The Camille’s Sidewalk Cafe franchise has a shockingly high SBA loan default rate of 58%.
Are you familiar with the Camille’s Sidewalk Cafe franchise opportunity? Please share a comment below.
Camille’s Sidewalk Café franchise is owned by Beautiful Brands, franchisor of the Freshberry and Rex’s Chicken franchises. (Also read: BEAUTIFUL BRANDS Franchise Complaints) It was founded by Camille and David Rutkauskas.
According to the Small Business Administration, Camille’s Sidewalk Cafe franchisees have received 66 SBA-guaranteed loans to date; more than half of those loans have been defaulted on by Camille’s Sidewalk Cafe franchise owners.
The Camille’s Sidewalk Cafe Franchise has a failure rate of 58% for SBA-backed franchise loans
Camille’s Sidewalk Café franchise website lists 32 US locations currently open. It claims “With hundreds territories in development worldwide Camille’s Sidewalk Cafe continues to grow…”
What Camille’s Sidewalk Café doesn’t mention is that it’s likely that Camille’s Sidewalk Café franchise owners who received SBA loans may have collateralized their franchise loan with their houses or other personal assets, and more than half were unable to repay those franchise loans… despite serious incentive to do so.
The Camille’s U.S. franchise network has shrunk 60% since 2008
In 2007, Beautiful Brands claimed that it had 100 Camille’s Sidewalk Cafés open and “more than 800 franchise agreements worldwide.”
The Camille’s Sidewalk Café 2011 Franchise Disclosure Document (FDD) indicates that in the beginning of 2008 there were 81 Camille’s franchises open in the U.S..
By the end of 2010, that number had dropped to just 41 U.S. franchises.
As of June, 2012, there are 32 Camille’s U.S. locations listed on their website. The Camille’s U.S. franchise network has shrunk 60% since 2008.
Are you familiar with the Camille’s Sidewalk Café franchise opportunity?
What do you think accounts for the SBA loan failure rate of Camille’s Sidewalk Café franchise owners?
What steps should Camille’s Sidewalk Café and Beautiful Brands be taking to stop further franchise failures?
Have Camille and David Rutkauskas taken serious action to address the problems that led to the 58% loan failures?
Please share a comment, opinion or insight below.
ARE YOU A CAMILLE’S SIDEWALK CAFE FRANCHISE OWNER OR FORMER CAMILLE’S FRANCHISEE? ARE YOU FAMILIAR WITH THE CAMILLE’S SIDEWALK CAFÉ FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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