Brain Balance Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Brain Balance franchisees defaulted on 20.7% of SBA 7(a) loans between FY2010 and FY2019 — 6 of 29 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Educational Support Services industry average of 8.0%.
- 20.7%SBA default rate6 of 29 loans
- 29loans resolvedapproved FY2010–FY2019
- 8.0%Educational Support Services averageall SBA loans in the industry
- 3rd lowestindustry rankof 3 Educational Support Services brands
| SBA default rate | 20.7% |
|---|---|
| Loans approved | 29 |
| Loans charged off | 6 |
| Date range | FY2010–FY2019 |
| Industry | Educational Support Services |
| Industry average | 8.0% |
| 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 5 Brain Balance SBA borrowers failed to repay — more than double the Educational Support Services average of 8.0%.
What is the Brain Balance franchise failure rate on SBA loans?
Brain Balance is a Educational Support Services franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Brain Balance franchisees: 29 loans approved between fiscal 2010 and 2019, of which 6 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–FY201929
- Charged off6
- Charge-off rate20.7%
- Educational Support Services franchise benchmark8.0%
- Brand vs industry2.6x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$258,655
- New SBA loans since 20208
- Early charge-offs since 20200
How does Brain Balance compare with other Educational Support Services franchises?
The table sets Brain Balance's charge-off rate beside its Educational Support Services 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. A cell in red is more than twice the industry benchmark.
| Measure | Brain Balance | Educational Support Services | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 20.7% | 8.0% | 10.2% | 8.0% |
| Loans in sample | 29 | — | — | — |
| Defaults | 6 | — | — | — |
| Average loan size | $258,655 | — | — | — |
What has Brain Balance SBA lending looked like since 2020?
Since 2020, Brain Balance franchisees have taken 8 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 |
|---|---|---|---|
| FY2013 | 1 | 0 | 0.0% |
| FY2014 | 8 | 1 | 12.5% |
| FY2015 | 4 | 1 | 25.0% |
| FY2016 | 1 | 0 | 0.0% |
| FY2017 | 8 | 2 | 25.0% |
| FY2018 | 5 | 0 | 0.0% |
| FY2019 | 2 | 2 | 100.0% |
| FY2020 | 2 | — | outstanding |
| FY2021 | 2 | — | outstanding |
| FY2023 | 1 | — | outstanding |
| FY2025 | 1 | — | outstanding |
| FY2026 | 2 | — | 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?
Brain Balance's figure rests on 29 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 29 resolved loans, one default moves the rate by about 3.4 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 Brain Balance figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 29 resolved loans — directional, not precise.
Is Brain Balance in financial trouble? What the SBA data shows
Brain Balance's SBA 7(a) default rate was 20.7% for loans approved FY2010–FY2019 (6 of 29 loans charged off) — the highest of 3 Educational Support Services brands tracked here. A default rate this far above the Educational Support Services average of 8.0% is a signal worth investigating further before investing.
Frequently asked
- What is Brain Balance's franchise failure rate?
- Brain Balance franchisees defaulted on 20.7% of SBA 7(a) loans between FY2010 and FY2019 — 6 of 29 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Educational Support Services industry average of 8.0%.
- How does Brain Balance compare to other Educational Support Services franchises?
- Brain Balance's 20.7% SBA default rate is higher than the Educational Support Services industry average of 8.0%. See every Educational Support Services franchise ranked on the Educational Support Services industry page. Educational Support Services 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). Brain Balance franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 20.7% (6 of 29 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/brain-balance/ · Data & methodology · Download the dataset (CSV)