The Pita Pit franchise has an alarmingly high SBA loan default rate of 52%.
According to the 2012 Pita Pit Franchise Disclosure Document, between the start of 2008 and the end of 2011, Pita Pit terminated approximately 53 franchises, reacquired about 24 franchises, and had 10 franchises cease operation for other reasons.
Pita Pit franchisees have been granted 49 SBA-guaranteed loans; more than half of those loans have been defaulted on by Pita Pit franchise owners.
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The Pita Pit Franchise has a failure rate of 52% for SBA-backed franchise loans
Despite it’s high SBA loan default rate, Pita Pit not only continues to recruit franchise owners, it brags about its relationship with lenders:
…we do have relationships with a number of lending sources that provide SBA loans, non-SBA loans, and options that allow you to invest in a new business using IRA or 401k monies. We are an approved franchise on the SBA registry which allows a more efficient loan application process.
What Pita Pit doesn’t point out is that it’s likely that Pita Pit 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 Pita Pit franchise opportunity?
What do you think accounts for the SBA loan failure rate of Pita Pit franchise owners?
What steps should Pita Pit be taking to stop further franchise failures?
Please share a comment, opinion or insight below.
ARE YOU A PITA PIT FRANCHISE OWNER OR FORMER PITA PIT FRANCHISEE? ARE YOU FAMILIAR WITH THE PITA PIT FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
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