Are you familiar with the Philly Pretzel Factory franchise?  Please share a comment – positive or negative – below.

(UnhappyFranchisee.Com)  According to the Coleman Report, the default rate for Philly Soft Pretzel Factory SBA-backed franchise loans is 28%.

That’s high enough to earn Philly Soft Pretzel Factory a spot in our Worst Franchises by SBA Loan Default Rate (2014) list.

Why do  Philly Pretzel Factory franchisees default on their SBA loans at such a disturbing rate?  Please share your thoughts below.

The Philly Soft Pretzel Factory franchise website boast solid growth as a selling point, stating:

“Since our first franchise opened nearly 20 years ago, in-stores sales have continued to grow. In fact, 45% of franchise owners own multiple stores.”

Another claim is that Philly Soft Pretzel Factory operations is simple:  “We offer fresh ‘hot outta the oven’ pretzels and a few other products such as pretzel dogs, pretzel cheeseteaks, peperoni melts, and cinnamon pretzel twists. We make it as easy as possible to run our system, so we we keep our product line limited.”

It boasts the solid support system of the Philly Soft Pretzel Factory:  “We focus on providing unmatched franchise support through our Franchise Support Managers who work with you to maintain operation efficiency and build sales through store visits and consistent communication.”

According to Entrepreneur magazine, the Philly Soft Pretzel Factory franchise chain has grown from 110 U.S. locations in 2011 to 129 locations in 2014.

Why, then, does Philly Soft Pretzel Factory have one of the highest SBA loan default rates in the nation?






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5 thoughts on “PHILLY PRETZEL FACTORY Franchise Complaints

  • February 16, 2019 at 2:17 pm

    Philly Pretzel Factory will sucker you right in with a lot of talk about the growth and how fast the company is expanding. When I bought into it in 2016 I was told they had 180 stores, 210 by the end of the year and by 2020 they will have over 500 stores and then go International. Well we are 10 months from 2020 and they have dropped many stores and still sit now at 200.

    10 stores to open in NY have gone under The owner walked away from 10 Franchise fees he paid. That says something.

    Start up costs are 1/2 of what they say they will be. Franchise fees are up to 8% a week of total sales. You are forced to buy their equipment, paper goods, supplies, builder, architect, ect…… that is after you pay $45,000 to buy the franchise.

    Don’t be fooled by the undercover Boss episode. The owner could give a crap about his franchisees just their 8% weekly fees. I have lost my entire retirement fund over 500k and lost my house to the SBA loan with the bank the connect you with. it is one GIANT scam.

    They charge 2% for advertising fees yet DO NONE outside of twitter and Facebook. . especially for stores out of the Philadelphia area. I would not recommend even wasting your time with the hour webinar as it is all propaganda to try and sell you on how much money you will make.

    I lost $80,000 the first year and over $95,000 in 2018. Broke, Homeless and under chapter 11 with over $250,000 in debt. Stay away FAR FAR away

  • January 26, 2020 at 8:04 pm

    I went through something similar, give me a call, i’ll share my story with you…….

  • February 11, 2020 at 12:04 pm

    Oh were you out of market also?

  • July 28, 2020 at 3:08 pm

    Would love to talk to either of you, I’m a current out of market franchise owner.

  • July 30, 2020 at 9:07 pm

    been looking to get into a franchise cleaning…jam pro to much fees don’t see myself making$$ so i ask myself how do we make money.,,,it the game they play

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