What are the worst franchise opportunities? Our recent post 15 Worst Franchises by SBA Loan Defaults listed the franchise concepts with the highest rate of SBA loan defaults for 2008.
PJ’s Coffee and Tea Café franchise was listed as the 2nd worst. According to Katie Adams of Investopedia:
2. PJ’s Coffee and Tea Café
PJ’s Coffee and Tea Café started out as a small business in New Orleans 30 years ago and only recently began selling franchise rights across the south, southeast and southwest.
It might want to stick to Cajun country – 50% of the franchisees failed on their SBA loans last year.
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