With thousands of franchise systems operating in dozens of industries, there is no shortage of choices for people interested in buying a franchise.At the same time, the numerous choices can make that decision a challenge for even the most determined would-be franchisee. By first defining what you want and then using that information to narrow the field, you can make your decision both manageable and more likely to succeed.

As a general rule, you will want to avoid industries and fields that are either too crowded or too thinly populated. Crowding creates competition, while the absence of franchisees in a particular niche suggests that it either doesn’t lend itself to franchising or that the market hasn’t yet developed adequately. Lenders prefer to fund franchises in proven markets, so keep that in mind as well.

Here are our recommendations for finding the one that suits you:

Step 1: Take Stock of Yourself

Before you start looking at franchises, take stock of that most important component of the equation – you.

What are your skills, experiences and interests?

What did you like best and least about your past jobs? List them, then your own strengths and weaknesses in those jobs.

How much money can you invest and how much would you like to make?

Are you comfortable managing others or do you prefer to work alone?

Where do you want to work? Are you willing to relocate?

What hours are you willing to work while the business ramps up, and what lifestyle expectations do you have after it’s established?

How do you feel about selling and the sales process?

By starting with a list of what you have to offer and what you need from a business, you can create a strategy and model for your research.

Step 2: Research, and Keep an Open Mind

If you are inexperienced, you may think, “Well, I love donuts. How about a donut franchise?” And after spending days or weeks of research on Krispy Kreme, Dunkin’ Donuts and others, you might find you do not have the required capital, the territory you want isn’t available, and you would have to give up weekends to own a food franchise.

And don’t lock yourself into one or two concepts. If you think, “I will only look at ice cream and exercise franchises,” you could miss finding a gem that meshes perfectly with your needs. With thousands of franchise companies available, keeping an open mind is the best strategy to get in on the ground floor of that new, hot concept or to find something that will really take off in your market.

Step 3: First Contact

Let us say you have found several promising franchises. What’s next?

Contact the franchisors and ask for information about their concepts. You’ll probably get call from someone in their development department who will gauge your interest and tell you if the territory you want is available. Thoroughly review the franchisor’s Web site and any brochures and videos they send you.

Keep notes on your impressions. Are their materials professional and up-to-date? Are you treated courteously by friendly and knowledgeable staff? Are your questions and concerns answered to your satisfaction? What you see from the company at this time may be an indication of the type of support you’d get as one of its franchisees.

Step 4: Read the FDD

Every franchise should provide an FDD (Franchise Disclosure Document). Some franchisors also include earnings claims in the FDD. These will help you estimate your business potential.

The FDD clearly explains the responsibilities of the franchise (you) and the franchisor. Reviewing and understanding it is a very significant part of your research.

By paying attention to what you find in a company’s FDD, you can weed out franchises that just don’t measure up. Some warning signs are extensive litigation with franchisees or closing more outlets than opening new ones.

Step 5: Talk with Existing Franchisees

Getting feedback from existing franchisees is one of the most important steps you can take to judge how happy you will be with a particular franchise. They are your best source of information about what really happens in the business day to day. Ask what they like and dislike, if they are happy with corporate support, and even get a feel for their earnings.

Gather a variety of opinions and you will get a clear picture not only of the franchise itself but of how you would fit into the organization.

Step 6: Narrow the Field

It may not be easy, but it’s time to narrow down your choices. Let us review what you have done so far:

Make a list of your strengths, experiences and needs.

Researched with an open mind, and found some promising companies.

Requested information.

Talked with existing franchisees

Hopefully you have now found one or more companies that fill your needs.

Now it’s time to go to Discovery Day — an on-site meeting with the franchisor(s) you’ve chosen. There you will be introduced to the top people in the home office, and may visit a local franchisee, allowing you to ask even more questions and maybe get some hands-on experience with the business.

Discovery days are very interesting and exciting. When you leave, you’ll have a good understanding of the franchise. Do not forget they will also be evaluating you as thoroughly as you evaluate their business.