Clothes Mentor Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Clothes Mentor franchisees defaulted on 5.1% of SBA 7(a) loans between FY2010 and FY2019 — 2 of 39 loans were charged off — according to U.S. Small Business Administration data. That is lower than the Used Merchandise Stores industry average of 9.7%.
- 5.1%SBA default rate2 of 39 loans
- 39loans resolvedapproved FY2010–FY2019
- 9.7%Used Merchandise Stores averageall SBA loans in the industry
- 2nd lowestindustry rankof 3 Used Merchandise Stores brands
| SBA default rate | 5.1% |
|---|---|
| Loans approved | 39 |
| Loans charged off | 2 |
| Date range | FY2010–FY2019 |
| Industry | Used Merchandise Stores |
| Industry average | 9.7% |
| 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 20 Clothes Mentor SBA borrowers failed to repay — well below the Used Merchandise Stores average of 9.7%.
What is the Clothes Mentor franchise failure rate on SBA loans?
Clothes Mentor is a Used Merchandise 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 Clothes Mentor franchisees: 39 loans approved between fiscal 2010 and 2019, of which 2 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–FY201939
- Charged off2
- Charge-off rate5.1%
- Used Merchandise Stores franchise benchmark9.7%
- Brand vs industry0.5x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$171,738
- New SBA loans since 202013
- Early charge-offs since 20201
How does Clothes Mentor compare with other Used Merchandise Stores franchises?
The table sets Clothes Mentor's charge-off rate beside its Used Merchandise 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 | Clothes Mentor | Used Merchandise Stores | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 5.1% | 9.7% | 10.2% | 8.0% |
| Loans in sample | 39 | — | — | — |
| Defaults | 2 | — | — | — |
| Average loan size | $171,738 | — | — | — |
What has Clothes Mentor SBA lending looked like since 2020?
Since 2020, Clothes Mentor franchisees have taken 13 new SBA 7(a) loans. 1 has already charged off. Early defaults on loans under six years old are worth noting. Most SBA failures take longer to develop.
Loans approved since 2020, by fiscal year — counts only: 1 has 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 | 2 | 0 | 0.0% |
| FY2011 | 2 | 0 | 0.0% |
| FY2012 | 4 | 0 | 0.0% |
| FY2013 | 5 | 0 | 0.0% |
| FY2014 | 6 | 0 | 0.0% |
| FY2015 | 7 | 1 | 14.3% |
| FY2016 | 9 | 1 | 11.1% |
| FY2017 | 2 | 0 | 0.0% |
| FY2019 | 2 | 0 | 0.0% |
| FY2022 | 6 | — | outstanding |
| FY2023 | 1 | — | outstanding |
| FY2024 | 1 | — | outstanding |
| FY2025 | 4 | — | outstanding |
| FY2026 | 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?
Clothes Mentor's figure rests on 39 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 39 resolved loans, one default moves the rate by about 2.6 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 Clothes Mentor figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 39 resolved loans — directional, not precise.
Is Clothes Mentor in financial trouble? What the SBA data shows
Clothes Mentor's SBA 7(a) default rate was 5.1% for loans approved FY2010–FY2019 (2 of 39 loans charged off) — 2nd lowest of 3 Used Merchandise Stores brands tracked here. A default rate close to the Used Merchandise Stores average of 9.7% is, on its own, neither a warning sign nor a reassurance.
Frequently asked
- What is Clothes Mentor's franchise failure rate?
- Clothes Mentor franchisees defaulted on 5.1% of SBA 7(a) loans between FY2010 and FY2019 — 2 of 39 loans were charged off — according to U.S. Small Business Administration data. That is lower than the Used Merchandise Stores industry average of 9.7%.
- How does Clothes Mentor compare to other Used Merchandise Stores franchises?
- Clothes Mentor's 5.1% SBA default rate is lower than the Used Merchandise Stores industry average of 9.7%. See every Used Merchandise Stores franchise ranked on the Used Merchandise Stores industry page. Used Merchandise 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). Clothes Mentor franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 5.1% (2 of 39 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/clothes-mentor/ · Data & methodology · Download the dataset (CSV)