First, you need to remember one crucial fact.  Profits and sales are not the same thing.  A franchise with a higher ROI (Return On Investment) percentage might be better in the long haul than a franchise that initially costs you more but brings in a bit more net sales.  This second scenario, while having more sales, does not necessarily lead to a higher ROI.

Another way to use the numbers is to look at the rankings over the course of multiple years.  A franchise that is continually at the top of the charts year after year might be a better bet than one that consistently ranks lower.  When you look at the standings over multiple years, remember that a new upstart might knock a long-running franchise down the list a few pegs.  This may not be a sign of any trouble.  However, a franchise that is consistently sliding down the rankings may not be for you.

Lastly, use the expertise of your business broker when trying to decipher the profitability of any one franchise.  They are there to guide you during the process, and they have the knowledge to see through the numbers to the true value and profitability of the business.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com