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Have you ever come across franchise reviews before? If you have then you may be interested in what they have to offer you. Well, if you are looking to invest in an established business to expand your entrepreneurial portfolio then a franchise will be a perfect choice or you. There are hundreds of franchises available at any given time so there is plenty of scope to give your business career a major boost, but how do you choose the right opportunity?

What Are Franchise Ratings And Reviews?

Franchise ratings and franchise reviews are effectively reports compiled by trusted sources. You can find those compiled by current franchisees, all of which will give their opinions on the franchisor in terms of support, training, costs and fees, and numerous other general factors. You can also find those compiled by independent companies. Independent companies look at completely different factors and thus the metrics by which the franchise ratings and franchise reviews are composed may give a different outcome to those by franchisees. As such, you should indeed look into both types of ratings and reviews before deciding on the franchise that you would invest in.

Finding The Most Reliable Reviews

Finding the most reliable franchise reviews is relatively easy. Although franchisee ratings and reviews should be researched and read before you commit to any investment, they can be biased in a variety of ways. However, independent franchise reviews are not. Independent assessors have specific criteria to evaluate each franchise and ensure that fair franchise ratings are given.

The Entrepreneur Franchise 500 is a popular franchise rating systems.  All franchises in the Entrepreneur Franchise 500 must have at least one US franchise out of a minimum of 10 units, and they must be expanding at the time of the franchise review. These franchises are surveyed on the following criteria: financial stability, growth rate, system size, years in business, length of franchise, start up costs, litigation, termination ratio and availability of financing.

If you do want a good place to start in terms of the franchise ratings that are given by franchisees then you should look at the Franchise Business Review, a website that has surveyed franchises under all of the major companies in the US and Canada. Their franchise owner approval ratings are conducted regularly and determine the highest rated companies. The metrics for these franchise ratings encompass the training and support available, the quality of the franchise system, the franchisor-franchisee relationship, the financials and the overall franchisee satisfaction. This is a good way to see exactly how franchisees feel, but the franchise reviews should only be used as a guideline because what suits one budding entrepreneur may not suit another.

The best way to use franchise ratings and franchise reviews is to combine those completed independently, which should be trusted as a result of the nature of the survey, and those completed by franchisees. Although the latter franchise ratings are not objective, they may give you an idea of how franchisee friendly the company itself actually is.

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