Closets by Design Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Closets by Design franchisees defaulted on 20.0% of SBA 7(a) loans between FY2010 and FY2019 — 3 of 15 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Residential Remodelers industry average of 12.9%.
- 20.0%SBA default rate, small sample3 of 15 loans
- 15loans resolvedapproved FY2010–FY2019
- 12.9%Residential Remodelers averageall SBA loans in the industry
- 3rd lowestindustry rankof 6 Residential Remodelers brands
| SBA default rate | 20.0% (small sample) |
|---|---|
| Loans approved | 15 |
| Loans charged off | 3 |
| Date range | FY2010–FY2019 |
| Industry | Residential Remodelers |
| Industry average | 12.9% |
| 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.
3 of 15 Closets by Design SBA borrowers failed to repay — too few loans to call a rate; read it as a flag, not a verdict.
What is the Closets by Design franchise failure rate on SBA loans?
Closets by Design is a Residential Remodelers franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Closets by Design franchisees: 15 loans approved between fiscal 2010 and 2019, of which 3 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–FY201915
- Charged off3
- Charge-off rate (small sample)20.0%
- Residential Remodelers franchise benchmark12.9%
- Brand vs industry1.6x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$357,967
- New SBA loans since 202018
- Early charge-offs since 20200
How does Closets by Design compare with other Residential Remodelers franchises?
The table sets Closets by Design's charge-off rate beside its Residential Remodelers 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 | Closets by Design | Residential Remodelers | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 20.0% (small sample) | 12.9% | 10.2% | 8.0% |
| Loans in sample | 15 | — | — | — |
| Defaults | 3 | — | — | — |
| Average loan size | $357,967 | — | — | — |
What has Closets by Design SBA lending looked like since 2020?
Since 2020, Closets by Design franchisees have taken 18 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 | 1 | 0 | 0.0% |
| FY2014 | 3 | 0 | 0.0% |
| FY2015 | 2 | 0 | 0.0% |
| FY2016 | 2 | 0 | 0.0% |
| FY2017 | 1 | 1 | 100.0% |
| FY2018 | 2 | 2 | 100.0% |
| FY2019 | 3 | 0 | 0.0% |
| FY2020 | 1 | — | outstanding |
| FY2021 | 3 | — | outstanding |
| FY2022 | 2 | — | outstanding |
| FY2023 | 2 | — | outstanding |
| FY2025 | 4 | — | outstanding |
| FY2026 | 6 | — | 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?
Closets by Design's figure rests on 15 resolved SBA 7(a) loans approved between fiscal 2010 and 2019. That cohort has matured, so the count is a settled outcome, not a projection. With 15 resolved loans, one default moves the rate by about 6.7 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 Closets by Design figure is recomputed from the public SBA FOIA file on each rebuild.
Small sample (15 loans). A single default moves this figure substantially.
Is Closets by Design in financial trouble? What the SBA data shows
Closets by Design's SBA 7(a) default rate was 20.0% for loans approved FY2010–FY2019 (3 of 15 loans charged off) — 3rd lowest of 6 Residential Remodelers brands tracked here. A default rate this far above the Residential Remodelers average of 12.9% is a signal worth investigating further before investing. With only 15 loans in the sample, one default moves the rate by about 6.7 percentage points, so read it as a flag rather than a verdict.
Frequently asked
- What is Closets by Design's franchise failure rate?
- Closets by Design franchisees defaulted on 20.0% of SBA 7(a) loans between FY2010 and FY2019 — 3 of 15 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Residential Remodelers industry average of 12.9%.
- How does Closets by Design compare to other Residential Remodelers franchises?
- Closets by Design's 20.0% SBA default rate is higher than the Residential Remodelers industry average of 12.9%. See every Residential Remodelers franchise ranked on the Residential Remodelers industry page. Residential Remodelers 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). Closets by Design franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 20.0% (3 of 15 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/closets-by-design/ · Data & methodology · Download the dataset (CSV)