4 of 10
BACKNEXT
4. Cold Stone Creamery
Cold Stone Creamery
Number of SBA loans : 774
Total dispersed: $180.9 million
Average loan size: $233,687
Failure rate: 31%

Cold Stone Creamery's "super-premium" ice cream brand got its start in Tempe, Ariz., more than two decades ago. Known for its made-to-order treats with toppings folded into the ice cream on a frozen granite slab, Cold Stone Creamery currently has more than 1,400 locations. Kahala Corp., the parent company of Blimpie and other fast-food franchises, acquired Cold Stone in 2007.

The product is sweet, but the financials can be bitter. In the last 10 years almost one in three SBA-backed franchisees defaulted on their loan. It's an expensive shop to start, too: the initial franchise fee is $42,000. A 2008 Wall Street Journal article spotlighted the company's franchise troubles, including high operating costs and overambitious expansion.



NEXT: Dairy Queen

Email | Print | Share
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Source: Loan data is from the Small Business Administration, covering loans made from October 2000 through September 2009. The failure rate represents the number of loans in liquidation or charged off, divided by the number of loans disbursed.
LAST UPDATE: Apr 26 2010 | 4:53 PM ET
More Galleries
6 designers shaking up fashion These designers are changing the way we dress, accessorize and shop, from custom made-to-fit dresses to smart jewelry that's actually stylish. More
8 must-have travel apps Whether you've got wanderlust or an airline grievance, here are some apps to pack onto your phone. More
Secrets to success from Smalltown USA Utah State professor Michael Glauser cycled 4,000 miles this summer, visiting 100 entrepreneurs across the country. Here's a snapshot of how they grew their businesses. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.