ALL POSTSBuying a FranchiseSPOTLIGHT 1

Worst Franchises by SBA Loan Default Rate (2014)

Worst Franchises
Worst Franchises by SBA Loan Default Rate (2014)

What are the worst franchises in America when it comes to defaulting on SBA-backed franchise loans?

(UnhappyFranchisee.Com)  The 2014 Franchise Coleman Report lists the SBA loan performance – going back to 2004 – of franchisors that received SBA loan financing in 2013.

The 2014 Coleman Report lists 126 franchise companies (see chart below) with at least 20 SBA franchise loans approved in 2013 that have a default rate of greater than 15%.

Are you familiar with any of these franchise concepts?


Please share a comment below or at the franchise-specific discussion link.

If you are considering investing in any of these franchises, you should be extra careful with your due diligence and find out what factors account for their high SBA loan default rates.

FRANCHISORS:  To provide corrections, clarifications, rebuttals or to explain system improvements, please contact





Discuss Franchise Here:
1. Nick & Willy’s 57% NICK-N-WILLY’S PIZZA Franchise Complaints
2. Super Suppers 51% Please comment below
3. Pro Golf 48% PRO GOLF Franchise Complaints
4. Submarina 48% SUBMARINA Franchise Complaints
5. 24 Seven Vending 46% 24SEVEN VENDING IntelliVend Franchise Complaints
6. Daily Grind 45% DAILY GRIND Coffee House Franchise: What Happened?
7. Golf ETC. 44% GOLF ETC. Franchise Complaints
8. iSoldIt 43% Please comment below
9. Wireless Toyz 41% WIRELESS TOYZ Franchise Complaints
10. Play N Trade 40% PLAY N TRADE: Video Game Franchise Played Out?
11. Mr. Goodcents 38% MR. GOODCENTS Franchise Complaints
12. Noble Roman’s 38%  

NOBLE ROMAN’S (NROM) Franchise Complaints


13. Camille’s Sidewalk Cafe 37% CAMILLE’S SIDEWALK CAFE Franchise Complaints
14. Mr. Transmission 36% MR. TRANSMISSION Franchise Complaints
15. Planet Beach 36% PLANET BEACH Franchise Complaints  > FRANCHISOR RESPONSE
16. Wings to Go 36% WINGS TO GO Franchise Complaints
17. Bellacino’s Pizza 35% BELLACINO’S PIZZA Franchise Complaints
18. Dream Dinners 35% DREAM DINNERS Rated a Worst Franchise by Forbes. Do You Agree?
19. Roly Poly 35% ROLY POLY Franchise Complaints
20. Petland 34% PETLAND Franchise Complaints
21. Carvel 34% CARVEL Franchise Complaints
22. Beef O’Brady’s 33% BEEF O’BRADY’S Franchise Complaints
23. Golf USA 33% GOLF USA Franchise Complaints
24. Instant Imprints 33% INSTANT IMPRINTS Franchise Complaints
25. Taco del Mar 33% Please comment below
26. Cornwell Tools 32% CORNWELL TOOLS Franchise Scam or No Scam?
27. Extra Innings 32% EXTRA INNINGS Franchise Failure Warning
28. My Gym 32% MY GYM Franchise Complaints
29. RedBrick Pizza 32% REDBRICK PIZZA Franchise Complaints
30. Chem-Dry 31% CHEM-DRY Franchise Complaints
31. Foot Solutions 31% FOOT SOLUTIONS Franchise Complaints
32. Precision Tune 31% MEINEKE Franchise Complaints
33. Nestle Toll House Cafe 30% NESTLE TOLL HOUSE CAFÉ BY CHIP Franchise Complaints
34. EmbroidMe 30% EMBROIDME Franchise Complaints
35. Marble Slab Creamery 30% MARBLE SLAB CREAMERY Franchise
36. Huntington Learning Center 29% HUNTINGTON LEARNING CENTERS Franchise Complaints
37. EconoLube 29% Please comment below
38. Figaro’s Pizza 29% FIGARO’S PIZZA Franchise Complaints
39. Image Sun 29% IMAGE SUN Franchise Complaints
40. KaBloom 29% Please comment below
41. Fox’s Pizza 28% FOX’S PIZZA DEN Franchise Complaints
52. Philly Soft Pretzel 28% PHILLY PRETZEL FACTORY Franchise Complaints
53. WingZone 28% WING ZONE Franchise Complaints
54. Cottman Transmissions 28% COTTMAN Franchise Complaints
55. Philly Connection 28% PHILLY CONNECTION Franchise Complaints
56. Juice It Up 27% JUICE IT UP Franchise Complaints
57. Cold Stone Creamery 26% COLD STONE CREAMERY Franchise Complaints
58. Murphy’s Deli 26% MURPHY’S DELI Franchise Complaints
59. PakMail 26% PAK MAIL Franchise Complaints
61. Budget Blinds 25% BUDGET BLINDS Franchise Complaints
62. PostNet 25% POSTNET Franchise Complaints
63. Clarion Inn (504) 25% Please comment below
64. Paciugo Gelato 24% PACIUGO GELATO Franchise Complaints
65. AAMCO Transmission 23% AAMCO TRANSMISSION Franchise Complaints
66. Gymboree 23% GYMBOREE Franchise Complaints
67. Pita Pit 23% PITA PIT Franchise Complaints
68. Sign-A-Rama 23% SIGNARAMA Franchise Complaints
69. WOW Café & Wingery 23% WOW CAFÉ & WINGERY Franchise Complaints
70. Century 21 (504) 23% Please comment below
71. Travelodge 23% Please comment below
72. Bath Junkie 23% Please comment below
73. Fitness Together 22% FITNESS TOGETHER Franchise Complaints
74. Johnny Rockets 22% JOHNNY ROCKETS Franchise Complaints
75. Mr. Electric 22% Please comment below
76. Rocky Mountain Chocolate Factory 22% Please comment below
77. Great Steak & Potato 22% GREAT STEAK & POTATO Franchise Complaints
78. Planet Smoothie 22% PLANET SMOOTHIE Franchise Complaints
79. Charley’s Grilled Steaks 21% Please comment below
80. Curves 21% CURVES: Robert Lay’s Story
81. Maui Wowi 21% MAUI WOWI Franchise Complaints
82. Huddle House (504) 21% Please comment below
83. Aim Mail Centers 20% AIM MAIL CENTERS Franchise Complaints
84. Allegra Print 20% ALLEGRA PRINT Franchise Complaints
85. Kid 2 Kid 20% Please comment below
86. Relax The Back 20% Please comment below
87. Speedee Oil Change 20% Please comment below
88. Gandolfo’s Deli 20% Please comment below
89. Goin’ Postal 20% GOIN’ POSTAL Franchise Complaints
90. Great Wraps 20% Please comment below
91. Stevi B’s Pizza 20% Please comment below
92. Quality Inn (504) 20% Please comment below
93. Choice Hotels 19% CHOICE HOTELS: Franchisees Sue for “Unfair & Deceptive Acts”
94. Pizza Inn 19% PIZZA INN Franchise Complaints
95. EconoLodge 19% Please comment below
96. Day’s Inn 19% DAYS INN Franchise Complaints
97. Mr. Handyman 19% Comment below
98. CiCi’s Pizza 18% CICI’S PIZZA Franchise Complaints
99. Amazon Cafe 18% Please comment below
100. Do It Best Hardware 18% Please comment below
101. Panchero’s 18% Please comment below
102. Great Frame Up 18% THE GREAT FRAME UP Franchise Complaints
103. Minuteman Press 18% MINUTEMAN PRESS Franchise Complaints
104. Sylvan Learning Centers 18% SYLVAN LEARNING CENTERS Franchise Complaints
105. ReMax 18% Please comment below
106. Blimpie 18% BLIMPIE Franchise Complaints
107. Godfather’s Pizza 17% GODFATHER’S PIZZA Franchise Complaints
108. zPizza 17% Please comment below
109. Glass Doctor 17% Please comment below
Jerry’s Subs 17% JERRY’S SUBS Franchise Complaints
110. Max Muscle 17% MAX MUSCLE Franchise Complaints
111. Premiere Rental 17% Please comment below
112. Fast Frame 17% FASTFRAME Franchise Complaints
113. Little Gym 17% Please comment below
114. Dunn Bros. Coffee 17% DUNN BROS COFFEE Franchise Complaints
115. FastFrame 17% FASTFRAME Franchise Complaints
116. Sleep Inn 16% Please comment below
117. Postal Annex 16% POSTALANNEX+ Franchise Complaints
118. Wetzel’s Pretzels 16% Please comment below
119. Cartridge World 16% CARTRIDGE WORLD Franchise Complaints
120. Hungry Howie’s 16% HUNGRY HOWIE’S PIZZA Franchise Complaints
121. Winestyles 16% WINESTYLES Franchise Complaints
122. Robek’s Juice 15% Please comment below
123. Extreme Pita 15% Please comment below
124. Signs by Tomorrow 15% Please comment below
125. 1-800-Radiator 15% 1-800-RADIATOR Franchise Complaints
126. Del Taco 15% DEL TACO Franchise Complaints




Tags:  Worst franchise, Worst franchises, worst franchise companies, worst franchise opportunities, Franchise failure rates, SBA franchise loans, SBA franchise loan default rate, worst franchises, worst franchises in America, franchise opportunities, franchise failures, bad franchises, bad franchise opportunities, riskiest franchises, franchises to avoid, franchise opportunities, unhappy franchisee

7 thoughts on “Worst Franchises by SBA Loan Default Rate (2014)

  • John Whie

    Thanks for putting this together, it’s very helpful!

  • Todd A. Peterson

    So why isn’t Matco, Snap-On or Mac on this list? I find it completely captivating that the only TOOL franchise listed above is the one with the smallest share of the market and the best opportunity for success letting franchisees have territory’s versus an LOC. So Matco, Snap-On and Mac must be utilizing the funds being funneled into banks through the New Market Tax Credit program to boost the numbers their CHURN franchises using tax payer dollars to back them up. I always wondered why SUNTRUST bank from Atlanta, GA carried the note on my Matco loan as a franchisee. Then I discovered how this whole scam works!

  • DiscoveryPointIsFraudToo

    Todd: Can you explain the scam of the bank note? We had that note too beyond SBA guaranteed loan.

  • Will try to respond to issues identified above related to Foot Solutions and failure
    rate and why….we are a specialty Foot Wear retailer with focus on Health and Wellness….started in 2000…by 2007 we were opening approximately 40 new stores
    a year and staffed for continued growth….one out of every 10 stores opened was in
    positive cash flow in its first month of business….we had several exclusive lines of
    shoes and products. Average sale was $200 and not unusual for a customer to spend
    over $1,000 plus….we focused on Fit, Fashion and Comfort….our stores crossed into
    the solving foot pain and medical issues all tied to the feet and body alignment…
    we had and still have gross margins in the 60% plus area unheard of in our industry.
    Why did we start losing stores…..
    Economic down turn
    Medicare changes to Diabetic shoe bill
    e com sales …. shoes sold at discounts with a lot less overhead then retailer.
    We had a exclusive line of toning shoes that represented 25% plus of our sales
    that got copied by Sketchers and killed the market niche…
    So lets say there were a number of things that happened in reasonably close
    proximity that had a direct impact on the newer stores that entered the market
    place … the same time we did have a number of stores that did successfully
    grow to the top 10% of our stores during the down turn….
    More then 50% of Medicare based businesses in the Foot Wear market place are
    gone. More then 50% of the independent Foot Wear retailer have closed and continue to close due to the same issues that we faced…..
    We are not focused on growth at this time but we do have a number of franchisees
    that have well passed retirement age and would like to sell their businesses….our
    focus is on supporting those successful franchisee’s that are ready to move on with
    plans for very slow progressive growth over the next 3 years…. our objective is only
    5 new stores for 2015. We have taken steps to survive the down turn and store closures, we have redefined our market niches and strategy on how to reach those
    customers that need our services, we have our own lab in USA that makes the custom orthotics providing our franchisees with gross margins of 75 to 80%, we are
    one of only 3 schools in the USA that has a Certified teaching program for Pedorthist, we lead the Pedorthic Field and provide a much needed service, we have hired key people to support the current position we are in and have outsourced for very specific skill sets needed. Our business has been reviewed by
    a number of outside franchising experts and they all have given us high marks on
    the concept and viability of the Foot Solutions model for today and tomorrows market place……..I would say we have repositioned ourselves for the opportunity
    to grow our business concept within a niche that literally has no major competitors
    at this time……I will be happy to explain or discuss this with any one….

  • Todd A. Peterson

    I will try. I was granted a loan through Suntrust Bank out of Atlanta, Ga. Why would a bank from Atlanta, Ga. want to give a franchisee from Arkansas a loan to start up a franchise that Churns 100% of it’s franchisees over a 5 to 6 year period? These notes are spread out over 7 years if you only have good credit and no start up. That is when I found out about the New Market Tax Credit allocating money to banks like Suntrust Bank who receive this money to boost business opportunities in low income or poorly developed communities. I have posted much of this information on the Matco comments. How it works though is our government provides tax dollars to promote community development in in small communities and low income areas. ONE of these ways is through the NMTC or New Market Tax Credit. This money is was meant to help small communities grow but what it is doing is giving BIG corporations a place to pull tax payer dollars to fund their fraud. I say this because why the hell would SUNTRUST Bank want to lend Todd Peterson $63,000 with no money down. WELL!!! If the money is not Matco’s and is free money with the guise of promoting rural and small community development why wouldn’t Matco take that money each year and CHURN as many franchisees as they could to tap into those funds?

    It isn’t just the NMTC either! There are a LOT of funds slotted for community development with different titles but they all do the same thing. FUND the franchise industries fraud!

  • Almost bought a Line-X franchise for Spray-on Lining & Coatings. Line-X price is $246,000.00. As owner of 2 truck dealerships with collision shops, I’ve witnessed many fake offers and fraudulent schemes. When I located Flexible Lining Systems this taught me everything. Clear and simple; an actual Spray-Lining & Coatings dealership, pure and hybrid polyurea for under $26,000.00 superseded any product, equipment or dealership service Line-X (also Rhino Linings) ever offered. For that reason I renamed Corpus Christi Bedliners now our legal name, “Rhino-Line-X Alternative”…

Leave a Reply

Your email address will not be published. Required fields are marked *