We recently posted the 15 Worst Franchises by SBA Loan Defaults which listed the franchise concepts with the highest rate of SBA loan defaults for 2008.
The Amazon Café franchise was listed as the worst. According to Katie Adams of Investopedia:
6. Amazon Café
This franchiser offers smoothies, wraps, salads, soups, juices and more, but apparently not enough more to keep all operators in business.
Thirty per cent failed in 2008, and more than 52% have defaulted on their SBA loans since 2000.
According to its UFOC, a new franchise company named Mixsmoothies LLC, founded by Michael Greenberg, (who served as Master Developer of Amazon Systems LLC from April of 2005 until May of 2007) “purchased the franchise agreements of 17 franchisees from Amazon Systems LLC” and expected the franchisees “to convert to MixStirs franchises in the near future.”
According to an anonymous complaint on Ripoff Report:
Mike Greenberg used to work for Amazon Systems, trade-name Amazon Cafe until it went bankrupt. He got the health club Amazons and renamed them Mixstirs. His main purpose is to collect franchise fees and royalties. This is how it was with Amazon and this is how it will be with MixStirs. He will help you open but you won’t get much help after that. MixStirs is just Amazon in disguise…
There are many Amazons in Pennsylvania still operating but they pay no royalties for the same drinks and food. MixStirs food and drinks are Amazon menu with different names. You have been warned. Lots of Amazon owners lost a lot of money and the rest are hanging on but they have a lot of debt.
ARE YOU FAMILIAR WITH THE AMAZON CAFE OR MIXSTIRS FRANCHISES? SHARE YOUR THOUGHTS BELOW.
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Just a note to say that while I have been in Thailand I would have to say that Amazon Cafes,- if they are the same ones as in the states,- have given me the best coffee, the best service and the cleanest places to eat that I have seen here yet. I would like to commend all the little units from Bangkok to Mahasarakham and especially in the new stop in Kosumpishai for their outstanding service. Go Amazon and don't listen to the critics, Nothing in this world is perfect but we must appreciate what is good.I would thoroughly recommend them to all my friends,