How we chose the Zor Awards

STEP 1: We started by selecting 10 new industry categories, which were chosen to be popular and attractive to different types of franchisees (for example, those who have a passion for fitness or want to run a restaurant). We change these categories each year.

STEP 2: We identified initial contenders for each Zor Awards category, drawn from the Franchise Times Top 500 database, which is a 20-year-old research tool covering more than 650 U.S.-based franchise systems. We further narrowed the list by analyzing the quality of information in each brand’s Item 19 (which contains information about profitability for franchisees) or other key financial data, and also focusing on brands that are currently expanding within the United States.

STEP 3: Our research team examined six financial metrics in each brand’s franchise disclosure document, with a focus on profitability for the franchisee. Narrowing the list to three finalists in each category involved an assessment of the quality of the financial information disclosed, an exclusive calculation of return on investment, as well as editorial research including knowledge of management teams, product or service offerings, unit openings and closings, financial backing of the brand, litigation, etc.

STEP 4: To determine the winners, we conducted a deeper dive into the finalist FDDs and publicly available financial metrics, forming one strongly weighted pillar of our three-part scoring process. Next, our editorial team talked to experts in franchising, reviewed our own coverage of these brands, and looked at analyst reports, recent financial performance and outside press articles to form the second heavily weighted component of the ranking.

STEP 5: Lastly, we compiled the results of the online voting conducted in December to reflect industry enthusiasm.

STEP 6: We declared a winner in each category and conducted interviews with a few top-performing franchisees in each brand to share best advice and lessons learned.