Purchasing a franchise business has proven to be a smart business idea for many entrepreneurs pursuing the American dream. Entering the franchise arena isn't without its risks, so it pays to carefully consider these franchising tips for deciding if it's right for you.

"Purchasing a franchise operation with turn-key components can be a sound business decision for many entrepreneurs seeking to own a business, especially those desiring sales and operations support," said Tiffan Clark, Marketing Vice President of JumpStart Inc., the venture development organization behind IdeaCrossing,a free online resource that connects entrepreneurs with investors. "But it's important, as with starting any business, that the entrepreneur does their research and becomes an expert in that area. Franchisees aren't immune to the common startup pitfalls that plague most entrepreneurs."

Franchising Tips for Entrepreneurs: Keys to success

Form a purchasing team: Buying a franchise is one of the most important investments you'll ever make, so consider assembling a purchasing team to tackle this decision with you. Key team members should include an accountant, lawyer and franchise consultant. Also consider seeking out several current and former franchisees, and solicit honest feedback from the franchising front lines. Online business communities streamline the process of connecting with like-minded entrepreneurs, franchise owners and business mentors.

Franchise management: As a franchise owner you'll be the boss, but it's critical you understand the management structure of your company. Your personal success depends largely on the expertise of franchise company shareholders, directors and officers, and their demonstrated experience in franchise success. Many of the same tips for building a solid management team in any company can be applied to a franchise.

The brand name boost: Buying into an established brand name means tapping an existing market base and established customer loyalty. Built-in customers mean spending less time on marketing and more time on running your business. Another benefit to buying an established brand is ease of employee recruitment. However, well-known brands typically come with higher price tags.

Market trends: The franchise you are considering may be hot right now, but where will this market be in a few years? How does your prospective industry do during economic downturns? Examine past market trends, as well as future predictions, before committing your time and money to a franchise.

Franchise support: One of the key reasons for going the franchise route is support from the corporate offices. Investigate exactly what kind of support you can anticipate in terms of marketing, staffing, ongoing training, collective purchasing power for inventory and equipment, and trouble-shooting in the field. But remember, the success of your franchise ultimately rests with you and you alone.

Exit strategy: Like any smart business investor, you'll want to enter into your purchase with a clearly defined exit strategy. Learn upfront the costs involved with ending your contract, the terms of your contract's expiration and renewal, and conditions which can lead to you or your franchise company breaking this contract.