Rainbow Restoration Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Rainbow Restoration franchisees defaulted on 28.3% of SBA 7(a) loans between FY2010 and FY2019 — 15 of 53 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Residential Remodelers industry average of 12.9%.
- 28.3%SBA default rate15 of 53 loans
- 53loans resolvedapproved FY2010–FY2019
- 12.9%Residential Remodelers averageall SBA loans in the industry
- 6th lowestindustry rankof 6 Residential Remodelers brands
| SBA default rate | 28.3% |
|---|---|
| Loans approved | 53 |
| Loans charged off | 15 |
| Date range | FY2010–FY2019 |
| Industry | Residential Remodelers |
| Industry average | 12.9% |
| Total initial investment (FDD Item 7) | $185,336–$351,900 |
| 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 4 Rainbow Restoration SBA borrowers failed to repay — more than double the Residential Remodelers average of 12.9%.
What is the Rainbow Restoration franchise failure rate on SBA loans?
Rainbow Restoration is a Residential Remodelers franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Rainbow Restoration franchisees: 53 loans approved between fiscal 2010 and 2019, of which 15 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–FY201953
- Charged off15
- Charge-off rate28.3%
- Residential Remodelers franchise benchmark12.9%
- Brand vs industry2.2x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$307,751
- New SBA loans since 202081
- Early charge-offs since 20209
How does Rainbow Restoration compare with other Residential Remodelers franchises?
The table sets Rainbow Restoration's charge-off rate beside its Residential Remodelers 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 | Rainbow Restoration | Residential Remodelers | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 28.3% | 12.9% | 10.2% | 8.0% |
| Loans in sample | 53 | — | — | — |
| Defaults | 15 | — | — | — |
| Average loan size | $307,751 | — | — | — |
What would Rainbow Restoration's royalty and ad fund cost at your sales level?
From Rainbow Restoration'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. Rainbow Restoration's license fee is 6% of Gross Sales in the first year, then 3% to 8% set by the prior year's sales; minimum license fees also apply.
| Annual sales | Royalty | Ad fund | Royalty + ad fund |
|---|
What has Rainbow Restoration SBA lending looked like since 2020?
Since 2020, Rainbow Restoration franchisees have taken 81 new SBA 7(a) loans. 9 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: 9 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 |
|---|---|---|---|
| FY2011 | 1 | 0 | 0.0% |
| FY2013 | 3 | 0 | 0.0% |
| FY2014 | 2 | 0 | 0.0% |
| FY2015 | 5 | 1 | 20.0% |
| FY2016 | 13 | 5 | 38.5% |
| FY2017 | 5 | 2 | 40.0% |
| FY2018 | 12 | 4 | 33.3% |
| FY2019 | 12 | 3 | 25.0% |
| FY2020 | 19 | — | outstanding |
| FY2021 | 18 | — | outstanding |
| FY2022 | 11 | — | outstanding |
| FY2023 | 9 | — | outstanding |
| FY2024 | 17 | — | outstanding |
| FY2025 | 5 | — | outstanding |
| FY2026 | 2 | — | 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?
Rainbow Restoration's figure rests on 53 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 53 resolved loans, one default moves the rate by about 1.9 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 Rainbow Restoration figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 53 resolved loans — directional, not precise.
Is Rainbow Restoration in financial trouble? What the SBA data shows
Rainbow Restoration's SBA 7(a) default rate was 28.3% for loans approved FY2010–FY2019 (15 of 53 loans charged off) — the highest of 6 Residential Remodelers brands tracked here. A default rate this far above the Residential Remodelers average of 12.9% is a signal worth investigating further before investing.
Frequently asked
- What is Rainbow Restoration's franchise failure rate?
- Rainbow Restoration franchisees defaulted on 28.3% of SBA 7(a) loans between FY2010 and FY2019 — 15 of 53 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Residential Remodelers industry average of 12.9%.
- How does Rainbow Restoration compare to other Residential Remodelers franchises?
- Rainbow Restoration's 28.3% SBA default rate is higher than the Residential Remodelers industry average of 12.9%. See every Residential Remodelers franchise ranked on the Residential Remodelers industry page. Residential Remodelers 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 Rainbow Restoration franchise cost?
- Rainbow Restoration's 2026 FDD puts the total initial investment (Item 7) at $185,336–$351,900. The average SBA 7(a) loan to a Rainbow Restoration franchisee in the 2010s cohort was $307,751.
- Who owns Rainbow Restoration?
- Rainbow Restoration is franchised by Rainbow International 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). Rainbow Restoration franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 28.3% (15 of 53 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/rainbow-restoration/ · Data & methodology · Download the dataset (CSV)