C
SBA 7(a) franchise lending
California
CA
- Total loans
- 12,874
- Loan volume
- $7.9B
- Charge-off rate
- 15.3%
- Jobs created
- 170,364
Defaults
1,471
Avg interest
7.10%
Job velocity
2.2
per $100K loaned
Franchises active
2,171
Highest charge-off rates in California
| Franchise | Loans | State % | National % |
|---|---|---|---|
| Noble Roman Pizza | 6 | charge-off rate: 100.0% | 76.9% |
| Me-N-Ed's Pizzeria | 5 | charge-off rate: 80.0% | 80.0% |
| Figaro's Italian Pizza | 5 | charge-off rate: 80.0% | 48.7% |
| Taco Del Mar | 14 | charge-off rate: 78.6% | 42.2% |
| Carvel Ice Cream | 6 | charge-off rate: 66.7% | 42.7% |
| Realty World | 6 | charge-off rate: 66.7% | 44.4% |
| Pita Pit | 6 | charge-off rate: 66.7% | 46.3% |
| Quizno's Subs | 14 | charge-off rate: 64.3% | 36.8% |
| Planet Beach | 24 | charge-off rate: 62.5% | 55.7% |
| Big Apple Bagels | 5 | charge-off rate: 60.0% | 34.6% |
Lowest charge-off rates in California
| Franchise | Loans | Default % |
|---|---|---|
| Wendy's | 17 | charge-off rate: 0.0% |
| Comfort Inn | 27 | charge-off rate: 0.0% |
| United Studio Of Self Defense | 6 | charge-off rate: 0.0% |
| Pick Up Stix (chinese Rest.) | 6 | charge-off rate: 0.0% |
| Maids (the) | 5 | charge-off rate: 0.0% |
| Holiday Inn Express | 22 | charge-off rate: 0.0% |
| Mad Science Group, The | 6 | charge-off rate: 0.0% |
| Molly Maid | 16 | charge-off rate: 0.0% |
| Der Wienerschnitzel | 7 | charge-off rate: 0.0% |
| Fast-Fix Jewelry Repairs | 7 | charge-off rate: 0.0% |
Industry performance (NAICS)
| Industry (NAICS) | Loans | Volume | Default % | Risk |
|---|---|---|---|---|
| Limited-Service Restaurants722211 | 1,338 | $381.9M | charge-off rate: 23.0% | |
| Limited-Service Restaurants722513 | 1,246 | $585.4M | charge-off rate: 12.8% | |
| Gasoline Stations with Convenience Stores447110 | 777 | $1.3B | charge-off rate: 2.1% | |
| Hotels & Motels721110 | 747 | $1.8B | charge-off rate: 2.4% | |
| Fitness & Recreational Sports713940 | 614 | $245.7M | charge-off rate: 15.9% | |
| Snack & Beverage Bars722515 | 445 | $180.0M | charge-off rate: 6.8% | |
| Full-Service Restaurants722110 | 369 | $148.3M | charge-off rate: 23.1% | |
| Full-Service Restaurants722511 | 322 | $189.0M | charge-off rate: 8.1% | |
| Private Mail Centers561431 | 232 | $50.6M | charge-off rate: 12.6% | |
| Other Personal Care Services812199 | 215 | $88.3M | charge-off rate: 19.1% |
Franchise lending volume by year
171'92
130
111
250
313
354'97
267
277
305
307
447'02
493
468
535
380
399'07
326
141
138
180
190'12
266
397
519
560
578'17
679
570
451
520
477'22
538
454
546
137'26
California charge-off rate by loan vintage
BrandNational avg
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Source: SBA 7(a) FOIA loan-level data, aggregated by FranchiseVerdict
Charge-off rate = charge-offs / (charge-offs + paid-in-full). Active, exempt, and cancelled loans are excluded. Job velocity = jobs created per $100K loaned.
Frequently asked questions
- How many SBA 7(a) franchise loans has California received?
- 12,874 loans totaling $7865.9M, with 1,471 charged off. The statewide charge-off rate is 15.3%.
- What is a charge-off rate and how should I interpret it?
- Charge-off rate = charge-offs / (charge-offs + paid-in-full). For SBA 7(a) franchise lending, the national average runs 5–8%. Rates materially above that suggest higher-risk franchise selection or weaker borrower vetting in this state.
- Which franchise brands perform best and worst in California?
- The “Highest charge-off rates” and “Lowest charge-off rates” tables above rank the franchise brands operating in California by their statewide loan performance. Click any brand for full FDD-disclosed financials and nationwide SBA history.
- Where does this lending data come from?
- SBA 7(a) loan records released under the Freedom of Information Act. Each record carries approval date, amount, lender, business type, NAICS code, location, and outcome. See methodology.