GYMBOREE Franchise Complaints

Gymboree franchise opportunity:  Are you familiar with it?

If so, please share your experience, opinions or insights with a comment below.

The Gymboree franchise information website claims “More than 650 Gymboree Play & Music Program franchises in over 33 countries prove what we’ve known for more than 30 years–play and music combined with learning is serious business!

“We bring fun, creativity and friendship to our customers and our franchisees too!

“…Our franchisees also have the advantage of being part of a rapidly growing Gymboree brand. We are quickly expanding in U.S. markets and opening new franchises all over the world.

Key markets are still available in the U.S. and internationally. Come Grow With Us Today!.”

However, according to Entrepreneur, Gymboree locations declined from 262 US franchises in 2008 to 205 in 2011

According to data released by the Small Business Administration (SBA), Gymboree franchise owners who qualified for SBA-backed franchise loans have a disturbingly high loan failure rate of 31%.

That earns Gymboree a spot in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)

Gymboree franchise owners have a 31% SBA default rate.

The apparent drop in Gymboree franchises in recent years and the SBA loan default rates are franchise due diligence red flags.

Gymboree Franchise  
Gymboree U.S. franchises in 2008: 262
Gymboree U.S. franchises in 2011: 205
Growth in franchise units 2008 – 2011 (#) -57
Growth in franchise units 2008 – 2011 (%): -22%
SBA loans granted since 2001: 70
SBA loan failure rate: 31%
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 Gymboree 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 Gymboree franchise opportunity?

What do you think accounts for the SBA loan failure rate of Gymboree franchise owners?

What steps should Gymboree be taking to stop further franchise failures?

Has Gymboree 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 Gymboree franchise representative or employee, please feel free to leave a comment or email us at UnhappyFranchisee[at]gmail.com.

ARE YOU FAMILIAR WITH THE GYMBOREE FRANCHISE OPPORTUNITY? 

ARE YOU A CURRENT OR FORMER GYMBOREE FRANCHISE OWNER? 

PLEASE SHARE A COMMENT BELOW.

Contact UnhappyFranchisee.com

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