What Are The Failure Rates Of The 10 Most Popular Franchise Opportunities?

Unhappy Franchisee:

CNNMoney.com recently published the list they determined were the “most popular” franchises based on the dispersal of SBA loans to franchise owners.

According to CNNMoney.com, the “loan data is from the Small Business Administration, covering loans made from October 2000 through September 2009. The failure rate represents the number of loans in liquidation or charged off, divided by the number of loans disbursed.”

The Matco Tools was deemed the riskiest franchise with a 36% franchise loan default rate.

Cold Stone Creamery franchise was listed as 2nd worst with a 31% failure rate.

The much maligned (& litigated) Quiznos franchise was 3rd worst with a 25% default rate. Read on…

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