7. Super 8 Motel
Number of SBA loans : 456
Total dispersed: $ 415.2 million
Average loan size: $910,476
Failure rate: 4%
Getting into the motel industry is pricey -- the average loan size is much larger than that for other franchises -- but it's also a pretty safe bet. Among the handful of franchise brands with an enviable 0% failure rate, meaning that every SBA-backed borrower was able to keep up with the loan payments, a notable number are hotels and motels.
Super 8 has the lowest default rate on this top-10 list, hovering just under 4%. The brand is a subsidiary of the Wyndham Hotel Group, which also owns the Days Inn, Ramada and Travelodge franchise brands, among others.
Super 8 started with one motel in Aberdeen, S.D., that in 1974 offered rooms for $8.88 per night. The chain now has close to 2,000 locations across North America.
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
Bricks that grow from microorganisms, household garbage turned into art, three-wheeled bike-cars -- these startups are redefining urban living. More
These five entrepreneurs took their blue collar experience and used it to launch innovative businesses. More
Whether curating the perfect gift or finding a pet-sitter, these startups offer time-saving services that might just seem like holiday magic. More
Sponsors
