T
SBA 7(a) franchise lending
Tennessee
TN
- Total loans
- 2,221
- Loan volume
- $1.3B
- Charge-off rate
- 17.3%
- Jobs created
- 29,602
Defaults
245
Avg interest
7.39%
Job velocity
2.4
per $100K loaned
Franchises active
978
Highest charge-off rates in Tennessee
| Franchise | Loans | State % | National % |
|---|---|---|---|
| Cold Stone Creamery, Inc. | 5 | charge-off rate: 100.0% | 33.9% |
| Matco Tools (rent Tools) | 16 | charge-off rate: 68.8% | 34.8% |
| Planet Beach | 5 | charge-off rate: 60.0% | 55.7% |
| Merle Norman Cosmetics | 5 | charge-off rate: 60.0% | 20.0% |
| Quiznos | 11 | charge-off rate: 45.5% | 28.1% |
| Econo Lodge Motel | 9 | charge-off rate: 44.4% | 10.7% |
| Pakmail Centers Of America | 5 | charge-off rate: 40.0% | 23.8% |
| Central Park Hamburgers | 5 | charge-off rate: 40.0% | 36.4% |
| Schlotzsky's Sandwich Shop | 16 | charge-off rate: 37.5% | 21.3% |
| Smoothie King (health Food Sto | 8 | charge-off rate: 37.5% | 19.2% |
Lowest charge-off rates in Tennessee
| Franchise | Loans | Default % |
|---|---|---|
| Days Inn | 10 | charge-off rate: 0.0% |
| Best Western Inn | 6 | charge-off rate: 0.0% |
| Sears Catalog Store | 5 | charge-off rate: 0.0% |
| Hampton Inns | 5 | charge-off rate: 0.0% |
| Great Clips | 7 | charge-off rate: 0.0% |
| Hobbytown Usa | 7 | charge-off rate: 0.0% |
| Super 8 Motel | 20 | charge-off rate: 0.0% |
| Comfort Inn | 6 | charge-off rate: 0.0% |
| Midas Muffler Shop | 5 | charge-off rate: 0.0% |
| Dunkin Donuts | 8 | charge-off rate: 0.0% |
Industry performance (NAICS)
| Industry (NAICS) | Loans | Volume | Default % | Risk |
|---|---|---|---|---|
| Hotels & Motels721110 | 184 | $387.8M | charge-off rate: 10.4% | |
| Limited-Service Restaurants722513 | 184 | $106.2M | charge-off rate: 7.7% | |
| Fitness & Recreational Sports713940 | 147 | $56.3M | charge-off rate: 12.7% | |
| Limited-Service Restaurants722211 | 137 | $37.2M | charge-off rate: 23.5% | |
| Snack & Beverage Bars722515 | 60 | $39.6M | charge-off rate: 18.8% | |
| Full-Service Restaurants722511 | 57 | $40.0M | charge-off rate: 6.5% | |
| Full-Service Restaurants722110 | 48 | $20.1M | charge-off rate: 29.8% | |
| Other Personal Care Services812199 | 46 | $21.5M | charge-off rate: 26.7% | |
| General Automotive Repair811111 | 43 | $18.0M | charge-off rate: 16.1% | |
| Beauty Salons812112 | 34 | $7.2M | charge-off rate: 3.6% |
Franchise lending volume by year
9'92
31
24
50
52
48'97
29
40
38
35
52'02
60
47
64
36
25'07
50
28
31
40
33'12
41
61
95
78
66'17
128
91
85
152
128'22
167
111
163
33'26
Tennessee 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 Tennessee received?
- 2,221 loans totaling $1254.8M, with 245 charged off. The statewide charge-off rate is 17.3%.
- 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 Tennessee?
- The “Highest charge-off rates” and “Lowest charge-off rates” tables above rank the franchise brands operating in Tennessee 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.