Extra Innings franchise has been listed as one of the worst franchises in terms of default rate on SBA franchise loans.
(UnhappyFranchisee.Com) According to the Coleman Report, Extra Innings franchise owners have defaulted on 32% of the SBA-backed loans granted for Extra Innings franchises to date.
That earns Extra Innings a spot in our The Worst Franchises by SBA Loan Default Rate list.
Are you familiar with the Extra Innings franchise? Please share a comment – positive or negative – below.
Extra Innings Franchise Owners Are Striking Out
When the Extra Innings baseball practice franchise closed, Frank Kosa posted his condolences on the location’s Facebook page:
“Sorry to see you closed, another victim in the long line of Extra Innings’ closures…well over 17 in the last 5 years.”
Visitor posted this to BlueMauMau.org:
“Horrible Franchise Stay as far away as possible from this Franchise. Over 80% never make it beyond 4 years. Save your time and money and please look elsewhere for your own business.”
While Visitor’s 80% may be a bit high, Frank Kosa’s statement appears to be dead on.
Our analysis shows that out of the 52 Extra Innings franchises open between 2008 and 2013, 20 (38%) were terminated, reacquired or ceased operations “for other reasons.”
That means that franchisee investments of $158K – $557.5K each were lost, and American taxpayers helped foot the bill for the loans that were SBA-guaranteed to the bank.
STATUS OF EXTRA INNINGS FRANCHISE OUTLETS 2008-2013*
|Year||Outlets at Start of the Year||Outlets Opened||Terminations||Reaquired by the Franchisor||Ceased Operations – Other Reasons||Outlets at End of Year|
* Source: Extra Innings Franchise Disclosure Documents 2011, 2012, 2014
The Extra Innings franchise system shows how a franchise chain can look relatively stable to an outside observer when, in fact, franchisees are investing and failing.
Extra Innings had about the same number of units in 2008 (32) as it did in 2013 (31).
However, Extra Innings simply replaced its failed franchisees each year with new franchises.
Those 20 franchisee closures could represent total lost initial investments ranging from $3,160,000 to $11,150,000 or more.
We would love to hear from Extra Innings the franchisor and its franchisees as to why they believe the baseball training franchise has such high turnover, and what they have done to try to reduce it.
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