Each year since 1980 Entrepreneur Magazine has published a list of top franchise opportunities in the United States and to some extent, internationally.

The top 500 Entrepreneur franchise opportunities are an elite list. They represent the best of the companies which have franchise options available. Even though that number is growing each year, Entrepreneur Franchise Opportunity list is strictly limited. The guidelines are stringent and applied to each company, no matter how large or how small. Though some have attempted to imitate the list, the quality control guidelines, make Entrepreneur Magazine's list the most elite of its kind.

Entrepreneur begins by eliminating all franchises which do not use a UFOC (Uniform Franchise Offering Circular) or its Canadian equivalent. The information contained within the UFOC is verified by Entrepreneur staff.

Next, only those companies with a least ten franchise units, one of which must be a U.S. based operation are considered. The franchisor must be seeking U.S. franchisees unless it is a Canadian company seeking to expand only in Canada. The company cannot be in Chapter 11 bankruptcy proceedings.

All companies, regardless of size are judged by the same impartial and objective criteria. These include such things as:

Financial strength and stability - the financial base of the company must originate in the strength of its product sales, not the sale of its franchises.

Growth rate and number of units - a phenomenal growth rate in one year and then nothing for several years, probably will not show up well on the Franchise 500 list.

Years in business and years in franchising mode - to be a top ranked franchisor, the company needs to have some history of being a successful business as well as one which can export successfully its products and business methods.

Startup costs - How much are the franchise fees and how much additional investment can be expected-

Litigation - A franchisor with a history of lawsuits filed against it would probably not be one to recommend to persons who depend on the Entrepreneur 500 list. Franchise terminations are a negative factor and can be an indication of problems.

Other factors - In-house financing is another factor

Entrepreneur relies only upon audited data, and does not take into account any franchisee satisfaction or dissatisfaction, since that is purely subjective.

The information is entered into the magazine's proprietary formula, given a numerical score, and the top 500 businesses are the choices for Entrepreneur franchise opportunity list.