July 14, 2012
The Golf Etc. franchise has the obscenely high SBA loan default rate of 71%, second only to the defunct Pro Golf franchise at 76%.
Are you familiar with the Golf Etc.franchise opportunity? Please share a comment below.
According to the Small Business Administration, Golf Etc. franchisees received 110 SBA-guaranteed loans since 2001; 71% of those loans have been defaulted on by Golf Etc. franchise owners.
The Golf Etc. Franchise has a failure rate of 71% for SBA-backed franchise loans
Despite the obscenely high failure rate, the Golf Etc. website still cheerfully and aggressively promotes the Golf Etc. franchise opportunity, stating:
Founded in 1992, Golf Etc. of America, Inc. is the fastest-growing golf retail franchise in America, with more new store openings during 2006, 2007 and 2008 than any other golf retail franchise….
The reason for the unprecedented growth is simple: our strategy is working. Golf Etc. business owners are creating value… Their revenue is divided, strategically, between three separate profit centers – retail products, fitting center and repair center – which compliment [sic] each other and, when combined, create better margins and greater success.
Jeremy Glanzer – President & CEO
Shane Hunt – Co-CEO
Craig Scott – Co-CEO
What’s sad is that it’s likely that Golf Etc. franchise owners who received SBA loans may have collateralized their franchise loan with their houses or other personal assets, and nearly three-quarters of them were unable to repay those franchise loans… despite serious incentive to do so.
Are you familiar with the Golf Etc. opportunity?
What do you think accounts for the SBA loan failure rate of Golf Etc. franchise owners?
What steps should Golf Etc. take to stop further franchise failures?
Has Golf Etc. taken serious action to address the problems that led to the 71% loan failures?
Please share a comment, opinion or insight below.
ARE YOU A GOLF ETC. FRANCHISE OWNER OR FORMER GOLF ETC. FRANCHISEE? ARE YOU FAMILIAR WITH THE GOLF ETC. FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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