In franchising, not all growth is good growth. Some companies expand faster than they can manage, and others have bursts of explosive growth but never get into a groove. The healthiest franchise systems tend to maintain steady, sustained growth year after year—which is a good indication that they have the systems in place to support their new franchisees. To identify the companies achieving exactly that, we’ve put together our Top Growth Franchises ranking.
We determined this list by looking at each company’s U.S. and Canadian franchise numbers over a three-year period (from July 2016 to July 2019; given the rapid changes, COVID-19 impacts weren’t taken into account). In order to qualify, companies had to have positive growth of at least five units each year. They were then scored based on a formula that considers their total positive U.S. and Canadian franchise growth over three years as well as factors that negatively affect growth, such as terminations, nonrenewals, and other closures. Finally, the 150 companies with the highest scores were ranked from highest to lowest.
This list is not intended as a recommendation of any particular franchise company. Sustained growth is one sign of a potentially strong franchise, but it’s only one of many factors you should weigh in finding the fit that’s right for you. Always do your homework: Read the company’s legal documents, consult with an attorney and an accountant, and talk to as many existing and former franchisees as you can.
