Franchises with the Highest Loan Default Rates in 2024

Introduction

Have you ever wondered what franchises default the most? Or which franchises might not be able to make enough to cover their loans. In this article, we are going to look at the worst franchises.

The article below shows the worst franchises by the number of franchises defaulting when compared to the total number of loans. Scroll down to see the franchises with the highest percentage of defaults.

Worst Franchises

Dickey’s Barbecue Pit

Dickey’s Barbecue Restaurants, Inc. sells franchises to operate, under the name and mark “Dickey’s Barbecue Pit”, restaurants specializing in freshly prepared barbecue-style meats and other food products.

Number of franchises that defaulted: 27

Subway

What started as a small sandwich restaurant called Pete’s Subway in Bridgeport, Connecticut is currently the world’s largest submarine sandwich chain. Today, there are more than 40,000 locations of the Subway Franchise around the world serving fresh, affordable, made-to-order sandwiches.

Number of franchises that defaulted: 21

Anytime Fitness

Anytime Fitness is a Minnesota-based fitness chain that offers access to one-on-one, small, and large group training in exchange for a membership fee. Anytime Fitness is the fourth-largest fitness brand in the United States and currently has over 2,300 locations across the United States.

Number of franchises that defaulted: 17

Jimmy John’s

Jimmy John’s franchises sell gourmet sandwiches and also offer fresh baked breads and other food and beverage products. It was founded in Atlanta, GA.

Number of franchises that defaulted: 16

Experimax

The franchises own and operate an Experimax store which operates a retail business buying, selling, repairing, and refurbishing used cell phones, computers, tablets, and other electronic equipment.

Number of franchises that defaulted: 14

Which Wich

Which Wich Superior Sandwiches is an American quick service restaurant specializing in sandwiches and salads.

Number of franchises that defaulted: 12

Window Genie

Their franchises operate a business providing window cleaning, window tinting, and pressure washing as well as related ancillary services, such as gutter cleaning, gutter re-securing, concrete, and paver cleaning and sealing, and house washing for the residential and commercial markets.

Number of franchises that defaulted: 12

Massage Envy

Massage Envy Franchising LLC is an American massage and skin care national franchisor. In addition to massage therapy, facials, skin peels, and Microderm infusion.

Number of franchises that defaulted: 12

Burgerim

A Burgerim restaurant offers lunch and dinner menus for dine-in, take-out, or delivery. Burgerim is based in Encino, CA.

Number of franchises that defaulted: 12

9ROUND

The 9Round fitness franchise is a specialized fitness center dedicated to serving clients who want a unique, fun, and proven workout that guarantees results.

Number of franchises that defaulted: 12

Edible Arrangements

An Edible Arrangements franchise sells -sculpted fruit floral arrangements, floral bouquets, plush animals, popcorn, nuts, coffee, teas, gift baskets made with fresh fruit, chocolate-covered fruit, fruit smoothies, fruit salads, cookies, cheesecakes, and similar individual-serving-size baked goods, fruit and yogurt products, and other chocolate and fruit-related products.

Number of franchises that defaulted: 12

Firehouse Subs

Firehouse Subs offers hot submarine-style sandwiches at affordable prices in a unique fire-fighting-themed atmosphere. Their popular menu items include the Barbecue Cuban Sub, Italian Sub, and Hook and Ladder Sub.

Number of franchises that defaulted: 10

ILoveKickBoxing.com

Franchises operate a single retail outlet providing fitness services to retail customers using designated or authorized workout procedures, methods and techniques.

Number of franchises that defaulted: 10

Meineke

A Meineke automotive maintenance and repair center specializes in servicing exhaust and brake system components and providing certain other automotive maintenance and repair services.

Number of franchises that defaulted: 9

The Pita Pit

Franchises operate a single retail establishment devoted to preparing and selling pita sandwiches.

Number of franchises that defaulted: 8

Fantastic Sams

Fantastic Sams salons provide a full range of hair care products and services to men, women, and children.

Number of franchises that defaulted: 8

Fastsigns

This is a business that specializes in selling, marketing, producing, installing and repairing visual communications including signs (both non-electrical and electrical), related work involved in the maintenance, installation and de-installation of interior and exterior signage, etc.

Number of franchises that defaulted: 8

The Grounds Guys

Franchises provide commercial, residential and municipal property maintenance, landscaping and hardscaping services; snow and ice maintenance services; trash and debris removal; arboriculture services; lawn renovation; residential, commercial and municipal turf care services; and other related services and products.

Number of franchises that defaulted: 7

Menchie’s

Stores offer for sale soft-serve frozen yogurt, ice cream, desserts and beverage items, and other related products.

Number of franchises that defaulted: 7

Snap Fitness

Snap Fitness is a franchised gym that has been around since 2003. It promises “affordable, convenient, and high-quality fitness” to its members. However, it has consistently received complaints about its poor service and bad product.

Number of franchises that defaulted: 7

Mr. Appliance

Franchises install and repair appliances, sell used appliances, and clean dryer vents for residential and commercial customers.

Number of franchises that defaulted: 7

Below are the worst franchises by the percentage that defaulted. We are only looking at franchises with over 10 locations.

Patrice & Associates

Patrice & Associates operates a recruiting business specializing in providing management candidates to the retail, restaurant, and hospitality industry.

Percentage of franchises that defaulted: 31%

Experimax

The franchises own and operate an Experimax store which operates a retail business buying, selling, repairing, and refurbishing used cell phones, computers, tablets, and other electronic equipment.

Percentage of franchises that defaulted: 20%

Jon Smith Subs

Jon Smith Subs offers made-to-order submarine sandwiches, grilled sandwiches, salads, and other related foods and beverages.

Percentage of franchises that defaulted: 20%

The Brothers

The Brothers that just do Gutters business that provides gutter cleaning, maintenance; installation, replacement and repair services, and products.

Percentage of franchises that defaulted: 17%

Sub Zero Ice Cream

Sub Zero Ice Cream serves ice cream using a unique “instant freezing” method, and related products.

Percentage of franchises that defaulted: 15%

30 Minute Hit

30 Minute Hit is a gym and training center franchise.

Percentage of franchises that defaulted: 13%

Burgerim

Burgerim offers lunch and dinner menus for dine-in, take-out, or delivery. Burgerim is based in Encino, CA.

Percentage of franchises that defaulted: 11%

Window Genie

Window Genie provides window cleaning, window tinting and pressure washing as well as related ancillary services, such as gutter cleaning, gutter re-securing, concrete and paver Cleaning and sealing, and house washing for the residential and commercial markets.

Percentage of franchises that defaulted: 10%

Launch Trampoline Park

Launch Trampoline Park is an indoor sports and family entertainment facility featuring large interconnected trampolines that form a giant jumping surface, designated jump areas for kids’ play and dodgeball, a foam pit, arcade area café, and other competitive attractions.

Percentage of franchises that defaulted: 10%

Highest percentage of defaults

Pro-Lift Doors

Pro-Lift Doors provides garage door installation, maintenance, and repair services.

Percentage of franchises that defaulted: 9%

The Lost Cajun

The Lost Cajun serves authentic Cajun cuisine in an environment that evokes the best of Louisiana and southern hospitality.

Percentage of franchises that defaulted: 8%

ZOUP!

A Zoup! Eatery Restaurant is a fast-casual restaurant featuring a wide variety of soups, bowls, sandwiches and salads.

Percentage of franchises that defaulted: 8%

Honest-1 Auto Care

Honest-1 Auto Care offers automobile products and services like tune-ups, brakes, oil changes, tires and rims and general repair services.

Percentage of franchises that defaulted: 7%

Qualicare 360

Qualicare 360 offers personal care and companion care services and medical services provided by healthcare personnel, including registered nurses, licensed practical nurses, certified nursing assistants, home health aides, personal care aides, and companions to seniors and other adults with chronic or acute illnesses.

Percentage of franchises that defaulted: 7%

Service Team Of Professionals

Service Team Of Professionals provides residential and commercial restoration of buildings and contents (including cleaning, deodorizing and/or reconstruction) due to fire, smoke, water, mold, normal wear and/or other causes of damage.

Percentage of franchises that defaulted: 7%

Bahama Buck’s

Bahama Buck’s prepares and sells gourmet shaved ice products, island specialties, and frozen dessert confections.

Percentage of franchises that defaulted: 7%

Handyman Connection

Handyman Connection provides small to medium home repairs and light remodeling.

Percentage of franchises that defaulted: 7%

Concrete Craft

Concrete Craft offers decorative concrete products and installation services.

Percentage of franchises that defaulted: 7%

Dental Fix Rx

Dental Fix Rx operates Mobile Service Centers which provide cost-effective one-stop shopping to medical practitioners and other practitioners in fields, such as, but not limited to, dentistry, veterinary and tattoo parlors Each Dental Fix franchise will also provide equipment maintenance, service and repair, handpiece repair, equipment and parts sales, and consumable products relating to dentistry and other medical fields.

Percentage of franchises that defaulted: 6%

UFC Gym

UFC Gym operates a physical fitness facility under the UFC GYM name that, depending on the model of gym developed, offers functional fitness training regimens including, Daily Ultimate Training, mixed martial arts, cardio boxing, cardio kick boxing, TRX training, Jiu Jitsu and Muay Thai boxing, utilizing a weight room, a bag area and an octagon with unique construction and design features.

Percentage of franchises that defaulted: 6%