WINESTYLES Franchise Complaints
The Winestyles franchise has an alarmingly high SBA loan default rate of 52%. Winestyles is listed by the SBA among the worst franchises by SBA loan default.
Are you familiar with the Winestyles franchise opportunity? Please share a comment below.
Winestyles franchisees have received 34 SBA-guaranteed loans since 2001; more than half of those loans have been defaulted on by Winestyles franchise owners.
The Winestyles Franchise has a failure rate of 52% for SBA-backed franchise loans
According to Entrepreneur, the Winestyles franchise chain has declined from 136 in 2008 to 71 U.S. franchises in 2011… a loss of 65 locations, or 48% of all Winestyles franchises.
It’s likely that Winestyles franchise owners who received SBA loans may have collateralized their franchise loan with their houses or other personal assets, and more than half were unable to repay those franchise loans… despite serious incentive to do so.
Are you familiar with the Winestyles franchise opportunity?
What do you think accounts for the SBA loan failure rate of Winestyles franchise owners?
What steps should Winestyles be taking to stop further franchise failures?
Has Winestyles taken serious action to address the problems that led to the 52% loan failures?
Please share a comment, opinion or insight below.
ARE YOU A WINESTYLES FRANCHISE OWNER OR FORMER WINESTYLES FRANCHISEE? ARE YOU FAMILIAR WITH WINESTYLES FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
Tags: Winestyles, Winestyles wine store, Winestyles franchise, Winestyles wine store Franchise, Winestyles complaints, wine store franchise, wine franchise, franchise opportunity, retail franchise, franchise failure rate, worst franchise, sba failure rates, SBA franchise loans, franchise information, unhappy franchisee, Robert Spuck, Bob Florio, Ken Lewis
My wife and were going to buy the franchise 5 years ago and got out of the deal once we realized that almost all of the Winestyles stores across the country were losing money.
I am not a Winestyles Franchise owner, but my exhusband WAS-and for a very short time.
I had sent information (readily available by simply checking public records) to the CES of Winestyles corporate out of fear (based upon the irresponsible financial spendings before/during/following our marriage and issues with child support) of my ex getting himself in above his head. Any of my business? Yes and no.
Having been untruthful and having others being untruthful with past loans, having a history of liens, judgments and having the issue with child support, my fear was-as he was using his home as collateral and spending every penny he had on starting the business, that the support would cease among other things.
The emails sent by me and another were simply asking corporate to check the background (financial, as well)-to be sure, based upon the facts-not that was written on a loan document and taken for what was written, backed up by nothing, that this could be afforded.
Don’t know whatever happened, didn’t ask, didn’t inquire=was simply letting them know. I would imagine they could care less as long as they get their initial investment monies from those purchasing the franchise.
About a year later, all of my fears were realized-they actually began with the approval at the loan months before he even opened. Ex stopped paying the court ordered Health Insurance for the kids just after the loan was approved-less than a month. Child Support stopped the month after he opened his Winestyles store. Soon after than, his home went into a Lis Pendens and then foreclosure. It was worse than I ever expected-no one cared and all of it could’ve been avoided with actually checking who they were franchising to and their financial backgrounds and actually VERIFYING them. When information is given and they choose to ignore it-well, what does that tell you?
Ex didn’t pay the people he bought furniture for to open the store-judgment/court for that, didn’t pay on the second mtg and stopped paying the SBA loan shortly after he got it.
They’re all stupid.
Unfortunately, Donna, they weren’t all stupid.
Immoral, irresponsible, greedy, perhaps, but not stupid.
The publication/website that hooked your ex-husband’s interest got their money.
The franchise sales guy or broker who closed the deal got his commission.
The loan broker get his commission.
Winestyles got their fees and probably funneled it into executive salaries.
The bank got their money, because what the assets didn’t cover, most would be repaid to the bank by the SBA guarantee which is paid by our tax dollars.
So while you and your kids were the big losers, the American taxpayers were also victims.
The salespeople, franchisor & the bank still profited from the failure.
Which is why this scam goes on and on…
Sorry to make you feel worse… but thanks for sharing and helping to get the word out about franchising’s dirty little secret!
I had started down the road towards a Winestyles franchise back in the early 2000’s. They were not forward with their wine product costs which is an obvious variable in determining your financial projections. That concerned me enough to walk away from my franchise fee…this is the first time I’ve checked back in about 10 years and unfortunately I have to say that I was correct in my decision.
It’s a shame too because the concept of “wine for dummies” is a good one…it just was structured to benefit corporate, not the franchisees.