Restoration 1 Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Restoration 1 franchisees defaulted on 3.1% of SBA 7(a) loans between FY2010 and FY2019 — 1 of 32 loans were charged off — according to U.S. Small Business Administration data. That is lower than the Commercial and Institutional Building Construction industry average of 9.5%.
- 3.1%SBA default rate1 of 32 loans
- 32loans resolvedapproved FY2010–FY2019
- 9.5%Commercial and Institutional Building Construction averageall SBA loans in the industry
- 10.2%all-franchise average7.8% non-franchised
| SBA default rate | 3.1% |
|---|---|
| Loans approved | 32 |
| Loans charged off | 1 |
| Date range | FY2010–FY2019 |
| Industry | Commercial and Institutional Building Construction |
| Industry average | 9.5% |
| 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 32 Restoration 1 SBA borrowers failed to repay — well below the Commercial and Institutional Building Construction average of 9.5%.
What is the Restoration 1 franchise failure rate on SBA loans?
Restoration 1 is a Commercial and Institutional Building Construction franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Restoration 1 franchisees: 32 loans approved between fiscal 2010 and 2019, of which 1 was 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–FY201932
- Charged off1
- Charge-off rate3.1%
- Commercial and Institutional Building Construction franchise benchmark9.5%
- Brand vs industry0.3x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$119,453
- New SBA loans since 202061
- Early charge-offs since 20205
How does Restoration 1 compare with other Commercial and Institutional Building Construction franchises?
The table sets Restoration 1's charge-off rate beside its Commercial and Institutional Building Construction 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 | Restoration 1 | Commercial and Institutional Building Construction | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 3.1% | 9.5% | 10.2% | 8.0% |
| Loans in sample | 32 | — | — | — |
| Defaults | 1 | — | — | — |
| Average loan size | $119,453 | — | — | — |
What has Restoration 1 SBA lending looked like since 2020?
Since 2020, Restoration 1 franchisees have taken 61 new SBA 7(a) loans. 5 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: 5 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 |
|---|---|---|---|
| FY2015 | 1 | 0 | 0.0% |
| FY2016 | 4 | 0 | 0.0% |
| FY2017 | 11 | 0 | 0.0% |
| FY2018 | 9 | 0 | 0.0% |
| FY2019 | 7 | 1 | 14.3% |
| FY2020 | 10 | — | outstanding |
| FY2021 | 14 | — | outstanding |
| FY2022 | 9 | — | outstanding |
| FY2023 | 8 | — | outstanding |
| FY2024 | 10 | — | outstanding |
| FY2025 | 4 | — | outstanding |
| FY2026 | 6 | — | 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?
Restoration 1's figure rests on 32 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 32 resolved loans, one default moves the rate by about 3.1 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 Restoration 1 figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 32 resolved loans — directional, not precise.
Is Restoration 1 in financial trouble? What the SBA data shows
Restoration 1's SBA 7(a) default rate was 3.1% for loans approved FY2010–FY2019 (1 of 32 loans charged off) — the only Commercial and Institutional Building Construction brand tracked here. A default rate this far below the Commercial and Institutional Building Construction average of 9.5% is not, on its own, a sign of distress.
Frequently asked
- What is Restoration 1's franchise failure rate?
- Restoration 1 franchisees defaulted on 3.1% of SBA 7(a) loans between FY2010 and FY2019 — 1 of 32 loans were charged off — according to U.S. Small Business Administration data. That is lower than the Commercial and Institutional Building Construction industry average of 9.5%.
- How does Restoration 1 compare to other Commercial and Institutional Building Construction franchises?
- Restoration 1's 3.1% SBA default rate is lower than the Commercial and Institutional Building Construction industry average of 9.5%. See every Commercial and Institutional Building Construction franchise ranked on the Commercial and Institutional Building Construction industry page. Commercial and Institutional Building Construction 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). Restoration 1 franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 3.1% (1 of 32 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/restoration-1/ · Data & methodology · Download the dataset (CSV)