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SBA Financed Quiznos:1,878 Failures in 2008 alone!

JasonTees.com — Mon, 16 Nov 2009 01:07:45 GMT

(Distressed Loan Advisors offers expert advice about SBA loan
modifications and the Offer In Compromise process, and can be reached
at JasonTees.com)

In 2008, there were 1,878 SBA financed Quizno's restaurants that failed. That totaled over $276 Million dollars charged off by lenders, most of which was reimbursed by the SBA. According to SBA data, that was about 20% of all Quizno's restaurants that were financed. That's 1 in 5!

What lessons are there to be learned here?

1) Just because a franchise is a well known name, it doesn't necessarily mean the business will succeed. There really is no such a thing as a "plug 'n play" franchise concept. Every business, franchise or independant, service or retail, big or small, requires a major committment of time, effort, and money. Even though someone has developed and refined a concept, this does not make it fool proof. Anyone who claims a concept is a "can't lose" is trying to sell you a bill of goods.

2) Just because you can get financing, it doesn't mean you are guaranteed to succeed. Banks have certainly lending parameters, and if you met those parameters, you will be approved for financing. This does not, however, guarantee that your business will succeed. Banks are playing the odds based on their historical experiences. Of course, historical results were no help when the current economy hit and businesses that were previously successful started dropping like flies.

3) An SBA guarantee helps the lender, not the borrower. If you have an SBA guaranteed loan, it really doesn't mean much to the borrower. The assurance is for the lender, and was offered in the first place in order to compel the lender to make the loan. Once the business fails, the SBA guarantee is of no use to the borrower, and will not result in automatic waiver the loan. The lender will continue to have every legal option available to it.

Searching for Clothing Manufacturer

Favawear — Thu, 16 Jul 2009 19:36:06 GMT

I am in search of a clothing manufacturer to make my ladies apparel designs for my clothing line. Any help?

Do you have your own clothing line?

LornaB — Sat, 12 Sep 2009 11:57:03 GMT

Hi, nice to meet you. We are an international buying house providing impartial free advice on sourcing all types of apparel garments. Our head office is in Europe and production team is in Asia. We are able to secure the most competitive prices if you ever need to get samples and quotes for producing your designs. Most of our buyers, many of which are renowned brands are interested in Bangladesh manufacturing. The most challenging thing for most buyers is how to ensure that quality and ethical standards are being met. We thoroughly assess our factories, including sampling quality and monitoring the complete production process through to delivery in order to protect the reputation of your brand. Contact me lorna@uni-garms.com and I'll explain more in detail. We are always looking out for new design labels so do stay in touch. www.uni-garms.com

Please feel free to leave your comments and requests.

Fedex Route

diddy216 — Tue, 03 Nov 2009 07:59:28 GMT

Hi all,

I am in the process of looking into purchasing a Fedex home delivery route. Will i be able to get a loan from a bank even though i do not have any collateral? The route would cost between 100k and 125k, of which i would put down about 30k. Please let me know.

SUBWAY FRANCHISE FINANCING

jmk9911 — Wed, 24 Jun 2009 00:05:39 GMT

Hi, I'm in the preliminary phase of deciding to purchase a franchise. I have a bs in restaurant management and 11 years of management experience. I am most interested so far in opening a subway franchise due to their high success rate and my belief that they sell a good product. My question is, how to I come up with the capital to purchase one? I do own a home with approximately $200k in equity and I have a small amount of cash saved up. Will this along with good credit be enough? Does anyone have an idea what the start up costs may be? Will a high loan amount make it impossible to see a profit?Any input would be appreciated

Franchise Your Business In 60 Days

Franchising — Sat, 24 Oct 2009 16:27:28 GMT

FRANCHISING IS AN EXCELLENT EXPANSION METHOD

Franchising offers a number of significant benefits and solutions in terms of expansion capital, local unit management and time to market.

1. Expansion Capital - Franchisees furnish most of the capital required for the franchisor's expansion - equity, business loans - for the development of real estate, leasehold improvements, FF & E (furniture, fixtures & equipment), inventory, pre-opening and ongoing working capital.

2. Local Unit Management - Franchising provides the franchisor with the motivated and effective local management needed to ensure a professionally operated business. Unlike a typical employed manager, the franchisee makes a financial and personal investment in the business and therefore, remains highly motivated.

3. Time to Market - Because franchisee's provide the expansion capital and local management, the franchisor can expand at a faster rate than if the franchisor was required to raise the needed expansion capital, recruit and train local management and build the "company operations" infrastructure that would be needed to expand outside the franchisor's current local marketing/trade area.

Franchising can be Very Profitable - According to the International Franchise Association, the average new franchisor sells 6-8 franchises in their first 12 months and 15-20 thereafter. With franchise fees averaging $20,000 - $30,000, that's a potential income of $120,000 to $150,000 in franchise fee income in your first 12 months. In addition, franchisees are generally required to pay you - the franchisor - an ongoing monthly royalty of 5-8% (national averages) of their gross sales. Using a basis of $500,000 first year gross sales per franchise location as an average, your annual royalty income will exceed $200,000 from these initial franchisees. You may also receive income (10-20% mark-up) from any proprietary products that are unique to your business and only available from you. Also, most franchisors require their franchisees to spend a minimum of 3% of gross sales for local advertising of their business - (which promotes your trade name at the same time) and the franchisee contributes 1% of their gross sales to the franchisor to cover the cost of producing professional advertising materials and programs.
FranchiseConsulting.Net specializes in assisting companies develop a successful (and highly profitable)franchise program.

"THE CRITERIA TO DETERMINE YOUR "FRANCHISEABILITY"

A good track record of profitability.
A unique or unusual concept.
Broad geographic appeal.
Relatively easy to operate.
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Franchisee Association

Franchiseek.c — Thu, 22 Oct 2009 19:07:03 GMT

If you need franchisee advice and business support - visit http://www.franchiseealliance.com

WSI franchise ?

junita — Fri, 09 May 2008 23:42:45 GMT

I am considering this Franchise opportunity. Please share any experiences/ information regarding this internet marketing franchise? I will need a loan for $50K

thanks

In Business for over 3 years and wanted to Start A Franchise

creedcity — Mon, 17 Aug 2009 18:41:51 GMT

Hello been in the service industry for about 4 years. Wanted to start a franchise. Will be able to train all new a applicants. Just wanted to Help to get the project running.
What are the steps and by laws for the same.

Thanks for reading and any opinion in the topic is appreciated.

Regards

Cyrus J Shroff

Debt Collection Franchise Opportunity...UPDATED!

CorpCons08 — Fri, 30 Nov 2007 15:44:03 GMT

Debt Collection Franchise Opportunity
Skolnick & Associates International LLC

I wanted to reintrouce the franchise opportunity I have available for anybody wishing to start their own Debt Collection Franchise. The client I represent will give the new franchise company everything they need to jump right into collecting, without any programming or other preparations necessary. You are ready to go right from the time of deployment of the system. Please contact me at mailto:d.skolnick@skolnick-associates.com for more information on this franchise opportunity.

Update: We now have a financing option available to anyone looking to join this franchise. The financing option is available to all individuals with a decent credit history. Apply today and become your own boss.