Dunn Bros Coffee franchise opportunity: Are you considering it?
The Dunn Bros Coffee franchise website states “When the next step in your journey leads you to think of business ownership… Consider Dunn Bros Coffee, a leader in Specialty Coffee with a proven track record as a strong partner in helping you achieve success in a growing and dynamic industry.”
However, data released by the Small Business Administration (SBA) indicates that Dunn Bros Coffee franchise owners who qualified for SBA-backed franchise loans have a high loan failure rate of 23%.
That qualifies the Dunn Bros Coffee franchise for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Dunn Bros Coffee franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Dunn Bros Coffee franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
The apparent drop in Dunn Bros Coffee franchises in recent years is also a franchise red flag.
| Dunn Bros Coffee Franchise | |
| Dunn Bros Coffee U.S. franchises in 2008: | 95 |
| Dunn Bros Coffee U.S. franchises in 2012: | 78 |
| Growth in franchise units 2008 – 2012 (#) | -17 |
| Growth in franchise units 2008 – 2012 (%): | -18% |
| SBA loans granted since 2001: | 58 |
| SBA loan failure rate: | 23% |
| Sources: Entrepreneur (growth), company website (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 Dunn Bros Coffee 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 Dunn Bros Coffee franchise opportunity?
What do you think accounts for the SBA loan failure rate of Dunn Bros Coffee franchise owners?
What steps should Dunn Bros Coffee be taking to stop further franchise failures?
Has Dunn Bros Coffee 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 DUNN BROS COFFEE FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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