Franchisees in Trouble
If you own Commercial Property leased to national franchise holders … here is a wake up call on their financial strength.
On Monday the WSJ reported on loan default rates for loans from the Small Business Administration to franchisees. Here are the top seven companies in terms of loans in default and I sincerely hope these aren’t your tenants. If they are … it is time to take them out for a cup of coffee and discuss these numbers and their financial stability.
NOTE in some cases over half of franchisees who originated loans from 2001 – 2008 are in Default. Here’s the list …
- Mr. Goodcents – 55 defaults = 55% of loans originated from 2001-2008
- Philly Connection – 63 defaults = 51%
- Cottman Transmission – 165 defaults – 49%
- All Tune & Lube - 81 defaults = 47%
- Cornwell Quality Tools – 55 defaults = 42%
Also on the default radar are two biggies in terms of absolute number of defaults
- Quiznos – 108 defaults out of 1,963 loans
- Cold Stone Creamery – 75 defaults out of 763 loans
Give them a call today.
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March 12th, 2009 at 10:49 am
[...] couple posts back I recommended you have a cup of coffee with your Retail and Office Tenants to make sure they are financially stable in this historic downturn … Looks like Globe Street [...]