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Top 10 of 2007

Entrepreneur’s Franchise 500’s
Best Franchise Businesses — Franchise 500 Top 10

Entrepreneur managezine’s best of the best.

  1. Subway
  2. Dunkin’ Donuts
  3. Jackson Hewitt Tax Service
  4. 7-Eleven (the recently bought out the White Hen chain in Illinois)
  5. UPS Store
  6. Domino’s
  7. Jiffy Lube
  8. Sonic Drive In Restaurants
  9. McDonald’s
  10. Papa John’s Pizza

link to the the remaining 500.

Here are a few I noticed in particular (some for good, some for bad reasons):

384. Nature’s Way Cafe: Healthy foods, salads, wraps, soups, smoothies
325. Cash Plus Inc. : Check cashing & related services
312. Rent-A-Wreck: Auto rentals & leasing
298. Steak n Shake: Steakburgers, fries, milkshakes
273. Nestle Toll House Cafe by Chip: Cookies, baked goods, coffee, ice cream
252. HomeVestors of America Inc. : Home buying, repair & selling system
225. It’s Just Lunch Int’l. LLC: Dating service
212. Pita Pit Inc.: Pita sandwiches
151. Super Suppers: Do-it-yourself home meal preparation
105. Bark Busters Home Dog Training: In-home dog training
87. Qdoba Mexican Grill :Fast-casual Mexican food
75. CiCi’s Pizza : All-you-can-eat pizza buffet
72. Sport Clips: Men’s sports-themed hair salon
58. Jimmy John’s Gourmet Sandwich Shops: Gourmet sandwiches
56. Edible Arrangements: Floral-like designs from sculpted fresh fruit

Franchise 500 Criteria (important):

All companies, regardless of size, are judged by the same criteria: objective, quantifiable measures of a franchise operation. The most important factors 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, startup costs, litigation, percentage of terminations and whether the company provides financing. Financial data is audited by an independent CPA. We do not measure subjective elements such as franchisee satisfaction or management style, since these are judgments only you can make based on your own needs and experiences. The objective factors are plugged into our exclusive Franchise 500® formula, with each eligible company receiving a cumulative score. The 500 franchises with the highest cumulative scores become the Franchise 500®.

About Ryan Knoll

Attorney and advisor with an interest in franchising. Feel free to email me comments and questions on the "Contact Us" page.

5 comments

  1. How do Edible Arrangements prepare the fruit? Is it precut and shipped to the franchisee? Or does the franchise cut and shape it with a knife?

  2. [quote comment=”3333″]How do Edible Arrangements prepare the fruit? Is it precut and shipped to the franchisee? Or does the franchise cut and shape it with a knife?[/quote]
    They have tools that carve the fruit on location.

  3. It is perfectly clear that when discussing pathological situations (ie. acute opportunism @ work) the franchise industry professes a remarkable Dark Ages non-quantifiable world view.

    However, when it comes to selling something, the junk statistics are paraded out for all non-sophisticated consumers to see.

    Applying non-investor outcome measurements to “an exclusive formula”: oh, no, please. LOL. It’s too rich for any advertising sales executive.

    A curious dichotomy: no system professes to opportunism but resists every legislative effort to prevent it in the future.

    “We don’t cheat now, but we reserve the unilateral right
    to do so in the future.”

    Anyone that puts ANY credence in these or any other rankings is, by definition, behaving foolishly.

  4. It is unfortunate that merely publishing a list can give credence to the uninformed…

  5. [quote comment=”3388″]It is perfectly clear that when discussing pathological situations (ie. acute opportunism @ work) the franchise industry professes a remarkable Dark Ages non-quantifiable world view.

    However, when it comes to selling something, the junk statistics are paraded out for all non-sophisticated consumers to see.

    Applying non-investor outcome measurements to “an exclusive formula”: oh, no, please. LOL. It’s too rich for any advertising sales executive.

    A curious dichotomy: no system professes to opportunism but resists every legislative effort to prevent it in the future.

    “We don’t cheat now, but we reserve the unilateral right
    to do so in the future.”

    Anyone that puts ANY credence in these or any other rankings is, by definition, behaving foolishly.[/quote]

    It’s probably the franchisee’s fault for not clear understanding and negotiating the franchise agreement. Entrepreneurs are “frugal” by nature, but for some reason do not often negotiate the franchise agreement. Part of that is probably because they are too “frugal” to engage a qualified attorney to represent them in the whole process. The attorney will most likely explain the ramifications and try to insert qualifiers and contingencies so problems like non-approval of a reasonable franchisee-selected location is a minimal risk.

    Sure, Les, there is some predatory and unethical actions by franchisors, but almost all are within the framework of the UFOC/franchise agreement. So, I too see the problem as an uneven playing field, but primarily because franchisees go in naive and oblivious to the risks because most are not represented by an attorney who needs to review, educate and negotiate.

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