Hand and Stone Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Hand and Stone franchisees defaulted on 3.4% of SBA 7(a) loans between FY2010 and FY2019 — 4 of 118 loans were charged off — according to U.S. Small Business Administration data. That is lower than the Other Personal Care Services industry average of 10.0%.
- 3.4%SBA default rate4 of 118 loans
- 118loans resolvedapproved FY2010–FY2019
- 10.0%Other Personal Care Services averageall SBA loans in the industry
- 4th lowestindustry rankof 9 Other Personal Care Services brands
| SBA default rate | 3.4% |
|---|---|
| Loans approved | 118 |
| Loans charged off | 4 |
| Date range | FY2010–FY2019 |
| Industry | Other Personal Care Services |
| Industry average | 10.0% |
| 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 29 Hand and Stone SBA borrowers failed to repay — well below the Other Personal Care Services average of 10.0%.
What is the Hand and Stone franchise failure rate on SBA loans?
Hand and Stone is a Other Personal Care 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 Hand and Stone franchisees: 118 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–FY2019118
- Charged off4
- Charge-off rate3.4%
- Other Personal Care Services franchise benchmark10.0%
- Brand vs industry0.3x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$385,694
- New SBA loans since 202067
- Early charge-offs since 20200
How does Hand and Stone compare with other Other Personal Care Services franchises?
The table sets Hand and Stone's charge-off rate beside its Other Personal Care 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.
| Measure | Hand and Stone | Other Personal Care Services | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 3.4% | 10.0% | 10.2% | 8.0% |
| Loans in sample | 118 | — | — | — |
| Defaults | 4 | — | — | — |
| Average loan size | $385,694 | — | — | — |
What has Hand and Stone SBA lending looked like since 2020?
Since 2020, Hand and Stone franchisees have taken 67 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 |
|---|---|---|---|
| FY2011 | 1 | 0 | 0.0% |
| FY2012 | 3 | 0 | 0.0% |
| FY2013 | 12 | 0 | 0.0% |
| FY2014 | 14 | 1 | 7.1% |
| FY2015 | 32 | 2 | 6.2% |
| FY2016 | 17 | 0 | 0.0% |
| FY2017 | 10 | 0 | 0.0% |
| FY2018 | 12 | 1 | 8.3% |
| FY2019 | 17 | 0 | 0.0% |
| FY2020 | 13 | — | outstanding |
| FY2021 | 16 | — | outstanding |
| FY2022 | 8 | — | outstanding |
| FY2023 | 4 | — | outstanding |
| FY2024 | 11 | — | outstanding |
| FY2025 | 11 | — | outstanding |
| FY2026 | 4 | — | 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?
Hand and Stone's figure rests on 118 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 118 resolved loans, the sample is large enough that a single default barely moves the figure. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every Hand and Stone figure is recomputed from the public SBA FOIA file on each rebuild.
Is Hand and Stone in financial trouble? What the SBA data shows
Hand and Stone's SBA 7(a) default rate was 3.4% for loans approved FY2010–FY2019 (4 of 118 loans charged off) — 4th lowest of 9 Other Personal Care Services brands tracked here. A default rate this far below the Other Personal Care Services average of 10.0% is not, on its own, a sign of distress.
Frequently asked
- What is Hand and Stone's franchise failure rate?
- Hand and Stone franchisees defaulted on 3.4% of SBA 7(a) loans between FY2010 and FY2019 — 4 of 118 loans were charged off — according to U.S. Small Business Administration data. That is lower than the Other Personal Care Services industry average of 10.0%.
- How does Hand and Stone compare to other Other Personal Care Services franchises?
- Hand and Stone's 3.4% SBA default rate is lower than the Other Personal Care Services industry average of 10.0%. See every Other Personal Care Services franchise ranked on the Other Personal Care Services industry page. Other Personal Care 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). Hand and Stone franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 3.4% (4 of 118 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/hand-and-stone/ · Data & methodology · Download the dataset (CSV)