July 11, 2012
(UnhappyFranchisee.com) According to the 2012 list of franchise loan defaults released by the Small Business Administration, several tanning salon franchises have alarmingly high default rates for SBA-backed loans.
Are you familiar with tanning industry and tanning salon franchises? Please share a comment below.
Four Tanning salon franchise companies fell within the worst 75 franchises among all franchise companies whose franchisees were granted 25 or more SBA loans since 2001.
The Executive Tans franchise had the worst default rate, with 81% of their franchisees unable to pay back their SBA loans.
The Image Sun franchise was not far behind, with a disturbingly high 70% default rate.
The owners who invested in Planet Beach franchise defaulted on their SBA loans 57% of the time.
Hollywood Tans franchise owners had a high 37% loan default rate.
Despite the high failure rates, these tanning salon franchises seem to still be recruiting franchise owners, and it seems the SBA will still consider guaranteeing their loans with taxpayer money.
If you are still considering investing in a tanning salon franchise, we recommend proceeding with extreme caution.
ARE YOU FAMILIAR WITH THE TANNING INDUSTRY OR TANNING SALON FRANCHISE OPPORTUNITIES? PLEASE SHARE A COMMENT BELOW.
July 11, 2012
Are you familiar with the Executive Tans franchise opportunity? If so, please share your experience, opinions or insights with a comment below. If you are an Executive Tans franchise representative or employee, please help us understand why the Executive Tans franchise owners have one of the highest loan default rates in the industry.
Executive Tans franchise owners have an alarming 81% SBA default rate.
Are you familiar with the Executive Tans franchise opportunity?
If so, please share your experience, opinions or insights with a comment below.
If you are an Executive Tans franchise representative or employee, please help us understand why the Executive Tans franchise owners have one of the highest loan default rates in the industry.
The Executive Tans franchise website states:
“Headquartered in Lakewood, Colorado, Executive Tans® was founded in 1991 with 3 locations. Over the next 10 years ET grew to 27 locations in the Denver market and had established buying relationships with leading Vendors and Manufacturers. In late 2001, ET began a national growth campaign.
“Having an Executive Tans® franchise allows you to be in business for yourself, not by yourself! – With 17 years in business, and a combined 50+ years of industry experience, Executive Tans® is leading the way by providing one of the finest Vendor and Manufacturer relationships, strategic market expansion, and progressive franchisee relationships that allows you to run your business independently with all the buying power and support, and experience of a proven franchise.”
However, according to the Small Business Administration, 81% of Executive Tans franchise owners are unable to repay their SBA loans. That’s the worst default rate in the SBA’s 2012 list.
Tanning salon franchises as a group demonstrated alarmingly high SBA franchise loan default rates on the 2012 list, including the Planet Beach franchise (57%), Image Sun franchise (70%), Executive Tans franchise (81% ) and Hollywood Tans franchise (37%).
ARE YOU FAMILIAR WITH THE IMAGE SUN FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
Tags: Executive Tans, Executive Tans franchise, Image Sun franchise, tanning franchise, salon franchise, Hollywood Tans franchise, Planet Beach franchise, franchise failure rates, SBA franchise loans