When it comes to tracking the performance of franchises‚ the SBA maintains some informative statistics. Listed below are the franchisee default rates reported by the SBA for auto repair franchises. The ranked franchises include Lee Myles‚ AAMCO‚ MAACO‚ Jiffy Lube and Eagle Transmission. The failure rate for some of these franchises appear to be quite high. However even where a franchise opportunity is ranked positively‚ i.e. a low failure rate‚ caution is nevertheless required as the only “failure rate” that will matter to you is whether or not your “own” franchise opportunity turns out to be a profitable one. When purchasing a franchise due diligence should always be performed prior to signing any documents. The default rates are listed below. With regard to “Goodyear Tire” I have no clue as to how they have a 0% failure rate – information must be missing.
|Rank||Franchise Brand||Failure %|
|42||All Tune and Lube||51.00%|
|47||Lee Myles Automotive Transmissions||50.00%|
|196||Tuffy Muffler Center||27.78%|
|197||Eagle Transmission‚ Inc.||27.27%|
|213||Speedee Oil Charge & Tune-Up||25.93%|
|214||MAACO Auto Painting Center||25.00%|
|328||Midas Muffler Shop||16.00%|
|402||Car-X Muffler Shop||10.00%|
|475||Kwik Kar Oil & Lube||6.25%|
|479||Valvoline Instant Oil Change||6.25%|
Video Series: Buying a Franchise University Video Series
Article: 6 Steps to Buying a Franchise
Date: 06/03/2011 | Category: Buy a Franchise
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