The Learning Experience Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
The Learning Experience franchisees defaulted on 7.4% of SBA 7(a) loans between FY2010 and FY2019 — 8 of 108 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Child Day Care Services industry average of 4.5%.
- 7.4%SBA default rate8 of 108 loans
- 108loans resolvedapproved FY2010–FY2019
- 4.5%Child Day Care Services averageall SBA loans in the industry
- 7th lowestindustry rankof 7 Child Day Care Services brands
| SBA default rate | 7.4% |
|---|---|
| Loans approved | 108 |
| Loans charged off | 8 |
| Date range | FY2010–FY2019 |
| Industry | Child Day Care Services |
| Industry average | 4.5% |
| 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 14 The Learning Experience SBA borrowers failed to repay — well above the Child Day Care Services average of 4.5%.
What is the The Learning Experience franchise failure rate on SBA loans?
The Learning Experience is a Child Day Care Services franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to The Learning Experience franchisees: 108 loans approved between fiscal 2010 and 2019, of which 8 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–FY2019108
- Charged off8
- Charge-off rate7.4%
- Child Day Care Services franchise benchmark4.5%
- Brand vs industry1.6x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$573,753
- New SBA loans since 2020188
- Early charge-offs since 20200
How does The Learning Experience compare with other Child Day Care Services franchises?
The table sets The Learning Experience's charge-off rate beside its Child Day Care Services 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 | The Learning Experience | Child Day Care Services | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 7.4% | 4.5% | 10.2% | 8.0% |
| Loans in sample | 108 | — | — | — |
| Defaults | 8 | — | — | — |
| Average loan size | $573,753 | — | — | — |
What has The Learning Experience SBA lending looked like since 2020?
Since 2020, The Learning Experience franchisees have taken 188 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 | 1 | 16.7% |
| FY2011 | 2 | 0 | 0.0% |
| FY2013 | 6 | 0 | 0.0% |
| FY2014 | 16 | 0 | 0.0% |
| FY2015 | 14 | 1 | 7.1% |
| FY2016 | 10 | 1 | 10.0% |
| FY2017 | 17 | 3 | 17.6% |
| FY2018 | 18 | 2 | 11.1% |
| FY2019 | 19 | 0 | 0.0% |
| FY2020 | 20 | — | outstanding |
| FY2021 | 31 | — | outstanding |
| FY2022 | 16 | — | outstanding |
| FY2023 | 26 | — | outstanding |
| FY2024 | 33 | — | outstanding |
| FY2025 | 37 | — | outstanding |
| FY2026 | 25 | — | 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?
The Learning Experience's figure rests on 108 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 108 resolved loans, the sample is large enough that a single default barely moves the figure. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every The Learning Experience figure is recomputed from the public SBA FOIA file on each rebuild.
Is The Learning Experience in financial trouble? What the SBA data shows
The Learning Experience's SBA 7(a) default rate was 7.4% for loans approved FY2010–FY2019 (8 of 108 loans charged off) — the highest of 7 Child Day Care Services brands tracked here. A default rate this far above the Child Day Care Services average of 4.5% is a signal worth investigating further before investing.
Frequently asked
- What is The Learning Experience's franchise failure rate?
- The Learning Experience franchisees defaulted on 7.4% of SBA 7(a) loans between FY2010 and FY2019 — 8 of 108 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Child Day Care Services industry average of 4.5%.
- How does The Learning Experience compare to other Child Day Care Services franchises?
- The Learning Experience's 7.4% SBA default rate is higher than the Child Day Care Services industry average of 4.5%. See every Child Day Care Services franchise ranked on the Child Day Care Services industry page. Child Day Care Services 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). The Learning Experience franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 7.4% (8 of 108 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/the-learning-experience/ · Data & methodology · Download the dataset (CSV)