Smartstyle Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Smartstyle franchisees defaulted on 3.3% of SBA 7(a) loans between FY2010 and FY2019 — 1 of 30 loans were charged off — according to U.S. Small Business Administration data. That is lower than the Beauty Salons industry average of 8.6%.
- 3.3%SBA default rate1 of 30 loans
- 30loans resolvedapproved FY2010–FY2019
- 8.6%Beauty Salons averageall SBA loans in the industry
- 2nd lowestindustry rankof 15 Beauty Salons brands
| SBA default rate | 3.3% |
|---|---|
| Loans approved | 30 |
| Loans charged off | 1 |
| Date range | FY2010–FY2019 |
| Industry | Beauty Salons |
| Industry average | 8.6% |
| 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 30 Smartstyle SBA borrowers failed to repay — well below the Beauty Salons average of 8.6%.
What is the Smartstyle franchise failure rate on SBA loans?
Smartstyle is a Beauty Salons franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Smartstyle franchisees: 30 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–FY201930
- Charged off1
- Charge-off rate3.3%
- Beauty Salons franchise benchmark8.6%
- Brand vs industry0.4x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$485,383
- New SBA loans since 202026
- Early charge-offs since 20201
How does Smartstyle compare with other Beauty Salons franchises?
The table sets Smartstyle's charge-off rate beside its Beauty Salons 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 | Smartstyle | Beauty Salons | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 3.3% | 8.6% | 10.2% | 8.0% |
| Loans in sample | 30 | — | — | — |
| Defaults | 1 | — | — | — |
| Average loan size | $485,383 | — | — | — |
What has Smartstyle SBA lending looked like since 2020?
Since 2020, Smartstyle franchisees have taken 26 new SBA 7(a) loans. 1 has 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: 1 has 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 |
|---|---|---|---|
| FY2017 | 5 | 1 | 20.0% |
| FY2018 | 13 | 0 | 0.0% |
| FY2019 | 12 | 0 | 0.0% |
| FY2020 | 21 | — | outstanding |
| FY2021 | 3 | — | outstanding |
| FY2022 | 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?
Smartstyle's figure rests on 30 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 30 resolved loans, one default moves the rate by about 3.3 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 Smartstyle figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 30 resolved loans — directional, not precise.
Is Smartstyle in financial trouble? What the SBA data shows
Smartstyle's SBA 7(a) default rate was 3.3% for loans approved FY2010–FY2019 (1 of 30 loans charged off) — 2nd lowest of 15 Beauty Salons brands tracked here. A default rate this far below the Beauty Salons average of 8.6% is not, on its own, a sign of distress.
Frequently asked
- What is Smartstyle's franchise failure rate?
- Smartstyle franchisees defaulted on 3.3% of SBA 7(a) loans between FY2010 and FY2019 — 1 of 30 loans were charged off — according to U.S. Small Business Administration data. That is lower than the Beauty Salons industry average of 8.6%.
- How does Smartstyle compare to other Beauty Salons franchises?
- Smartstyle's 3.3% SBA default rate is lower than the Beauty Salons industry average of 8.6%. See every Beauty Salons franchise ranked on the Beauty Salons industry page. Beauty Salons 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). Smartstyle franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 3.3% (1 of 30 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/smartstyle/ · Data & methodology · Download the dataset (CSV)