August 17, 2012
Huntington Learning Centers franchise opportunity: Are you familiar with it?
If so, please share your experience, opinions or insights with a comment below.
The Huntington Learning Centers franchise website makes success seem easy:
“You’ll be ready to launch and operate your business soon after joining our franchise family. Our dedicated management team is fully committed to your success. Once open, we’ll help you develop a full-blown marketing plan to drive business in your community.
“The market opportunity is huge… Parent-pay tutoring is a $6 billion industry! … There is a cry for our services in every market…. and you can offer the answer in your market.
“Why a Huntington franchise? Our proven approach works…. resulting in tremendous financial rewards for our many franchisees.”
However, according to Entrepreneur, Huntington Learning Centers locations declined from 342 US franchises in 2008 to 250 in 2011.
According to data released by the Small Business Administration (SBA), Huntington Learning Centers franchise owners who qualified for SBA-backed franchise loans have a frighteningly high loan failure rate of 49%.
That earns Huntington Learning Centers a spot in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Huntington Learning Centers franchise owners have a shocking 49% SBA loan default rate.
The apparent drop in Huntington Learning Centers franchises in recent years and high SBA loan default rates are franchise due diligence red flags.
|Huntington Learning Centers Franchise|
|Huntington Learning Centers U.S. franchises in 2008:||342|
|Huntington Learning Centers U.S. franchises in 2011:||250|
|Growth in franchise units 2008 – 2011 (#)||-92|
|Growth in franchise units 2008 – 2011 (%):||-27%|
|SBA loans granted since 2001:||178|
|SBA loan failure rate:||49%|
|Sources: Entrepreneur (growth), Coleman report (SBA)|
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Huntington Learning Centers franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Are you familiar with the Huntington Learning Centers franchise opportunity?
What do you think accounts for the SBA loan failure rate of Huntington Learning Centers franchise owners?
What steps should Huntington Learning Centers be taking to stop further franchise failures?
Has Huntington Learning Centers taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
If you are a Huntington Learning Centers franchise representative or employee, please feel free to leave a comment or email us at UnhappyFranchisee[at]gmail.com.
ARE YOU FAMILIAR WITH THE HUNTINGTON LEARNING CENTERS FRANCHISE OPPORTUNITY?
ARE YOU A CURRENT OR FORMER HUNTINGTON LEARNING CENTERS FRANCHISE OWNER?
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