July 13, 2012
The Figaro’s Pizza franchise has an alarmingly high SBA loan default rate of 48%.
Are you familiar with the Figaro’s Pizza franchise opportunity? Please share a comment below.
According to the Small Business Administration, Figaro’s Pizza franchisees received 38 SBA-guaranteed loans; nearly half of those loans have been defaulted on by Figaro’s Pizza franchise owners.
According to Entrepreneur magazine, Figaro’s Pizza had 123 US franchises in 2008. By 2012, that number had dropped to 60. That’s a decline of 63 franchises, 51% of the entire chain.
The Figaro’s Pizza Franchise has a failure rate of 48% for SBA-backed franchise loans
Yet despite the obvious failures in the Figaro’s Pizza franchise program, the Figaro’s Pizza website not only cheerfully promotes the Figaro’s Pizza franchise opportunity, it boasts that it assists franchisees in accessing financing through the SBA Franchise Registry.
What the Figaro’s Pizza franchise marketing page doesn’t disclose is that it’s likely that Figaro’s Pizza franchise owners who received SBA loans may have collateralized their franchise loan with their houses or other personal assets, and nearly half were unable to repay those franchise loans… despite serious incentive to do so.
Are you familiar with the Figaro’s Pizza franchise opportunity?
What do you think accounts for the SBA loan failure rate of Figaro’s Pizza franchise owners?
What steps should Figaro’s Pizza be taking to stop further franchise failures?
Has Figaro’s Pizza taken serious action to address the problems that led to the 48% loan failures?
Please share a comment, opinion or insight below.
ARE YOU A FIGARO’S PIZZA FRANCHISE OWNER OR FORMER FIGARO’S PIZZA FRANCHISEE? ARE YOU FAMILIAR WITH THE FIGARO’S PIZZA FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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