SBA launches top 25 worst franchise list

5/22/2011

For many entrepreneurs, a franchise is a relatively safe bet - they can ride off the coattails of the brand's image while still managing their own company. However, as the U.S. Small Business Administration recently pointed out, not all franchises end up being worthwhile business ventures.

Blue Mau Mau reports the organization recently released a list of the top 25 worst franchises. The list was based off the number of stores within a franchise that defaulted on their commercial loans. At the top of the list was Golf America, but several notable brands, such as Cold Stone Creamery and Quiznos, were on the list as well.

"Business media often bless these concepts as good buys, either oblivious to the financial struggles of owner-operators or uncaring," explains Blue Mau Mau. "The recession has only helped their failure rates climb."

Still, there are a number of franchises that are extremely profitable - entrepreneurs just need to keep their eyes open for the brand that best suits them. Companies such as Subway and McDonald's have thousands of successful franchisees worldwide.