BEEF O’BRADY’S Franchise Complaints
Beef O’Brady’s franchise opportunity seems like an attractive opportunity.
It has an impressive management team.
It has an appealing menu and a solid concept: American bar food served in a family-oriented, sports-themed atmosphere.
And the community marketing approach explained on its website is sound:
“At the heart of every Beef O’ Brady’s® franchise is a commitment to the community, a commitment that sets our franchise apart from other models…
“Each franchisee works with adult and youth athletics, local schools, and community organizations to create a sense of community.
“When you own and operate your own Beef’s®, you are able to build your business while contributing to the betterment of the community through school sponsorships, charity involvement, and sporting events.”
[Graphic: Beef O'Brady's Vision is 100% Franchisee Success, yet their SBA loan failure rate is 52%. Graphic source: Beef O'Brady's website]
Why is it that Beef O’Brady’s has such a high SBA loan failure rate?
According to data released by the Small Business Administration (SBA), Beef ‘O’ Brady’s franchise owners who qualified for SBA-backed franchise loans have a loan failure rate of 52%.
That qualifies Beef ‘O’ Brady’s for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Are you familiar with the Beef ‘O’ Brady’s franchise opportunity? If so, please share your experience, opinions or insights with a comment below.
If you are a Beef ‘O’ Brady’s franchise representative or employee, please leave a comment or email us at UnhappyFranchisee[at]gmail.com.
Beef O’Brady’s franchise owners have a 52% SBA loan default rate.
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s especially serious with a franchise investment as high as Beef O’Brady’s: between $164,500 to $662,500, according to their website.
It’s likely that Beef O’Brady’s franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Beef O’Brady’s
| SBA loans granted since 2001: | 119 |
| SBA loan failure rate: | 52% |
| Sources: Coleman report (SBA) |
109 Beef O’Brady’s Restaurants ceased operation (34%) between 2009-2011
The relatively high franchise closure rate of Beef O’Brady’s seems to be a franchise red flag.
| Beef O’Brady’s Franchises 2009-2011 | |
| Franchises open January 2009: | 264 |
| Franchises added 2009-2011: | 52 |
| Franchises ceased operation 2009-2011 | 109 |
| Franchises ceased operation (%) | 34% |
| Sources: Beef O’Brady’s 2012 Franchise Disclosure Documents (FDDs) |
According to the 2012 FDD, Beef O’Brady’s started 2009 with 264 franchises open and ended 2011 with 207… a net loss of 57 locations.
However, when you figure that Beef O’Brady’s opened 52 new franchises during that period, it’s apparent that the number of Beef O’Brady’s franchises that ceased operation is 109, or 34% of the franchises open.
Beef O’Brady’s Franchises 2009 – 2011 (Source: Beef O’Brady’s 2012 FDD)
| Year | Outlets at start of the year/period | Outlets added | Ceased Operation | Outlets at end of the year | |
| 2009 | 264 | 26 | 43 | 247 | |
| 2010 | 247 | 14 | 43 | 218 | |
| 2011 | 218 | 12 | 23 | 207 | |
| 2009 -2011 | 264 | 52 | 109 | 207 |
What do you think of the Beef O’Brady’s franchise?
Are you familiar with the Beef O’Brady’s franchise opportunity?
What do you think accounts for the high SBA loan failure rate of Beef O’Brady’s franchise owners?
What steps should Beef O’Brady’s be taking to stop further franchise failures?
Has Beef O’Brady’s taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
ARE YOU FAMILIAR WITH THE BEEF O’BRADY’S FRANCHISE OPPORTUNITY?
ARE YOU A CURRENT OR FORMER BEEF O’BRADY’S FRANCHISE OWNER?
PLEASE SHARE A COMMENT BELOW.
Corporate responses, clarifications or rebuttals welcome:
The post BEEF O’BRADY’S Franchise Complaints appeared first on Unhappy Franchisee.