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Description: Would you loan someone money to buy a Cold Stone Creamery franchise if you knew that more than a quarter of those loans default? If you’re the U.S. government, the answer is yes.

Source: Businessweek.com

Date: Sep 16, 2014

Link: http://www.businessweek.com/articles/2014-09-16/franchises-the-government-keeps-helping-people-buy-failing-brands#r=nav-fst

Questions for Discussions:

  • Why do you suppose the SBA loans continue to be made?
  • Why would entrepreneurs participate in such risky franchise setups?

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