I know that lots of people go into franchise ownership because they feel that they can piggyback on an established brand, thereby increasing their chances of success. That’s certainly logical thinking. But sometimes, business defies logic.
For instance, take a look at the SBA’s loan default rates for 2 of the 10 most popular franchises, as reported by CNN.com. (It’s taken from the SBA’s own data)
• Subway Reported SBA Default Rate: 7%
Reported Number of SBA Loans: 2,292
Reported Total Amount Dispersed: $391.8 million
Reported Average Loan Size: $170,928
