August 17, 2012
Sylvan Learning Centers franchise opportunity: Are you familiar with it?
If so, please share your experience, opinions or insights with a comment below.
The Sylvan Learning Centers franchise website states: “Now is an exciting time to join Sylvan – centers are currently available.
“This rewarding opportunity allows you to benefit from the proven success of Sylvan’s well-established franchise system.
Sylvan supplies you with all the tools to compete effectively in the market…”
However, according to Entrepreneur, Sylvan Learning Centers locations declined from 816 US franchises in 2008 to 740 in 2011.
According to data released by the Small Business Administration (SBA), Huntington Learning Centers franchise owners who qualified for SBA-backed franchise loans have a loan failure rate of 25%.
That earns Sylvan Learning Centers a spot in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Sylvan Learning Centers franchise owners have a 25% SBA loan default rate.
The apparent drop in Sylvan Learning Centers franchises in recent years and high SBA loan default rates could be franchise due diligence red flags.
|Sylvan Learning Centers Franchise|
|Sylvan Learning Centers U.S. franchises in 2008:||816|
|Sylvan Learning Centers U.S. franchises in 2011:||740|
|Growth in franchise units 2008 – 2011 (#)||-76|
|Growth in franchise units 2008 – 2011 (%):||-9%|
|SBA loans granted since 2001:||193|
|SBA loan failure rate:||25%|
|Sources: Entrepreneur (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 Sylvan Learning Centers 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 Sylvan Learning Centers franchise opportunity?
What do you think accounts for the SBA loan failure rate of Sylvan Learning Centers franchise owners?
What steps should Sylvan Learning Centers be taking to stop further franchise failures?
Has Sylvan Learning Centers taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
If you are a Sylvan Learning Centers franchise representative or employee, please feel free to leave a comment or email us at UnhappyFranchisee[at]gmail.com.
ARE YOU FAMILIAR WITH THE SYLVAN LEARNING CENTERS FRANCHISE OPPORTUNITY?
ARE YOU A CURRENT OR FORMER SYLVAN LEARNING CENTERS FRANCHISE OWNER?
PLEASE SHARE A COMMENT BELOW.
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