Chem-Dry franchise opportunity: Are you familiar with it?
If so, please share your experience, opinions or insights with a comment below.
According to Entrepreneur, Chem-Dry locations declined from 2531 US franchises in 2008 to 2150 in 2012.
According to data released by the Small Business Administration (SBA), Chem-Dry franchise owners who qualified for SBA-backed franchise loans have a high loan failure rate of 41%.
That earns Chem-Dry a spot in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Chem-Dry franchise owners have a 41% SBA loan default rate.
The apparent drop in Chem-Dry franchises in recent years and the high loan default rates are franchise due diligence red flags.
|Chem-Dry U.S. franchises in 2008:||2531|
|Chem-Dry U.S. franchises in 2012:||2150|
|Growth in franchise units 2008 – 2012 (#)||-381|
|Growth in franchise units 2008 – 2012 (%):||-15%|
|SBA loans granted since 2001:||42|
|SBA loan failure rate:||41%|
|Sources: Entrepreneur (growth), Coleman report (SBA)|
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Chem-Dry 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.
Are you familiar with the Chem-Dry franchise opportunity?
What do you think accounts for the SBA loan failure rate of Chem-Dry franchise owners?
What steps should Chem-Dry be taking to stop further franchise failures?
Has Chem-Dry taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
If you are a Chem-Dry franchise representative or employee, please feel free to leave a comment or email us at UnhappyFranchisee[at]gmail.com.
ARE YOU FAMILIAR WITH THE CHEM-DRY FRANCHISE OPPORTUNITY?
ARE YOU A CURRENT OR FORMER CHEM-DRY FRANCHISE OWNER?
PLEASE SHARE A COMMENT BELOW.
Corporate responses or rebuttals welcome:
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