Know yourself. Determine exactly what results you want to accomplish in business. To help, complete a personal inventory of your strengths and weaknesses and calculate the amount of financial resources you have available to start a business.
Review disclosure documents. Take the time to carefully review the franchise disclosure, or FDD, document. In addition to earnings claims and financial statements, consider any litigation or bankruptcy information in the document. You'll want to enter into an unencumbered franchise system if possible.
Talk to existing franchisees. Ideally, you'll want to see a track record of excellence from franchisees that have gone before you. Has the franchisor managed to resolve disputes fairly? Can current franchisees verify the company's earnings claims? Are they satisfied?
Verify values and culture. Spend time with the employees and officers of the franchise company to make sure they have the same values and priorities as you do.
Take calculated risks. Successful franchisees aren't typically gamblers -- they want any risk they take to be as small and carefully controlled as possible.