Armstrong McCall Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Armstrong McCall franchisees defaulted on 17.4% of SBA 7(a) loans between FY2010 and FY2019 — 4 of 23 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Cosmetics, Beauty Supplies, and Perfume Stores industry average of 12.2%.
- 17.4%SBA default rate4 of 23 loans
- 23loans resolvedapproved FY2010–FY2019
- 12.2%Cosmetics, Beauty Supplies, and Perfume Stores averageall SBA loans in the industry
- 2nd lowestindustry rankof 2 Cosmetics, Beauty Supplies, and Perfume Stores brands
| SBA default rate | 17.4% |
|---|---|
| Loans approved | 23 |
| Loans charged off | 4 |
| Date range | FY2010–FY2019 |
| Industry | Cosmetics, Beauty Supplies, and Perfume Stores |
| Industry average | 12.2% |
| Data source | U.S. SBA 7(a) FOIA loan data |
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.
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.
About 1 in 6 Armstrong McCall SBA borrowers failed to repay — above the Cosmetics, Beauty Supplies, and Perfume Stores average of 12.2%.
What is the Armstrong McCall franchise failure rate on SBA loans?
Armstrong McCall is a Cosmetics, Beauty Supplies, and Perfume Stores franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Armstrong McCall franchisees: 23 loans approved between fiscal 2010 and 2019, of which 4 were charged off. Loan statuses are as of June 30, 2026, and the cohort has matured, so these are settled outcomes rather than projections.
- SBA 7(a) loans approved FY2010–FY201923
- Charged off4
- Charge-off rate17.4%
- Cosmetics, Beauty Supplies, and Perfume Stores franchise benchmark12.2%
- Brand vs industry1.4x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$953,861
- New SBA loans since 20202
- Early charge-offs since 20200
How does Armstrong McCall compare with other Cosmetics, Beauty Supplies, and Perfume Stores franchises?
The table sets Armstrong McCall's charge-off rate beside its Cosmetics, Beauty Supplies, and Perfume Stores peers and the two economy-wide benchmarks. All figures use the same cohort — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026 — and the same denominator of resolved loans, so they are directly comparable.
| Measure | Armstrong McCall | Cosmetics, Beauty Supplies, and Perfume Stores | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 17.4% | 12.2% | 10.2% | 8.0% |
| Loans in sample | 23 | — | — | — |
| Defaults | 4 | — | — | — |
| Average loan size | $953,861 | — | — | — |
What has Armstrong McCall SBA lending looked like since 2020?
Since 2020, Armstrong McCall franchisees have taken 2 new SBA 7(a) loans. None have charged off to date, though most remain outstanding and unresolved.
Loans approved since 2020, by fiscal year — counts only: 0 have charged off to date and most are still outstanding, so no rate is drawn.
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
Show the numbers behind this chart
| Fiscal year | Loans | Charged off | Rate |
|---|---|---|---|
| FY2010 | 1 | 0 | 0.0% |
| FY2011 | 2 | 1 | 50.0% |
| FY2012 | 2 | 0 | 0.0% |
| FY2013 | 4 | 1 | 25.0% |
| FY2014 | 5 | 0 | 0.0% |
| FY2015 | 4 | 0 | 0.0% |
| FY2017 | 3 | 2 | 66.7% |
| FY2018 | 1 | 0 | 0.0% |
| FY2019 | 1 | 0 | 0.0% |
| FY2020 | 1 | — | outstanding |
| FY2022 | 1 | — | outstanding |
How to read this
A charge-off means a franchisee borrowed, operated, and failed severely enough that the SBA wrote off the government-guaranteed loan. Unlike franchisor marketing or Item 19 disclosures, this is an observed outcome recorded by a federal agency. One caveat cuts the other way: SBA borrowers are typically less capitalized than all-cash buyers, so these rates can overstate risk for well-funded operators.
How reliable is this number?
Armstrong McCall's figure rests on 23 resolved SBA 7(a) loans approved between fiscal 2010 and 2019. That cohort has matured, so the rate is a settled outcome, not a projection. With 23 resolved loans, one default moves the rate by about 4.3 percentage points. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every Armstrong McCall figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 23 resolved loans — directional, not precise.
Is Armstrong McCall in financial trouble? What the SBA data shows
Armstrong McCall's SBA 7(a) default rate was 17.4% for loans approved FY2010–FY2019 (4 of 23 loans charged off) — the highest of 2 Cosmetics, Beauty Supplies, and Perfume Stores brands tracked here. A default rate close to the Cosmetics, Beauty Supplies, and Perfume Stores average of 12.2% is, on its own, neither a warning sign nor a reassurance.
Frequently asked
- What is Armstrong McCall's franchise failure rate?
- Armstrong McCall franchisees defaulted on 17.4% of SBA 7(a) loans between FY2010 and FY2019 — 4 of 23 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Cosmetics, Beauty Supplies, and Perfume Stores industry average of 12.2%.
- How does Armstrong McCall compare to other Cosmetics, Beauty Supplies, and Perfume Stores franchises?
- Armstrong McCall's 17.4% SBA default rate is higher than the Cosmetics, Beauty Supplies, and Perfume Stores industry average of 12.2%. See every Cosmetics, Beauty Supplies, and Perfume Stores franchise ranked on the Cosmetics, Beauty Supplies, and Perfume Stores industry page. Cosmetics, Beauty Supplies, and Perfume Stores franchises →
- What does 'SBA default rate' mean?
- An SBA default rate is the share of SBA 7(a) loans, approved FY2010–FY2019 and since resolved (paid in full or charged off), that were charged off — written off after the borrower failed to repay. It is not a measure of unit closures.
Source
Source: U.S. Small Business Administration, 7(a) loan program charge-off data, FY2010–FY2019. Franchise data is matched on the SBA's franchise code / brand name. "Failure rate" here means the share of approved loans (resolved: paid in full or charged off) that were charged off; it is not a measure of unit closures. Last updated September 30, 2026.
Every brand in one table, with percentiles and breakdowns by year, industry and loan size: franchise SBA default rates, all 415 brands.
Cite this page
Franchise Default Rates (2026). Armstrong McCall franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 17.4% (4 of 23 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/armstrong-mccall/ · Data & methodology · Download the dataset (CSV)