Patrice & Associates Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Patrice & Associates franchisees defaulted on 36.4% of SBA 7(a) loans between FY2010 and FY2019 — 12 of 33 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Employment Placement Agencies industry average of 7.5%.
- 36.4%SBA default rate12 of 33 loans
- 33loans resolvedapproved FY2010–FY2019
- 7.5%Employment Placement Agencies averageall SBA loans in the industry
- 2nd lowestindustry rankof 2 Employment Placement Agencies brands
| SBA default rate | 36.4% |
|---|---|
| Loans approved | 33 |
| Loans charged off | 12 |
| Date range | FY2010–FY2019 |
| Industry | Employment Placement Agencies |
| Industry average | 7.5% |
| Total initial investment (FDD Item 7) | $105,100–$121,050 |
| 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 3 Patrice & Associates SBA borrowers failed to repay — more than double the Employment Placement Agencies average of 7.5%.
What is the Patrice & Associates franchise failure rate on SBA loans?
Patrice & Associates is a Employment Placement Agencies franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Patrice & Associates franchisees: 33 loans approved between fiscal 2010 and 2019, of which 12 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–FY201933
- Charged off12
- Charge-off rate36.4%
- Employment Placement Agencies franchise benchmark7.5%
- Brand vs industry4.8x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$126,218
- New SBA loans since 202052
- Early charge-offs since 20202
How does Patrice & Associates compare with other Employment Placement Agencies franchises?
The table sets Patrice & Associates's charge-off rate beside its Employment Placement Agencies 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 | Patrice & Associates | Employment Placement Agencies | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 36.4% | 7.5% | 10.2% | 8.0% |
| Loans in sample | 33 | — | — | — |
| Defaults | 12 | — | — | — |
| Average loan size | $126,218 | — | — | — |
What would Patrice & Associates's royalty and ad fund cost at your sales level?
From Patrice & Associates's FDD Item 6 (2026): royalty 10% 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. Patrice also deducts billing-services and P&A Database fees: in all, it keeps 24% of each placement fee for its royalty and other percentage-based fees before paying the franchisee.
| Annual sales | Royalty | Ad fund | Royalty + ad fund |
|---|---|---|---|
| $250,000 | $25,000 | $5,000 | $30,000 |
| $500,000 | $50,000 | $10,000 | $60,000 |
| $1,000,000 | $100,000 | $20,000 | $120,000 |
| $2,000,000 | $200,000 | $40,000 | $240,000 |
What has Patrice & Associates SBA lending looked like since 2020?
Since 2020, Patrice & Associates franchisees have taken 52 new SBA 7(a) loans. 2 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: 2 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 |
|---|---|---|---|
| FY2014 | 1 | 1 | 100.0% |
| FY2015 | 4 | 2 | 50.0% |
| FY2016 | 6 | 1 | 16.7% |
| FY2017 | 10 | 2 | 20.0% |
| FY2018 | 7 | 2 | 28.6% |
| FY2019 | 5 | 4 | 80.0% |
| FY2020 | 12 | — | outstanding |
| FY2021 | 5 | — | outstanding |
| FY2022 | 5 | — | outstanding |
| FY2023 | 14 | — | outstanding |
| FY2024 | 4 | — | outstanding |
| FY2025 | 9 | — | outstanding |
| FY2026 | 3 | — | 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?
Patrice & Associates's figure rests on 33 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 33 resolved loans, one default moves the rate by about 3.0 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 Patrice & Associates figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 33 resolved loans — directional, not precise.
Is Patrice & Associates in financial trouble? What the SBA data shows
Patrice & Associates's SBA 7(a) default rate was 36.4% for loans approved FY2010–FY2019 (12 of 33 loans charged off) — the highest of 2 Employment Placement Agencies brands tracked here. A default rate this far above the Employment Placement Agencies average of 7.5% is a signal worth investigating further before investing.
Frequently asked
- What is Patrice & Associates's franchise failure rate?
- Patrice & Associates franchisees defaulted on 36.4% of SBA 7(a) loans between FY2010 and FY2019 — 12 of 33 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Employment Placement Agencies industry average of 7.5%.
- How does Patrice & Associates compare to other Employment Placement Agencies franchises?
- Patrice & Associates's 36.4% SBA default rate is higher than the Employment Placement Agencies industry average of 7.5%. See every Employment Placement Agencies franchise ranked on the Employment Placement Agencies industry page. Employment Placement Agencies 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 Patrice & Associates franchise cost?
- Patrice & Associates's 2026 FDD puts the total initial investment (Item 7) at $105,100–$121,050, including an initial franchise fee of $65,000 (Item 5). The average SBA 7(a) loan to a Patrice & Associates franchisee in the 2010s cohort was $126,218.
- Who owns Patrice & Associates?
- Patrice & Associates is franchised by Patrice Franchising, 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). Patrice & Associates franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 36.4% (12 of 33 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/patrice-and-associates/ · Data & methodology · Download the dataset (CSV)