EmbroidMe franchise opportunity: Are you familiar with it?
If so, please share your experience, opinions or insights with a comment below.
EmbroidMe claims to be “the World’s largest Embroidery, Garment Printing, Custom Apparel, Promotional Product, screenprinting and Personalized Gifts franchise with a strong presence in the USA, Canada and Australia. Our products include fashion apparel, embroidered garments, personalized promotional products and monogrammed gift items.”
The EmbroidMe franchise brand is part of the United Franchise Group (UFG).
According to the United Franchise Group website: “The experts at UFG have used their over 25 years of franchising experience to grow the franchising giant into a $500 million dollar success story with approx. 1400 franchise locations in 50 countries.
“The company includes franchise industry giants SIGNARAMA, the world’s largest sign franchise; EmbroidMe, the world’s largest embroidery franchise; Billboard Connection, an incredibly successful out-of-home advertising franchise; Transworld Business Advisors, for people to research business opportunities before investing and Plan Ahead Events, a home-based corporate event planning franchise.”
While company size is impressive, data released by the Small Business Administration (SBA) indicates that EmbroidMe franchise owners who qualified for SBA-backed franchise loans have an outrageously high loan failure rate of 40%.
That earns EmbroidMe a spot in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
EmbroidMe franchise owners have an outrageous 40% SBA default rate.
The apparent drop in EmbroidMe franchises in recent years is also a franchise red flag.
|EmbroidMe U.S. franchises in 2008:||375|
|EmbroidMe U.S. franchises in 2012:||250|
|Growth in franchise units 2008 – 2012 (#)||-125|
|Growth in franchise units 2008 – 2012 (%):||-33%|
|SBA loans granted since 2001:||45|
|SBA loan failure rate:||40%|
|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 EmbroidMe 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 EmbroidMe franchise opportunity?
What do you think accounts for the SBA loan failure rate of EmbroidMe franchise owners?
What steps should EmbroidMe and United Franchise Group (UFG) be taking to stop further franchise failures?
Has EmbroidMe and United Franchise Group (UFG) 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 EmbroidMe franchise representative or employee, please feel free to leave a comment or email us at UnhappyFranchisee[at]gmail.com.
ARE YOU FAMILIAR WITH THE EMBROIDME FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR FORMER EMBROIDME FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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