How Well Can Franchisees in 10 Popular Brands Pay Back Their Loans?
Matco, Cold Stone and Quiznos have the three worst failure rates in this list of 10, where franchisees struggle to pay back their SBA-backed loans. Conglomerate franchisor Kahala Corp gets a double whammy with not only Cold Stone Creamery being the second worst on this list, but CNN singles out their brand Blimpie sub sandwiches as an honorable mention, with an even higher failure rate than #1 Matco. Super 8 Motel owners are best for paying back their loans.
Do you dream of being a franchise owner? Scope out this list of the most popular brands over the past decade -- and how well their owners have done at repaying startup loans backed by the Small Business Administration… Subway has a better track record than similar brands -- rival sub shop Blimpie has a 46% loan failure rate, and Quiznos is also well into the double digits.
[See Slideshow at CNNMoney’s 10 Most Popular Franchises]
You know it’s bad when a large part of the franchise owners in a brand cannot pay back the bank. Loan default rates are a rare, rare peek at how franchisees in a brand are doing on their bottom-line earnings.
Every year Blue MauMau features a list of over four hundred franchise brands ranked by franchisee failure rate in paying back their SBA-backed loans.
Related reading:
- 2008's SBA Loan Failure Rates by Franchise Brand
- Franchise Brands by Franchisee Failure to Pay Back SBA Loans
- WSJ's Worst and Best Franchise Brands by SBA Loan Performance
- SBA's List of Franchise Loan Performance, a Tip Sheet at the Races
- Franchises Have Higher SBA Loan Failure Rates
- Financing Your Franchise: SBA Loans (Part One)
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