Hobbytown USA Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Hobbytown USA franchisees defaulted on 14.3% of SBA 7(a) loans between FY2010 and FY2019 — 3 of 21 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Hobby, Toy, and Game Stores industry average of 10.8%.
- 14.3%SBA default rate3 of 21 loans
- 21loans resolvedapproved FY2010–FY2019
- 10.8%Hobby, Toy, and Game Stores averageall SBA loans in the industry
- 2nd lowestindustry rankof 2 Hobby, Toy, and Game Stores brands
| SBA default rate | 14.3% |
|---|---|
| Loans approved | 21 |
| Loans charged off | 3 |
| Date range | FY2010–FY2019 |
| Industry | Hobby, Toy, and Game Stores |
| Industry average | 10.8% |
| 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 7 Hobbytown USA SBA borrowers failed to repay — above the Hobby, Toy, and Game Stores average of 10.8%.
What is the Hobbytown USA franchise failure rate on SBA loans?
Hobbytown USA is a Hobby, Toy, and Game 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 Hobbytown USA franchisees: 21 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–FY201921
- Charged off3
- Charge-off rate14.3%
- Hobby, Toy, and Game Stores franchise benchmark10.8%
- Brand vs industry1.3x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$176,910
How does Hobbytown USA compare with other Hobby, Toy, and Game Stores franchises?
The table sets Hobbytown USA's charge-off rate beside its Hobby, Toy, and Game 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 | Hobbytown USA | Hobby, Toy, and Game Stores | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 14.3% | 10.8% | 10.2% | 8.0% |
| Loans in sample | 21 | — | — | — |
| Defaults | 3 | — | — | — |
| Average loan size | $176,910 | — | — | — |
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 | 4 | 0 | 0.0% |
| FY2012 | 2 | 1 | 50.0% |
| FY2013 | 3 | 1 | 33.3% |
| FY2014 | 4 | 0 | 0.0% |
| FY2015 | 4 | 1 | 25.0% |
| FY2016 | 1 | 0 | 0.0% |
| FY2017 | 3 | 0 | 0.0% |
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?
Hobbytown USA's figure rests on 21 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 21 resolved loans, one default moves the rate by about 4.8 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 Hobbytown USA figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 21 resolved loans — directional, not precise.
Is Hobbytown USA in financial trouble? What the SBA data shows
Hobbytown USA's SBA 7(a) default rate was 14.3% for loans approved FY2010–FY2019 (3 of 21 loans charged off) — the highest of 2 Hobby, Toy, and Game Stores brands tracked here. A default rate close to the Hobby, Toy, and Game Stores average of 10.8% is, on its own, neither a warning sign nor a reassurance.
Frequently asked
- What is Hobbytown USA's franchise failure rate?
- Hobbytown USA franchisees defaulted on 14.3% of SBA 7(a) loans between FY2010 and FY2019 — 3 of 21 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Hobby, Toy, and Game Stores industry average of 10.8%.
- How does Hobbytown USA compare to other Hobby, Toy, and Game Stores franchises?
- Hobbytown USA's 14.3% SBA default rate is higher than the Hobby, Toy, and Game Stores industry average of 10.8%. See every Hobby, Toy, and Game Stores franchise ranked on the Hobby, Toy, and Game Stores industry page. Hobby, Toy, and Game 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). Hobbytown USA franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 14.3% (3 of 21 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/hobbytown-usa/ · Data & methodology · Download the dataset (CSV)