July 17, 2012
The Merle Norman Cosmetics franchise has a relatively high SBA franchise loan default rate of 24%. Merle Norman is listed by the SBA among the worst franchises by SBA loan default.
Are you familiar with the Merle Norman franchise opportunity? Please share a comment – positive or negative – below.
According to the Small Business Administration, Merle Norman franchisees have received 114 SBA-guaranteed loans; nearly a quarter of those loans have been defaulted on by Merle Norman franchise owners.
Merle Norman has an SBA franchise loan default rate of 24%
According to the Merle Norman Franchise Disclosure Documents (FDDs), in 2007 there were 1752 Merle Norman franchise studios in the U.S. By 2011, that number had declined to 1363 U.S. franchises, a reduction of 389 franchises or a decline of 22%.
Are you familiar with the Merle Norman franchise opportunity?
What do you think accounts for the SBA loan failure rate of Merle Norman franchise owners?
What steps should Merle Norman be taking to stop further franchise failures?
Have Merle Norman taken serious action to address the problems that led to the 24% loan failures?
Please share a comment, opinion or insight – positive or negative – below. Company rebuttals welcome.
ARE YOU A MERLE NORMAN COSMETICS FRANCHISE OWNER OR FORMER MERLE NORMAN FRANCHISEE? ARE YOU FAMILIAR WITH MERLE NORMAN FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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