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High Risk Franchises:Tools for finding the most profitable franchises (and avoiding the opposite)Below is a list of high risk franchises, to the degree SBA loan defaults make a franchise investment more risky than normal. These are the worst franchises with the highest SBA failure rate, in terms of SBA loan default rates. Finalizing your best franchises list for investigation, it would be worthwhile reviewing this list to see if your firms of interest are on it.
Will Your Franchise Investments Generate Enough Income?
SBA Loan Default Rates (Loan Failure Rate) for Franchises (2009)High Risk Franchises List (Based on SBA's Default Table Below...)
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| Franchise Name | Number of Loans | Disbursments $(000) | Failure % |
| TILDEN FOR BRAKES CAR CARE CENTER | 14 | $2,877 | 85.71% |
| EXECUTIVE TANS | 47 | $9,789 | 65.96% |
| PRO GOLF | 33 | $7,691 | 63.64% |
| BEAR ROCK CAFE | 10 | $4,261 | 60.00% |
| LA PALETERA | 15 | $2,149 | 60.00% |
| OBEE'S SOUP SALAD SUBS | 39 | $3,418 | 58.97% |
| SHAPEXPRESS | 12 | $1,432 | 58.33% |
| FRULLATI CAFE | 14 | $1,824 | 57.14% |
| MR. GOODCENTS SUB' AND PASTA | 55 | $7,246 | 54.55% |
| WICKS 'N' STICKS | 11 | $918 | 54.55% |
| HAIR COLOR EXPRESS | 15 | $2,660 | 53.33% |
| WINGS-N-THINGS | 17 | $4,178 | 52.94% |
| NOBLE ROMAN PIZZA | 19 | $6,791 | 52.63% |
| SUPER SUPPERS OF KELLER | 21 | $1,772 | 52.38% |
| AMAZON CAFE | 23 | $4,232 | 52.17% |
| PHILLY CONNECTION | 63 | $7,722 | 50.79% |
| LEE MYLES AUTOMOTIVE TRANSMISSIONS | 14 | $2,339 | 50.00% |
| P J'S COFFEE AND TEA CAFE | 10 | $2,233 | 50.00% |
| STREET CORNER NEWS | 14 | $1,920 | 50.00% |
| COTTMAN TRANSMISSION | 165 | $20,460 | 49.09% |
| ALL TUNE AND LUBE | 81 | $8,671 | 46.91% |
| DOUBLEDAVE'S PIZZAWORKS | 30 | $6,479 | 46.67% |
| ATHLETE'S FOOT | 26 | $5,715 | 46.15% |
| COPY CLUB | 11 | $3,290 | 45.45% |
| ROLY POLY ROLLED SANDWICHES | 29 | $2,216 | 44.83% |
| DOLLAR DISCOUNT STORES | 27 | $2,759 | 44.44% |
| GOLF U.S.A. (RETAIL GOLF EQUIP.) | 34 | $4,796 | 44.12% |
| GRANDY'S | 14 | $6,853 | 42.86% |
| PIZZA FACTORY | 21 | $3,262 | 42.86% |
| COMPUTER RENAISSANCE | 26 | $2,288 | 42.31% |
| LADY OF AMERICA | 31 | $3,130 | 41.94% |
| CORNWELL QUALITY TOOL COMPANY,INC | 55 | $3,235 | 41.82% |
| SUPER SUPPERS | 12 | $1,417 | 41.67% |
| CARVEL ICE CREAM | 78 | $16,614 | 41.03% |
| BLIMPIE | 162 | $26,676 | 40.74% |
| NICK-N-WILLY'S PIZZA | 37 | $5,135 | 40.54% |
| GOLF ETC. | 82 | $12,127 | 40.24% |
| COFFEE BEANERY (RETAIL COFFEE) | 25 | $4,125 | 40.00% |
| EAST OF CHICAGO PIZZA | 25 | $3,410 | 40.00% |
| IMAGE ARTS ETC. | 15 | $1,545 | 40.00% |
| LARRY'S GIANT SUBS | 20 | $2,001 | 40.00% |
| COUNTRY CLUTTER (BED & BREAKFAST) | 23 | $3,167 | 39.13% |
| UNITED CHECK CASHING,INC. | 23 | $4,004 | 39.13% |
| KABLOOM | 52 | $7,347 | 38.46% |
| CANDY BOUQUET,INC | 34 | $1,397 | 38.24% |
| WING ZONE | 42 | $6,836 | 38.10% |
| BLOCKBUSTER VIDEO | 16 | $9,779 | 37.50% |
| PARTYLAND (RETAIL PARTY GOODS) | 24 | $5,559 | 37.50% |
| DO IT BEST HARDWARE | 11 | $2,067 | 36.36% |
| ATLANTA BREAD COMPANY | 64 | $33,358 | 35.94% |
| WINGS TO GO | 39 | $6,006 | 35.90% |
| BAD ASS COFFEE COMPANY (THE) | 14 | $2,015 | 35.71% |
| JUST-A-BUCK | 14 | $2,266 | 35.71% |
| PICKERMAN'S | 28 | $3,428 | 35.71% |
| STEAK-OUT | 14 | $3,021 | 35.71% |
| DAYLIGHT DONUT SHOP | 23 | $3,207 | 34.78% |
| MURPHY'S DELI | 29 | $3,757 | 34.48% |
| PLANET SMOOTHIE | 44 | $5,715 | 34.09% |
| MY GYM | 50 | $8,453 | 34.00% |
| BUCK'S PIZZA | 12 | $1,237 | 33.33% |
| CAMILLE'S SIDEWALK CAFE | 36 | $10,014 | 33.33% |
| ECONO LUB N TUNE | 30 | $4,373 | 33.33% |
| FIGARO'S ITALIAN PIZZA | 24 | $4,653 | 33.33% |
| KING BEAR AUTO SERVICE | 15 | $3,420 | 33.33% |
| KWIK-KOPY | 21 | $4,716 | 33.33% |
| MR. ELECTRIC | 18 | $1,953 | 33.33% |
| MATCO TOOLS (RENT TOOLS) | 320 | $29,302 | 32.81% |
| BACK YARD BURGERS | 28 | $14,994 | 32.14% |
| MR. TRANSMISSION | 25 | $4,565 | 32.00% |
| JIMBOY'S TACOS | 19 | $7,233 | 31.58% |
| PRECISION TUNE | 38 | $8,528 | 31.58% |
| VELOCITY SPORTS PERFORMANCE | 19 | $6,695 | 31.58% |
| TACO DEL MAR | 71 | $10,102 | 30.99% |
| MAC TOOLS | 42 | $3,863 | 30.95% |
| AUSSIE PET MOBILE VILLA PARK | 26 | $3,477 | 30.77% |
| CLOSET FACTORY (THE) | 13 | $4,484 | 30.77% |
| MAILBOXES & PARCEL DEPOT | 13 | $1,524 | 30.77% |
| NEW YORK NY FRESH DELI | 13 | $1,873 | 30.77% |
| STAINED GLASS OVERLAY, INC. | 13 | $963 | 30.77% |
| BELLACINO'S PIZZA | 23 | $4,257 | 30.43% |
| MAMA FU'S NOODIE HOUSE | 10 | $3,175 | 30.00% |
| MIAMI SUBS (FORMERLY MR SUBMARINE) | 10 | $3,326 | 30.00% |
| SIMPLE SIMON'S PIZZA | 10 | $975 | 30.00% |
| SNIP-ITS | 10 | $1,729 | 30.00% |
| A & W RESTAURANT | 27 | $12,992 | 29.63% |
| NESTLE TOLL HOUSE BY CHIP | 17 | $3,195 | 29.41% |
| CHICAGO'S PIZZA OF GREENFIELD | 14 | $2,963 | 28.57% |
| NESTLE TOLL HOUSE CAFE | 14 | $3,327 | 28.57% |
| SAMARI SAMS TERIYAKI GRILL | 14 | $4,631 | 28.57% |
| SMOOTHIE FACTORY | 28 | $3,284 | 28.57% |
| WIRELESS | 21 | $3,237 | 28.57% |
| WIRELESS TOYZ | 32 | $6,724 | 28.13% |
| FOX'S PIZZA DEN | 82 | $5,766 | 28.05% |
| FAST FRAME | 68 | $7,043 | 27.94% |
| MR. HERO SANDWICH SHOP | 18 | $3,355 | 27.78% |
| BIG APPLE BAGELS | 29 | $3,521 | 27.59% |
| BABY'S ROOM USA | 11 | $4,819 | 27.27% |
| ROLY POLY | 33 | $2,983 | 27.27% |
| U BUILD IT | 11 | $1,333 | 27.27% |