July 21, 2012
Coffee Beanery franchise opportunity: Are you considering it?
Be aware that data released by the Small Business Administration (SBA) indicates that Coffee Beanery franchise owners who qualified for SBA-backed franchise loans have an extremely high loan failure rate of 48%.
That qualifies Coffee Beanery for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Coffee Beanery franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Coffee Beanery franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Coffee Beanery franchise owners have an alarming 48% SBA default rate.
The apparent drop in Coffee Beanery franchises in recent years is also a franchise red flag.
|Coffee Beanery Franchise|
|Coffee Beanery U.S. franchises in 2008:||91|
|Coffee Beanery U.S. franchises in 2012:||76|
|Growth in franchise units 2008 – 2012 (#)||-15|
|Growth in franchise units 2008 – 2012 (%):||-16%|
|SBA loans granted since 2001:||33|
|SBA loan failure rate:||48%|
|Sources: Entrepreneur (growth), company website (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 Coffee Beanery 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.
Coffee Beanery Franchise Complaints
There is extensive coverage of the franchisee legal battle against Coffee Beanery on the excellent website Bluemaumau.org.
Are you familiar with the Coffee Beanery franchise opportunity?
What do you think accounts for the SBA loan failure rate of Coffee Beanery franchise owners?
What steps should Coffee Beanery be taking to stop further franchise failures?
Has Coffee Beanery taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE COFFEE BEANERY FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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August 25, 2008
Here is the second of two video interviews with unhappy Coffee Beanery franchisees Deborah Williams and Richard Welshans, who are in their 3rd year of a legal fight against the franchisor.
Coffee Beanery Franchise Fraud Part 2:
In this video interview posted on YouTube, Deborah Williams says “three months into the franchise, we realized something was wrong. Money was running out like it was going through a sieve. We hired an attorney. We also filed a complaint with the Maryland Attorney General’s office here in Maryland…”
Williams and Wilshans recently had an arbitration ruling against them overturned, and will be arguing their case against the Coffee Beanery in a court of law.
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
August 25, 2008
Here is the first of two video interviews with unhappy Coffee Beanery franchisees Deborah Williams and Richard Welshans, who are in their 3rd year of a legal fight against the franchisor.
Coffee Beanery Franchise Fraud Part 1:
In this video, Deborah and Richard describe their backgrounds (Deborah was VP of Operations for a large corporation; Richard was in industrial sales for 18 years before being downsized). They also describe their financial well-being prior to buying the franchise (owned a million-dollar house with $600K equity).
Deborah describes the type of business they wanted to open after Richard was a victim of downsizing: “We just wanted a little coffee shop… we just wanted a little franchiseable coffee shop, like a little Cheers-type place. We started looking for different franchisors. Our first choice, of course, was Starbucks.”
Starbucks doesn’t offer franchises, so they went with the Coffee Beanery franchise.
Check out Part Two for the rest of the story: COFFEE BEANERY: Secret Justice Franchisee Interview Part 2