July 14, 2012
Despite its powerhouse brand name, the RadioShack franchise has a relatively high SBA loan default rate of 20%. RadioShack is listed by the SBA among the worst franchises by SBA loan default.
Are you familiar with the RadioShack franchise opportunity? Please share a comment below.
According to the Small Business Administration, RadioShack franchisees received 97 SBA-guaranteed loans since 2001; one-fifth of those loans have been defaulted on by RadioShack franchise owners.
The RadioShack Franchise has a failure rate of 20% for SBA-backed franchise loans
RadioShack franchise marketing is designed to position the RadioShack franchise opportunity as a low-risk investment:
With a RadioShack franchise, you can operate your store in complete confidence, knowing we’re with you from the very start and we’ll stay with you to help you succeed. [Source: RadioShack franchise website]
It’s important to keep in mind that it’s likely that RadioShack franchise owners who received SBA loans may have collateralized their franchise loan with their houses or other personal assets, and one-fifth of them were unable to repay those franchise loans… despite serious incentive to do so.
Are you familiar with the RadioShack franchise opportunity?
What do you think accounts for the SBA loan failure rate of RadioShack franchise owners?
What steps should RadioShack take to stop further franchise failures?
Has RadioShack taken serious action to address the problems that led to the 20% loan failures?
Please share a comment, opinion or insight below.
ARE YOU A RADIOSHACK FRANCHISE OWNER OR RADIOSHACK FRANCHISEE? ARE YOU FAMILIAR WITH THE RADIO SHACK FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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