Top 10 franchises
Ever wondered what were the top 10 franchises?
Just recently a potential franchise buyer asked if I had a list of the top 10 franchises. As it happened, I had a flyer I had put away from a franchisor proudly announcing they were number 7 in the top 10 franchises based on an article published by Entrepreneur magazine and printed in their January 2011 edition. This claim had me interested as I wondered if the 2012 list was now published and sure enough, a quick search of the web and there it was. Doing a little more research and there is no shortage of publications putting together their top 10 franchises with other articles from Inc Magazine and other on-line web bloggers and magazine style companies.
So if a franchise makes the top ten franchises is that enough to make you want to buy their franchise and devote your time and energy? Hopefully the answer is ‘no.’ A list of top 10 franchises normally comes from a publication that’s looking to attract advertising dollars from franchisors. My criticism is probably a little harsh but one of the things these articles do not always explain is the criteria the magazine uses to compile the top ten list. Is the list compiled by looking at the franchisor with the most number of locations, the most number of locations owned by franchisees and excludes locations the franchisor owns, the most number of locations the most number of individual franchisees own and excludes locations the franchisor owns and multiple locations a franchisee owns or some other set of criteria.
Yes, it can be confusing and so seeing a list of top 10 franchises can be of little help to a potential buyer of a franchise. The best approach for someone considering buying a franchise is for them to put a list of their top 10 criteria together and look for a franchise opportunity that meets their criteria. Here is a list of items to consider in your search criteria for your top franchise.
- Am I willing to relocate if I find the right franchise opportunity but it is not available in the area where I live?
- What are my strengths and weaknesses so I use this to help find the right franchise for me – Selling, Operations/Management, Finance, Marketing, Retail, Service?
- What is my risk level – am I willing to learn a new industry or would I prefer to buy a franchise in the same industry I currently work.
- What criteria will I use to know if I have found the right franchise opportunity, that is, are the following criteria important to me. For example, am I looking to be my own boss, personal growth, flexible time, involve my family, help my local community, achieve a certain income level, build the franchise and then sell it or control my future.
- Do I have the time and energy to commit to about 8 hours per week doing the research to find the right opportunity?
- What daily roles would you enjoy, for example, managing employees, sales prospecting, marketing, networking, customer service or providing quotes and estimates
- What kind of hours are you willing to work – part-time or full-time?
- How much am I willing to invest if I find the right franchise opportunity?
- Do you need third party finance to purchase the franchise? If so, do you have any felony convictions, declared bankruptcy or a poor credit score which will exclude you from getting a loan?
- How soon do you wish to be in business? Now, three months, six months or sometime in the future?
If buying a franchise is high on your list and you have the time and energy to commit to seeing if this is right for you, know the criteria that is important to you. The process to qualify and find the right opportunity takes a considerable effort but ultimately you will be successful if you know what is important to you. Over the years franchising has changed and is no longer restricted to fast food, gas stations or accommodation chains. There are also a diverse range of franchises with different price points.
Just in case you have an interest, the top 10 franchises in 2011 according to Entrepreneur magazine were:
- Hampton Hotels
- Days Inn
- Vanguard Cleaning Systems
If you look at a list of the top 10 franchises you will typically see franchises that are more expensive. Do not be discouraged if you only have $50,000 to $100,000 to invest. What is important is that you know who you are and where you are going to find the right opportunity that answers your list of top 10 questions.
Like some more information? This link will provide you with a one page of the steps to Successfully Buy Your Franchise
For more immediate help with buying a franchise, send an email to Andrew Rogerson or give me a call on 916 570-2674.