July 13, 2012
The RedBrick Pizza franchise has an alarmingly high SBA loan default rate of 53%.
Are you familiar with the RedBrick Pizza franchise opportunity? Please share a comment below.
According to Entrepreneur magazine, RedBrick Pizza had 74 franchises in 2008; there are now 37 locations listed on the RedBrick Pizza website. That’s a decline of 37 franchises, or 50% of the entire chain.
According to the Small Business Administration, RedBrick Pizza franchisees received 55 SBA-guaranteed loans; more than half of those loans have been defaulted on by RedBrick Pizza franchise owners.
The RedBrick Pizza Franchise has a failure rate of 53% for SBA-backed franchise loans
Yet despite the obvious devastation the RedBrick Pizza franchise program left in its wake, the RedBrick Pizza website still cheerfully promotes the RedBrick Pizza franchise opportunity.
What the RedBrick Pizza franchise marketing page doesn’t disclose is that it’s likely that RedBrick Pizza franchise owners who received SBA loans may have collateralized their franchise loan with their houses or other personal assets, and more than half were unable to repay those franchise loans… despite serious incentive to do so.
Are you familiar with the RedBrick Pizza franchise opportunity?
What do you think accounts for the SBA loan failure rate of RedBrick Pizza franchise owners?
What steps should RedBrick Pizza be taking to stop further franchise failures?
Has RedBrick Pizza taken serious action to address the problems that led to the 53% loan failures?
Please share a comment, opinion or insight below.
ARE YOU A REDBRICK PIZZA FRANCHISE OWNER OR FORMER REDBRICK PIZZA FRANCHISEE? ARE YOU FAMILIAR WITH REDBRICK PIZZA FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
Tags: RedBrick Pizza, RedBrick Pizza franchise, RedBrick Pizza complaints, RedBrick Café, pizza franchise, pizzeria franchise, pizza, franchise opportunity, restaurant franchise, food franchise, franchise failure rate, worst franchise, sba failure rates, SBA franchise loans, franchise information, James Minidis