Franchise failure rates by industry

SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026

Franchised borrowers defaulted on 10.2% of SBA 7(a) loans between FY2010 and FY2019, according to U.S. Small Business Administration data. This page lists 102 industries covering 415 franchise brands; industry averages range from Lessors of Miniwarehouses and Self-Storage Units (0.7%) to Computer and Office Machine Repair and Maintenance (24.7%).

Which franchise industries have the highest SBA default rates?

Every industry on this site, sorted from the lowest industry average to the highest. The industry average pools every resolved SBA 7(a) loan in that industry, so each brand is compared with its peers. Click an industry for every brand in it, ranked.

102 industries
Franchise industries — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
IndustryIndustry averageBrandsLoansCharged off
Lessors of Miniwarehouses and Self-Storage Units0.7%1272
Investment Advice1.9%13071
RV (Recreational Vehicle) Parks and Campgrounds2.5%1210
Assisted Living Facilities for the Elderly2.7%1431
Hotels (except Casino Hotels) and Motels3.0%292,95971
Offices of Optometrists3.0%1840
Solid Waste Collection3.8%2430
Gasoline Stations with Convenience Stores3.9%1359010
Marinas4.0%1190
Child Day Care Services4.5%776722
Offices of Physical, Occupational and Speech Therapists, and Audiologists4.7%1222
Private Mail Centers4.9%451212
Exterminating and Pest Control Services5.1%1261
Insurance Agencies and Brokerages5.1%225410
Freestanding Ambulatory Surgical and Emergency Centers5.2%1383
Automotive Body, Paint, and Interior Repair and Maintenance5.8%211111
Car Washes5.9%1157
Automotive Oil Change and Lubrication Shops6.0%4943
Pharmacies and Drug Stores6.0%21158
Offices of Real Estate Agents and Brokers6.4%2511
Other Computer Related Services6.5%1201
Offices of Chiropractors6.6%213010
Commercial Printing (except Screen and Books)6.8%419335
Pet Care (except Veterinary) Services6.9%414710
All Other Consumer Goods Rental7.0%12510
Landscaping Services7.0%412530
Plumbing, Heating, and Air-Conditioning Contractors7.1%2333
Employment Placement Agencies7.5%26812
Medical Laboratories7.5%1325
Sports and Recreation Instruction7.5%41156
Tire Dealers7.5%1553
General Automotive Repair7.6%439744
Hardware Stores7.6%541024
Other Waste Collection7.6%1242
New Car Dealers7.7%2320
Electrical Contractors and Other Wiring Installation Contractors7.8%1282
Vending Machine Operators7.8%37612
Automotive Parts and Accessories Stores7.9%311611
Computer Systems Design Services8.0%1211
Educational Support Services8.0%38812
Drinking Places (Alcoholic Beverages)8.1%2454
Retail Bakeries8.1%320818
Carpet and Upholstery Cleaning Services8.2%38317
Home Health Care Services8.2%1359636
Motor Vehicle Supplies and New Parts Merchant Wholesalers8.2%1202
Fine Arts Schools8.3%310012
Beauty Salons8.6%151,403123
Window Treatment Stores8.6%11067
Baked Goods Stores8.7%1172
General Freight Trucking, Local8.7%121717
Flooring Contractors8.9%15214
Commercial and Institutional Building Construction9.5%1321
Nail Salons9.5%1154
Office Supplies and Stationery Stores9.5%1345
Children's and Infants' Clothing Stores9.6%21137
Full-Service Restaurants9.6%1244547
Locksmiths9.6%1200
Other Direct Selling Establishments9.6%27014
Caterers9.7%1152
Confectionery and Nut Stores9.7%2393
Tax Preparation Services9.7%320913
Used Merchandise Stores9.7%31456
All Other Amusement and Recreation Industries9.9%725725
Metal Service Centers and Other Metal Merchant Wholesalers9.9%1235
Office Administrative Services9.9%1162
Other Clothing Stores10.0%1231
Other Personal Care Services10.0%995166
Mobile Food Services10.1%1150
Residential Property Managers10.1%1170
Snack and Nonalcoholic Beverage Bars10.1%201,016103
All Other Specialty Food Stores10.2%322528
Commercial Screen Printing10.2%13115
Household Appliance Stores10.2%1154
All Other Miscellaneous Store Retailers (except Tobacco Stores)10.3%16614
Limited-Service Restaurants10.3%817,182644
Pet and Pet Supplies Stores10.4%3978
Security Guards and Patrol Services10.4%1184
Consumer Electronics Repair and Maintenance10.6%2489
Hobby, Toy, and Game Stores10.8%2363
Sporting Goods Stores10.8%1623
Painting and Wall Covering Contractors10.9%39421
Ice Cream and Frozen Dessert Manufacturing11.0%1150
Drycleaning and Laundry Services (except Coin-Operated)11.1%1192
Automotive Glass Replacement Shops11.2%12311
Janitorial Services11.2%1040160
Used Household and Office Goods Moving11.2%2674
Sign Manufacturing11.3%426747
Fitness and Recreational Sports Centers11.4%302,284265
Cosmetics, Beauty Supplies, and Perfume Stores12.2%2477
Residential Remodelers12.9%645147
Food (Health) Supplement Stores13.0%311523
Shoe Stores13.1%36611
Women's Clothing Stores13.2%2327
Diet and Weight Reducing Centers13.4%1173
Direct Mail Advertising14.1%1182
Automotive Transmission Repair14.6%17618
Exam Preparation and Tutoring15.3%311627
Other Electronic and Precision Equipment Repair and Maintenance15.8%14826
Appliance Repair and Maintenance16.8%14017
Electronics Stores20.8%12711
Computer and Office Machine Repair and Maintenance24.7%15941
Computer Training—16312

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.

Cite this page

Franchise Failure Rates (2026). Franchise SBA 7(a) default rates by industry, FY2010–FY2019 cohort: 102 industries, 415 brands. Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/industries/ · Data & methodology · Download the dataset (CSV)

Author: Franchise Failure Rates · First published August 17, 2026 · Updated September 30, 2026 · Citation format