T
SBA 7(a) franchise lending
Texas
TX
- Total loans
- 16,560
- Loan volume
- $10.6B
- Charge-off rate
- 20.5%
- Jobs created
- 207,252
Defaults
2,282
Avg interest
7.12%
Job velocity
1.9
per $100K loaned
Franchises active
2,845
Highest charge-off rates in Texas
| Franchise | Loans | State % | National % |
|---|---|---|---|
| Arthur Treacher's | 7 | charge-off rate: 100.0% | 44.4% |
| Chem-Dry | 5 | charge-off rate: 100.0% | 29.4% |
| 24 Seven Vending | 13 | charge-off rate: 100.0% | 73.3% |
| Dinner Station (the) | 6 | charge-off rate: 100.0% | 100.0% |
| Sub Zero Ice Cream | 6 | charge-off rate: 100.0% | 64.3% |
| Wireless Zone | 6 | charge-off rate: 100.0% | 37.5% |
| Carvel Ice Cream | 12 | charge-off rate: 91.7% | 42.7% |
| Econo Lub N Tune | 10 | charge-off rate: 90.0% | 36.2% |
| Dream Dinners | 7 | charge-off rate: 85.7% | 50.0% |
| Wings-N-Things | 7 | charge-off rate: 85.7% | 82.4% |
Lowest charge-off rates in Texas
| Franchise | Loans | Default % |
|---|---|---|
| Comfort Inn | 30 | charge-off rate: 0.0% |
| Jack-In-The-Box | 12 | charge-off rate: 0.0% |
| Burger King | 12 | charge-off rate: 0.0% |
| Mr. Payroll Corporation | 6 | charge-off rate: 0.0% |
| Wendy's | 10 | charge-off rate: 0.0% |
| Texas State Optical | 11 | charge-off rate: 0.0% |
| Shipley Donut Shop | 7 | charge-off rate: 0.0% |
| Batteries Plus | 11 | charge-off rate: 0.0% |
| Express Personnel Services | 11 | charge-off rate: 0.0% |
| Denny's Restaurant | 15 | charge-off rate: 0.0% |
Industry performance (NAICS)
| Industry (NAICS) | Loans | Volume | Default % | Risk |
|---|---|---|---|---|
| Limited-Service Restaurants722513 | 1,259 | $687.5M | charge-off rate: 14.9% | |
| Hotels & Motels721110 | 1,252 | $3.1B | charge-off rate: 6.0% | |
| Limited-Service Restaurants722211 | 1,187 | $318.7M | charge-off rate: 27.1% | |
| Fitness & Recreational Sports713940 | 835 | $323.7M | charge-off rate: 25.8% | |
| Child Day Care Services624410 | 576 | $1.0B | charge-off rate: 5.5% | |
| Snack & Beverage Bars722515 | 532 | $250.7M | charge-off rate: 19.1% | |
| Gasoline Stations with Convenience Stores447110 | 530 | $748.0M | charge-off rate: 4.2% | |
| Full-Service Restaurants722511 | 461 | $312.1M | charge-off rate: 17.8% | |
| Beauty Salons812112 | 431 | $114.3M | charge-off rate: 14.4% | |
| Full-Service Restaurants722110 | 430 | $157.2M | charge-off rate: 26.7% |
Franchise lending volume by year
73'92
137
208
336
375
331'97
270
353
416
347
408'02
495
556
487
341
353'07
308
222
257
218
231'12
302
502
627
689
706'17
860
827
723
989
847'22
984
759
853
170'26
Texas 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 Texas received?
- 16,560 loans totaling $10647.1M, with 2,282 charged off. The statewide charge-off rate is 20.5%.
- 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 Texas?
- The “Highest charge-off rates” and “Lowest charge-off rates” tables above rank the franchise brands operating in Texas 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.