Every year FRANdata sorts through data on more than 3,300 active franchise brands to look for which franchises are the best and worst for investors. FRANdata considers metrics related to system sustainability, system demand, franchiser support, franchiser stability and value for investment.
Once the numbers have been crunched, the firm compiles a list of the best and worst franchises of the year, broken into three classes based on investment level. Top-ranking brands must all disclose financial performance, have at least 100 franchised units opened at the end of 2014 and must have no more than two years of declines in system size.
According to FRANdata president Edith Wiseman, the most important criteria is sound economics for investors.
Here’s a look at the three best and worst franchises of 2016 in each category.
Worst Franchises
Worst Franchises (< $150,000 investment)
- Help-U-Sell.
- Curves.
- Guardsman Furniture Pro.
Worst Franchises ($150,000–$500,000 investment)
- Cookies By Design.
- Dippin’ Dots.
- Quiznos.
Worst Franchises (>$500,000 investment)
- DirectBuy.
- Century 21.
- Comet Cleaners and Laundry.
Best Franchises
Best Franchises (< $150,000 investment)
- Right At Home…
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