Franchise Failure Rates

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

Clothes Mentor Franchise Failure Rate: 5.1% SBA Loan Defaults (2010–2019 Federal Data)

5.1%
charge-off rate on 39 SBA 7(a) loans to Clothes Mentor franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Clothes Mentor against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Clothes Mentor 5.1%; Used Merchandise Stores 9.7%; All franchises 10.2%Clothes Mentor 5.1%; Used Merchandise Stores 9.7%; All franchises 10.2%0%2%4%6%8%10%Clothes Mentor5.1%Used Merchandise Stores9.7%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Clothes Mentor 5.1%; Used Merchandise Stores 9.7%; All franchises 10.2%Clothes Mentor 5.1%; Used Merchandise Stores 9.7%; All franchises 10.2%0%2%4%6%8%10%Clothes Mentor5.1%Used Merchandise Stores9.7%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 Clothes Mentor SBA borrowers failed to repay — well below the Used Merchandise Stores average of 9.7%.

Between 2010 and 2019, 39 Clothes Mentor franchisees financed with SBA 7(a) loans. 2 defaulted — a 5.1% charge-off rate, 0.5x the Used Merchandise Stores average of 9.7%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Clothes Mentor franchise failure rate on SBA loans?

Clothes Mentor is a Used Merchandise 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 Clothes Mentor franchisees: 39 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 Clothes Mentor compare with other Used Merchandise Stores franchises?

The table sets Clothes Mentor's charge-off rate beside its Used Merchandise 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.

Clothes Mentor versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureClothes MentorUsed Merchandise StoresAll franchisesAll SBA borrowers
Default (charge-off) rate5.1%9.7%10.2%8.0%
Loans in sample39———
Defaults2———
Average loan size$171,738———

What has Clothes Mentor SBA lending looked like since 2020?

Since 2020, Clothes Mentor franchisees have taken 13 new SBA 7(a) loans. 1 has already charged off. Early defaults on loans under six years old are notable — most SBA failures take longer to develop.

Charge-off rate by approval year — share of each fiscal year's Clothes Mentor 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 2 loans; FY2011 0% of 2 loans; FY2012 0% of 4 loans; FY2013 0% of 5 loans; FY2014 0% of 6 loans; FY2015 14% of 7 loans; FY2016 11% of 9 loans; FY2017 0% of 2 loans; FY2019 0% of 2 loansCharge-off rate by approval year: FY2010 0% of 2 loans; FY2011 0% of 2 loans; FY2012 0% of 4 loans; FY2013 0% of 5 loans; FY2014 0% of 6 loans; FY2015 14% of 7 loans; FY2016 11% of 9 loans; FY2017 0% of 2 loans; FY2019 0% of 2 loans0%5%10%0%2010n=20%2011n=20%2012n=40%2013n=50%2014n=614%2015n=711%2016n=90%2017n=20%2019n=2
Charge-off rate by approval year: FY2010 0% of 2 loans; FY2011 0% of 2 loans; FY2012 0% of 4 loans; FY2013 0% of 5 loans; FY2014 0% of 6 loans; FY2015 14% of 7 loans; FY2016 11% of 9 loans; FY2017 0% of 2 loans; FY2019 0% of 2 loansCharge-off rate by approval year: FY2010 0% of 2 loans; FY2011 0% of 2 loans; FY2012 0% of 4 loans; FY2013 0% of 5 loans; FY2014 0% of 6 loans; FY2015 14% of 7 loans; FY2016 11% of 9 loans; FY2017 0% of 2 loans; FY2019 0% of 2 loans0%5%10%0%’10n=20%’11n=20%’12n=40%’13n=50%’14n=614%’15n=711%’16n=90%’17n=20%’19n=2

Loans approved since 2020, by fiscal year — counts only: 1 has charged off to date and most are still outstanding, so no rate is drawn.

Loans approved since 2020: FY2022 6; FY2023 1; FY2024 1; FY2025 4; FY2026 1Loans approved since 2020: FY2022 6; FY2023 1; FY2024 1; FY2025 4; FY2026 16202212023120244202512026
Loans approved since 2020: FY2022 6; FY2023 1; FY2024 1; FY2025 4; FY2026 1Loans approved since 2020: FY2022 6; FY2023 1; FY2024 1; FY2025 4; FY2026 16’221’231’244’251’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010200.0%
FY2011200.0%
FY2012400.0%
FY2013500.0%
FY2014600.0%
FY20157114.3%
FY20169111.1%
FY2017200.0%
FY2019200.0%
FY20226—outstanding
FY20231—outstanding
FY20241—outstanding
FY20254—outstanding
FY20261—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?

Clothes Mentor's figure rests on 39 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 39 resolved loans, one default moves the rate by about 2.6 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 Clothes Mentor figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 39 resolved loans — directional, not precise.

Frequently asked

What is Clothes Mentor's franchise failure rate on SBA loans?
Between 2010 and 2019, 39 Clothes Mentor franchisees financed with SBA 7(a) loans. 2 defaulted — a 5.1% charge-off rate, 0.5x the Used Merchandise Stores average of 9.7%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Clothes Mentor a safe franchise investment?
Between 2010–2019, Clothes Mentor franchisees defaulted on SBA loans at 5.1% versus a 9.7% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Clothes Mentor franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 5.1% (2 of 39 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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