PIZZA INN Franchise Complaints
July 14, 2012
The Pizza Inn franchise has a disturbingly high SBA loan default rate of 36%.
Are you familiar with the Pizza Inn franchise opportunity? Please share a comment below.
Pizza Inn awarded the first franchise in 1963 and opened the first pizza buffet restaurant in 1969. Pizza Inn has more than 300 locations. Pizza Inn began franchising the Pizza Inn brand internationally in the late 1970s. In 1993, Pizza Inn stock began trading on the NASDAQ Stock Market, and presently trades on the NASDAQ Capital Market under the ticker symbol "PZZI."
According to the Small Business Administration, Pizza Inn franchisees received 37 SBA-guaranteed loans since 2001; 36% of those loans have been defaulted on by Pizza Inn franchise owners.
The Pizza Inn Franchise has a failure rate of 36% for SBA-backed franchise loans
Yet despite the obvious failures in the Pizza Inn franchise program, the Pizza Inn website not only cheerfully promotes the Pizza Inn franchise opportunity, but it highlights its membership in the SBA Franchise Registry.
What the Pizza Inn franchise marketing page doesn’t disclose is that it’s likely that Pizza Inn franchise owners who received SBA loans may have collateralized their franchise loan with their houses or other personal assets, and nearly half were unable to repay those franchise loans… despite serious incentive to do so.
Are you familiar with the Pizza Inn franchise opportunity?
What do you think accounts for the SBA loan failure rate of Pizza Inn franchise owners?
What steps should Pizza Inn be taking to stop further franchise failures?
Has Pizza Inn taken serious action to address the problems that led to the 36% loan failures?
Please share a comment, opinion or insight below.
ARE YOU A PIZZA INN FRANCHISE OWNER OR FORMER PIZZA INN FRANCHISEE? ARE YOU FAMILIAR WITH THE PIZZA INN FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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