FOIA data · 7(a) loans · FY1992 to FY2026 · as of 2025-12-31
SBA 7(a) franchise loan charge-off rates, 2026 report
One in six SBA 7(a) loans to franchise businesses has ended in a charge-off. This report takes SBA's own loan-level FOIA release, 129,240 franchise loans across 6,100 systems and 2,784 lenders, and breaks that rate down by brand, lender and state, with the method stated and every table downloadable. Use it to check a brand's loan history before you sign; read the caveats before you rank anything by it.
The headline numbers
- Franchise loans disbursed
- 129,240
- $70.3B approved
- Resolved loans
- 94,550
- paid in full or charged off
- Charged off
- 15,145
- all years
- Charge-off rate
- 16.0%
- 10.1% on the FY2010-2019 cohort
A charge-off is a loan outcome, not a business outcome: it says the borrower stopped paying and SBA absorbed the loss. It says nothing about whether the units that kept paying were profitable.
By fiscal year of approval
Read the recent years with care. A loan approved in 2024 has barely had time to be repaid, let alone to fail, so its low rate is youth, not quality. The FY2010 to FY2019 cohort is old enough to judge and is shown beside every all-time figure below.
| Fiscal year | Loans | Resolved | Charged off | Rate | Approved |
|---|---|---|---|---|---|
| 2000 | 2,705 | 2,699 | 516 | 19.1% | $857.1M |
| 2001 | 2,565 | 2,559 | 498 | 19.5% | $718.4M |
| 2002 | 3,651 | 3,646 | 619 | 17.0% | $1.1B |
| 2003 | 4,402 | 4,396 | 825 | 18.8% | $1.0B |
| 2004 | 4,699 | 4,677 | 977 | 20.9% | $1.2B |
| 2005 | 4,917 | 4,887 | 1,244 | 25.5% | $1.3B |
| 2006 | 3,169 | 3,134 | 1,112 | 35.5% | $1.0B |
| 2007 | 3,304 | 3,246 | 1,236 | 38.1% | $1.0B |
| 2008 | 3,026 | 2,990 | 982 | 32.8% | $968.3M |
| 2009 | 1,827 | 1,808 | 270 | 14.9% | $628.8M |
| 2010 | 2,068 | 2,046 | 180 | 8.8% | $719.8M |
| 2011 | 2,278 | 2,227 | 168 | 7.5% | $1.4B |
| 2012 | 2,254 | 2,193 | 155 | 7.1% | $1.3B |
| 2013 | 2,859 | 2,749 | 191 | 6.9% | $1.8B |
| 2014 | 4,238 | 4,076 | 330 | 8.1% | $2.6B |
| 2015 | 5,342 | 4,966 | 492 | 9.9% | $3.4B |
| 2016 | 5,477 | 4,595 | 513 | 11.2% | $3.5B |
| 2017 | 5,442 | 4,233 | 553 | 13.1% | $3.7B |
| 2018 | 6,376 | 4,470 | 585 | 13.1% | $4.6B |
| 2019 | 6,132 | 3,681 | 403 | 10.9% | $4.5B |
| 2020 | 4,981 | 2,608 | 204 | 7.8% | $4.1B |
| 2021 | 7,043 | 2,756 | 176 | 6.4% | $6.8B |
| 2022 | 5,772 | 1,367 | 123 | 9.0% | $5.0B |
| 2023 | 6,459 | 842 | 80 | 9.5% | $4.5B |
| 2024 | 5,142 | 258 | 6 | 2.3% | $3.6B |
| 2025 | 5,460 | 42 | 0 | 0.0% | $4.4B |
| 2026 | 136 | 0 | 0 | limited data | $78.4M |
Download by-year.csv · all years from FY1992
By franchise system: the 50 most-financed brands
Grouped by SBA's franchise name, spelling variants folded together. A brand name links to its FranchiseVerdict page, which carries the same rate under its own curated match and may show a slightly different loan count where the match unions more spellings. Rates need 10 resolved loans; the cohort column needs 20.
| Franchise system | Loans | Resolved | Charged off | Rate, all years | Rate, FY2010-19 | Approved |
|---|---|---|---|---|---|---|
| Subway Sandwich Shop | 5,079 | 4,768 | 324 | 6.8% | 7.7% | $961.7M |
| Quiznos | 2,219 | 2,210 | 620 | 28.1% | 22.9% | $331.8M |
| The UPS Store | 1,839 | 1,102 | 83 | 7.5% | 0.7% | $491.4M |
| Dairy Queen | 1,425 | 1,260 | 118 | 9.4% | 2.8% | $564.0M |
| Mail Boxes Etc. USA | 1,116 | 1,110 | 135 | 12.2% | 4.0% | $135.5M |
| Days Inn | 1,097 | 834 | 84 | 10.1% | 2.3% | $1.8B |
| Anytime Fitness | 1,093 | 801 | 94 | 11.7% | 12.2% | $440.0M |
| Cold Stone Creamery, Inc. | 1,075 | 922 | 286 | 31.0% | 2.0% | $279.6M |
| Super 8 Motel | 1,071 | 802 | 66 | 8.2% | 2.5% | $1.6B |
| Dunkin Donuts | 1,054 | 999 | 75 | 7.5% | 1.2% | $617.3M |
| Domino's Pizza | 991 | 829 | 82 | 9.9% | 1.4% | $364.6M |
| Jimmy John's | 918 | 759 | 45 | 5.9% | 7.1% | $402.5M |
| Ace Hardware | 838 | 575 | 77 | 13.4% | 6.0% | $559.1M |
| Quality Inn by Choice Hotels / | 818 | 513 | 25 | 4.9% | 2.8% | $1.9B |
| Servpro | 702 | 567 | 37 | 6.5% | 4.6% | $293.6M |
| Matco Tools (Rent Tools) | 671 | 651 | 226 | 34.7% | 21.7% | $53.5M |
| Firehouse Subs | 627 | 458 | 51 | 11.1% | 8.5% | $189.2M |
| Smoothie King | 605 | 461 | 58 | 12.6% | 4.0% | $163.7M |
| Jersey Mike's | 580 | 409 | 18 | 4.4% | 2.3% | $195.9M |
| Meineke Car Care | 574 | 494 | 134 | 27.1% | 24.1% | $192.4M |
| Econo Lodge Motel | 572 | 416 | 30 | 7.2% | 1.2% | $762.1M |
| Tropical Smoothie Cafe | 553 | 353 | 40 | 11.3% | 3.2% | $194.5M |
| Baskin-Robbins 31 Ice Cream | 549 | 496 | 80 | 16.1% | 8.9% | $103.7M |
| Great Clips | 547 | 514 | 27 | 5.3% | 2.3% | $118.9M |
| Blimpie | 524 | 521 | 160 | 30.7% | limited data | $70.2M |
| The Goddard School | 520 | 233 | 8 | 3.4% | 3.3% | $974.1M |
| Massage Envy | 520 | 472 | 40 | 8.5% | 10.1% | $232.3M |
| Papa Murphy's Take & Bake Pizz | 484 | 437 | 30 | 6.9% | 7.6% | $120.0M |
| Motel 6 | 468 | 259 | 7 | 2.7% | 2.5% | $1.1B |
| Minuteman Press | 455 | 382 | 92 | 24.1% | 17.3% | $95.7M |
| Aamco Transmissions | 450 | 376 | 116 | 30.9% | 22.1% | $122.3M |
| Maaco Auto Painting Center | 450 | 393 | 75 | 19.1% | 10.9% | $175.6M |
| Marco's Pizza | 447 | 277 | 21 | 7.6% | 7.4% | $160.6M |
| Ameriprise Financial | 444 | 372 | 1 | 0.3% | 0.3% | $289.6M |
| Sports Clips | 444 | 444 | 20 | 4.5% | 1.2% | $71.5M |
| Edible Arrangements | 433 | 361 | 54 | 15.0% | 14.0% | $88.3M |
| Schlotzsky's Sandwich Shop | 432 | 405 | 84 | 20.7% | 8.8% | $176.8M |
| Fastsigns | 429 | 301 | 36 | 12.0% | 8.0% | $141.7M |
| Curves For Women | 427 | 427 | 80 | 18.7% | 15.0% | $41.0M |
| Wingstop Restaurant | 426 | 394 | 33 | 8.4% | 0.7% | $138.9M |
| Holiday Inn | 423 | 310 | 16 | 5.2% | 2.2% | $1.1B |
| Best Western Inn | 418 | 387 | 34 | 8.8% | 2.4% | $710.6M |
| Culver's Frozen Custard | 418 | 306 | 7 | 2.3% | 0.0% | $500.4M |
| Comfort Inn | 416 | 300 | 6 | 2.0% | 4.8% | $957.9M |
| Hotworx | 406 | 105 | 2 | 1.9% | 0.0% | $152.2M |
| Orange Theory Fitness | 404 | 319 | 5 | 1.6% | 1.6% | $231.5M |
| Cici's Pizza | 399 | 398 | 94 | 23.6% | 12.5% | $117.2M |
| Kiddie Academy | 378 | 229 | 16 | 7.0% | 4.5% | $519.6M |
| Play IT Again Sports | 364 | 303 | 44 | 14.5% | 5.1% | $63.7M |
| Fantastic Sam's | 357 | 356 | 68 | 19.1% | 3.4% | $43.4M |
Download by-brand.csv · every system with 10 or more loans, 400 rows shown here, spellings included
Highest charge-off rates
Systems with at least 30 resolved loans. Many are systems that stopped franchising; a high all-time rate with a low cohort rate is a brand whose bad years are behind it.
| System | Resolved | Rate | FY2010-19 |
|---|---|---|---|
| 24 Seven Vending | 30 | 73.3% | limited data |
| Executive Tans | 46 | 69.6% | limited data |
| Experimac | 59 | 69.5% | 69.5% |
| Image Sun | 32 | 68.8% | limited data |
| Play N Trade | 49 | 63.3% | limited data |
| Window Genie | 60 | 58.3% | 60.9% |
| Dental Fix Rx | 48 | 58.3% | 58.3% |
| Pro Golf | 42 | 57.1% | limited data |
| Obee's Soup Salad Subs | 39 | 56.4% | limited data |
| Paciugo Italian Gelato Renaiss | 31 | 54.8% | limited data |
| Planet Beach | 275 | 54.5% | limited data |
| Golf Etc. | 132 | 54.5% | limited data |
| Camille's Sidewalk Cafe | 39 | 53.8% | limited data |
| Super Suppers Of Keller | 34 | 52.9% | limited data |
| Nick-N-Willy's Pizza | 37 | 51.4% | limited data |
Lowest charge-off rates
Same floor. A zero on a young system means its loans have not matured; the FY2010-19 column is the fairer read.
| System | Resolved | Rate | FY2010-19 |
|---|---|---|---|
| Primrose Schools | 157 | 0.0% | 0.0% |
| Christian Brothers Automotive | 207 | 0.0% | 0.0% |
| Nothing Bundt Cakes | 171 | 0.0% | 0.0% |
| Crumbl | 105 | 0.0% | limited data |
| Club Pilates | 175 | 0.0% | 0.0% |
| Scooter's Coffee | 48 | 0.0% | limited data |
| La Quinta by Wyndham a.k.a. La | 85 | 0.0% | limited data |
| Home Instead/Home Instead Seni | 63 | 0.0% | 0.0% |
| Planet Fitness | 122 | 0.0% | 0.0% |
| Visiting Angels | 78 | 0.0% | 0.0% |
| Goldfish Swim School | 72 | 0.0% | 0.0% |
| Smash My Trash | 60 | 0.0% | limited data |
| Culligan Soft Water Service | 87 | 0.0% | limited data |
| School of Rock | 40 | 0.0% | 0.0% |
| Chevron - Retail Supply Contra | 38 | 0.0% | limited data |
By lender: the 30 most active franchise lenders
The bank the loan is currently assigned to, as SBA records it. A lender's rate reflects which brands and borrowers it chose to fund as much as how it underwrote them.
| Lender | Loans | Resolved | Rate, all years | Rate, FY2010-19 | Approved |
|---|---|---|---|---|---|
| The Huntington National Bank | 7,821 | 3,224 | 11.5% | 8.5% | $2.4B |
| Wells Fargo Bank National Association | 7,462 | 6,550 | 17.1% | 13.0% | $3.1B |
| United Midwest Savings Bank National Association | 4,197 | 1,309 | 36.5% | 41.0% | $877.1M |
| Readycap Lending, LLC | 4,130 | 3,591 | 32.4% | 15.8% | $2.2B |
| PNC Bank, National Association | 3,435 | 3,159 | 17.1% | 3.7% | $1.2B |
| Stearns Bank National Association | 3,340 | 2,692 | 13.0% | 12.3% | $975.4M |
| JPMorgan Chase Bank, National Association | 3,098 | 2,905 | 14.1% | 7.0% | $747.6M |
| Bank of America, National Association | 2,302 | 2,130 | 15.0% | 1.8% | $410.5M |
| U.S. Bank, National Association | 2,039 | 1,734 | 14.5% | 9.9% | $714.3M |
| Celtic Bank Corporation | 1,916 | 1,292 | 28.0% | 32.5% | $1.6B |
| Simmons Bank | 1,888 | 1,586 | 13.6% | 11.8% | $616.6M |
| Live Oak Banking Company | 1,826 | 692 | 2.3% | 2.6% | $2.2B |
| Comerica Bank | 1,806 | 1,777 | 33.0% | 3.6% | $767.9M |
| Manufacturers and Traders Trust Company | 1,720 | 1,348 | 13.2% | 14.9% | $370.0M |
| TD Bank, National Association | 1,715 | 1,377 | 15.1% | 10.3% | $764.3M |
| KeyBank National Association | 1,507 | 1,096 | 11.7% | 7.0% | $578.6M |
| Truist Bank | 1,504 | 1,353 | 11.4% | 4.9% | $585.2M |
| Zions Bank, A Division of | 1,406 | 1,225 | 15.6% | 6.0% | $383.1M |
| Popular Bank | 1,275 | 1,252 | 48.1% | limited data | $311.5M |
| Cadence Bank | 1,179 | 627 | 9.6% | 7.6% | $995.2M |
| Citizens Bank | 1,104 | 442 | 12.9% | 10.9% | $726.1M |
| BMO Bank National Association | 1,101 | 1,011 | 13.2% | 1.6% | $356.2M |
| Columbia Bank | 1,096 | 963 | 13.6% | 6.4% | $760.1M |
| Newtek Small Business Finance, Inc. | 961 | 729 | 19.2% | 10.0% | $458.4M |
| Bank of Hope | 938 | 780 | 13.3% | 4.4% | $1.0B |
| SouthState Bank, National Association | 936 | 622 | 10.5% | 5.1% | $603.9M |
| First Bank of the Lake | 919 | 86 | 3.5% | limited data | $543.9M |
| Byline Bank | 917 | 508 | 16.3% | 20.1% | $895.1M |
| United Community Bank | 844 | 417 | 11.3% | 12.4% | $574.5M |
| Fifth Third Bank | 813 | 706 | 17.3% | 11.5% | $252.4M |
Download by-lender.csv · every lender with 10 or more franchise loans
By state
Borrower state. Nevada has the highest rate among states with 100 or more resolved loans (21.3%); North Dakota the lowest (7.0%).
| State | Loans | Resolved | Rate, all years | Rate, FY2010-19 | Approved |
|---|---|---|---|---|---|
| Texas | 16,173 | 11,123 | 20.5% | 14.5% | $10.4B |
| California | 12,590 | 9,610 | 15.3% | 8.8% | $7.7B |
| Florida | 7,956 | 5,348 | 20.9% | 12.5% | $4.3B |
| Georgia | 5,930 | 4,085 | 15.5% | 8.8% | $4.3B |
| Ohio | 5,785 | 4,260 | 13.5% | 7.3% | $2.7B |
| Illinois | 4,694 | 3,474 | 16.5% | 11.1% | $2.6B |
| Pennsylvania | 4,469 | 3,410 | 13.7% | 11.3% | $2.0B |
| North Carolina | 3,925 | 2,569 | 14.1% | 8.9% | $2.8B |
| Michigan | 3,874 | 2,796 | 14.4% | 7.3% | $1.8B |
| New Jersey | 3,650 | 2,707 | 15.3% | 11.1% | $1.7B |
| New York | 3,484 | 2,625 | 18.3% | 11.7% | $1.6B |
| Colorado | 3,316 | 2,364 | 15.7% | 8.1% | $1.8B |
| Washington | 3,238 | 2,445 | 11.9% | 6.6% | $2.4B |
| Indiana | 3,170 | 2,306 | 12.7% | 8.2% | $1.8B |
| Minnesota | 3,167 | 2,417 | 14.0% | 8.6% | $1.1B |
| Virginia | 3,035 | 2,144 | 15.8% | 10.9% | $1.7B |
| Arizona | 3,018 | 2,265 | 18.9% | 7.7% | $1.7B |
| Missouri | 2,872 | 2,266 | 17.0% | 12.0% | $1.2B |
| Wisconsin | 2,717 | 2,113 | 12.4% | 8.4% | $1.3B |
| Tennessee | 2,141 | 1,421 | 17.5% | 10.7% | $1.2B |
| Maryland | 2,038 | 1,469 | 16.7% | 12.5% | $956.8M |
| Massachusetts | 2,003 | 1,554 | 12.2% | 8.4% | $637.7M |
| South Carolina | 1,980 | 1,304 | 14.9% | 10.5% | $1.5B |
| Utah | 1,702 | 1,247 | 11.6% | 8.0% | $770.9M |
| Oklahoma | 1,582 | 1,193 | 18.2% | 14.1% | $752.5M |
| Kansas | 1,580 | 1,230 | 16.4% | 10.1% | $633.0M |
| Kentucky | 1,539 | 1,162 | 16.9% | 11.6% | $724.8M |
| Iowa | 1,503 | 1,258 | 16.7% | 12.6% | $504.7M |
| Louisiana | 1,415 | 1,055 | 16.8% | 12.6% | $744.2M |
| Oregon | 1,391 | 1,048 | 15.0% | 9.3% | $803.1M |
| Alabama | 1,355 | 932 | 17.1% | 10.2% | $872.3M |
| Connecticut | 1,176 | 899 | 16.0% | 8.3% | $489.1M |
| Nevada | 1,147 | 835 | 21.3% | 12.7% | $571.0M |
| Idaho | 1,047 | 787 | 11.9% | 3.7% | $455.8M |
| Nebraska | 973 | 765 | 16.1% | 8.8% | $356.6M |
| Arkansas | 869 | 659 | 14.1% | 11.3% | $472.7M |
| Mississippi | 803 | 570 | 15.1% | 7.0% | $526.8M |
| New Mexico | 716 | 528 | 15.7% | 7.1% | $481.9M |
| Montana | 619 | 530 | 8.1% | 3.9% | $222.5M |
| New Hampshire | 566 | 447 | 13.0% | 10.3% | $167.4M |
| West Virginia | 486 | 388 | 15.5% | 9.0% | $221.0M |
| South Dakota | 485 | 409 | 11.0% | 7.3% | $148.6M |
| Rhode Island | 441 | 371 | 14.3% | 8.1% | $110.2M |
| Puerto Rico | 433 | 380 | 15.5% | 11.3% | $85.5M |
| Delaware | 390 | 295 | 13.6% | 7.5% | $159.3M |
| Maine | 385 | 315 | 13.3% | 11.4% | $118.4M |
| North Dakota | 383 | 314 | 7.0% | 3.2% | $140.8M |
| Wyoming | 293 | 248 | 10.5% | 16.0% | $122.1M |
| Hawaii | 211 | 186 | 11.8% | 9.1% | $40.7M |
| Alaska | 178 | 138 | 14.5% | 11.4% | $93.2M |
| District of Columbia | 162 | 117 | 14.5% | 15.8% | $62.3M |
| Vermont | 154 | 138 | 12.3% | 7.1% | $49.4M |
| Guam | 20 | 20 | 5.0% | limited data | $1.4M |
| U.S. Virgin Islands | 10 | 10 | 10.0% | limited data | $3.5M |
| Northern Mariana Islands | 1 | 1 | limited data | limited data | $150K |
Method
- Source. SBA's 7(a) FOIA loan-level files, fiscal years 1992 to 2026, as of 2025-12-31, downloaded from data.sba.gov. 504 loans are excluded; they finance real estate and behave differently.
- Franchise loans. A loan is counted when SBA's FranchiseName field is filled. That is SBA's label, not ours; it includes some dealer and licence systems SBA classifies as franchises.
- Counting. “Loans” are disbursed loans: paid in full, charged off, or still open. Cancelled and never-disbursed commitments are excluded. “Resolved” means paid in full or charged off; open loans are in neither the numerator nor the denominator.
- The rate. Charge-offs divided by resolved loans, the definition every brand page on this site uses. It is printed only with 10 or more resolved loans, and the highest and lowest lists require 30.
- Cohorts. The FY2010 to FY2019 column restricts the same arithmetic to loans approved in those years, old enough to have failed if they were going to. Rates on FY2022 and later approvals are not yet meaningful.
- Brand families. SBA spells one system several ways. A spelling is folded into the shorter name it begins with when that name is distinctive (so “Subway Sandwich Shop” joins “Subway”, but nothing joins “Pizza”). The CSV lists every spelling folded into a row. Brand pages on this site use a curated match that can union more spellings, so a page's loan count can exceed the row here; the rate is computed the same way.
- Amounts and jobs. Amounts are gross approvals, the whole loan rather than SBA's guaranteed share. Jobs are the lender's self-reported estimate at application, which SBA does not audit; they are in the downloads, not the tables above.
- What it is not. A charge-off rate measures loan outcomes. It is not a unit failure rate, not a profitability measure, and not investment advice. Read the brand's FDD and call current and former franchisees before you rely on any single number.
Cite as: FranchiseVerdict, SBA 7(a) franchise loan charge-off rates, 2026 report, from SBA FOIA data as of 2025-12-31. The tables are free to reuse with attribution (CC BY 4.0).