Snap-on Tools Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Snap-on Tools franchisees defaulted on 19.1% of SBA 7(a) loans between FY2010 and FY2019 — 9 of 47 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Other Direct Selling Establishments industry average of 9.6%.
- 19.1%SBA default rate9 of 47 loans
- 47loans resolvedapproved FY2010–FY2019
- 9.6%Other Direct Selling Establishments averageall SBA loans in the industry
- 1st lowestindustry rankof 2 Other Direct Selling Establishments brands
| SBA default rate | 19.1% |
|---|---|
| Loans approved | 47 |
| Loans charged off | 9 |
| Date range | FY2010–FY2019 |
| Industry | Other Direct Selling Establishments |
| Industry average | 9.6% |
| Total initial investment (FDD Item 7) | $223,439–$509,283 |
| 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 5 Snap-on Tools SBA borrowers failed to repay — well above the Other Direct Selling Establishments average of 9.6%.
What is the Snap-on Tools franchise failure rate on SBA loans?
Snap-on Tools is a Other Direct Selling Establishments franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Snap-on Tools franchisees: 47 loans approved between fiscal 2010 and 2019, of which 9 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–FY201947
- Charged off9
- Charge-off rate19.1%
- Other Direct Selling Establishments franchise benchmark9.6%
- Brand vs industry2.0x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$140,038
- New SBA loans since 202044
- Early charge-offs since 20200
How does Snap-on Tools compare with other Other Direct Selling Establishments franchises?
The table sets Snap-on Tools's charge-off rate beside its Other Direct Selling Establishments 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 | Snap-on Tools | Other Direct Selling Establishments | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 19.1% | 9.6% | 10.2% | 8.0% |
| Loans in sample | 47 | — | — | — |
| Defaults | 9 | — | — | — |
| Average loan size | $140,038 | — | — | — |
What would Snap-on Tools's royalty and ad fund cost at your sales level?
From Snap-on Tools'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. Snap-on charges no royalty or advertising-fund fee; Item 6 lists a flat Monthly License Fee of $156.00, and franchisees buy their tool inventory from Snap-on.
| Annual sales | Royalty |
|---|
What has Snap-on Tools SBA lending looked like since 2020?
Since 2020, Snap-on Tools franchisees have taken 44 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 | 6 | 0 | 0.0% |
| FY2011 | 2 | 1 | 50.0% |
| FY2012 | 3 | 0 | 0.0% |
| FY2013 | 1 | 0 | 0.0% |
| FY2014 | 5 | 0 | 0.0% |
| FY2015 | 5 | 0 | 0.0% |
| FY2016 | 3 | 2 | 66.7% |
| FY2017 | 2 | 1 | 50.0% |
| FY2018 | 7 | 2 | 28.6% |
| FY2019 | 13 | 3 | 23.1% |
| FY2020 | 6 | — | outstanding |
| FY2021 | 4 | — | outstanding |
| FY2022 | 13 | — | outstanding |
| FY2023 | 7 | — | outstanding |
| FY2024 | 5 | — | outstanding |
| FY2025 | 3 | — | 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?
Snap-on Tools's figure rests on 47 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 47 resolved loans, one default moves the rate by about 2.1 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 Snap-on Tools figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 47 resolved loans — directional, not precise.
Is Snap-on Tools in financial trouble? What the SBA data shows
Snap-on Tools's SBA 7(a) default rate was 19.1% for loans approved FY2010–FY2019 (9 of 47 loans charged off) — the lowest of 2 Other Direct Selling Establishments brands tracked here. A default rate this far above the Other Direct Selling Establishments average of 9.6% is a signal worth investigating further before investing.
Frequently asked
- What is Snap-on Tools's franchise failure rate?
- Snap-on Tools franchisees defaulted on 19.1% of SBA 7(a) loans between FY2010 and FY2019 — 9 of 47 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Other Direct Selling Establishments industry average of 9.6%.
- How does Snap-on Tools compare to other Other Direct Selling Establishments franchises?
- Snap-on Tools's 19.1% SBA default rate is higher than the Other Direct Selling Establishments industry average of 9.6%. See every Other Direct Selling Establishments franchise ranked on the Other Direct Selling Establishments industry page. Other Direct Selling Establishments 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 Snap-on Tools franchise cost?
- Snap-on Tools's 2026 FDD puts the total initial investment (Item 7) at $223,439–$509,283, including an initial franchise fee of $16,000 (Item 5). The average SBA 7(a) loan to a Snap-on Tools franchisee in the 2010s cohort was $140,038.
- Who owns Snap-on Tools?
- Snap-on Tools is franchised by Snap-on Tools Company 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). Snap-on Tools franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 19.1% (9 of 47 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/snap-on-tools/ · Data & methodology · Download the dataset (CSV)