Why You Shouldn’t Trust Top Franchise Lists and Rankings

One common marketing tool among franchisors looking for prospective franchisees is the use of “Top 10” (or similar) lists produced by various publications. Prospective franchisees should take these franchise rankings with not just a grain, but at least a tablespoon of salt. These top franchise lists use any number of methodologies, which can dramatically change the purported “rank” of the system. Some publishers also have inherent conflicts of interest when developing these rankings. Methodology Bias The methodologies are often based on statistics and data provided by franchisors themselves, meaning a prospective franchisee may not be getting the full picture. For example, if a franchisor includes a representation of financial performance in Item 19, those performance figures do not necessarily reflect an average franchised outlet. Yet publications treat the information as true and objective, if for no reason other than it is the only data available.…

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