HONEST-1 Auto Care Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
HONEST-1 Auto Care franchisees defaulted on 10.0% of SBA 7(a) loans between FY2010 and FY2019 — 4 of 40 loans were charged off — according to U.S. Small Business Administration data. That is higher than the General Automotive Repair industry average of 7.6%.
- 10.0%SBA default rate4 of 40 loans
- 40loans resolvedapproved FY2010–FY2019
- 7.6%General Automotive Repair averageall SBA loans in the industry
- 2nd lowestindustry rankof 4 General Automotive Repair brands
| SBA default rate | 10.0% |
|---|---|
| Loans approved | 40 |
| Loans charged off | 4 |
| Date range | FY2010–FY2019 |
| Industry | General Automotive Repair |
| Industry average | 7.6% |
| 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 10 HONEST-1 Auto Care SBA borrowers failed to repay — above the General Automotive Repair average of 7.6%.
What is the HONEST-1 Auto Care franchise failure rate on SBA loans?
HONEST-1 Auto Care is a General Automotive Repair franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to HONEST-1 Auto Care franchisees: 40 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–FY201940
- Charged off4
- Charge-off rate10.0%
- General Automotive Repair franchise benchmark7.6%
- Brand vs industry1.3x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$456,070
How does HONEST-1 Auto Care compare with other General Automotive Repair franchises?
The table sets HONEST-1 Auto Care's charge-off rate beside its General Automotive Repair 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 | HONEST-1 Auto Care | General Automotive Repair | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 10.0% | 7.6% | 10.2% | 8.0% |
| Loans in sample | 40 | — | — | — |
| Defaults | 4 | — | — | — |
| Average loan size | $456,070 | — | — | — |
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% |
| FY2012 | 6 | 0 | 0.0% |
| FY2013 | 2 | 0 | 0.0% |
| FY2014 | 4 | 1 | 25.0% |
| FY2015 | 10 | 0 | 0.0% |
| FY2016 | 7 | 2 | 28.6% |
| FY2017 | 9 | 0 | 0.0% |
| FY2018 | 1 | 1 | 100.0% |
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?
HONEST-1 Auto Care's figure rests on 40 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 40 resolved loans, one default moves the rate by about 2.5 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 HONEST-1 Auto Care figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 40 resolved loans — directional, not precise.
Is HONEST-1 Auto Care in financial trouble? What the SBA data shows
HONEST-1 Auto Care's SBA 7(a) default rate was 10.0% for loans approved FY2010–FY2019 (4 of 40 loans charged off) — 2nd lowest of 4 General Automotive Repair brands tracked here. A default rate close to the General Automotive Repair average of 7.6% is, on its own, neither a warning sign nor a reassurance.
Frequently asked
- What is HONEST-1 Auto Care's franchise failure rate?
- HONEST-1 Auto Care franchisees defaulted on 10.0% of SBA 7(a) loans between FY2010 and FY2019 — 4 of 40 loans were charged off — according to U.S. Small Business Administration data. That is higher than the General Automotive Repair industry average of 7.6%.
- How does HONEST-1 Auto Care compare to other General Automotive Repair franchises?
- HONEST-1 Auto Care's 10.0% SBA default rate is higher than the General Automotive Repair industry average of 7.6%. See every General Automotive Repair franchise ranked on the General Automotive Repair industry page. General Automotive Repair 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). HONEST-1 Auto Care franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 10.0% (4 of 40 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/honest-1-auto-care/ · Data & methodology · Download the dataset (CSV)