HomeSBA Loan Default News: The Worst Franchises

SBA Loan Default News: The Worst Franchises

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Lawscape is dedicated to helping business owners successfully resolve their business debt without headaches, or long term consequences.

We Provide Nationwide Business Debt Relief

Lawscape provides nationwide business debt relief services. We work a wide array of lenders, service providers, and types of business debt. We are able to restructure and reduce, all types of secured and unsecured business debt. 

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Our team has experience handling 10’s of millions in debt, ranging from SBA debt, to Merchant Cash Advance and more. 

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Regardless of the type of business debt you have, we can help. We have experience handling all types of secured and unsecured business debt. 


Our company is led by experienced business debt relief experts who have experience handling secured and unsecured debt nationwide. 

Failing To Repay Business Debt Isn’t The End

Many business owners think failing to repay business debt means: your business is over.

This simply isn’t true. Business debt is a problem which CAN be handled, just like everything else; but only if you take pro-active steps. Lawscape helps you understand the law, and works with you to make sure that business debt isn’t the end of your business. 

What Are Some Ways We Can Help With Business Debt Relief?

Our experienced business debt relief consultants are here to help you through this stressful time. 

Got SBA Loan Worries? Let Lawscape Guide You.

Ah, SBA loan defaults – a terrifying concept indeed. This is the specter that’s entrapping many individuals, leaving them scratching their heads and in jitters. But hey, don’t beat yourself up. At Lawscape we’ve got your back. Our team of seasoned professionals will take a deep dive into your SBA loan conundrums, laying out possible solutions handy – an SBA offer in compromise may just be among them.

Navigating this minefield alone can be daunting, and that’s precisely why you need to rope in Lawscape’s expertise. Feel free to knock on our door for a free initial consultation. Just so you know, we’re here to make sure you’re not facing this on your lonesome.

SBA Default Rates: The Knotty Details

Certain franchise brands are grappling with a substantial number of SBA loan defaults unfortunately, according to the Wall Street Journal. Taking center stage are Quiznos, Cold Stone Creamery, Planet Beach Franchising, and Huntington Learning Centers Inc., which have culminated among the top 10 worst brands when it comes the volume of SBA loan defaults.

These unlucky 10 individually saw their SBA loans default at twice the rate of other franchises in the past ten years. To bring the gravity of this quagmire to light, these franchises alone contributed to a staggering 21% of all franchise-loan charge-offs made by the SBA.

The Predicaments of the 7(a) Loan-Guarantee Program

The SBA’s 7(a) loan-guarantee program holds the gold medal for popularity among the loan programs – no surprises there. Incepted over six decades ago, this program has been a beacon of hope for borrowers marooned by the traditional loan system – those looking to birth or expand their small businesses and franchises.

Data derived from the Wall Street Journal’s analysis paints an interesting picture: charge-offs on SBA 7(a) loans have been on the decline. Last year, for instance, a total of $705 million derived from roughly 8,100 such loans was charged off – that’s a sharp drop from the nearly $2 billion charge-offs we witnessed back in 2010.

A Closer Look into Defaulting Franchise Brands

Quiznos franchisees wore the crown of notoriety, with more charge-offs in the past decade than any other franchise. Defaults rates reaching a record-setting 30% saw these franchisees rack up unpaid loans worth $38 million from 2004 through 2013. This dire situation eventually pushed the franchisor file for bankruptcy in March of the following year.

Planet Beach Franchising Corp, on the other hand, was knee-deep in turbulent waters as their franchisees rocked a 41% default rate. Many credit their woes to the 10% tax levied on tanning services in 2010 that was part of the financing ObamaCare.

On a brighter note, the best performers in the default rates ranking stood out. Jimmy John’s, Little Caesar’s Pizza, and Days Inn ended up with pretty low default rates, marking 2% or less.

In case you’re staring at the possibility of an SBA loan default, don’t hesitate to touch base with our offices at 1-212-460-5004 for a FREE initial consultation.

Why Lawscape Should Be Your ‘Go-to’ for SBA Debt Issues

We’re not just ordinary attorneys. We’ve chalked up an impressive resume, including negotiating hefty amounts in SBA and Treasury debts, assisting clients steer clear of home foreclosure or bankruptcy, and resolving disputes. We’re also authorized to represent federal debtors on a national scale before relevant federal bodies such as the Treasury Department, the SBA, the Bureau of Fiscal Service, and The SBA Office of Hearings and Appeals.

So buckle up, let’s navigate this tumultuous journey together and find a way through the storm. After all, it’s always calmest after the storm.

Lawscape Can Help You Manage Your Business Debt

If you’re struggling with business debt, we can help you understand your situation. During the initial consultation, we’ll go over the contract, and other legal documents you signed. After that, our firm will work with you to get a better understanding of your situation, and help you come up with a game plan that keeps your business alive. 

We Handle It All


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Everyone has different types of business debt. What matters is that you take it seriously. Regardless of whether it’s secured, or unsecured, you need to work with a firm that understands how to negotiate, reduce, settle, and manage, this business debt. 

Discuss your situation today

We are here to help you, and want nothing more than to help you save your business. Speak to our business debt relief specialists today.

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