How to Use Franchise Ranking to Your Advantage
Franchise ranking is a popular way for potential franchisees to compare different franchise opportunities. There are a number of rankings available, including Entrepreneur’s Franchise 500, which has been in existence for more than 40 years and is considered the world’s leading franchise ranking.
Other popular rankings include the Top 100 Franchises by Franchise Business Review, Nation’s Restaurant News’ Top Franchises, and GI Jobs’ Military Friendly Franchises. Each of these rankings uses different criteria to create its list, but many are based on a formula that uses numerical ratings of various aspects of a franchise company, such as franchisee satisfaction or financial strength and stability. 남자소자본창업
The rankings can help prospective franchisees narrow down their options to a few systems they would like to research further. In addition to the rankings, many websites also provide a wealth of other information on the different franchises, such as financial performance data and background information about the franchisor. This information can be extremely helpful in assessing franchises and finding out what you need to know to make an informed decision about which one is right for you.
While these types of rankings are useful tools for prospective franchisees, they should be taken with a grain of salt and not used to make final decisions about which franchise to buy. A higher or lower rank on a list doesn’t tell you much about how well a particular franchise will fit you, your lifestyle and your resources, so you should always use these rankings as one part of a more comprehensive evaluation process that includes personal assessment, thorough franchise research and the assistance of a professional advisor.
When it comes to the specific order in which a franchise appears on a ranking, that can be somewhat volatile, depending on how each year’s results are evaluated. For example, if you look at the rankings over a 3-year period, 6 out of the 10 top-ranked franchisors from 2008 did not repeat in 2011.
This volatility can be even more pronounced when reviewing the individual category listings. Specifically, this year there were only 2 franchisors that kept the same #1 rank in their industry categories, and 62 franchises changed their category leader, with some gaining and losing ranks and others moving up and down from their previous position.
In comparing the 2011 ranking in the Auto Repair and Service Category with the 2010 ranking, this year there were only 1 new #1 ranking and 15 franchises that lost their top spot. However, the Health & Wellness category saw dramatic change this year, with several franchises jumping to the #1 ranking, and others dropping out of the top 10. 솥밥 프랜차이즈 솔솥
Some franchise websites charge franchisors a fee to be listed in their rankings and then aggressively promote those that appear on the site as if they were “recommended.” Be sure to read the fine print to understand how a website is paid for, and to ensure you are getting an independent view of the different franchise opportunities.