Evaluating franchise opportunities is tough. There are several factors entrepreneurs should consider when making informed decisions. Here are four signs that a franchise opportunity is really good:

1. Training and support. Entrepreneurs will benefit from training before starting a business in a new industry. Ongoing support also helps them navigate complex business environments. Entrepreneurs should prefer working with franchisors that have comprehensive training for new franchisees and offer ongoing support.

2. Brand reputation. A good franchise should have a strong brand that is recognized by both customers and business people. Entrepreneurs should look at review sites like Yelp to get a feel for customers’ opinions about the brand. They can also investigate whether the brand has won awards or received accolades that testify to the strength of the franchisor’s brand and business model.

3. Growth prospects. A good franchisor should allow a franchisee to grow as a franchise owner. Owning a franchise in a saturated market limits growth, while owning one in an expanding market opens the door for growth. Entrepreneurs should research the industry the franchise is in to understand growth prospects. Afterward, they can examine the franchisor’s plans and territory rights policies to see if they align with theirs.

4. Financial requirements. Opening a franchise is costly. A franchisor should be able to tell a franchisee the franchise fee and how much initial capital they will need to open a location. They should also be able to provide details on the financial performance of similar franchises so that entrepreneurs have an idea of franchise profitability and expected return on investment early on.