July 15, 2012
The Winestyles franchise has an alarmingly high SBA loan default rate of 52%. Winestyles is listed by the SBA among the worst franchises by SBA loan default.
Are you familiar with the Winestyles franchise opportunity? Please share a comment below.
Winestyles franchisees have received 34 SBA-guaranteed loans since 2001; more than half of those loans have been defaulted on by Winestyles franchise owners.
The Winestyles Franchise has a failure rate of 52% for SBA-backed franchise loans
According to Entrepreneur, the Winestyles franchise chain has declined from 136 in 2008 to 71 U.S. franchises in 2011… a loss of 65 locations, or 48% of all Winestyles franchises.
It’s likely that Winestyles 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 Winestyles franchise opportunity?
What do you think accounts for the SBA loan failure rate of Winestyles franchise owners?
What steps should Winestyles be taking to stop further franchise failures?
Has Winestyles taken serious action to address the problems that led to the 52% loan failures?
Please share a comment, opinion or insight below.
ARE YOU A WINESTYLES FRANCHISE OWNER OR FORMER WINESTYLES FRANCHISEE? ARE YOU FAMILIAR WITH WINESTYLES FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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