Sonic Drive-In Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Sonic Drive-In franchisees defaulted on 3.1% of SBA 7(a) loans between FY2010 and FY2019 — 2 of 64 loans were charged off — according to U.S. Small Business Administration data. That is lower than the Limited-Service Restaurants industry average of 10.3%.
- 3.1%SBA default rate2 of 64 loans
- 64loans resolvedapproved FY2010–FY2019
- 10.3%Limited-Service Restaurants averageall SBA loans in the industry
- 21st lowestindustry rankof 81 Limited-Service Restaurants brands
| SBA default rate | 3.1% |
|---|---|
| Loans approved | 64 |
| Loans charged off | 2 |
| Date range | FY2010–FY2019 |
| Industry | Limited-Service Restaurants |
| Industry average | 10.3% |
| 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 Sonic Drive-In SBA borrowers failed to repay — well below the Limited-Service Restaurants average of 10.3%.
What is the Sonic Drive-In franchise failure rate on SBA loans?
Sonic Drive-In is a Limited-Service Restaurants franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Sonic Drive-In franchisees: 64 loans approved between fiscal 2010 and 2019, of which 2 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–FY201964
- Charged off2
- Charge-off rate3.1%
- Limited-Service Restaurants franchise benchmark10.3%
- Brand vs industry0.3x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$1,069,364
- New SBA loans since 202017
- Early charge-offs since 20200
How does Sonic Drive-In compare with other Limited-Service Restaurants franchises?
The table sets Sonic Drive-In's charge-off rate beside its Limited-Service Restaurants 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 | Sonic Drive-In | Limited-Service Restaurants | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 3.1% | 10.3% | 10.2% | 8.0% |
| Loans in sample | 64 | — | — | — |
| Defaults | 2 | — | — | — |
| Average loan size | $1,069,364 | — | — | — |
What has Sonic Drive-In SBA lending looked like since 2020?
Since 2020, Sonic Drive-In franchisees have taken 17 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 | 5 | 0 | 0.0% |
| FY2011 | 9 | 0 | 0.0% |
| FY2012 | 7 | 0 | 0.0% |
| FY2013 | 9 | 0 | 0.0% |
| FY2014 | 7 | 0 | 0.0% |
| FY2015 | 8 | 0 | 0.0% |
| FY2016 | 9 | 1 | 11.1% |
| FY2017 | 2 | 1 | 50.0% |
| FY2018 | 4 | 0 | 0.0% |
| FY2019 | 4 | 0 | 0.0% |
| FY2020 | 1 | — | outstanding |
| FY2021 | 5 | — | outstanding |
| FY2022 | 3 | — | outstanding |
| FY2023 | 1 | — | outstanding |
| FY2024 | 2 | — | outstanding |
| FY2025 | 2 | — | outstanding |
| FY2026 | 3 | — | 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?
Sonic Drive-In's figure rests on 64 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 64 resolved loans, one default moves the rate by about 1.6 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 Sonic Drive-In figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 64 resolved loans — directional, not precise.
Is Sonic Drive-In in financial trouble? What the SBA data shows
Sonic Drive-In's SBA 7(a) default rate was 3.1% for loans approved FY2010–FY2019 (2 of 64 loans charged off) — 21st lowest of 81 Limited-Service Restaurants brands tracked here. A default rate this far below the Limited-Service Restaurants average of 10.3% is not, on its own, a sign of distress.
Frequently asked
- What is Sonic Drive-In's franchise failure rate?
- Sonic Drive-In franchisees defaulted on 3.1% of SBA 7(a) loans between FY2010 and FY2019 — 2 of 64 loans were charged off — according to U.S. Small Business Administration data. That is lower than the Limited-Service Restaurants industry average of 10.3%.
- How does Sonic Drive-In compare to other Limited-Service Restaurants franchises?
- Sonic Drive-In's 3.1% SBA default rate is lower than the Limited-Service Restaurants industry average of 10.3%. See every Limited-Service Restaurants franchise ranked on the Limited-Service Restaurants industry page. Limited-Service Restaurants 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). Sonic Drive-In franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 3.1% (2 of 64 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/sonic-drive-in/ · Data & methodology · Download the dataset (CSV)