Each year, the Franchise Times publishes its list of “Best Franchises to Buy,” also known as the “‘Zor Awards” (for those who aren’t in the know, “‘zor” is industry shorthand for “franchisor”). It recently published its list of award recipients for 2020, with the following franchises named the best in their respective categories:
- Around the House (Home Repair) – The Glass Guru
- Quick Flip (Quick-Service Burger Restaurants) – Culver’s
- Fresh Baked (Bakeries and Cafés) – McAlister’s Deli
- Cut & Dry (Lawn Care and Painting) – Five Star Painting
- Game, Set, Match (Sports Bars) – Twin Peaks
- After the Storm (Disaster Restoration) – Paul Davis Restoration
- Window Shopping (Retail) – uBreakiFix
- Sweat It Out (Boutique Fitness) – CycleBar
- Help Wanted (Employment and Staffing) – PrideStaff
- Bring it Home (Delivery and Takeout Pizza) – Toppers
Methodology for the Franchise Times ‘Zor Awards
So, what does it mean for a franchise to be named the “best” in its category by the Franchise Times? In How We Chose the ‘Zor Awards, the publication breaks down its selection process:
- Identifying Candidates for Inclusion – In order to be considered, a franchise must have fallen into one of the 10 categories listed above, and it must have been listed in the Franchise Times’ “Top 200+” database. The Franchise Times, “further narrowed the list by analyzing the quality of information in each brand’s Item 19 [disclosures] or other key financial data, and also focusing on brands that are currently expanding inside the United States.”
- Financial Metrics Focused on Franchisee Profitability – Next, the Franchise Times considered six financial metrics based on the information contained in the candidates’ Franchise Disclosure Documents (FDDs). It also conducted “editorial research” focused on the candidates’ “management teams, product or service offerings, unit openings and closings, financial backing of the brand[ and] litigation.”
- Three Scoring Pillars – In order to choose the winners, the Franchise Times (i) considered the finalists’ FDD and financial data; (ii) talked to experts in franchising, reviewed our own coverage of these brands, and looked at analyst reports, recent financial performance and outside press articles; and, (iii) conducted an online poll. The online poll received less consideration than the first two scoring pillars.
Should You Buy a “Best” Franchise?
If a franchise is labeled one of the “best” by Franchise Times (or a “top” franchise by any of the various other entities that rank franchise systems), does this mean that it is a good buy? As always, the decision to buy a franchise needs to be a personal one that is based on a multitude of different factors. While rankings can be informative to an extent, they do not provide a complete picture of the viability of a franchise opportunity, and prospective franchisees must ultimately make their buying decisions based on their own personal assessment all pertinent considerations.
Are You Thinking About Buying a “Best” Franchise?
At the Goldstein Law Firm, we help prospective franchisees make informed buying decisions with our fixed-fee franchise business review packages. If you are thinking about buying a “best” franchise (or any other franchise) and would like to speak with an experienced franchisee lawyer, call 202-293-3947 or contact us online to schedule a free initial consultation.