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Top 10 Franchises - Choose Your Franchise Investment With Care

Lists of "top 10 franchises" are dangerous to rely upon for buying a decision to buy a franchise.  Be careful! Many "top franchise opportunity" lists are really advertising. Rather than "featured" lists, most franchise investors really want to know "which are the 10 most profitable franchises?"  

The "top 10 franchises", "top 100 franchises" or similar lists often include franchises that are out of business 3 years later. That does not prevent publishers from trying to sell books and magazines for readers looking for a shortcut to finding the best franchises..

 "Top 10 Franchises" Lists and Franchise Profitability

You can use SBA default rates (SBA reports indicating whether or not franchise locations have paid their SBA loans) as one indicator of franchise profitability. Bookmark the SBA links below to use as an ongoing part of your franchise research:

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Franchises with lowest SBA loan default rates

Franchises that default most frequently on SBA loans

At the end of the day, if you are trying to understand who the top 10 franchises are, you are probably looking for profitability information and franchisee satisfaction information. Your want your franchise investment to generate a reasonable income to support you and your family.

Franchises do not typically release earnings data about their existing franchises. That severely limits the value of any top franchises list. You really need to know if a franchise is likely to prosper and support your family, not that it met a criteria allowing advertisers to put it on a list.

Using "top 10 franchises" lists to pick a franchise investment to buy is something you should pursue with great care.


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