July 14, 2012
DOMINO’S PIZZA Franchise Complaints. The Domino’s Pizza franchise has a relatively high SBA loan default rate of 22%.
Are you familiar with the Domino’s Pizza franchise opportunity? Please share a comment below.
According to the Small Business Administration, Domino’s Pizza franchisees received 378 SBA-guaranteed loans since 2001; 22% of those loans have been defaulted on by Domino’s Pizza franchise owners.
The Domino’s Pizza Franchise has a failure rate of 22% for SBA-backed franchise loans
Despite the franchise failures in the Domino’s Pizza franchise program, Domino’s Pizza continues to solicit new franchisees on its website, stating:
Founded in 1960, Domino’s Pizza is the world leader in pizza delivery. With more than 9,000 stores in over 60 markets around the world, Domino’s Pizza is a mega brand driven by the strength of our successful franchisees.
The Domino’s Pizza economic model is built on strong cash-on-cash returns. Our industry-leading technology platform enables online ordering, direct email marketing, cost controls and store management. Domino’s value-added supply system ensures quality, consistency and leverages our purchasing power. [Source: Domino’s franchise website]
What the Domino’s Pizza franchise marketing page doesn’t disclose is that it’s likely that Domino’s Pizza franchise owners who received SBA loans may have collateralized their franchise loan with their houses or other personal assets, and nearly a quarter were unable to repay those franchise loans… despite serious incentive to do so.
Are you familiar with the Domino’s Pizza opportunity?
What do you think accounts for the SBA loan failure rate of Domino’s Pizza franchise owners?
What steps should Domino’s Pizza be taking to stop further franchise failures?
Has Domino’s Pizza taken serious action to address the problems that led to the 22% loan failures?
Please share a comment, opinion or insight below.
ARE YOU A DOMINO’S PIZZA FRANCHISE OWNER OR FORMER DOMINO’S PIZZA FRANCHISEE? ARE YOU FAMILIAR WITH THE DOMINO’S PIZZA FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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