Call Today: (800) 976-4904
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.
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.
Want to make sure you've covered all of your bases before buying a franchise?
Category: Buy a Franchise
With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your brand. Click on the button below or call us at (800) 976-4904.
With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.
Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.
An attorney client relationship is not established by submitting this initial contact information.