The Franchise Ranking – A Guide For Potential Franchise Buyers
Chances are you’ve seen it—the Franchise ranking released by Entrepreneur magazine each January (this year the ranking is in its 44th year). You may have read about it online or even seen glossy franchisor advertisements in the actual publication. The ranking is a primary competitive measure for franchisors and is heavily promoted on banner ads, sponsored links, and paid advertisements that appear on search engines—and often in the glossy magazine itself. It is also referenced in numerous PR releases blasted to the wire agencies.프랜차이즈순위검색
Franchisors that make the list are generally very happy about it and proudly promote it. But for franchise buyers, the ranking can be misleading. The reason is that most of the criteria used to put franchises on this coveted industry list are not “store level” information that would be important for you, the potential buyer. Instead, these are high level metrics that do not take into consideration the financial strength of the franchisor, the support system for franchisees or the overall relationship between the franchiser and franchisees.
The most important point to keep in mind is that a ranking is not a recommendation, endorsement or approval by Entrepreneur Magazine. It is a snapshot of the franchise industry based on the quantitative measurements the magazine uses to compile its data.
These numbers and statistics are important but they cannot tell you how a franchise will work for you or if it is a good fit with your temperament, your resources, or your business skills. It can also be misleading to see how one franchise performs in a specific industry in general and compare it to another franchise in the same industry that has different economic and social pressures on its own franchisees.
Franchise ranking should be used as a way to create a shortlist of franchises for further investigation, not as the final choice for your new investment. Many of the franchises that make these lists are very competitive, and it is quite possible that your research will reveal a better franchise for you elsewhere.
A word of warning: It is a common practice for franchise companies to pay a fee to be placed on a top ranking. This is called self-validation and while unethical, it is not illegal. Many of these lists will include any company that pays the fee, and because they disclose this fact in fine print that most people don’t read, the process is repeated year after year.
We have reviewed this ranking and are pleased that PostNet is on it in the “Internet Services/Technology” category. The company is doing a great job growing its franchise system and providing a valuable service to customers, and we are confident that they will continue to thrive as a result of this ranking. We look forward to working with PostNet in the future.솔솥