It is important that potential franchisees pick the right franchise for them. The nonprofit SCORE offers workshops and counseling services at a nominal fee for people looking at going into business. They recommend the following:

• Have a business plan.
• Engage a practicing attorney in your state to review the franchise agreement.
• Be skeptical, and don't rush into anything.
• Talk to at least three other established franchisees outside of the immediate area, and determine how successful they are and why.

Some potential problems are well-hidden. National marketing programs of some franchisors, like McDonalds or 7-Eleven, are of great value to franchisees. It's crucial that franchisees clearly understand their contractual rights and obligations, including the cost of getting out of the franchise.