July 14, 2012
The Golf USA franchise has a disturbingly high SBA loan default rate of 50%. Golf USA is listed by the SBA as one of the worst franchises by SBA loan default, along with other golf store franchises Pro Golf (76%) and Golf ETC. (71%).
Are you familiar with the Golf USA franchise opportunity? Please share a comment below.
According to the Small Business Administration, Golf USA franchisees received 46 SBA-guaranteed loans since 2001; half of those loans have been defaulted on by Golf USA franchise owners.
The Golf USA Franchise has a failure rate of 50% for SBA-backed franchise loans
Despite the obscenely high failure rate, the Golf USA website still cheerfully and aggressively promotes the Golf Etc. franchise opportunity, stating:
In 2011 we were once more voted the ”#1 golf franchise” by Entrepreneur magazine. We have the largest support team in the golf industry, serving over 100 locations in 18 countries…
Partnering with Golf USA will give you the tools and training to be your own boss. Our program is designed to help you open your own business and build a solid foundation for the future.
What’s sad is that it’s likely that Golf USA franchise owners who received SBA loans may have collateralized their franchise loan with their houses or other personal assets, and half of them were unable to repay those franchise loans… despite serious incentive to do so.
Are you familiar with the Golf USA opportunity?
What do you think accounts for the SBA loan failure rate of Golf USA franchise owners?
What steps should Golf USA take to stop further franchise failures?
Has Golf USA 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 USA FRANCHISE OWNER OR FORMER GOLF USA FRANCHISEE? ARE YOU FAMILIAR WITH THE GOLF USA FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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