Jan 15, 2021 - Blog, Franchise Articles by |

Entrepreneur.com recently released its Franchise 500 list for 2021. The Franchise 500 is the online media platform’s annual ranking of the best franchises in the United States. If you are thinking about buying a franchise listed on the Entrepreneur.com 2021 Franchise 500, we encourage you to inquire about one of our fixed-fee franchise business review programs.

In ranking the “best” franchises in the United States, Entrepreneur.com weighs a variety of different factors. This includes everything from the cost of ownership to brand strength, and from the franchisor’s financial stability to the overall franchise system’s size and growth. As with any ranking, the Entrepreneur.com Franchise 500 is somewhat subjective, and different metrics could be used to produce very different rankings.

With this in mind, here are some notable takeaways from this year’s list:

1. Big-Name Brands Dominate the Top 50

There is a good chance that you will recognize every single brand represented by the top 50 franchises in the Entrepreneur.com Franchise 500. Big-name brands dominate the top of the list, as has been the case in years past. This is due in large part to the methodology used to determine the franchises included on the list. Farther down the list, however, you will see many smaller and lesser-known brands.

2. The Food Franchise Industry Remains Strong

Five of the top 10 and nine of the top 20 franchises in the Entrepreneur.com Franchise 500 are food concepts. Taco Bell took the top spot, followed by Dunkin’ in second and Popeyes Louisiana Kitchen in fourth.

3. The Top Franchises on the List Have a Broad Range of Initial Investments

Notably, there is a significant amount of disparity among the initial investments required for the top franchises in the Entrepreneur.com Franchise 500. Within the top 20 franchises, estimated initial investments range from the high five figures (Kumon Math & Reading Centers, 7-Eleven, and uBreakiFix) to several million dollars (Taco Bell, Culver’s, Planet Fitness, and Valvoline Instant Oil Change).

4. Many Different Industries Have Strong Representation

In addition to all types of food concepts, several other types of franchises have strong representation in this year’s Franchise 500 as well. For example, all of the following industries have more than one franchised brand in the top 50:

  • Automotive
  • Cleaning and Restoration
  • Education
  • Hair Care and Salons
  • Health and Fitness
  • Hotels, Motels and Hospitality
  • Real Estate
  • Retail

5. Many of the Top-Ranked Franchise Systems are Also Among the Fastest Growing

Perhaps unsurprisingly, many of the top-ranked franchise systems on the Entrepreneur.com Franchise 500 are also among the fastest-growing. Importantly, if you are considering one of these franchises, it is important not to rely solely on the franchisor’s reputation in making your buying decision. There are several factors to consider, and it will be important to work with an experienced franchise attorney to make your final buying decision.

Inquire about Our Fixed-Fee Franchise Business Review Programs

Are you thinking about buying a franchise on the Entrepreneur.com Franchise 500? To get started with one of our fixed-fee franchise business review programs, please call 202-293-3947 or request a free consultation online today.

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