SBA Default Rates by Franchise Industry

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

Across 102 industries and 415 franchise brands, franchisees defaulted on 8.8% of SBA 7(a) loans approved FY2010–FY2019, according to U.S. Small Business Administration data. Among industries with at least 5 tracked brands, the pooled rate runs from Gasoline Stations with Convenience Stores (1.7%) to Janitorial Services (15.0%).

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.

The pillar: all 415 brands →All reports →By industry →All brands A–Z →

How does every franchise industry rank on SBA default rate?

Every industry on the site, lowest pooled rate first. Pooled rate = charged off ÷ resolved across the industry's tracked brands. Median = the middle brand's rate. Benchmark = every SBA 7(a) loan in the industry, franchised or not. Industries with one or two brands are shown for completeness but say more about those brands than about the industry.

All 102 industries, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026.

Industry	Brands	Loans	Charged off	Pooled rate	Median brand rate	Industry benchmark
Ice Cream and Frozen Dessert Manufacturing	1	15	0	0.0%	0.0%	11.0%
Locksmiths	1	20	0	0.0%	0.0%	9.6%
Marinas	1	19	0	0.0%	0.0%	4.0%
Mobile Food Services	1	15	0	0.0%	0.0%	10.1%
New Car Dealers	2	32	0	0.0%	0.0%	7.7%
Offices of Optometrists	1	84	0	0.0%	0.0%	3.0%
RV (Recreational Vehicle) Parks and Campgrounds	1	21	0	0.0%	0.0%	2.5%
Residential Property Managers	1	17	0	0.0%	0.0%	10.1%
Solid Waste Collection	2	43	0	0.0%	0.0%	3.8%
Investment Advice	1	307	1	0.3%	0.3%	1.9%
Gasoline Stations with Convenience Stores	13	590	10	1.7%	0.0%	3.9%
Offices of Real Estate Agents and Brokers	2	51	1	2.0%	1.4%	6.4%
Assisted Living Facilities for the Elderly	1	43	1	2.3%	2.3%	2.7%
Private Mail Centers	4	512	12	2.3%	10.8%	4.9%
Hotels (except Casino Hotels) and Motels	29	2,959	71	2.4%	2.0%	3.0%
Child Day Care Services	7	767	22	2.9%	0.5%	4.5%
Commercial and Institutional Building Construction	1	32	1	3.1%	3.1%	9.5%
Automotive Oil Change and Lubrication Shops	4	94	3	3.2%	0.0%	6.0%
Exterminating and Pest Control Services	1	26	1	3.8%	3.8%	5.1%
Insurance Agencies and Brokerages	2	254	10	3.9%	3.9%	5.1%
Used Merchandise Stores	3	145	6	4.1%	5.1%	9.7%
Other Clothing Stores	1	23	1	4.3%	4.3%	10.0%
Computer Systems Design Services	1	21	1	4.8%	4.8%	8.0%
Sporting Goods Stores	1	62	3	4.8%	4.8%	10.8%
Other Computer Related Services	1	20	1	5.0%	5.0%	6.5%
Sports and Recreation Instruction	4	115	6	5.2%	7.5%	7.5%
Tire Dealers	1	55	3	5.5%	5.5%	7.5%
Hardware Stores	5	410	24	5.9%	4.8%	7.6%
Used Household and Office Goods Moving	2	67	4	6.0%	8.2%	11.2%
Home Health Care Services	13	596	36	6.0%	6.7%	8.2%
Children's and Infants' Clothing Stores	2	113	7	6.2%	9.4%	9.6%
Tax Preparation Services	3	209	13	6.2%	2.2%	9.7%
Window Treatment Stores	1	106	7	6.6%	6.6%	8.6%
Pet Care (except Veterinary) Services	4	147	10	6.8%	7.3%	6.9%
Other Personal Care Services	9	951	66	6.9%	8.7%	10.0%
Pharmacies and Drug Stores	2	115	8	7.0%	6.6%	6.0%
Electrical Contractors and Other Wiring Installation Contractors	1	28	2	7.1%	7.1%	7.8%
Lessors of Miniwarehouses and Self-Storage Units	1	27	2	7.4%	7.4%	0.7%
Confectionery and Nut Stores	2	39	3	7.7%	6.5%	9.7%
Offices of Chiropractors	2	130	10	7.7%	7.7%	6.6%
General Freight Trucking, Local	1	217	17	7.8%	7.8%	8.7%
Freestanding Ambulatory Surgical and Emergency Centers	1	38	3	7.9%	7.9%	5.2%
Pet and Pet Supplies Stores	3	97	8	8.2%	9.1%	10.4%
Hobby, Toy, and Game Stores	2	36	3	8.3%	7.2%	10.8%
Other Waste Collection	1	24	2	8.3%	8.3%	7.6%
Retail Bakeries	3	208	18	8.7%	16.9%	8.1%
Beauty Salons	15	1,403	123	8.8%	13.8%	8.6%
Drinking Places (Alcoholic Beverages)	2	45	4	8.9%	9.8%	8.1%
Limited-Service Restaurants	81	7,182	644	9.0%	7.1%	10.3%
Offices of Physical, Occupational and Speech Therapists, and Audiologists	1	22	2	9.1%	9.1%	4.7%
Plumbing, Heating, and Air-Conditioning Contractors	2	33	3	9.1%	8.9%	7.1%
Automotive Parts and Accessories Stores	3	116	11	9.5%	8.3%	7.9%
All Other Amusement and Recreation Industries	7	257	25	9.7%	11.1%	9.9%
Automotive Body, Paint, and Interior Repair and Maintenance	2	111	11	9.9%	5.9%	5.8%
Motor Vehicle Supplies and New Parts Merchant Wholesalers	1	20	2	10.0%	10.0%	8.2%
Snack and Nonalcoholic Beverage Bars	20	1,016	103	10.1%	9.5%	10.1%
Residential Remodelers	6	451	47	10.4%	20.0%	12.9%
Drycleaning and Laundry Services (except Coin-Operated)	1	19	2	10.5%	10.5%	11.1%
Full-Service Restaurants	12	445	47	10.6%	10.4%	9.6%
General Automotive Repair	4	397	44	11.1%	10.0%	7.6%
Direct Mail Advertising	1	18	2	11.1%	11.1%	14.1%
Fitness and Recreational Sports Centers	30	2,284	265	11.6%	15.4%	11.4%
Baked Goods Stores	1	17	2	11.8%	11.8%	8.7%
Fine Arts Schools	3	100	12	12.0%	11.6%	8.3%
All Other Specialty Food Stores	3	225	28	12.4%	5.9%	10.2%
Office Administrative Services	1	16	2	12.5%	12.5%	9.9%
Caterers	1	15	2	13.3%	13.3%	9.7%
Educational Support Services	3	88	12	13.6%	13.2%	8.0%
Office Supplies and Stationery Stores	1	34	5	14.7%	14.7%	9.5%
Cosmetics, Beauty Supplies, and Perfume Stores	2	47	7	14.9%	14.9%	12.2%
Janitorial Services	10	401	60	15.0%	11.3%	11.2%
Medical Laboratories	1	32	5	15.6%	15.6%	7.5%
Vending Machine Operators	3	76	12	15.8%	13.0%	7.8%
Shoe Stores	3	66	11	16.7%	6.1%	13.1%
Sign Manufacturing	4	267	47	17.6%	14.6%	11.3%
Diet and Weight Reducing Centers	1	17	3	17.6%	17.6%	13.4%
Employment Placement Agencies	2	68	12	17.6%	18.2%	7.5%
Commercial Printing (except Screen and Books)	4	193	35	18.1%	18.4%	6.8%
Consumer Electronics Repair and Maintenance	2	48	9	18.8%	21.4%	10.6%
Computer Training	1	63	12	19.0%	19.0%	—
Food (Health) Supplement Stores	3	115	23	20.0%	26.7%	13.0%
Other Direct Selling Establishments	2	70	14	20.0%	20.4%	9.6%
Carpet and Upholstery Cleaning Services	3	83	17	20.5%	25.0%	8.2%
All Other Miscellaneous Store Retailers (except Tobacco Stores)	1	66	14	21.2%	21.2%	10.3%
Metal Service Centers and Other Metal Merchant Wholesalers	1	23	5	21.7%	21.7%	9.9%
Women's Clothing Stores	2	32	7	21.9%	21.8%	13.2%
Security Guards and Patrol Services	1	18	4	22.2%	22.2%	10.4%
Painting and Wall Covering Contractors	3	94	21	22.3%	23.5%	10.9%
Exam Preparation and Tutoring	3	116	27	23.3%	18.2%	15.3%
Automotive Transmission Repair	1	76	18	23.7%	23.7%	14.6%
Landscaping Services	4	125	30	24.0%	19.7%	7.0%
Household Appliance Stores	1	15	4	26.7%	26.7%	10.2%
Nail Salons	1	15	4	26.7%	26.7%	9.5%
Flooring Contractors	1	52	14	26.9%	26.9%	8.9%
All Other Consumer Goods Rental	1	25	10	40.0%	40.0%	7.0%
Electronics Stores	1	27	11	40.7%	40.7%	20.8%
Appliance Repair and Maintenance	1	40	17	42.5%	42.5%	16.8%
Car Washes	1	15	7	46.7%	46.7%	5.9%
Automotive Glass Replacement Shops	1	23	11	47.8%	47.8%	11.2%
Commercial Screen Printing	1	31	15	48.4%	48.4%	10.2%
Other Electronic and Precision Equipment Repair and Maintenance	1	48	26	54.2%	54.2%	15.8%
Computer and Office Machine Repair and Maintenance	1	59	41	69.5%	69.5%	24.7%

Source: U.S. SBA 7(a) FOIA loan data. Loans approved FY2010–FY2019, statuses as of June 30, 2026. Download this table (CSV).

How to read this

Minimum loans. A rate on a handful of loans is noise: at 20 loans one default moves the rate by 5 percentage points. Ranked tables therefore require 50 resolved loans and distribution statistics require 20.
SBA-borrower skew. SBA 7(a) borrowers are typically less capitalized than all-cash buyers, so these rates can overstate risk for well-funded operators and understate nothing.
Not unit closures. A charge-off is a lending outcome recorded by a federal agency, not a count of closed stores. Some failed units never had SBA loans; some charged-off borrowers kept operating.
Cohort seasoning. Every rate uses loans approved FY2010–FY2019 that have since been paid in full or charged off. Loans approved since 2020 are shown as counts only, because most are still outstanding and a rate on them would be a floor.

Full definitions, benchmarks, name normalization, and limitations: methodology. Rate = loans charged off ÷ SBA 7(a) loans approved FY2010–FY2019 and since resolved (paid in full or charged off).

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

https://franchisefailurerates.com/reports/sba-default-rates-by-industry/ · Data & methodology · Download this table (CSV) · Full dataset (CSV)

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

Frequently asked

Which franchise industry has the highest SBA default rate?

Among industries with at least 5 tracked brands, Janitorial Services has the highest pooled SBA 7(a) default rate at 15.0% (60 of 401 loans across 10 brands).

Which franchise industry has the lowest SBA default rate?

Gasoline Stations with Convenience Stores, at 1.7% pooled across 13 brands and 590 loans, is the lowest among industries with at least 5 tracked brands.

What is the difference between the pooled rate and the industry benchmark?

The pooled rate counts only the loans of the franchise brands tracked on this site. The benchmark pools every resolved SBA 7(a) loan in the industry, including independent businesses, and is the figure each brand page compares against.

Why does the median brand rate differ from the pooled rate?

The pooled rate weights each brand by its loan count, so one large brand can dominate. The median gives every brand one vote and shows what a typical brand in the industry looks like.

How this site is funded. Franchise Failure Rates takes no money from franchisors, franchise brokers, or franchise consultants. We do not sell leads, claimed listings, or franchisor reports. Revenue comes from reports and data sold to prospective franchisees, their attorneys, and lenders.