SNIP-ITS: Worst Franchises for SBA Loan Defaults

The Snip-Its franchise website states “With over 63 salons open in 26 states and growing, Snip-its is the fastest-growing chain of children’s hair salons in the US. Quality haircuts and unparalleled customer service set the foundation for this recession resistant franchise… Offering a simple franchise model with potential for great profits, Snip-its has developed an easy to follow, step by step guide to make your franchise experience a successful one, starting right now.”

However, our recent post 15 Worst Franchises by SBA Loan Defaults listed the franchise concepts with the highest rate of SBA loan defaults for 2008.

The Snip-Its franchise was listed as the 8th worst on the SBA loan default list.  According to Katie Adams of Investopedia:

8. Snip-Its

The Snip-Its children’s hair salons ranked 30th on the Franchise Times’ 2007 list of 55 fastest growing franchises, but two years later that growth has stalled. Thirty per cent of store owners with SBA financing failed to repay their loans in 2008.

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