how to change the business before it needs to happen.

• Look out next week for our crucial questions about the franchisor.