July 21, 2012
Smoothie King franchise opportunity: Are you considering it?
The Smoothie King franchise website states: “By buying into a franchise, you have the backing of a recognized brand with a proven track record and business method… Franchising allows you to obtain independence and to be your own boss with far less risk.”
However, data released by the Small Business Administration (SBA) indicates that Smoothie King franchise owners who qualified for SBA-backed franchise loans have a high loan failure rate of 28%.
That qualifies Smoothie King for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Smoothie King franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Smoothie King franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Smoothie King franchise owners have an alarming 28% SBA default rate.
The SBA loan high failure rate of Smoothie King is a franchise red flag.
|Smoothie King Franchise|
|SBA loans granted since 2001:||62|
|SBA loan failure rate:||46%|
|Sources: 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 Smoothie King 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 Smoothie King franchise opportunity?
What do you think accounts for the SBA loan failure rate of Smoothie King franchise owners?
What steps should Smoothie King be taking to stop further franchise failures?
Has Smoothie King 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 SMOOTHIE KING FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR SMOOTHIE KING FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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