The Line-X franchise has a relatively high SBA loan default rate of 20%
That means that Line-X franchise owners, some of whom may have collateralized their franchise loan with their house or other personal assets, were unable to repay their loans 20% of the time despite having a very serious incentive to do so.
The Line-X Franchise has a failure rate of 20% for SBA-backed franchise loans
Another red flag is the fact that Entrepreneur data indicates that Line-X franchises have been closing and the Line-X network is shrinking at a concerning rate.
In 2008, there were 460 Line-X franchises in the U.S.. By 2012, that number had shrunk to 385, a decline of 75 franchises or 16% of the total number of operational U.S. Line-X franchises.
Are you familiar with the Line-X franchise opportunity?
What do you think accounts for the SBA loan failure rate of Line-X franchise owners?
What steps should Line-X be taking to stop further franchise failures?
Please share a comment, opinion or insight below.
ARE YOU A LINE-X FRANCHISE OWNER OR FORMER FRANCHISEE? ARE YOU FAMILIAR WITH THE LINE-X FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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