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SBA Loan Failure Rates for Franchises by Brand, 2008

Failure Rates of Franchisees to Pay Back SBA-Guaranteed Loans by Franchise Brand, Oct 1, 2000 - Sep 30, 2007.

To sort by column so that you can see franchise concepts by highest failure rate, please click this link and then click the gray bar below the failure rate category to make the spreadsheet sort. A franchise failure rate above 18% puts that franchise brand in the worst quartile of franchise brands. These brands have the highest recorded failure by franchisees to pay back the franchisor. With so many franchises to choose from, franchise brands with few to no failures are preferable.

The default list below is sorted alphabetically.

Notes by SBA to its preferred lenders about this list:

  1. The charge off rate by lendors equals the dollars charged off for no collection divided by total dollars disbursed
  2. Combined 7(a) & 504 loan performance data is based on loans approved between Oct 1, 2000 and Sep 30, 2007. In recording SBA data, some lenders did not check off the franchise field where the brand is a franchise chain. Such data that should be recorded here would be left off of this report.
  3. Failure Rate equals number in liquidation plus number charged off divided By total number disbursed
  4. Franchise brands are only listed if it has at least 10 or more disbursed loans
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