Oct 31, 2018 - Blog, Franchise Articles by |

Franchisors love rankings. Visit any well-known franchisor’s website, and you are bound to see a laundry list of rankings purporting to provide third-party validation of the franchisor’s superiority in its niche, if not in the franchise industry as a whole. Similarly, a Google search for “franchise rankings” provides links to web pages and articles with titles like:

  • Top 100 Global Franchises
  • 2018 Franchise 500 Ranking
  • Top 100 Franchises – Rankings of Global Franchises 2018
  • Rankings of the Best Franchises
  • America’s Best and Worst Franchises to Buy
  • Top 50 Franchises in the World
  • Top 100 Franchises of 2018

As a prospective franchisee, how much stock, if any, should you put in a particular opportunity’s ranking as a “top franchise”?

Understanding Franchise Rankings

When considering what value to place on a ranking, it is always important to consider the source. As a general rule, legitimate media outlets (such as Forbes.com and Entrepreneur.com) will be more reliable than websites that exist solely to sell advertising (often for their own “top-ranked” franchise opportunities). A site that seeks to have some legitimacy behind its rankings should disclose the source of its data and its methodology as well. For example, in compiling its list of “America’s Best and Worst Franchises to Buy,” Forbes.com relied on five years’ worth of statistical data compiled by FRANdata examining system sustainability, system demand, value for investment, franchisor support and franchisor stability.

On the other hand, the Forbes.com list also relies on data that are a minimum of two years old, and this can be a lifetime in the world of franchising.

Then, there is the question of how a site is determining what constitutes a “top” franchise. Is the site simply considering the number of franchised outlets that are currently open? Is it focusing on “value” factors (such as initial investment costs and royalty rates)? Or, is it actually conducting comparative analyses to arrive at quantitative or qualitative conclusions?  One of these is not necessarily “better” than the other; but, it is important to understand why one franchise opportunity is being ranked ahead of another.

Also, keep in mind that some “rankings” in the franchise industry are pay-for-play. With these sites, franchisors must pay a fee in order to be considered for ranking, and the rankings are often based on the amount paid. Additionally, some rankings – even well-known rankings like Entrepreneur’s Franchise 500 – require franchisors to apply for inclusion. So, a franchisor that does not care about rankings will not show up regardless of the quality of its system and franchise opportunity.

In short, when evaluating franchise opportunities, take rankings with a grain of salt. Base your decision on your own qualitative and quantitative analysis, and take your time to gather as much reliable information as possible.

Are You Considering a Franchise Opportunity?

If you are considering a franchise opportunity, the Goldstein Law Firm can help you make an informed decision and negotiate the terms of your franchise agreement with your franchisor. To learn more about our flat-fee services, please call (202) 293-3947 or request a free initial consultation online today.

Lawyer USA

Super Lawyers

Lawyer USA

Complex Commercial Litigation Law Firm of the Year – USA

Lawyer USA

Complex Commercial Distribution Litigation Representative

Lawyer USA

Antitrust & Franchise Law Firm of the Year – Washington DC

Lawyer USA

Best Franchise Lawyer of the Year – New York

Lawyer USA

Best for Franchise Disputes – USA

Lawyer USA

Complex Commercial Litigation Law (Franchisees and Dealers) 2021 – USA

Lawyer USA

Antitrust and Franchise Law Firm of the Year in DC

Lawyer USA

Leading Professionals in Law

Lawyer USA

Franchise Law
in the District of Columbia

Lawyer USA

Franchise Law Firm
of the Year – USA

Lawyer International

Lawyer International
Legal 100
2018

Lawyer International

Lawyer International
Legal 100
2019

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Lawyer
of the Year
ACQ5 GLOBAL AWARDS 2019, JEFF GOLDSTEIN, GOLDSTEIN LAW FIRM, PLLC

ACQ5 LAW AWARDS 2019

US (New York)
Franchise Law Firm
of the Year
ACQ5 GLOBAL AWARDS 2019, GOLDSTEIN LAW FIRM, PLLC

Lawyers of Distinction logo

2020 Power Lawyers

Esteemed Lawyers of America Logo

Esteemed Law Firm Complex Litigation

Global Law Experts Logo

Recommended Firm in Franchise Litigation

Who's Who Attorney Logo

Top Attorney USA – Litigation

Avvo Franchise Lawyer Symbol

Superior Attorney in Franchising

Avvo Franchise Lawyer Symbol

Superior Attorney in Antitrust

Finance Monthly Global Award Winner Logo

Franchise Law Firm of the Year

Lead Counsel logo

Chosen Law Firm for Commercial Litigation

BBB of Washington DC

A+ Rated

Washington DC Chamber of Commerce

Verified Member

Lawyers of Distinction logo

Franchise Law Firm of the Year

ISSUU

Best Law Firm for Franchise Disputes in 2017

Law Awards Finanace Monthly

Franchise Law Firm of the Year - 2017

Top Franchise Litigator for Franchisees and Dealers

Top Franchise Litigator for Franchisees and Dealers

2017 Finance Monthly Award

2017 Finance Monthly Award

ACQ5 LAW AWARDS 2018

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2018

ACQ5 LAW AWARDS 2019

Franchise Law Firm
of the Year
ACQ5 LAW AWARDS 2019

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year

Franchise Law Firm of the Year
Global Awards 2017

Global Law Experts

Franchise Law Firm
of the Year
in New York – 2019

Finance Monthly Law Awards - 2018

Finance Monthly Law Awards - 2018

Franchise Law Firm of the Year

Franchise Law Firm
of the Year
Global Awards 2018

Contact Us

Goldstein Law Firm, PLLC

1629 K St. NW, Suite 300,
Washington, DC 20006

Phone: 202-293-3947
Fax: 202-315-2514

Free Consultation

Downtown Chicago Office

30 South Wacker Drive 22nd Floor #3341,
Chicago, IL 60606

Phone: 312-382-8327

Free Consultation

Free Consultation