There's loads that gets into piecing together initial, most useful & most extensive team position on earth. Here Is a behind-the-scenes evaluate Entrepreneur's 37th yearly Franchise 500®.
The process began in July 2015, whenever we requested franchisors to take part in our study. Each submission had been vetted before becoming entered for information evaluation; 951 organizations made 1st slice. Of these, the very best 500 became the Franchise 500® ranking, considering economic and analytical data from July 2013 through July 2015.
Just team businesses supplying the full Franchise Disclosure Document (FDD) or Canadian Disclosure Document and whoever information is verified by Entrepreneur can get an inventory. Is entitled to the Franchise 500®, a franchisor need no less than 10 units, with at least one franchise found in the U.S. The company must be searching for brand-new franchisees within the U.S., plus it is not in section 11 during the time the position is put together. (The exclusion to these principles is Canada-based organizations that are growing just in Canada.)
All companies tend to be evaluated by the same requirements: goal, quantifiable actions of a franchise operation. The most important elements feature monetary power and stability, development rate and size of the machine. We in addition look at the period of time an organization has been doing company and the period of time it's been franchising, startup prices, litigation, percentage of terminations and whether the business provides financing. Financial data is reviewed by an unbiased CPA.
We try not to measure subjective elements such as for instance franchisee satisfaction or administration design. The objective facets are attached to our unique Franchise 500® formula, with each eligible company obtaining a cumulative score.
Remember that the Franchise 500® is not intended to endorse, market or recommend any certain team. It really is entirely a research tool you can use evaluate team functions. Entrepreneur stresses that you need to always carry out yours separate research before trading money in a franchise. Browse the FDD and relevant products carefully, get help from a franchise attorney and a CPA in reviewing any legal or economic documents, and keep in touch with as many current and former franchisees as you are able to and visit their outlets. How to protect yourself is always to do your research.
Research compiled by Tracy Stapp Herold and J.R. Jimenez with the assistance of Hava Arieh, Rick Ignarra, Nicole Jurinek, Yvette Madrid, Jessica Nguyen and Giuseppe Ricapito; technical the help of Angel Cool and Daniel Sibitzky; economic analysis by David R. Juedes, CPA; graphic design by Karen Meneghin.