Mr. Appliance Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Mr. Appliance franchisees defaulted on 42.5% of SBA 7(a) loans between FY2010 and FY2019 — 17 of 40 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Appliance Repair and Maintenance industry average of 16.8%.
- 42.5%SBA default rate17 of 40 loans
- 40loans resolvedapproved FY2010–FY2019
- 16.8%Appliance Repair and Maintenance averageall SBA loans in the industry
- 10.2%all-franchise average7.8% non-franchised
| SBA default rate | 42.5% |
|---|---|
| Loans approved | 40 |
| Loans charged off | 17 |
| Date range | FY2010–FY2019 |
| Industry | Appliance Repair and Maintenance |
| Industry average | 16.8% |
| Total initial investment (FDD Item 7) | $147,750–$273,175 |
| 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 2 Mr. Appliance SBA borrowers failed to repay — more than double the Appliance Repair and Maintenance average of 16.8%.
What is the Mr. Appliance franchise failure rate on SBA loans?
Mr. Appliance is a Appliance Repair and Maintenance franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Mr. Appliance franchisees: 40 loans approved between fiscal 2010 and 2019, of which 17 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 off17
- Charge-off rate42.5%
- Appliance Repair and Maintenance franchise benchmark16.8%
- Brand vs industry2.5x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$146,288
- New SBA loans since 202078
- Early charge-offs since 202011
How does Mr. Appliance compare with other Appliance Repair and Maintenance franchises?
The table sets Mr. Appliance's charge-off rate beside its Appliance Repair and Maintenance 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 | Mr. Appliance | Appliance Repair and Maintenance | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 42.5% | 16.8% | 10.2% | 8.0% |
| Loans in sample | 40 | — | — | — |
| Defaults | 17 | — | — | — |
| Average loan size | $146,288 | — | — | — |
What would Mr. Appliance's royalty and ad fund cost at your sales level?
From Mr. Appliance's FDD Item 6 (2026): royalty % of sales, advertising fund 2%. Royalty and ad fund only · illustration. Other Item 6 fees, fixed or percentage, and local marketing minimums are not included. Mr. Appliance charges a weekly license fee of 5% - 7% of Gross Sales, the rate set by the prior week's sales per capita in the territory, plus minimum license fees.
| Annual sales | Royalty | Ad fund | Royalty + ad fund |
|---|
What has Mr. Appliance SBA lending looked like since 2020?
Since 2020, Mr. Appliance franchisees have taken 78 new SBA 7(a) loans. 11 have 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: 11 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 |
|---|---|---|---|
| FY2010 | 1 | 0 | 0.0% |
| FY2013 | 1 | 0 | 0.0% |
| FY2014 | 1 | 0 | 0.0% |
| FY2015 | 1 | 0 | 0.0% |
| FY2016 | 6 | 1 | 16.7% |
| FY2017 | 10 | 4 | 40.0% |
| FY2018 | 9 | 6 | 66.7% |
| FY2019 | 11 | 6 | 54.5% |
| FY2020 | 12 | — | outstanding |
| FY2021 | 17 | — | outstanding |
| FY2022 | 10 | — | outstanding |
| FY2023 | 12 | — | outstanding |
| FY2024 | 7 | — | outstanding |
| FY2025 | 13 | — | outstanding |
| FY2026 | 7 | — | 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?
Mr. Appliance'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 Mr. Appliance figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 40 resolved loans — directional, not precise.
Is Mr. Appliance in financial trouble? What the SBA data shows
Mr. Appliance's SBA 7(a) default rate was 42.5% for loans approved FY2010–FY2019 (17 of 40 loans charged off) — the only Appliance Repair and Maintenance brand tracked here. A default rate this far above the Appliance Repair and Maintenance average of 16.8% is a signal worth investigating further before investing.
Frequently asked
- What is Mr. Appliance's franchise failure rate?
- Mr. Appliance franchisees defaulted on 42.5% of SBA 7(a) loans between FY2010 and FY2019 — 17 of 40 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Appliance Repair and Maintenance industry average of 16.8%.
- How does Mr. Appliance compare to other Appliance Repair and Maintenance franchises?
- Mr. Appliance's 42.5% SBA default rate is higher than the Appliance Repair and Maintenance industry average of 16.8%. See every Appliance Repair and Maintenance franchise ranked on the Appliance Repair and Maintenance industry page. Appliance Repair and Maintenance 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 Mr. Appliance franchise cost?
- Mr. Appliance's 2026 FDD puts the total initial investment (Item 7) at $147,750–$273,175. The average SBA 7(a) loan to a Mr. Appliance franchisee in the 2010s cohort was $146,288.
- Who owns Mr. Appliance?
- Mr. Appliance is franchised by Mr. Appliance SPV LLC, 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). Mr. Appliance franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 42.5% (17 of 40 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/mr-appliance/ · Data & methodology · Download the dataset (CSV)