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Understanding the Ranking

On the following pages, you’ll find Entrepreneur’s 38th annual Franchise 500 ranking. We always put together what we know to be the first, best, and most comprehensive franchise ranking in the world, but we also understand that being the best doesn’t mean we can’t be better. The franchise world is constantly evolving, and so are our rankings.

Our formula is based on the same factors as before: system size, growth, and financial strength and stability. But we’ve developed new ways to measure and analyze them. And we’ve continued to add factors that have become increasingly important in today’s economy—like, say, social media presence, which certainly wasn’t relevant 38 years ago. Here’s a breakdown:

The Five Pillars of the Franchise 500®
Some key factors that go into our evaluation.

COSTS & FEES

Franchise fee
Total investment
Royalty fees

SIZE & GROWTH

Open & operating units
Growth rate
Closures

SUPPORT

Training times
Marketing support
Operational support
Franchisor infrastructure
Financing availability
Litigation

BRAND STRENGTH

Social media presence
System size
Years in business
Years franchising

FINANCIAL STRENGTH & STABILITY

Franchisor’s audited financial statements

Pillars and factors are not listed in order of importance.

So how was the ranking put together? Beginning in July 2016, we asked franchisors to fill out our online form and submit a copy of their full current Franchise Disclosure Document (FDD) or Canadian Disclosure Document. A whopping 988 companies supplied all the required information, and their submissions were vetted by our editorial team before being entered for data analysis.

To be eligible for our ranking, a franchisor must have had a minimum of 10 units open and operating as of July 31, 2016, with at least one franchise located in either the U.S. or Canada. The company must also be seeking new franchisees in the U.S. or Canada. It could not be in Chapter 11 bankruptcy proceedings. Once eligible, each company was then scored based on more than 150 data points, and the 500 companies with the highest cumulative scores became the Franchise 500.

Please remember that the Franchise 500 is not intended to endorse, advertise, or recommend any particular franchise. It is solely a research tool you can use to compare franchise operations. Entrepreneur Media stresses that you should always conduct your own independent investigation before investing money in a franchise. Read the FDD and related materials carefully, get help from a franchise attorney and an accountant to review legal and financial documents, and talk to as many existing and former franchisees as possible and visit their outlets. The best way to protect yourself is to do your homework.

2017 Franchise 500 Ranking

Our 38th Annual Franchise 500 ranking reveals the impact of the newest trends and the industries poised for growth.

2017 Franchise 500 Ranking

RANK

FRANCHISE

INITIAL INVESTMENT

The UPS Store Request More Info

Jimmy John's Gourmet Sandwiches Request More Info

Ace Hardware Corp. Request More Info

Wingstop Restaurants Inc.

Sport Clips Request More Info

Kumon Math & Reading Centers Request More Info

Supercuts Request More Info

Anytime Fitness Request More Info

Krispy Kreme Doughnut Corp.

Orangetheory Fitness

Culver Franchising System Inc.

Jersey Mike's Subs

Miracle-Ear Inc.

McAlister's Deli

Phenix Salon Suites Franchising LLC

Mosquito Joe Request More Info

Great Clips Request More Info

Hampton by Hilton

Carl's Jr. Restaurants

One Hour Heating & Air Conditioning

Express Employment Professionals Request More Info

Merry Maids Request More Info

Jan-Pro Franchising Int'l. Inc.

Sonic Drive-In Restaurants

IHG (InterContinental Hotels Group)

Freddy's Frozen Custard & Steakburgers

Edible Arrangements

Mathnasium Learning Centers Request More Info

Goldfish Swim School Franchising LLC

Blaze Fast-Fire'd Pizza

Spherion Staffing

Pet Supplies Plus

Moe's Southwest Grill

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