Friday, November 15, 2013

A study that crunches SBA loan data reveals the biggest lemons in the franchise world

Think in an uncertain economy there's some safety in buying a franchise of an already-established brand? A new report suggests that's true only if you choose very, very carefully.
Seeing a Pattern

The report found that 11 franchises—more than half ice cream or fast food—had the highest rates of failure of their federally guaranteed loans used to buy them in the first place, according to analysis of U.S. Small Business Administration figures done by BlueMauMau.com, a franchising news website.

This is the same list that the agency provides loan officers of its most trusted lenders and banks throughout the country, the site says.

See the list on Open Forum

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