--- title: "Franchise Rankings: A Consolidated Approach" url: https://burnaze.com/article/fde8f1e6-b952-4280-8f71-e2e25fd35977 source: "1851 Franchise" original_url: https://1851franchise.com/franchise-rankings-a-consolidated-approach-10142 category: "Franchisors" industry: "Franchise Industry" segment: "Franchisors" published: 2017-02-09T17:12:41.000Z modified: 2026-11-01T03:07:21.996Z image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/f9465ca4af44b8667034d7678d4ffe2f6771.jpg --- # Franchise Rankings: A Consolidated Approach **TL;DR:** Franchise rankings can be confusing due to different criteria used by various publications, but a consolidated approach can provide a more comprehensive view. Entrepreneur, Forbes, Franchise Times, Franchise Business Review, Franchise Gator, and Franchise Direct are some of the publications that rank franchises using different algorithms and criteria. *originally published in 1851 Franchise on 2017-02-09. [Read the original](https://1851franchise.com/franchise-rankings-a-consolidated-approach-10142).* ## Story Each organization is quick to put their unique spin on their top “whatever” list leaving franchise buyers confused in their wake and asking questions like “Are these publications really credible?” and “Which of these rankings can I trust?” Truth be told, there is some validity in each ranking. Each uses a different algorithm that emphasizes different criteria, but how can someone begin to understand what each ranking means, or even better, create an aggregate ranking that takes all of these rankings into account? The industry’s premiere and most visible ranking, Entrepreneur has been ranking the top 500 franchise brands for 38 years! Entrepreneur bases their rankings on what they call “The Five Pillars of Franchising” which are: - Costs and Fees - Size and Growth - Support - Brand Strength - Financial Strength and Stability This is where any aggregate ranking needs to begin. Forbes ranks their franchises a little differently, breaking them into three distinct investment bands. As such, three franchises were lucky enough to receive #1 designation in this ranking. Forbes has gone to great lengths to bring credibility to their ranking algorithm, partnering with industry research firm FRANdata and focusing on objective criteria like growth rates, continuity rates and stability. Taking a slightly different tact, Franchise Times has bypassed the “growth for growth’s sake” mantra and has recognized brands that have been wise enough to pull back on the reigns to ensure that growth occurs in a responsible and sustainable manner. Consistency and continuity are critical here. The only franchise ranking based on actual franchisee satisfaction and performance, Franchise Business Review - Franchisee Satisfaction Awards uses feedback from more than 26,000 actual franchisees to develop its ranking. Just making the cut on this exclusive list of 200 brands is notable. Franchise Gator’s ranking was formulated to measure risk reduction; taking into account themes common to other rankings like financial stability, growth, transparency, engagement, continuity and sustainability. What makes this ranking different is that it focuses on brands that are accessible to the typical franchise buyer. Franchise Direct includes more of the common metrics like system size, revenue, growth, etc. but adds an important element of global brand recognition into the equation. Let’s be honest, when you’re buying a franchise you’re buying a business model, but above all else, you’re buying a brand. My approach to the aggregate ranking is much like how I prepare for a fantasy football draft. Get all of the “expert” opinions onto a single sheet, average them out to create a consensus ranking and sort. A few liberties need to be taken as not all brands rank on all lists (in fact, only one brand ranked on all six!). In these cases, the highest possible rank is assigned so all those that did not rank are on a level footing behind those that did. The fact that the top ranked brand has an average ranking of 28.3 only shows how little consensus there is across the various franchise rankings. However, the clear separation from those brands at the top of the list from the rest of the pack is striking. So what does that mean to you the prospective franchise buyer? I firmly believe that Sport Clips is a phenomenal investment opportunity and may very well be the best opportunity for you, but no ranking, broker opinion, marketing piece or seminar will ever replace the personal inventory that needs to occur in order for you to determine what opportunity is best for you. ## Entities - 1851 Franchise (publication) - Franchise Industry (sector) - Franchise Times (publication) - Forbes (company) - FRANdata (company) - franchise rankings (topic) - Franchise Direct (company) - ranking criteria (topic) - consolidated approach (topic) --- Originally reported by 1851 Franchise (https://1851franchise.com/franchise-rankings-a-consolidated-approach-10142). Summarized by Burnaze (https://burnaze.com/article/fde8f1e6-b952-4280-8f71-e2e25fd35977).