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Worst and Best Fitness Franchises to Buy: 2011 SBA Loan Default Rates
When evaluating a prospective investment and purchase of a franchise one of the many due diligence factors that should be evaluated includes SBA loan default rates. A high SBA loan default rate should be viewed as a serious warning sign.
For information on buying a franchise we recommend reading
“An Entrepreneurs Guide to Purchasing a Business or Franchise”
Below is a list of the best and worst fitness franchises “based upon” the 2011 SBA loan default rates. Franchises are listed from highest to lowest failure percentages (please keep in mind not all fitness franchisees are listed).
Franchise Brand Failure %
Shapexpress 66.67%
Velocity Sports Performance 57.89%
My Gym 53.00%
World Gym & Fitness Center 28.57%
Fitness Together 28.00%
Curves for Women 22.00%
Fitness for Life Franchise Corp 21.05%
Gold’s Gym 19.00%
Little Gym 17.00%
Snap Fitness 12.00%
Jazzercise 10.00%
Anytime Fitness 8.00%
Planet Fitness 0.00%
While a high default rate is a definite warning sign keep in mind that a low default rate (by itself) should not be relied upon as a basis for your franchise investment. Consider that a low rate may be attributed to the fact that the franchise is new or that the franchisees do not utilize or qualify for SBA loans.
Continue reading about Buying a Franchise
IMPORTANT DISCLAIMER: The information contained on this website is provided for general educational purposes only, should not be relied on as legal advice and does not serve to create an attorney client relationship. In utilizing this website you acknowledge that there is no attorney client relationship between you and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. Further you acknowledge that any and all citations to cases and statutes must be independently verified by competent legal counsel to be current and to be accurate. The content of this website is subject to the Copyright of its author and owner, Charles N. Internicola, Esq.
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