When you buy a franchise, you often can sell goods and services that have instant name recognition and get training and support that can help you succeed. But purchasing a franchise is like every other investment: There’s no guarantee of success.

The Federal Trade Commission, the nation’s consumer protection agency, has prepared a consumer guide to buying a franchise. It explains how to shop for a franchise opportunity, the obligations of a franchise owner and questions to ask before you invest. Part Two of this series continues the discussion of things you need to consider in the franchise selection process.

Your Ability to Operate the Business. Sometimes, franchise systems fail. What will happen to your business if the franchisor closes up shop? Will you need the franchisor’s ongoing training, advertising or other help to succeed? Will you have access to the same suppliers? Could you conduct the business alone if you had to cut costs or lay anyone off?

Name Recognition. Buying a franchise gives you the right to associate with the company’s name or brand. The more widely recognized the name, the more likely it is to draw in customers. Among things to consider in this area are:

Training and Support Services. What training and continuing support does the franchisor provide? Does the franchisor’s training measure up to the training for workers in the particular industry? Can you compete with others who have more formal training? What backgrounds do the current franchise owners have? Is your education, experience or training similar?

Franchisor’s Experience. Many franchisors operate well-established companies with years of experience both in selling goods or services and managing a franchise system. Some franchisors started by operating their own business. There is no guarantee, however, that a successful entrepreneur can successfully manage a franchise system.

Make sure you find out how long the franchisor has managed a franchise system. Also determine whether the franchisor has enough expertise to make you feel comfortable. If the franchisor has little experience managing a chain of franchises, take any promises about guidance, training and other support with the proverbial grain of salt.

A growing franchise system increases the franchisor’s name and brand recognition and may enable you to attract customers. But growth alone doesn’t ensure successful franchisees.

Indeed, a company that grows too quickly may not be able to support its franchisees with the support services it promises them. Investigate the franchisor’s financial assets and resources. Are they sufficient to support the franchisees?

There are many ways to find franchise opportunities. Some franchisors have Web sites with information about their franchises. Franchise expositions are another good source of information, as are franchise brokers (companies or people that specialize in matching individuals with franchise companies). It’s always a good idea to visit franchised outlets in your area and talk to the owners about their experience with particular franchisors.

Shopping at a Franchise Exposition. Attending a franchise exposition allows you to see and compare a variety of franchise possibilities under one roof. Before you attend, research the kind of franchise that may best suit your budget, experience and goals. When you attend, visit several franchise exhibitors who deal with the type of industry that appeals to you. Ask plenty of questions, such as:

Exhibitors may offer you incentives to attend a promotional meeting to discuss the franchise in greater detail. These meetings can be another source of information and another opportunity to raise questions. Be prepared to walk away from any franchise opportunity - and promotion - that doesn’t fit your needs.

Using a Franchise Broker. Franchise brokers - who also refer to themselves as "business coaches," "advisors," referral sources" or "sales consultants" - help people who want to buy a franchise. They often advertise on the Internet and in business magazines that they will help you select among franchise options.

Typically, a broker reviews the amount of money you have to invest and then directs you to opportunities that match your interests and resources. A broker also may help you complete applications and the paperwork to consummate the sale. Remember that franchise brokers often work for franchisors and get paid only if a sale is completed.

Limited Opportunities. Some franchise brokers may claim to be able to match you with "the perfect opportunity" because the represent a wide range of business sellers. That may or may not be true.

In some instances, franchise brokers represent only a few franchisors; as a result, their suggestions may be limited. Find out how broad a range of businesses a franchise broker truly represents before committing to doing business.

Selection Standards. Some franchise brokers may claim that they will suggest only those franchises that meet certain standards. You may think this means that your financial risk is limited because the broker is weeding out the poor investments. In fact, some brokers represent any franchisor willing to pay them a commission for a sale. If you rely on a broker, be skeptical. You may be directed to a franchise that is failing or that doesn’t have a track record.

Up-selling. Some brokers earn a flat fee regardless of the price of the franchise they sell; others earn a commission pegged to the price of the franchise the broker sells. The more costly the franchise, the bigger the broker’s commission. Some brokers may steer you toward a more costly franchise to beef up their own commission.

Unauthorized or Misleading Earnings Representations. To convince you to buy a particular franchise, a broker may make certain representations about income. Earnings claims may not be true; sometimes, they can be misleading even if they are literally true.

For example, the figures may be based on earnings in an area where demand for the business’ goods or services is high. Or the earnings claimed may be based on outdated industry data. In some instances, earnings claims may be gross sales figures; when you factor in likely expenses, actual earnings may be far less. Because earnings representations may be misleading, many franchisors prohibit their sales representatives from making them.

Before using a franchise broker, ask yourself: