July 21, 2012
Planet Smoothie franchise opportunity: Are you considering it?
The Planet Smoothie franchise website states: “Planet Smoothie is a category leader with well over a hundred units across the nation [Actually, there are 99 locations listed on the Planet Smoothie website]…Planet Smoothie is continuously working to improve your business… Planet Smoothie is an organization with dedicated professionals seeking to make your business a success.”
However, data released by the Small Business Administration (SBA) indicates that Planet Smoothie franchise owners who qualified for SBA-backed franchise loans have an shockingly high loan failure rate of 46%.
That qualifies Planet Smoothie for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Planet Smoothie franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Planet Smoothie franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Planet Smoothie franchise owners have an alarming 46% SBA default rate.
The apparent drop in Planet Smoothie franchises in recent years is also a franchise red flag.
|Planet Smoothie Franchise|
|Planet Smoothie U.S. franchises in 2008:||126|
|Planet Smoothie U.S. franchises in 2012:||99|
|Growth in franchise units 2008 – 2012 (#)||-27|
|Growth in franchise units 2008 – 2012 (%):||-21%|
|SBA loans granted since 2001:||62|
|SBA loan failure rate:||46%|
|Sources: Entrepreneur, company website (growth), company website (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 Planet Smoothie 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 Planet Smoothie franchise opportunity?
What do you think accounts for the SBA loan failure rate of Planet Smoothie franchise owners?
What steps should Planet Smoothie be taking to stop further franchise failures?
Has Planet Smoothie taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE PLANET SMOOTHIE FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR PLANET SMOOTHIE FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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