Independent study · SBA 7(a) FOIA data · Statuses as of June 30, 2026 · Last updated September 30, 2026

Franchise SBA Default Rates: 415 Brands, Judged by the Banks That Lent to Them, FY2010–FY2019

The franchise failure rate as the banks and the federal government recorded it: the share of SBA 7(a) loans to franchisees, approved FY2010–FY2019, that were charged off. Across the 415 brands tracked here, 2,348 of 26,660 loans were charged off, a default rate of 8.8%. All franchised SBA borrowers defaulted at 10.2%, versus 7.8% non-franchised. No franchisor chose a number on this page.

Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.

What does the FY2010–FY2019 SBA loan data say about franchise failure?

• Franchised borrowers defaulted on SBA 7(a) loans at 10.2% in the FY2010–FY2019 cohort versus 7.8% for non-franchised borrowers. The gap replicates in the 1990s 7(a) cohort (15.5% vs 11.9%) and in the 2010s 504 program (4.0% vs 2.7%).
• 10 brands with 20+ loans defaulted on more than 40% of their SBA loans.
• 23 brands with 40+ loans recorded zero defaults.
• Among brands with 20+ loans, rates range from 0.0% (Aqua-tots) to 75.0% (1000 Degrees Pizzeria) — a spread of 75.0 percentage points.
• The largest early-charge-off count since 2020 belongs to The Grounds Guys: 20 of 162 new SBA loans have already charged off (counts, not a rate — the cohort is unresolved).
• In total: 415 brands, 26,660 resolved SBA 7(a) loans approved FY2010–FY2019, 2,348 charged off. Statuses as of June 30, 2026.

Which franchise industries have the highest SBA default rates?

102 industries, each with its own benchmark page ranking every brand in the industry. Benchmarks pool all franchise 7(a) loans in the industry for the FY2010–FY2019 cohort.

• All Other Amusement and Recreation Industries — 7 brands, 9.9% benchmark
• All Other Consumer Goods Rental — 1 brand, 7.0% benchmark
• All Other Miscellaneous Store Retailers (except Tobacco Stores) — 1 brand, 10.3% benchmark
• All Other Specialty Food Stores — 3 brands, 10.2% benchmark
• Appliance Repair and Maintenance — 1 brand, 16.8% benchmark
• Assisted Living Facilities for the Elderly — 1 brand, 2.7% benchmark
• Automotive Body, Paint, and Interior Repair and Maintenance — 2 brands, 5.8% benchmark
• Automotive Glass Replacement Shops — 1 brand, 11.2% benchmark
• Automotive Oil Change and Lubrication Shops — 4 brands, 6.0% benchmark
• Automotive Parts and Accessories Stores — 3 brands, 7.9% benchmark
• Automotive Transmission Repair — 1 brand, 14.6% benchmark
• Baked Goods Stores — 1 brand, 8.7% benchmark
• Beauty Salons — 15 brands, 8.6% benchmark
• Car Washes — 1 brand, 5.9% benchmark
• Carpet and Upholstery Cleaning Services — 3 brands, 8.2% benchmark
• Caterers — 1 brand, 9.7% benchmark
• Child Day Care Services — 7 brands, 4.5% benchmark
• Children's and Infants' Clothing Stores — 2 brands, 9.6% benchmark
• Commercial Printing (except Screen and Books) — 4 brands, 6.8% benchmark
• Commercial Screen Printing — 1 brand, 10.2% benchmark
• Commercial and Institutional Building Construction — 1 brand, 9.5% benchmark
• Computer Systems Design Services — 1 brand, 8.0% benchmark
• Computer Training — 1 brand
• Computer and Office Machine Repair and Maintenance — 1 brand, 24.7% benchmark
• Confectionery and Nut Stores — 2 brands, 9.7% benchmark
• Consumer Electronics Repair and Maintenance — 2 brands, 10.6% benchmark
• Cosmetics, Beauty Supplies, and Perfume Stores — 2 brands, 12.2% benchmark
• Diet and Weight Reducing Centers — 1 brand, 13.4% benchmark
• Direct Mail Advertising — 1 brand, 14.1% benchmark
• Drinking Places (Alcoholic Beverages) — 2 brands, 8.1% benchmark
• Drycleaning and Laundry Services (except Coin-Operated) — 1 brand, 11.1% benchmark
• Educational Support Services — 3 brands, 8.0% benchmark
• Electrical Contractors and Other Wiring Installation Contractors — 1 brand, 7.8% benchmark
• Electronics Stores — 1 brand, 20.8% benchmark
• Employment Placement Agencies — 2 brands, 7.5% benchmark
• Exam Preparation and Tutoring — 3 brands, 15.3% benchmark
• Exterminating and Pest Control Services — 1 brand, 5.1% benchmark
• Fine Arts Schools — 3 brands, 8.3% benchmark
• Fitness and Recreational Sports Centers — 30 brands, 11.4% benchmark
• Flooring Contractors — 1 brand, 8.9% benchmark
• Food (Health) Supplement Stores — 3 brands, 13.0% benchmark
• Freestanding Ambulatory Surgical and Emergency Centers — 1 brand, 5.2% benchmark
• Full-Service Restaurants — 12 brands, 9.6% benchmark
• Gasoline Stations with Convenience Stores — 13 brands, 3.9% benchmark
• General Automotive Repair — 4 brands, 7.6% benchmark
• General Freight Trucking, Local — 1 brand, 8.7% benchmark
• Hardware Stores — 5 brands, 7.6% benchmark
• Hobby, Toy, and Game Stores — 2 brands, 10.8% benchmark
• Home Health Care Services — 13 brands, 8.2% benchmark
• Hotels (except Casino Hotels) and Motels — 29 brands, 3.0% benchmark
• Household Appliance Stores — 1 brand, 10.2% benchmark
• Ice Cream and Frozen Dessert Manufacturing — 1 brand, 11.0% benchmark
• Insurance Agencies and Brokerages — 2 brands, 5.1% benchmark
• Investment Advice — 1 brand, 1.9% benchmark
• Janitorial Services — 10 brands, 11.2% benchmark
• Landscaping Services — 4 brands, 7.0% benchmark
• Lessors of Miniwarehouses and Self-Storage Units — 1 brand, 0.7% benchmark
• Limited-Service Restaurants — 81 brands, 10.3% benchmark
• Locksmiths — 1 brand, 9.6% benchmark
• Marinas — 1 brand, 4.0% benchmark
• Medical Laboratories — 1 brand, 7.5% benchmark
• Metal Service Centers and Other Metal Merchant Wholesalers — 1 brand, 9.9% benchmark
• Mobile Food Services — 1 brand, 10.1% benchmark
• Motor Vehicle Supplies and New Parts Merchant Wholesalers — 1 brand, 8.2% benchmark
• Nail Salons — 1 brand, 9.5% benchmark
• New Car Dealers — 2 brands, 7.7% benchmark
• Office Administrative Services — 1 brand, 9.9% benchmark
• Office Supplies and Stationery Stores — 1 brand, 9.5% benchmark
• Offices of Chiropractors — 2 brands, 6.6% benchmark
• Offices of Optometrists — 1 brand, 3.0% benchmark
• Offices of Physical, Occupational and Speech Therapists, and Audiologists — 1 brand, 4.7% benchmark
• Offices of Real Estate Agents and Brokers — 2 brands, 6.4% benchmark
• Other Clothing Stores — 1 brand, 10.0% benchmark
• Other Computer Related Services — 1 brand, 6.5% benchmark
• Other Direct Selling Establishments — 2 brands, 9.6% benchmark
• Other Electronic and Precision Equipment Repair and Maintenance — 1 brand, 15.8% benchmark
• Other Personal Care Services — 9 brands, 10.0% benchmark
• Other Waste Collection — 1 brand, 7.6% benchmark
• Painting and Wall Covering Contractors — 3 brands, 10.9% benchmark
• Pet Care (except Veterinary) Services — 4 brands, 6.9% benchmark
• Pet and Pet Supplies Stores — 3 brands, 10.4% benchmark
• Pharmacies and Drug Stores — 2 brands, 6.0% benchmark
• Plumbing, Heating, and Air-Conditioning Contractors — 2 brands, 7.1% benchmark
• Private Mail Centers — 4 brands, 4.9% benchmark
• RV (Recreational Vehicle) Parks and Campgrounds — 1 brand, 2.5% benchmark
• Residential Property Managers — 1 brand, 10.1% benchmark
• Residential Remodelers — 6 brands, 12.9% benchmark
• Retail Bakeries — 3 brands, 8.1% benchmark
• Security Guards and Patrol Services — 1 brand, 10.4% benchmark
• Shoe Stores — 3 brands, 13.1% benchmark
• Sign Manufacturing — 4 brands, 11.3% benchmark
• Snack and Nonalcoholic Beverage Bars — 20 brands, 10.1% benchmark
• Solid Waste Collection — 2 brands, 3.8% benchmark
• Sporting Goods Stores — 1 brand, 10.8% benchmark
• Sports and Recreation Instruction — 4 brands, 7.5% benchmark
• Tax Preparation Services — 3 brands, 9.7% benchmark
• Tire Dealers — 1 brand, 7.5% benchmark
• Used Household and Office Goods Moving — 2 brands, 11.2% benchmark
• Used Merchandise Stores — 3 brands, 9.7% benchmark
• Vending Machine Operators — 3 brands, 7.8% benchmark
• Window Treatment Stores — 1 brand, 8.6% benchmark
• Women's Clothing Stores — 2 brands, 13.2% benchmark

What is every franchise brand's SBA default rate?

All 415 brands with at least five resolved SBA 7(a) loans. Click a heading to sort (numeric-aware). Type to filter. Each brand links to its own page with benchmarks, recent activity, and sources.

* Small sample (5–19 loans). Rate = charged-off ÷ resolved SBA 7(a) loans approved FY2010–FY2019. Loans since 2020 and early charge-offs are counts only.