Franchise Failure Rates

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

Big O Tires Franchise Failure Rate: 5.0% SBA Loan Defaults (2010–2019 Federal Data)

5.0%
charge-off rate on 40 SBA 7(a) loans to Big O Tires franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Big O Tires against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Big O Tires 5.0%; Tire Dealers 7.5%; All franchises 10.2%Big O Tires 5.0%; Tire Dealers 7.5%; All franchises 10.2%0%2%4%6%8%10%Big O Tires5.0%Tire Dealers7.5%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Big O Tires 5.0%; Tire Dealers 7.5%; All franchises 10.2%Big O Tires 5.0%; Tire Dealers 7.5%; All franchises 10.2%0%2%4%6%8%10%Big O Tires5.0%Tire Dealers7.5%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 20 Big O Tires SBA borrowers failed to repay — well below the Tire Dealers average of 7.5%.

Between 2010 and 2019, 40 Big O Tires franchisees financed with SBA 7(a) loans. 2 defaulted — a 5.0% charge-off rate, 0.7x the Tire Dealers average of 7.5%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Big O Tires franchise failure rate on SBA loans?

Big O Tires is a Tire Dealers franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Big O Tires franchisees: 40 loans approved between fiscal 2010 and 2019, of which 2 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 Big O Tires compare with other Tire Dealers franchises?

The table sets Big O Tires's charge-off rate beside its Tire Dealers 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.

Big O Tires versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureBig O TiresTire DealersAll franchisesAll SBA borrowers
Default (charge-off) rate5.0%7.5%10.2%8.0%
Loans in sample40———
Defaults2———
Average loan size$541,805———
Charge-off rate by approval year — share of each fiscal year's Big O Tires 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 3 loans; FY2011 25% of 4 loans; FY2012 0% of 3 loans; FY2013 0% of 5 loans; FY2014 0% of 4 loans; FY2015 10% of 10 loans; FY2016 0% of 5 loans; FY2017 0% of 5 loans; FY2018 0% of 1 loansCharge-off rate by approval year: FY2010 0% of 3 loans; FY2011 25% of 4 loans; FY2012 0% of 3 loans; FY2013 0% of 5 loans; FY2014 0% of 4 loans; FY2015 10% of 10 loans; FY2016 0% of 5 loans; FY2017 0% of 5 loans; FY2018 0% of 1 loans0%5%10%0%2010n=325%2011n=40%2012n=30%2013n=50%2014n=410%2015n=100%2016n=50%2017n=50%2018n=1
Charge-off rate by approval year: FY2010 0% of 3 loans; FY2011 25% of 4 loans; FY2012 0% of 3 loans; FY2013 0% of 5 loans; FY2014 0% of 4 loans; FY2015 10% of 10 loans; FY2016 0% of 5 loans; FY2017 0% of 5 loans; FY2018 0% of 1 loansCharge-off rate by approval year: FY2010 0% of 3 loans; FY2011 25% of 4 loans; FY2012 0% of 3 loans; FY2013 0% of 5 loans; FY2014 0% of 4 loans; FY2015 10% of 10 loans; FY2016 0% of 5 loans; FY2017 0% of 5 loans; FY2018 0% of 1 loans0%5%10%0%’10n=325%’11n=40%’12n=30%’13n=50%’14n=410%’15n=100%’16n=50%’17n=50%’18n=1

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010300.0%
FY20114125.0%
FY2012300.0%
FY2013500.0%
FY2014400.0%
FY201510110.0%
FY2016500.0%
FY2017500.0%
FY2018100.0%

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?

Big O Tires's figure rests on 40 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 40 resolved loans, one default moves the rate by about 2.5 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 Big O Tires figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 40 resolved loans — directional, not precise.

Frequently asked

What is Big O Tires's franchise failure rate on SBA loans?
Between 2010 and 2019, 40 Big O Tires franchisees financed with SBA 7(a) loans. 2 defaulted — a 5.0% charge-off rate, 0.7x the Tire Dealers average of 7.5%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Big O Tires a safe franchise investment?
Between 2010–2019, Big O Tires franchisees defaulted on SBA loans at 5.0% versus a 7.5% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Big O Tires franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 5.0% (2 of 40 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/big-o-tires/ · Data & methodology · Download the dataset (CSV)