SBA Franchisee Failure Rates by Brand

Franchise USA, Inc

The Small Business Administration has provided us with its most recent list of failure rates of loans sorted by franchise brands from Oct. 1, 2001 until Sept. 30, 2011. This is a collection of data from lendees of 578 franchise brands who failed to pay back general SBA 7(a) and real estate and equipment 504 loans.

SBA Franchisee Failure Rates by Brand, 2012

Click on the headings of the spreadsheet below – e.g. disbursement $, failure percentage to pay back the loan or charge off percentage of bad loans incurred by the lenders after the small business borrowers’ collateral assets have been collected – to sort the table from ascending or descending value.

The above is a spreadsheet of the SBA portfolio performance by franchise brand as coded by the Small Business Administration. It is the combined 7(a) & 504 loan performance on loans approved between 10/01/2001 and 09/30/2011, which were designated with a franchise code and subsequently disbursed. It is redacted to 10 or more disbursements per code in order to show the aggregate but preserve an individual’s right to privacy. The 580 listed franchise brands is but a fraction of the existing 3,500 estimated franchisors in the United States.

Note: Failure rate percentage is the number of loans per franchise brand that is liquidated or Charged Off / Number of Loans Disbursed Per Code. Charge Off percentage is the dollar amount per franchise brand that is charged off / total dollar amount disbursed per brand.