Zero-Default Franchises

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

16 franchise brands with at least 50 resolved SBA 7(a) loans approved FY2010–FY2019 recorded zero charge-offs, led by Culver's (178 loans), according to U.S. Small Business Administration data. A further 35 brands with 20 to 49 loans also recorded none, but at that sample size a single default would add 2–5 percentage points.

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.

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Which franchises had zero SBA defaults on 50+ loans?

Largest loan count first: the more loans behind a 0%, the more it means. The early charge-off column shows whether the record has held on loans made since 2020.

Brands with 50+ resolved loans and no charge-offs, FY2010–FY2019.

Rank	Brand	Resolved loans	Avg loan size	Industry benchmark	Loans since 2020	Early charge-offs	Industry
1	Culver's	178	$1,241,365	10.3%	103	0	Limited-Service Restaurants
2	Club Pilates	151	$218,324	11.4%	88	0	Fitness and Recreational Sports Centers
3	Wingstop	149	$385,597	10.3%	39	0	Limited-Service Restaurants
4	Christian Brothers Automotive	139	$331,268	7.6%	63	0	General Automotive Repair
5	Nothing Bundt Cakes	116	$341,353	8.1%	159	0	Retail Bakeries
6	Planet Fitness	111	$1,009,141	11.4%	1	0	Fitness and Recreational Sports Centers
7	Pearle Vision	84	$357,385	3.0%	40	1	Offices of Optometrists
8	ampm (ARCO)	84	$2,478,394	3.9%	76	0	Gasoline Stations with Convenience Stores
9	Biggby Coffee	72	$162,419	10.1%	160	1	Snack and Nonalcoholic Beverage Bars
10	Choice Hotels International Inc.	66	$1,964,874	3.0%	0	0	Hotels (except Casino Hotels) and Motels
11	Popeyes Louisiana Kitchen	62	$805,910	10.3%	23	0	Limited-Service Restaurants
12	Kids R Kids	61	$2,354,346	4.5%	20	0	Child Day Care Services
13	Goldfish Swim School	59	$1,314,500	7.5%	38	0	Sports and Recreation Instruction
14	Five Guys	58	$739,990	10.3%	6	0	Limited-Service Restaurants
15	IHOP	51	$737,398	9.6%	15	0	Full-Service Restaurants
16	Toppers Pizza	50	$358,024	10.3%	12	0	Limited-Service Restaurants

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

Which franchises had zero SBA defaults on 20–49 loans? (small sample)

Flagged as small-sample: with fewer than 50 loans, one default would move the rate by 2 points or more. Read these as clean records, not rankings.

Brands with 20–49 resolved loans and no charge-offs, FY2010–FY2019. Small sample.

Rank	Brand	Resolved loans	Avg loan size	Industry benchmark	Loans since 2020	Early charge-offs	Industry
1	Holiday Inn Express	49	$2,913,118	3.0%	0	0	Hotels (except Casino Hotels) and Motels
2	Dutch Bros. Coffee	47	$451,411	10.1%	0	0	Snack and Nonalcoholic Beverage Bars
3	Microtel Inn and Suites	43	$2,194,823	3.0%	0	0	Hotels (except Casino Hotels) and Motels
4	Valero	43	$1,213,216	3.9%	0	0	Gasoline Stations with Convenience Stores
5	H&R Block	41	$377,668	9.7%	0	0	Tax Preparation Services
6	Howard Johnson	41	$2,280,444	3.0%	0	0	Hotels (except Casino Hotels) and Motels
7	Dunkin'/Baskin-Robbins Co-brand	40	$541,435	10.3%	0	0	Limited-Service Restaurants
8	Circle K	36	$1,171,689	3.9%	21	0	Gasoline Stations with Convenience Stores
9	Express Employment Professionals	35	$132,431	7.5%	0	0	Employment Placement Agencies
10	Great American Cookies	33	$251,933	10.1%	29	0	Snack and Nonalcoholic Beverage Bars
11	Tim Hortons	33	$263,430	10.3%	7	0	Limited-Service Restaurants
12	Goddard Early Learning Center	31	$995,361	4.5%	0	0	Child Day Care Services
13	Jiffy Lube	31	$934,410	6.0%	25	0	Automotive Oil Change and Lubrication Shops
14	Burn Boot Camp Fitness	29	$268,472	11.4%	87	1	Fitness and Recreational Sports Centers
15	Hardware Hank	27	$256,522	7.6%	9	0	Hardware Stores
16	Ubreakifix	27	$107,126	10.6%	17	0	Consumer Electronics Repair and Maintenance
17	Bin There Dump That	26	$245,219	3.8%	32	1	Solid Waste Collection
18	Grease Monkey	26	$661,820	6.0%	58	0	Automotive Oil Change and Lubrication Shops
19	Hotworx	26	$265,992	11.4%	446	2	Fitness and Recreational Sports Centers
20	School of Rock	26	$217,066	8.3%	74	0	Fine Arts Schools
21	Wendy's	26	$1,320,065	10.3%	18	0	Limited-Service Restaurants
22	Mathnasium Learning Centers	25	$92,356	15.3%	0	0	Exam Preparation and Tutoring
23	Chicken Express	23	$1,043,295	10.3%	2	0	Limited-Service Restaurants
24	Childrens Lighthouse	23	$2,012,091	4.5%	0	0	Child Day Care Services
25	The Woodhouse Day Spa	23	$785,609	10.0%	0	0	Other Personal Care Services
26	Candlewood Suites	22	$3,808,504	3.0%	20	0	Hotels (except Casino Hotels) and Motels
27	Waba Grill Teriyaki House	22	$253,068	10.3%	0	0	Limited-Service Restaurants
28	Aqua-tots	21	$536,671	7.5%	0	0	Sports and Recreation Instruction
29	Citgo Service Station	21	$1,142,748	3.9%	0	0	Gasoline Stations with Convenience Stores
30	Conoco Service Station	21	$1,571,590	3.9%	0	0	Gasoline Stations with Convenience Stores
31	Koa Kampgrounds	21	$759,143	2.5%	0	0	RV (Recreational Vehicle) Parks and Campgrounds
32	Woodcraft	21	$581,314	7.6%	5	0	Hardware Stores
33	Blaze Pizza	20	$548,770	10.3%	15	0	Limited-Service Restaurants
34	Pieology	20	$551,905	9.6%	2	0	Full-Service Restaurants
35	The Flying Locksmiths	20	$130,840	9.6%	0	0	Locksmiths

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). Zero-default franchises, FY2010–FY2019 cohort: 16 brands with 50+ loans. Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/reports/zero-default-franchises/ · 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 has the most SBA loans with zero defaults?

Culver's: 178 resolved SBA 7(a) loans approved FY2010–FY2019 and none charged off.

How many franchises have a 0% SBA default rate?

16 at 50+ loans and 51 at 20+ loans, out of 415 brands tracked.

Has the zero-default record held on newer loans?

11 of the 16 brands in the main table have at least 10 loans since 2020 and no early charge-offs so far; those loans are young, so this is a floor, not a verdict.

Does 0% mean nobody failed?

It means no SBA-guaranteed loan to the brand's franchisees was written off in the cohort. Owners who closed but repaid, or who never borrowed from the SBA, are not in the file.

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.