Signarama Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Signarama franchisees defaulted on 34.5% of SBA 7(a) loans between FY2010 and FY2019 — 30 of 87 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Sign Manufacturing industry average of 11.3%.
- 34.5%SBA default rate30 of 87 loans
- 87loans resolvedapproved FY2010–FY2019
- 11.3%Sign Manufacturing averageall SBA loans in the industry
- 4th lowestindustry rankof 4 Sign Manufacturing brands
| SBA default rate | 34.5% |
|---|---|
| Loans approved | 87 |
| Loans charged off | 30 |
| Date range | FY2010–FY2019 |
| Industry | Sign Manufacturing |
| Industry average | 11.3% |
| Total initial investment (FDD Item 7) | $245,432–$344,768 |
| 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 Signarama SBA borrowers failed to repay — more than double the Sign Manufacturing average of 11.3%.
What is the Signarama franchise failure rate on SBA loans?
Signarama is a Sign Manufacturing franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Signarama franchisees: 87 loans approved between fiscal 2010 and 2019, of which 30 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–FY201987
- Charged off30
- Charge-off rate34.5%
- Sign Manufacturing franchise benchmark11.3%
- Brand vs industry3.0x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$246,798
- New SBA loans since 202052
- Early charge-offs since 20200
How does Signarama compare with other Sign Manufacturing franchises?
The table sets Signarama's charge-off rate beside its Sign Manufacturing 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 | Signarama | Sign Manufacturing | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 34.5% | 11.3% | 10.2% | 8.0% |
| Loans in sample | 87 | — | — | — |
| Defaults | 30 | — | — | — |
| Average loan size | $246,798 | — | — | — |
What would Signarama's royalty and ad fund cost at your sales level?
From Signarama'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. Signarama charges a monthly royalty equal to the greater of $500 or 6% of gross revenues until calendar-year gross revenues exceed $1,000,000, then 4%.
| Annual sales | Royalty |
|---|
What has Signarama SBA lending looked like since 2020?
Since 2020, Signarama franchisees have taken 52 new SBA 7(a) loans. None have charged off to date, though most remain outstanding and unresolved.
Loans approved since 2020, by fiscal year — counts only: 0 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 | 7 | 0 | 0.0% |
| FY2011 | 5 | 0 | 0.0% |
| FY2012 | 3 | 1 | 33.3% |
| FY2013 | 5 | 2 | 40.0% |
| FY2014 | 6 | 4 | 66.7% |
| FY2015 | 13 | 5 | 38.5% |
| FY2016 | 10 | 2 | 20.0% |
| FY2017 | 16 | 5 | 31.2% |
| FY2018 | 19 | 8 | 42.1% |
| FY2019 | 3 | 3 | 100.0% |
| FY2020 | 7 | — | outstanding |
| FY2021 | 10 | — | outstanding |
| FY2022 | 4 | — | outstanding |
| FY2023 | 11 | — | outstanding |
| FY2024 | 7 | — | outstanding |
| FY2025 | 7 | — | 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?
Signarama's figure rests on 87 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 87 resolved loans, one default moves the rate by about 1.1 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 Signarama figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 87 resolved loans — directional, not precise.
Is Signarama in financial trouble? What the SBA data shows
Signarama's SBA 7(a) default rate was 34.5% for loans approved FY2010–FY2019 (30 of 87 loans charged off) — the highest of 4 Sign Manufacturing brands tracked here. A default rate this far above the Sign Manufacturing average of 11.3% is a signal worth investigating further before investing.
Frequently asked
- What is Signarama's franchise failure rate?
- Signarama franchisees defaulted on 34.5% of SBA 7(a) loans between FY2010 and FY2019 — 30 of 87 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Sign Manufacturing industry average of 11.3%.
- How does Signarama compare to other Sign Manufacturing franchises?
- Signarama's 34.5% SBA default rate is higher than the Sign Manufacturing industry average of 11.3%. See every Sign Manufacturing franchise ranked on the Sign Manufacturing industry page. Sign Manufacturing 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 Signarama franchise cost?
- Signarama's 2026 FDD puts the total initial investment (Item 7) at $245,432–$344,768, including an initial franchise fee of $49,500 (Item 5). The average SBA 7(a) loan to a Signarama franchisee in the 2010s cohort was $246,798.
- Who owns Signarama?
- Signarama is franchised by Sign*A*Rama Inc., 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). Signarama franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 34.5% (30 of 87 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/signarama/ · Data & methodology · Download the dataset (CSV)