July 25, 2012
Cartridge World franchise opportunity: Are you familiar with it?
If so, please share your experience, opinions or insights with a comment below.
The Cartridge World franchise website claims that it gives its franchise owners the tools for profitability and success:
“Cartridge World provides unsurpassed on-going training and support, cutting edge proprietary equipment and products, territory ‘Master’ support and training, real estate assistance, marketing support and collateral, along with all the advantages of a Global Network.
“Join the largest and fastest growing franchise company in the industry! The phenomenal growth of Cartridge World continues to enhance the network by way of increased franchise profitability.”
However, data released by the Small Business Administration (SBA) indicates that Cartridge World franchise owners who qualified for SBA-backed franchise loans have an disturbingly high loan failure rate of 26%.
That qualifies Cartridge World for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Cartridge World franchise owners have an alarming 26% SBA default rate.
The apparent drop in Cartridge World franchises in recent years is also a franchise red flag.
|Cartridge World Franchise|
|Cartridge World U.S. franchises in 2008:||681|
|Cartridge World U.S. franchises in 2011:||592|
|Growth in franchise units 2008 – 2011 (#)||-89|
|Growth in franchise units 2008 – 2011 (%):||-13%|
|SBA loans granted since 2001:||163|
|SBA loan failure rate:||26%|
|Sources: Entrepreneur (growth), Coleman report (SBA)|
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Cartridge World franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Are you familiar with the Cartridge World franchise opportunity?
What do you think accounts for the SBA loan failure rate of Cartridge World franchise owners?
What steps should Cartridge World be taking to stop further franchise failures?
Has Cartridge World taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
If you are a Cartridge World franchise representative or employee, please feel free to leave a comment or email us at UnhappyFranchisee[at]gmail.com.
ARE YOU FAMILIAR WITH THE CARTRIDGE WORLD FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR FORMER CARTRIDGE WORLD FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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