Franchise Failure Rates

SBA 7(a) loan outcomes · FY2010–FY2019 cohort · Statuses as of June 30, 2026 · Last updated August 17, 2026

Armstrong McCall Franchise Failure Rate: 17.4% SBA Loan Defaults (2010–2019 Federal Data)

17.4%
charge-off rate on 23 SBA 7(a) loans to Armstrong McCall franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Armstrong McCall against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Armstrong McCall 17.4%; Cosmetics, Beauty Supplies, and Perfume Stores 12.2%; All franchises 10.2%Armstrong McCall 17.4%; Cosmetics, Beauty Supplies, and Perfume Stores 12.2%; All franchises 10.2%0%5%10%15%Armstrong McCall17.4%Cosmetics, BeautySupplies, and Perfume12.2%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Armstrong McCall 17.4%; Cosmetics, Beauty Supplies, and Perfume Stores 12.2%; All franchises 10.2%Armstrong McCall 17.4%; Cosmetics, Beauty Supplies, and Perfume Stores 12.2%; All franchises 10.2%0%5%10%15%Armstrong McCall17.4%Cosmetics, Beauty Supplies, and Perfume Stores12.2%All franchises10.2%

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.

About 1 in 6 Armstrong McCall SBA borrowers failed to repay — above the Cosmetics, Beauty Supplies, and Perfume Stores average of 12.2%.

Between 2010 and 2019, 23 Armstrong McCall franchisees financed with SBA 7(a) loans. 4 defaulted — a 17.4% charge-off rate, 1.4x the Cosmetics, Beauty Supplies, and Perfume Stores average of 12.2%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Armstrong McCall franchise failure rate on SBA loans?

Armstrong McCall is a Cosmetics, Beauty Supplies, and Perfume Stores franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Armstrong McCall franchisees: 23 loans approved between fiscal 2010 and 2019, of which 4 were charged off. Loan statuses are as of June 30, 2026, and the cohort has matured, so these are settled outcomes rather than projections.

How does Armstrong McCall compare with other Cosmetics, Beauty Supplies, and Perfume Stores franchises?

The table sets Armstrong McCall's charge-off rate beside its Cosmetics, Beauty Supplies, and Perfume Stores peers and the two economy-wide benchmarks. All figures use the same cohort — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026 — and the same denominator of resolved loans, so they are directly comparable.

Armstrong McCall versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureArmstrong McCallCosmetics, Beauty Supplies, and Perfume StoresAll franchisesAll SBA borrowers
Default (charge-off) rate17.4%12.2%10.2%8.0%
Loans in sample23———
Defaults4———
Average loan size$953,861———

What has Armstrong McCall SBA lending looked like since 2020?

Since 2020, Armstrong McCall franchisees have taken 2 new SBA 7(a) loans. None have charged off to date, though most remain outstanding and unresolved.

Charge-off rate by approval year — share of each fiscal year's Armstrong McCall SBA 7(a) loans that later defaulted (FY2010–FY2019); years with fewer than 10 loans are outlined, not filled
Charge-off rate by approval year: FY2010 0% of 1 loans; FY2011 50% of 2 loans; FY2012 0% of 2 loans; FY2013 25% of 4 loans; FY2014 0% of 5 loans; FY2015 0% of 4 loans; FY2017 67% of 3 loans; FY2018 0% of 1 loans; FY2019 0% of 1 loansCharge-off rate by approval year: FY2010 0% of 1 loans; FY2011 50% of 2 loans; FY2012 0% of 2 loans; FY2013 25% of 4 loans; FY2014 0% of 5 loans; FY2015 0% of 4 loans; FY2017 67% of 3 loans; FY2018 0% of 1 loans; FY2019 0% of 1 loans0%5%10%0%2010n=150%2011n=20%2012n=225%2013n=40%2014n=50%2015n=467%2017n=30%2018n=10%2019n=1
Charge-off rate by approval year: FY2010 0% of 1 loans; FY2011 50% of 2 loans; FY2012 0% of 2 loans; FY2013 25% of 4 loans; FY2014 0% of 5 loans; FY2015 0% of 4 loans; FY2017 67% of 3 loans; FY2018 0% of 1 loans; FY2019 0% of 1 loansCharge-off rate by approval year: FY2010 0% of 1 loans; FY2011 50% of 2 loans; FY2012 0% of 2 loans; FY2013 25% of 4 loans; FY2014 0% of 5 loans; FY2015 0% of 4 loans; FY2017 67% of 3 loans; FY2018 0% of 1 loans; FY2019 0% of 1 loans0%5%10%0%’10n=150%’11n=20%’12n=225%’13n=40%’14n=50%’15n=467%’17n=30%’18n=10%’19n=1

Loans approved since 2020, by fiscal year — counts only: 0 have charged off to date and most are still outstanding, so no rate is drawn.

Loans approved since 2020: FY2020 1; FY2022 1Loans approved since 2020: FY2020 1; FY2022 11202012022
Loans approved since 2020: FY2020 1; FY2022 1Loans approved since 2020: FY2020 1; FY2022 11’201’22

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010100.0%
FY20112150.0%
FY2012200.0%
FY20134125.0%
FY2014500.0%
FY2015400.0%
FY20173266.7%
FY2018100.0%
FY2019100.0%
FY20201—outstanding
FY20221—outstanding

How to read this

A charge-off means a franchisee borrowed, operated, and failed severely enough that the SBA wrote off the government-guaranteed loan. Unlike franchisor marketing or Item 19 disclosures, this is an observed outcome recorded by a federal agency. One caveat cuts the other way: SBA borrowers are typically less capitalized than all-cash buyers, so these rates can overstate risk for well-funded operators.

How reliable is this number?

Armstrong McCall's figure rests on 23 resolved SBA 7(a) loans approved between fiscal 2010 and 2019 — a matured cohort, so the rate is a settled outcome, not a projection. With 23 resolved loans, one default moves the rate by about 4.3 percentage points. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every Armstrong McCall figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 23 resolved loans — directional, not precise.

Frequently asked

What is Armstrong McCall's franchise failure rate on SBA loans?
Between 2010 and 2019, 23 Armstrong McCall franchisees financed with SBA 7(a) loans. 4 defaulted — a 17.4% charge-off rate, 1.4x the Cosmetics, Beauty Supplies, and Perfume Stores average of 12.2%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Armstrong McCall a safe franchise investment?
Between 2010–2019, Armstrong McCall franchisees defaulted on SBA loans at 17.4% versus a 12.2% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Armstrong McCall franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 17.4% (4 of 23 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/armstrong-mccall/ · Data & methodology · Download the dataset (CSV)