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FranchiseVerdict

SBA 7(a) franchise lending

Michigan

MI

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Tile-grid map: MI highlighted. Tiles approximate geographic position; sizes are intentionally uniform so small states aren't hidden.
Total loans
3,994
Loan volume
$1.8B
Charge-off rate
14.5%
Jobs created
56,959

Defaults

405

Avg interest

6.97%

Job velocity

3.1

per $100K loaned

Franchises active

1,175

Highest charge-off rates in Michigan

FranchiseLoansState %National %
Image Sun8charge-off rate: 87.5%68.8%
Bellacino's Pizza5charge-off rate: 80.0%40.7%
MAACO Auto Painting Center8charge-off rate: 62.5%20.9%
Sylvan Learning Center8charge-off rate: 62.5%25.9%
Cold Stone Creamery, Inc.21charge-off rate: 61.9%33.9%
Papa Murphy's Take & Bake Pizz5charge-off rate: 60.0%5.3%
Ritter's Frozen Custard5charge-off rate: 60.0%29.4%
Chem-Dry5charge-off rate: 60.0%29.4%
Buffalo Wings & Rings5charge-off rate: 60.0%39.5%
Wireless Toyz7charge-off rate: 57.1%65.6%

Lowest charge-off rates in Michigan

FranchiseLoansDefault %
Comfort Inn5charge-off rate: 0.0%
Shell Service Station5charge-off rate: 0.0%
Tuffy Muffler Center7charge-off rate: 0.0%
Jimmy John's41charge-off rate: 0.0%
General Nutrition Center7charge-off rate: 0.0%
Jets Pizza30charge-off rate: 0.0%
Ram's Horn5charge-off rate: 0.0%
Dairy Queen15charge-off rate: 0.0%
Powerhouse Gyms10charge-off rate: 0.0%
Mcdonald's5charge-off rate: 0.0%

Industry performance (NAICS)

Industry (NAICS)LoansVolumeDefault %Risk
Limited-Service Restaurants722513458$231.5Mcharge-off rate: 5.9%
Limited-Service Restaurants722211358$92.0Mcharge-off rate: 19.7%
Hotels & Motels721110248$516.1Mcharge-off rate: 8.4%
Fitness & Recreational Sports713940222$70.4Mcharge-off rate: 11.5%
Snack & Beverage Bars722515161$49.5Mcharge-off rate: 4.8%
Full-Service Restaurants722511136$49.9Mcharge-off rate: 3.7%
Full-Service Restaurants722110118$35.1Mcharge-off rate: 20.3%
Hardware Stores44413069$30.2Mcharge-off rate: 19.0%
Home Health Care Services62161060$14.8Mcharge-off rate: 2.9%
Other Personal Care Services81219958$19.6Mcharge-off rate: 28.6%

Michigan charge-off rate by loan vintage

BrandNational avg
Michigan charge-off rate by loan vintage. Showing 33 vintages from 1992 to 2024. Rates range from 0.0% to 42.9%.0%5%10%15%20%25%30%35%40%45%'92'97'02'07'12'17'22'24

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 Michigan received?
3,994 loans totaling $1846.3M, with 405 charged off. The statewide charge-off rate is 14.5%.
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 Michigan?
The “Highest charge-off rates” and “Lowest charge-off rates” tables above rank the franchise brands operating in Michigan 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.