SBA Backed Loans Failure Performance
The Small Business Administration recently published it’s annual compilation of performance data on thousands of franchisee loans it has guaranteed.
The information is available through Coleman Publishing. The study looks at the number of SBA-backed franchisee loans that went into liquidation. The measure gives some insight into the financial risks involved with franchises that received funding thru the SBA Guaranteed loans program..
The latest report — covering loans made from Oct. 1, 2000, to Sept. 30, 2007. Among other statistics, it shows how many loans were made to a franchise, the dollars disbursed, and what percentage of loans went into liquidation, something the SBA classifies as a “failure.”
Many SBA lenders use the data to help spot negative trends and reduce future loan losses.
Best Performers (less than 1% failure) Sorted Ascending by lowest % (ties sorted descending by # of loans)
| Comfort Inn | 158 | 0 | 0% |
| Primrose | 110 | 0 | 0% |
| Edible Arrangement | 104 | 0 | 0% |
| Massage Envy | 61 | 0 | 0% |
| Cartridge World | 112 | 8 | .93% |
| Subway | 1974 | 84 | .96% |
| Dunkin Donuts | 410 | 17 | .96% |
| Sport Clips | 191 | 8 | .96% |
| Travelodge | 91 | 4 | .96% |
| IHOP | 67 | 3 | .96% |
| Goddard | 109 | 3 | .97% |
| Super 8 Motel | 363 | 8 | .98% |
| Best Western | 156 | 3 | .98% |
| Choice Hotels | 144 | 3 | .98% |
| Rita’s Water Ice | 103 | 2 | .98% |
| Arco | 85 | 2 | .98% |
| Zaxby’s | 81 | 2 | .98% |
| Anytime Fitness | 65 | 1 | .98% |
| Holiday Inn Express | 157 | 1 | .99% |
| Culver’s Frozen Custard | 150 | 1 | .99% |
| Hampton Inn | 88 | 1 | .99% |
| Brusters Real Ice Cream | 84 | 1 | .99% |
| Little Caesars Pizza | 72 | 1 | .99% |
| FastSigns | 71 | 1 | .99% |
High Failures (greater than 25%) Sorted Descending by Highest % (ties sorted descending by # of loans)
| Carvel Ice Cream | 76 | 30 | 39% |
| Matco Tools | 316 | 95 | 30% |
| Atlanta Bread | 61 | 18 | 30% |
| Golf Etc | 67 | 24 | 36% |
| Cornwell Quality Tool | 53 | 19 | 36% |
| Blimpie Subs & Salads | 158 | 58 | 37% |
| Cottman Transmission | 163 | 75 | 46% |
| All Tune & Lube | 77 | 37 | 48% |
| Philly Connection | 63 | 30 | 48% |
Jim Coen, Mr. Franchise
I have learned franchising from the ground up. I’ve been a franchisee for a bad franchisor. I’ve worked for good franchisors and I’ve worked for marginal franchisors. I’ve helped many franchisees succeed.
I provide a consulting process that saves you time and money in your franchise search and provides you with the tools to make the right choice for you and your family.
Call: 617-469-3002
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