Budget Blinds franchise opportunity:  Are you familiar with it? If so, please share your experience, opinions or insights with a comment below. The Budget Blinds franchise website claims that, by becoming a Budget Blinds franchise owner “you’ll be entering the growing home improvement franchise industry, under an established brand, that provides you with the tools you need to be successful.” Budget Blinds boasts these benefits: Low investment, home-based business, with no storefront, no inventory, low overhead Nearly 900 franchise territories in North America including over 80 franchisees in Canada 8 million National Advertising Fund in North America. In the top 10% of all franchises’ NAF worldwide Single territory average sales*: $351,633 U.S. / $474,318 CAN in 2011* Average gross profit*: 53% U.S. / 54% CAN* Average closing ratio on appointments*: 75-79% U.S. / 70-74% CAN* Average number of sales closed per month per territory*: 23.5 U.S. / 30 CAN*

*Reflects data reported by franchisees for 2011. Refer to FDD for details. Despite the impressive claims above, some things don’t add up about the Budget Blinds franchise opportunity. According to Entrepreneur, Budget Blinds locations declined from 954 US franchises in 2008 to 710 in 2011. According to data released by the Small Business Administration (SBA), Budget Blinds franchise owners who qualified for SBA-backed franchise loans have a high loan failure rate of 37%. ’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults) The apparent drop in Budget Blinds franchises in recent years and the high loan default rates are franchise due diligence red flags. Budget Blinds U.S. franchises in 2008: Budget Blinds U.S. franchises in 2011: Growth in franchise units 2008 – 2011 (#) Growth in franchise units 2008 – 2011 (%): SBA loans granted since 2001: SBA loan failure rate: Sources: Entrepreneur (growth), Coleman report (SBA)

The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.Hairless Cats For Sale In North Dakota It’s likely that Budget Blinds franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.Umdnj T Shirts Are you familiar with the Budget Blinds franchise opportunity?Rims And Tires Mazda 3 What do you think accounts for the SBA loan failure rate of Budget Blinds franchise owners? What steps should Budget Blinds be taking to stop further franchise failures? Has Budget Blinds taken serious action to address the problems that led to these loan failures?

ARE YOU FAMILIAR WITH THE BUDGET BLINDS FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR FORMER BUDGET BLINDS FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW. Corporate responses or rebuttals welcome: Budget Blinds, Budget Blinds franchise, Budget Blinds franchise complaints, Budget Blinds complaints,  Budget Blinds franchise failures, window treatments franchise, home-based franchise, blinds franchise, mobile franchise, home services franchise, decorating franchise, franchise failure rates, SBA franchise loans, worst franchises, Home Franchise Concepts BEEF O’BRADY’S Franchise ComplaintsDate of Incorporation: 1992 Business Description: The franchised business is a mobile business for the retail sale and installation of blinds and other window coverings. Budget Blinds’ parent company is Home Franchise Concepts, Inc. Franchise Offer: The franchise on offer is to conduct a Budget Blinds franchise as a mobile business for the sale and installation of window coverings, such as shutters, mini blinds, wood blinds, vertical blinds, draperies, pleated shades, cellular shades, roman shades, roller shades and solar shades.

Franchisees use a van equipped with signs the franchisor specifies to make sales calls and perform installation work. Financial Assistance: Budget Blinds provides financing for the initial franchise fee and territory fee to franchisees that meet its credit standards. Financing is not available to franchisees that receive a discounted Territory Fee under the VetFran program. Training and Assistance: The training program lasts for 10 days. Upon reasonable notice and at no charge to the franchisee, Budget Blinds may require the franchisee or designated personnel to attend additional training courses, seminars, conferences or other programs that the franchisor considers to be relevant or appropriate to the successful operation of the System. Territory: The franchisor grants the franchisee a protected territory with limited exclusivity, in which the franchisor will not establish a company-operated or franchised business that sells and installs window coverings using the system and marks.

The franchisee’s territory will be described by United States Postal Service ZIP Codes in the franchise agreement. Each Territory will begin with approximately 30,000 households. Term of Agreement and Renewal: The term of the franchisee agreement is 10 years with an option to renew for an additional 10 years, if conditions are met. Obligations and Restrictions: The franchisor would prefer if the franchisee actively took part in the running of the franchised business. If they do not, the franchisee must employ at least one manager on a full time basis. The franchisee may offer and sell in the Franchised Business only goods and services that the franchisor has authorized the franchisee to sell. The franchisee does not have to sell all the products and services that the franchisor authorizes, but it is suggested that the franchisee does so. Estimated Number of Units: 1,010 Combined Initial Territory Fee and Additional Territory Fee Excess Costs of Training Commercial General Liability Insurance

Contractor's License and Bond Additional Tools and Supplies Additional Funds (first 3 months) $300 - months 1-6 $700 - months 7-12 $1,100 - months 13 - 24 $1,500 from then on. Monthly payment: $1,000 until franchisor has 1500 franchise agreements. $1,500 from then on. Currently $94.50 per month. $45 per month per line. First 2 attendees are free. Each additional attendee pays $100 per day. $50,000 if the franchisee simultaneously buys two Territories when he/she signs the first franchise agreement. An amount equal to the then-current initial Territory fee if the franchisee buys an Additional Territory at a later time. 60% of gross sales (revenue less cost of goods) in another franchisee's territory. Key Account Commissions and Fees Franchisor negotiates each program individually with the Key Account. Fees for Optional Referral Programs The then-applicable transfer fee, currently $5,000 for each Territory transferred.