Original research · from the federal loan record
Which SBA franchises have the highest default rates?
Short answer. Among SBA-financed franchise brands with a meaningful history (at least 50 seasoned loans), 7-year default rates run from 0% to 62.5%. The median brand defaults at 3.0% — below the 5.7% all-7(a) rate — but the spread is enormous. Highest: Experimac (62.5%), Dental Fix Rx (46.3%), Tutor Doctor (34.0%). Lowest (0%): Red Roof Inn, Christian Brothers Automotive, Club Pilates.
Median brand
3.0%
of 228 brands
Highest
62.5%
Experimac
Lowest
0%
a dozen brands
All 7(a) baseline
5.7%
counted by loan
Highest-default franchise brands
≥50 seasoned loans| Brand | Judged on | Default rate | Typical loan |
|---|---|---|---|
| Experimac | 64 | 62.5% | $150,000 |
| DENTAL FIX RX | 54 | 46.3% | $150,000 |
| TUTOR DOCTOR | 53 | 34.0% | $100,000 |
| Burgerim | 53 | 32.1% | $296,000 |
| ORANGE LEAF FROZEN YOGURT | 91 | 29.7% | $246,000 |
| DICKEY'S BARBECUE PIT | 206 | 26.2% | $265,000 |
| Signarama | 96 | 25.0% | $150,000 |
| COMPLETE NUTRITION | 56 | 25.0% | $160,500 |
| ILOVEKICKBOXING.COM | 93 | 24.7% | $211,000 |
| 9ROUND | 79 | 22.8% | $81,500 |
| FANTASTIC SAMS | 108 | 20.4% | $176,400 |
| Meineke Car Care Center | 144 | 19.4% | $302,800 |
| THE PITA PIT | 80 | 18.8% | $230,500 |
| TITLE BOXING CLUB | 66 | 16.7% | $219,800 |
| JAKE'S WAYBACK BURGERS | 55 | 16.4% | $209,000 |
| BAHAMA BUCK'S | 62 | 16.1% | $306,250 |
| MENCHIE'S | 190 | 15.8% | $304,300 |
| AAMCO TRANSMISSIONS | 86 | 15.1% | $192,000 |
| WHICH WICH | 142 | 13.4% | $275,200 |
| GREAT HARVEST BREAD CO. | 61 | 13.1% | $212,500 |
| Rainbow Restoration | 54 | 13.0% | $150,000 |
| Minuteman Press | 85 | 12.9% | $150,000 |
| Batteries Plus | 70 | 12.9% | $254,450 |
| ZOUP! | 70 | 12.9% | $349,550 |
| PAPA JOHN'S PIZZA | 96 | 10.4% | $230,750 |
“Judged on” is the number of seasoned loans (approved through FY2018) behind each rate. Brands with fewer than 50 are held out of the ranking to avoid small-sample noise; the full list of all 228 is in the CSV below.
Lowest-default franchise brands
≥50 seasoned loans| Brand | Judged on | Default rate | Typical loan |
|---|---|---|---|
| Red Roof Inn | 166 | 0.0% | $2,171,250 |
| Nothing Bundt Cakes | 99 | 0.0% | $447,500 |
| Club Pilates | 118 | 0.0% | $247,000 |
| CHRISTIAN BROTHERS AUTOMOTIVE | 147 | 0.0% | $350,000 |
| Biggby Coffee | 68 | 0.0% | $231,000 |
| WINGSTOP | 146 | 0.0% | $359,000 |
| CHEVRON (GAS STATION) | 164 | 0.0% | $1,320,750 |
| CULVER'S | 164 | 0.0% | $782,500 |
| Camp Bow Wow | 73 | 0.0% | $804,450 |
| TRAVELODGE | 82 | 0.0% | $1,597,800 |
| Pearle Vision | 82 | 0.0% | $350,000 |
| SHELL SERVICE STATION | 123 | 0.0% | $1,135,000 |
| Visiting Angels | 50 | 0.0% | $200,000 |
| PLANET FITNESS | 113 | 0.0% | $1,050,000 |
| Goldfish Swim School | 57 | 0.0% | $1,584,000 |
A 0% rate means none of that brand’s seasoned SBA loans charged off within seven years — strong, but read it alongside the loan count, not on its own.
What this does and does not mean
A brand’s SBA default rate reflects how its financed franchisees fared — a useful signal, but not a verdict on the brand today. Rates swing with the era a brand expanded in, the size of its loans, and how many units are behind the number. Use it to ask better questions, then read the brand’s own page for the detail.
Evidence & reproducibility
check our work| Source | SBA 7(a) FOIA files |
| Data released | 2026-06-30 |
| Records analyzed | 228 franchise brands; rankings limited to brands with ≥50 seasoned loans |
| Definition | Charge-off within 7 years of approval, counted one loan at a time |
| Exclusions | Loans approved after FY2018; brands with too few seasoned loans to rank reliably |
| Analysis updated | 2026-07-31 |
| Download | All 228 brands, default rates (CSV) |