Every January, Entrepreneur magazine drops its Franchise 500 list — a lineup of brands that claim the top spots in the franchising world. On the surface, it looks like a leaderboard. In reality, it’s more like an X-ray: a snapshot of which systems are built on solid bones and which ones are just loud.
The Franchise 500 has been around since 1980, and while the list has evolved over time, the purpose hasn’t changed. It’s not here to crown one “best franchise.” It’s a research tool. One that’s especially helpful when you’re staring down hundreds of options and don’t know where to start.
How the List Comes Together
A lot of would-be franchisees think it’s all about name recognition, but the process is far more granular. Franchisors submit data — a lot of it — and every system is scored against multiple benchmarks:
- Money matters: Start-up costs, franchise fees, and ongoing royalties.
- Growth track record: How quickly the brand is expanding and whether locations are sticking around.
- Support system: Training, operational resources, and marketing help for franchisees.
- Brand weight: Recognition and longevity.
- Financial stability: The overall health of the company behind the scenes.
It’s a numbers-driven ranking, not a popularity contest.
Why the Franchise 500 Still Holds Weight
The franchise industry is noisy. Between glossy brochures and aggressive sales teams, it’s hard to get an honest picture of which brands have staying power. The Franchise 500 acts as a filter. It’s not perfect, but it does three things well:
- Shows patterns over time: The brands that keep landing on the list, year after year, are usually the ones with a proven playbook.
- Highlights industries: Food chains aren’t the only game in town. The list gives visibility to service brands, home businesses, and niche concepts that often fly under the radar.
- Signals credibility: A ranking doesn’t guarantee success, but it does mean a brand’s operations have been vetted.
Using the List the Smart Way
The biggest mistake? Treating the rankings like a “Top 40 Hits” chart. A brand sitting at #25 isn’t automatically better for you than one at #150. Your decision should hinge on your own finances, skills, and local market.
Instead, use the Franchise 500 to:
- Shortlist brands worth deeper research.
- Compare industries side by side.
- Identify stable players by looking at who’s consistently ranked, not just who’s flashy this year.
- Spot growth trends without getting swept up in hype.
A Badge for Brands
For franchisors, making the list is both bragging rights and proof of operational discipline. Many proudly display their Franchise 500 badge on websites and franchise sales decks. It’s a stamp that says: “We’re not just selling you a dream — we’ve got numbers to back it up.”
The Takeaway
The Franchise 500 isn’t a magic answer. It won’t tell you if you’ll enjoy managing a sandwich shop or running a home cleaning service. What it does is offer a structured way to navigate a crowded industry.
Think of it less like a podium and more like a compass. It points you toward brands with history, growth, and support systems in place — and that’s worth paying attention to if you’re about to write a six-figure check.
Quick FAQ
What is the Franchise 500?
An annual ranking of franchise systems, based on data like cost, growth, and operational support.
Does a higher rank mean it’s the best franchise?
No. The list measures performance, not personal fit.
When is it updated?
Once a year, typically in January.
Why do rankings change?
Growth surges, closures, new investments, and shifts in brand support can move a brand up or down.
How should I use the list?
As a starting point. Follow up with franchisees, review disclosure documents, and do your own market analysis.