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Log In / Register | Dec 20, 2014

Franchise Securitization Is Back

They're baaack —asset-backed securities, or ABS that is. Record low interest rates have spurred investors over the past year to rediscover higher yielding bonds that franchisors like Domino's Pizza issue. The bonds are based on estimated future royalties that franchisees are committed to pay.

A Rescue Plan for Troubled Franchises

The Small Business Administration recently provided Blue MauMau with its newest list of failure rates of small business loans sorted by franchise brands from October 1, 2001 until September 30, 2011.

SBA Franchisee Failure Rates by Brand, 2012

The Small Business Administration has provided to Blue MauMau its newest list of failure rates of small business loans sorted by franchise brands from October 1, 2001 until September 30, 2011. This is a collection of data from lendees of over 580 franchise brands who fail to pay back general SBA 7(a) and real estate and equipment 504 loans. This was compiled by the Small Business Administration on May 1, 2012.

Why Some Franchisors Fail

Here is a list of the reasons that franchisors fail. Some of the following ingredients for franchisor failure will seem to be duplications in some situations and not in others.