July 12, 2012
The Mr. Goodcents Subs & Pasta franchise has an outrageously high SBA loan default rate of 65%.
Are you familiar with the Mr. Goodcents franchise opportunity? Please share a comment below.
According to the Mr. Goodcents franchise website, Mr. Goodcents is actively and aggressively recruiting individuals to invest anywhere from $155,150 – $382,800 in the Mr. Goodcents Subs & Pasta franchise opportunity.
According to Mr. Goodcents, “This figure includes your franchise fee, 3 months working capital, build-out, equipment, marketing, and most other expenditures you incur for your restaurant.”
Don’t have $300,000 laying around? No worries. Mr. Goodcents brags “We have relationships with a number of lenders and can provide you with their contact information. We are pre-approved by the Small Business Administration and listed on their ‘Franchise Registry.”
“Most banks are requiring 25%-35% down for an SBA Loan,” says Mr. Goodcents.
The Mr. Goodcents Franchise has a failure rate of 65% for SBA-backed franchise loans
What Mr. Goodcents doesn’t disclose on his website is that more than half of those who financed a Mr. Goodcents franchise through an SBA-backed loan have defaulted on that loan.
That’s right: Nearly a three-quarters of the Mr. Goodcents franchise owners who received SBA loans, some of whom may have collateralized their franchise loan with their house or other personal assets, were unable to repay those franchise loans… despite serious incentive to do so.
Are you familiar with the Mr. Goodcents franchise opportunity?
How is it that they are still getting SBA-backed (taxpayer-guaranteed, in other words) loans when they have such a horrendous default rate?
What do you think accounts for the SBA loan failure rate of Mr. Goodcents Subs & Pasta franchise owners?
What steps should Mr. Goodcents be taking to stop further franchise failures?
Please share a comment, opinion or insight below.
ARE YOU A MR. GOODCENTS FRANCHISE OWNER OR FORMER MR. GOODCENTS FRANCHISEE? ARE YOU FAMILIAR WITH THE MR. GOODCENTS FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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