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Understanding the Rankings A look inside on how the Franchise 500® list was compiled.

We've spent the past several months researching and analyzing hundreds of franchise companies--not to mention the time we've put in to perfecting our ranking procedure and top-secret formula over the past 29 years--and we're proud to present Entrepreneur's 29th Annual Franchise 500®, the world's first, best and most comprehensive franchise ranking.

Only franchise companies that submit full Uniform Franchise Offering Circulars (or UFOCs) or Canadian disclosure documents and whose information is verified by Entrepreneur can receive a listing in this issue. To be eligible for the Franchise 500® ranking, a franchise company must have a minimum of 10 units with at least one being a U.S.-based franchise, it must be seeking new franchisees in the United States, and it cannot be in Chapter 11 at the time the ranking is compiled. (An exception to these rules is Canada-based companies that are only expanding in Canada.)

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