Entrepreneur's 24th Annual Franchise 500
A closer look at this year's ranking of the top 500 franchises
Thousands of prospective entrepreneurs seeking stability in
unstable times have turned to franchising, making this old standby
a new economic star. What's the allure? Generally, franchising
offers the perks of a corporation, minus the scandal, and the
freedom of entrepreneurship, minus much of the risk. If you believe
2003 is your year to buy a franchise, Entrepreneur's
24th Annual Franchise 500® is a great place to start your
search.
The initial Franchise 500® in 1980 was the first ranking of
franchises in the industry. Over the years, we have polished and
perfected our ranking procedure, giving us a formula that
accurately identifies today's top franchise opportunities for
you.
Only franchise companies that submitted full Uniform Franchise
Offering Circulars (UFOCs) or Alberta, Canada, disclosure documents
were eligible to receive a listing in the magazine. And only those
companies that have a U.S. or Alberta, Canada, disclosure document
and whose information Entrepreneur verified from the
disclosure documents are eligible to be ranked--giving us the top
500 franchises.
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We consider numerous factors in our ranking, some of which are
weighed more heavily than others. The most important ones include
financial strength and stability, growth rate and size of the
system. We also consider the number of years in business and length
of time franchising, start-up costs, litigation, percentage of
terminations and whether the company provides financing. Financial
data was audited by an independent CPA firm. Every company with
verifiable data receives a cumulative score. The franchises with
the highest "cumes" become the Franchise 500®.
These factors are objective, quantifiable measures of a
franchise operation. We do not measure subjective elements such as
franchisee satisfaction or management style, because these are
judgments only you can make based on your own needs and
experiences. All companies, regardless of size, are judged by the
same criteria.
Remember that the Franchise 500® is not intended to
endorse, advertise or recommend any particular franchise(s). It is
solely a research tool you can use to compare franchise operations.
Entrepreneur stresses that you should always conduct your
own independent investigation before you invest money in a
franchise. Read the UFOC and related materials carefully; get help
from an attorney and CPA in reviewing any legal documents; talk to
as many existing franchisees as possible and visit their outlets.
The best way to protect yourself is to do your homework.
Research compiled by Maria Anton Conley, Maggie Iskander and
Zoy Parkinson-Smith; financial analysis by David R. Juedes, CPA;
additional assistance from Steve Cooper, April Y. Pennington, Katie
Boyle and Sara Wilson.