Matco Tools Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Matco Tools franchisees defaulted on 21.7% of SBA 7(a) loans between FY2010 and FY2019 — 5 of 23 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Other Direct Selling Establishments industry average of 9.6%.
- 21.7%SBA default rate5 of 23 loans
- 23loans resolvedapproved FY2010–FY2019
- 9.6%Other Direct Selling Establishments averageall SBA loans in the industry
- 2nd lowestindustry rankof 2 Other Direct Selling Establishments brands
| SBA default rate | 21.7% |
|---|---|
| Loans approved | 23 |
| Loans charged off | 5 |
| Date range | FY2010–FY2019 |
| Industry | Other Direct Selling Establishments |
| Industry average | 9.6% |
| Total initial investment (FDD Item 7) | $104,374–$376,241 |
| 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 5 Matco Tools SBA borrowers failed to repay — more than double the Other Direct Selling Establishments average of 9.6%.
What is the Matco Tools franchise failure rate on SBA loans?
Matco Tools is a Other Direct Selling Establishments franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Matco Tools franchisees: 23 loans approved between fiscal 2010 and 2019, of which 5 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–FY201923
- Charged off5
- Charge-off rate21.7%
- Other Direct Selling Establishments franchise benchmark9.6%
- Brand vs industry2.3x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$60,474
- New SBA loans since 202016
- Early charge-offs since 20201
How does Matco Tools compare with other Other Direct Selling Establishments franchises?
The table sets Matco Tools's charge-off rate beside its Other Direct Selling Establishments 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. A cell in red is more than twice the industry benchmark.
| Measure | Matco Tools | Other Direct Selling Establishments | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 21.7% | 9.6% | 10.2% | 8.0% |
| Loans in sample | 23 | — | — | — |
| Defaults | 5 | — | — | — |
| Average loan size | $60,474 | — | — | — |
What would Matco Tools's royalty and ad fund cost at your sales level?
From Matco Tools's FDD Item 6 (2026): royalty % of sales. Royalty and ad fund only · illustration. Other Item 6 fees, fixed or percentage, and local marketing minimums are not included. Matco charges no royalty or advertising fee: Item 6 says distributors pay no monthly or periodic royalty, franchise, license or advertising fee, apart from an annual software maintenance fee.
| Annual sales | Royalty |
|---|
What has Matco Tools SBA lending looked like since 2020?
Since 2020, Matco Tools franchisees have taken 16 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 | 3 | 0 | 0.0% |
| FY2011 | 3 | 0 | 0.0% |
| FY2013 | 4 | 2 | 50.0% |
| FY2014 | 2 | 1 | 50.0% |
| FY2016 | 1 | 0 | 0.0% |
| FY2017 | 5 | 0 | 0.0% |
| FY2018 | 4 | 2 | 50.0% |
| FY2019 | 1 | 0 | 0.0% |
| FY2021 | 3 | — | outstanding |
| FY2022 | 4 | — | outstanding |
| FY2023 | 1 | — | outstanding |
| FY2024 | 2 | — | outstanding |
| FY2025 | 1 | — | outstanding |
| FY2026 | 5 | — | 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?
Matco Tools's figure rests on 23 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 23 resolved loans, one default moves the rate by about 4.3 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 Matco Tools figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 23 resolved loans — directional, not precise.
Is Matco Tools in financial trouble? What the SBA data shows
Matco Tools's SBA 7(a) default rate was 21.7% for loans approved FY2010–FY2019 (5 of 23 loans charged off) — the highest of 2 Other Direct Selling Establishments brands tracked here. A default rate this far above the Other Direct Selling Establishments average of 9.6% is a signal worth investigating further before investing.
Frequently asked
- What is Matco Tools's franchise failure rate?
- Matco Tools franchisees defaulted on 21.7% of SBA 7(a) loans between FY2010 and FY2019 — 5 of 23 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Other Direct Selling Establishments industry average of 9.6%.
- How does Matco Tools compare to other Other Direct Selling Establishments franchises?
- Matco Tools's 21.7% SBA default rate is higher than the Other Direct Selling Establishments industry average of 9.6%. See every Other Direct Selling Establishments franchise ranked on the Other Direct Selling Establishments industry page. Other Direct Selling Establishments 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.
- How much does a Matco Tools franchise cost?
- Matco Tools's 2026 FDD puts the total initial investment (Item 7) at $104,374–$376,241, including an initial franchise fee of $10,000 (Item 5). The average SBA 7(a) loan to a Matco Tools franchisee in the 2010s cohort was $60,474.
- Who owns Matco Tools?
- Matco Tools is franchised by Matco Tools Corporation, according to the brand's FDD (2026).
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). Matco Tools franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 21.7% (5 of 23 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/matco-tools/ · Data & methodology · Download the dataset (CSV)