IMPORTANT NOTE: The Top 100 Franchises ranking is not intended to endorse, advertise, or recommend any franchise system nor is it a definitive list. If you are considering buying a franchise, we recommend that you do sound due diligence, including personal assessment, extensive franchise research, as well as seeking professional legal and financial advice.
How Do We Go About Our Ranking?
The information is gathered from company submitted data, franchise disclosure documents (FDDs), government filings, and other published industry sources. The data collected for each franchise is plugged into a proprietary computer formula from which the ranking is created.
The Key Top 100 Criteria:
- Sales Revenue: The ranking considers overall system sales.
- Number of Locations: For franchise systems, the goal is to grow. Therefore, we factor in system size or number of units.
- Percentage Location/Unit Growth: Using percentage growth instead of net growth somewhat tempers the general advantage larger franchise systems have over newer or smaller franchise systems in terms of growth.
- Age: There's a value in longevity. The longer a company has been around, the more likely it has faced several challenges over the years and had to find a way to be successful despite them.
- Years Franchising: Just as there's a value in general longevity, there's value in how long a company has been a franchisor as well. In theory, institutional knowledge can keep new franchisees to the system from experiencing avoidable setbacks.
- Standard Initial Investment & Royalty Fee: How much an opportunity is going to cost them to start is very important to prospective franchisees as is the royalty fee.
- Financial Assistance: Finding the necessary amount of money is always an area of concern for wannabe franchisees. There's a bonus for those who help prospective franchisees with the task of finding the funding for their franchise dream.
Last Updated: February 2024
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