East of Chicago Pizza cites “risk avoidance” as one of the main selling points of its franchise program. However, the East of Chicago Pizza franchise has an outrageously high SBA loan default rate of 50%.
Are you familiar with the East of Chicago Pizza franchise opportunity? Please share a comment below.
According to the Small Business Administration, East of Chicago Pizza franchisees received 40 SBA-guaranteed loans; half of those loans have been defaulted on by East of Chicago Pizza franchise owners.
Yet despite the obvious failures in the East of Chicago Pizza franchise program, the East of Chicago Pizza website not only cheerfully promotes the East of Chicago Pizza franchise opportunity, it boasts the safety of investing in its franchise:
Track Record of Success
East of Chicago has developed a method of doing business that works well and produces successful results…
Risk Avoidance
The biggest reason to buy an East of Chicago franchise is that we will help you avoid much of the risk of starting a new business. Make no mistake—businesses do fail. However, under the East of Chicago franchise system the risk of failure is greatly reduced. East of Chicago considers you as a partner. Thus, if you fail we fail as well.
What the East of Chicago Pizza franchise marketing page doesn’t disclose is that it’s likely that East of Chicago Pizza 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 East of Chicago Pizza franchise opportunity?
What do you think accounts for the SBA loan failure rate of East of Chicago Pizza franchise owners?
What steps should East of Chicago Pizza be taking to stop further franchise failures?
Has East of Chicago Pizza taken serious action to address the problems that led to the 50% loan failures?
Please share a comment, opinion or insight below.
ARE YOU AN EAST OF CHICAGO PIZZA FRANCHISE OWNER OR FORMER EAST OF CHICAGO PIZZA FRANCHISEE? ARE YOU FAMILIAR WITH THE EAST OF CHICAGO PIZZA FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
Tags: East of Chicago Pizza, East of Chicago Pizza franchise, East of Chicago Pizza complaints, pizza franchise, pizzeria franchise, pizza, franchise opportunity, restaurant franchise, food franchise, franchise failure rate, worst franchise, sba failure rates, SBA franchise loans, franchise information, unhappy franchisee
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