Tom and Chee Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Tom and Chee franchisees defaulted on 47.4% of SBA 7(a) loans between FY2010 and FY2019 — 9 of 19 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Limited-Service Restaurants industry average of 10.3%.
- 47.4%SBA default rate, small sample9 of 19 loans
- 19loans resolvedapproved FY2010–FY2019
- 10.3%Limited-Service Restaurants averageall SBA loans in the industry
- 80th lowestindustry rankof 81 Limited-Service Restaurants brands
| SBA default rate | 47.4% (small sample) |
|---|---|
| Loans approved | 19 |
| Loans charged off | 9 |
| 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.
9 of 19 Tom and Chee SBA borrowers failed to repay — too few loans to call a rate; read it as a flag, not a verdict.
What is the Tom and Chee franchise failure rate on SBA loans?
Tom and Chee 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 Tom and Chee franchisees: 19 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–FY201919
- Charged off9
- Charge-off rate (small sample)47.4%
- Limited-Service Restaurants franchise benchmark10.3%
- Brand vs industry4.6x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$216,074
How does Tom and Chee compare with other Limited-Service Restaurants franchises?
The table sets Tom and Chee'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. A cell in red is more than twice the industry benchmark.
| Measure | Tom and Chee | Limited-Service Restaurants | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 47.4% (small sample) | 10.3% | 10.2% | 8.0% |
| Loans in sample | 19 | — | — | — |
| Defaults | 9 | — | — | — |
| Average loan size | $216,074 | — | — | — |
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
Show the numbers behind this chart
| Fiscal year | Loans | Charged off | Rate |
|---|---|---|---|
| FY2014 | 7 | 2 | 28.6% |
| FY2015 | 6 | 3 | 50.0% |
| FY2016 | 3 | 2 | 66.7% |
| FY2017 | 2 | 2 | 100.0% |
| FY2018 | 1 | 0 | 0.0% |
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?
Tom and Chee's figure rests on 19 resolved SBA 7(a) loans approved between fiscal 2010 and 2019. That cohort has matured, so the count is a settled outcome, not a projection. With 19 resolved loans, one default moves the rate by about 5.3 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 Tom and Chee figure is recomputed from the public SBA FOIA file on each rebuild.
Small sample (19 loans). A single default moves this figure substantially.
Is Tom and Chee in financial trouble? What the SBA data shows
Tom and Chee's SBA 7(a) default rate was 47.4% for loans approved FY2010–FY2019 (9 of 19 loans charged off) — 80th lowest of 81 Limited-Service Restaurants brands tracked here. A default rate this far above the Limited-Service Restaurants average of 10.3% is a signal worth investigating further before investing. With only 19 loans in the sample, one default moves the rate by about 5.3 percentage points, so read it as a flag rather than a verdict.
Frequently asked
- What is Tom and Chee's franchise failure rate?
- Tom and Chee franchisees defaulted on 47.4% of SBA 7(a) loans between FY2010 and FY2019 — 9 of 19 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Limited-Service Restaurants industry average of 10.3%.
- How does Tom and Chee compare to other Limited-Service Restaurants franchises?
- Tom and Chee's 47.4% SBA default rate is higher 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). Tom and Chee franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 47.4% (9 of 19 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/tom-and-chee/ · Data & methodology · Download the dataset (CSV)