SBA 7(a) loan outcomes · FY2010–FY2019 cohort · Statuses as of June 30, 2026 · Last updated August 17, 2026
Brain Balance Franchise Failure Rate: 20.7% SBA Loan Defaults (2010–2019 Federal Data)
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.
About 1 in 5 Brain Balance SBA borrowers failed to repay — more than double the Educational Support Services average of 8.0%.
Between 2010 and 2019, 29 Brain Balance franchisees financed with SBA 7(a) loans. 6 defaulted — a 20.7% charge-off rate, 2.6x the Educational Support Services average of 8.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
What is the Brain Balance franchise failure rate on SBA loans?
Brain Balance is a Educational Support Services franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Brain Balance franchisees: 29 loans approved between fiscal 2010 and 2019, of which 6 were charged off. Loan statuses are as of June 30, 2026, and the cohort has matured, so these are settled outcomes rather than projections.
- SBA 7(a) loans approved FY2010–FY201929
- Charged off6
- Charge-off rate20.7%
- Educational Support Services franchise benchmark8.0%
- Brand vs industry2.6x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$258,655
- New SBA loans since 20208
- Early charge-offs since 20200
How does Brain Balance compare with other Educational Support Services franchises?
The table sets Brain Balance's charge-off rate beside its Educational Support Services 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. A cell in red is more than twice the industry benchmark.
| Measure | Brain Balance | Educational Support Services | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 20.7% | 8.0% | 10.2% | 8.0% |
| Loans in sample | 29 | — | — | — |
| Defaults | 6 | — | — | — |
| Average loan size | $258,655 | — | — | — |
What has Brain Balance SBA lending looked like since 2020?
Since 2020, Brain Balance franchisees have taken 8 new SBA 7(a) loans. None have charged off to date, though most remain outstanding and unresolved.
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.
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
Show the numbers behind this chart
| Fiscal year | Loans | Charged off | Rate |
|---|---|---|---|
| FY2013 | 1 | 0 | 0.0% |
| FY2014 | 8 | 1 | 12.5% |
| FY2015 | 4 | 1 | 25.0% |
| FY2016 | 1 | 0 | 0.0% |
| FY2017 | 8 | 2 | 25.0% |
| FY2018 | 5 | 0 | 0.0% |
| FY2019 | 2 | 2 | 100.0% |
| FY2020 | 2 | — | outstanding |
| FY2021 | 2 | — | outstanding |
| FY2023 | 1 | — | outstanding |
| FY2025 | 1 | — | outstanding |
| FY2026 | 2 | — | 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?
Brain Balance's figure rests on 29 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 29 resolved loans, one default moves the rate by about 3.4 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 Brain Balance figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 29 resolved loans — directional, not precise.
Frequently asked
- What is Brain Balance's franchise failure rate on SBA loans?
- Between 2010 and 2019, 29 Brain Balance franchisees financed with SBA 7(a) loans. 6 defaulted — a 20.7% charge-off rate, 2.6x the Educational Support Services average of 8.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
- Is Brain Balance a safe franchise investment?
- Between 2010–2019, Brain Balance franchisees defaulted on SBA loans at 20.7% versus a 8.0% industry average. This data is one input for due diligence; it is not investment advice.
Cite this page
Franchise Default Rates (2026). Brain Balance franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 20.7% (6 of 29 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/brain-balance/ · Data & methodology · Download the dataset (CSV)