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EXCLUSIVE: Introducing our New Franchise Failure Rate Tool
As promised, Blue MauMau introduces a tool that sorts franchise networks by their Small Business Administration loan failure rate, loan amount and number of loans to some 365 franchises that the SBA has disbursed 10 or more loans. You can find the franchise failure rate tool HERE or on the Buying Tools page in the tools menu (left-column).
It should be noted that this is ONLY a list of franchises that have received SBA loans. It does not account for non-SBA loans. SBA loans are provided only after a local bank has turned down a loan applicant.
The SBA notes that the failure rate equals the number of liquidation plus number charged off divided by total number disbursed.