Key Takeaways from the Franchise 500 List
Entrepreneur magazine has been publishing the top 500 franchises for over forty years and they have recently published their 2019 version. The list can tell us a lot, but it should by no means be the only piece of information you consult if you are interested in buying a franchise. But the Franchise 500 List is certainly worth a glance at least. Here are some of the key takeaways from the Franchise 500 List.
The Franchise 500 List
With Entrepreneur having been publishing the Franchise 500 List for decades, they have certainly perfected their methodology. Of course, everything they value and how much they value it may not reflect what you personally value when looking at franchises for sale. And that’s OK. To learn how they reach the order that they do, you can check out this explainer of the Franchise 500 List. Now, let’s get into the takeaways of the Franchise 500 List.
Food Service Franchises Reign Supreme
Just one glance at the top of the list and it’s clear that there’s a lot of money in food franchises. This makes sense. When somebody mentions the word “franchise”, what do you imagine? Probably a food service franchise, right? It’s the classic example. And, clearly, it’s a franchising model that still works given the fact that the top four are all food service franchises. And they are all forms of quick service restaurants (QSRs) at that. Sit down restaurant franchises can make money, too, of course, but it seems the QSR model still has the highest potential in terms of profit.
The Race for Second Place
Second to food franchises on the Franchise 500 List are . . . well, everything else. What’s clear by looking at the rest of the Franchise 500 List is that no industry can claim to be a clear second to food service franchises. There are franchises of all different types interspersed with the food franchises. Descending from the top, the first industry to appear twice on the list other than food franchises is hairstyling and barber franchises. And this makes sense; people want familiarity and comfort when getting their hair cut. Another prominent type franchise in the top 100 is the fitness/gym franchise. These are popular for many of the same reasons; members can work out at any of the franchise locations.
Oldies But Goodies
It seems that every other business story we see, hear, or read, is about some Millennials who developed an app and sold it for 60 gazillion dollars. Technology moves fast and there’s a lot of money to be made with internet and app development. But clearly, nobody has yet mastered how to translate this success into a good franchising model. Indeed, there are very few surprises on the Franchise 500 List. Even the fastest growing franchises are mostly recognized brand names and well-established industries. Far from looking stale or falling into decline, it seems the old, tried and true franchise industries are the best way to make money in 2019.
Get in Touch
The Franchise 500 List is a great resource to help you decide which franchise you should buy. But it is only one such source, and an impersonal one at that. Be The Boss can help you figure out which franchise is best for you. To learn more, please contact us.
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