You have decided to buy a franchise and the statistics are in your favour.

You are much more likely to build a successful business when you have the backing of a proven system, training and support. But success is still not guaranteed and what you do between making that decision and signing the contract will be crucial to your future.

Jane Garber-Rosenzweig, Principal at Gable Lawyers and a specialist in Franchising & Commercial Law, has identified seven questions that need to be answered.

1. Is this the right franchise for you?

Running a franchise is very different from having a job. If you have never run a business before, you could be surprised by just how long and hard you need to work, particularly in the first couple of years.

“It’s very important to do thorough research into what is involved and the impact it will have on your family and your lifestyle, “says Garber-Rosenzweig. “For example, you may love the idea of having a bakery, but is it realistic for you to get up at 3am every day and work seven days a week?”

2. Can you afford it?

Banks may lend up to 60 percent against certain franchises, but not many. In the vast majority of cases they want ‘bricks and mortar’ security such as substantial equity in your home or an investment property. You also need enough working capital to cover at least the first year of trade.

“An experienced accountant can help you to work out the figures and your options,” says Garber-Rosenzweig.

3. Is the franchise sound?

Due diligence is essential.

“You need to consider the financials and, if you’re buying from an operating franchisee, the trading history,” says Garber-Rosenzweig. “A franchise lawyer can help with necessary searches and other research.”

4. Does the franchise live up to its promises?

The best source of information about the franchise itself is current and past franchisees – and not just those recommended by the franchisor.

“Ask them whether they’re getting the support and financial returns they expected,” says Garber-Rosenzweig

5. Could there be a problem with the premises?

If you’re taking over leased premises, there’s no guarantee that the lease will be renewed at the end of the term or that, if it is, the landlord won’t substantially increase the rent. Consider how long the lease has to run and your options in the worst case scenario.

6. Is your business structured for success?

Unless you’re setting up a family business or in partnership with friends, you will generally have the choice of operating as a sole trader or a company.

“Becoming a sole trader is simpler and cheaper but I strongly recommend against it due to a high degree of personal exposure,” says Garber-Rosenzweig. “And, if you do make a decent profit, you could end up paying tax at the highest tax rate on your income. With a company structure you are less exposed as an individual and you could pay less tax.”

7. Are the documents in order?

Your funding is in place and your accountant has given the go-ahead – now it’s time for your lawyer to review, negotiate and finalise the legal document before you sign. If you have worked with professional advisors from the outset, done thorough research and listened to your head as well as your heart, there’s every chance you’re signing up for success.