The Franchise 500 is an annual ranking of the top 500 franchising companies in the U.S. and Canada, compiled by Entrepreneur magazine through a submission and review process. [1] The ranking is based on an evaluation of each company's costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability. [2] The list includes both public and privately held companies, and has been published annually since 1980. [3] [4]
To be listed in the Franchise 500 issue, franchise companies must complete an online questionnaire, provide their franchise disclosure document, submit a list of all open and operating units, and include their most recent audited financials. To be ranked, a company must have a minimum of 10 units, with at least one located in the United States, and must be actively seeking new franchisees in the U.S. Additionally, the company cannot be in Chapter 11 bankruptcy. [5] It is free to participate in the Franchise 500, [6] and Entrepreneur receives over 1000 applications annually. [7]
All qualifying applicants are evaluated and scored based on a formula that incorporates more than 150 data points. These areas include cost and fees, size and growth, franchisee support, brand strength, and financial strength and stability. Applicants with the highest cumulative scores will become the Franchise 500.
Besides the broad Franchise 500 ranking, Entrepreneur uses the submitted data to create lists for specialized categories, including "Fastest-Growing Franchises," "Best of the Best," and "Top New & Emerging Franchises." [8] In previous editions, industry-specific lists were also available. For example, under "Automotive," there were several subcategories, including "Appearance Services," "Oil Change Services," and "Rentals and Sales." [9]
In 2025, the ten companies that ranked at the top of the 500 were: [11]
| Rank | Company | Headquarters | Industry | Franchises (U.S.) | Total units (Global) | Investment (US$) |
|---|---|---|---|---|---|---|
| 1 | Taco Bell |  Irvine, California | Food and Beverage | 6,418 | 7,567 | $611K – $4M |
| 2 | Jersey Mike's Subs | Manasquan, New Jersey | Food and Beverage | 2,823 | 2,861 | $204K – $1.3M |
| 3 | Dunkin' Donuts | Canton, Massachusetts | Food and Beverage | 9,548 | 13,790 | $436K – $1.8M |
| 4 | Popeyes Louisiana Kitchen | Miami, Florida | Food and Beverage | 3,087 | 4,796 | $471K – $3.9M |
| 5 | Ace Hardware | Oak Brook, Illinois | Hardware stores | 4,830 | 5,965 | $602K – $2M |
| 6 | The UPS Store | San Diego, California | Shipping | 5,286 | 5,693 | $216K – $609K |
| 7 | Culver's | Prairie du Sac, Wisconsin | Food and Beverage | 1,020 | 1,020 | $2.6M – $8.6M |
| 8 | Wendy's | Dublin, Ohio | Food and Beverage | 5,622 | 7,282 | $310K – $2.8M |
| 9 | Hampton By Hilton | McLean, Virginia | Hotel chain | 2,364 | 3,040 | $15.2M – $25.9M |
| 10 | Kumon | Rutherford, New Jersey | Education | 1,701 | 25,563 | $73,123 – $165K |