When you are looking for information about franchise opportunities online, you will find lots of sites that promote their own franchise rankings and offer franchise reviews. While some of these rankings and reviews provide useful insights, it is important to understand their limitations as well.
If a franchise is ranked first in a particular category, what does this mean, exactly? How do different sites come up with their rating systems, and how do they choose which franchises to review? These are crucial questions; and, when analyzing rankings and reviews, it is necessary to go beyond the ranking or review itself and consider the factors upon which each ranking and review is based.
Fact #1: Many Rankings and Reviews are “Pay for Play”
Many websites require franchisors to pay in order to receive consideration for their rankings, and many franchise reviews are provided on a paid basis. However, this fact is often obscured in the published ranking or review. Obviously, paid reviews should be taken with a grain of salt, and it will be important to gather information about the franchise from several unbiased sources as well.
Fact #2: All Franchise Rankings are Based On Selected Data
All franchise rankings are based on selected data, and many rankings weight certain factors more heavily than others. As a result, when reviewing rankings, it is important to examine the ranking criteria in order to discern exactly what it means for one franchise system to be ranked above or below another.
Fact #3: Franchise Reviews Often Only Tell One Side of the Story
Even if a franchise review is not paid, it will often only tell one side of the story. This is true for both positive and negative reviews. As a result, while you can read reviews online, this is not a substitute for speaking with the franchisor’s representatives and speaking with current and former franchisees in order to gain a well-rounded understanding of the benefits and limitations of a franchise opportunity.
Fact #4: Many Rankings Leave Out Entire Classes of Franchise Opportunities
Another factor to consider when reviewing franchise rankings is that many rankings leave out entire classes of franchise opportunities. For example, some will only rank franchise systems over a certain size or that have been in business for a certain number of years. While smaller and newer franchise systems present their own sets of risks, when exploring your options, it is important not to discount these systems entirely.
Fact #5: No Two Rankings or Reviews are Exactly Alike
Finally, no two rankings or reviews are exactly alike. This goes to show that any information you find online will carry an element of subjectivity. What does this mean for your franchise search? As a prospective franchisee, you need to gather information from many different sources, and you need to make your own decision based on what you believe is the best franchise opportunity for your personal circumstances.
Considering a Franchise? Speak with National Franchise Attorney Jeffrey M. Goldstein for Free
Are you thinking about buying a franchise? If so, it will be important for you to discuss your franchise opportunity with an experienced franchise attorney. To schedule a free consultation with national franchise attorney Jeffrey M. Goldstein, call 202-293-3947 or inquire about our fixed-fee franchise business review programs online today.
