Franchise Failure Rates

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

Cookie Cutters Franchise Failure Rate: 14.3% SBA Loan Defaults (2010–2019 Federal Data)

14.3%
charge-off rate on 21 SBA 7(a) loans to Cookie Cutters franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Cookie Cutters against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Cookie Cutters 14.3%; Beauty Salons 8.6%; All franchises 10.2%Cookie Cutters 14.3%; Beauty Salons 8.6%; All franchises 10.2%0%5%10%15%Cookie Cutters14.3%Beauty Salons8.6%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Cookie Cutters 14.3%; Beauty Salons 8.6%; All franchises 10.2%Cookie Cutters 14.3%; Beauty Salons 8.6%; All franchises 10.2%0%5%10%15%Cookie Cutters14.3%Beauty Salons8.6%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 7 Cookie Cutters SBA borrowers failed to repay — well above the Beauty Salons average of 8.6%.

Between 2010 and 2019, 21 Cookie Cutters franchisees financed with SBA 7(a) loans. 3 defaulted — a 14.3% charge-off rate, 1.7x the Beauty Salons average of 8.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Cookie Cutters franchise failure rate on SBA loans?

Cookie Cutters is a Beauty Salons franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Cookie Cutters franchisees: 21 loans approved between fiscal 2010 and 2019, of which 3 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 Cookie Cutters compare with other Beauty Salons franchises?

The table sets Cookie Cutters's charge-off rate beside its Beauty Salons 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.

Cookie Cutters versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureCookie CuttersBeauty SalonsAll franchisesAll SBA borrowers
Default (charge-off) rate14.3%8.6%10.2%8.0%
Loans in sample21———
Defaults3———
Average loan size$159,424———
Charge-off rate by approval year — share of each fiscal year's Cookie Cutters 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: FY2012 100% of 2 loans; FY2014 0% of 1 loans; FY2015 0% of 2 loans; FY2016 0% of 3 loans; FY2017 9% of 11 loans; FY2018 0% of 2 loansCharge-off rate by approval year: FY2012 100% of 2 loans; FY2014 0% of 1 loans; FY2015 0% of 2 loans; FY2016 0% of 3 loans; FY2017 9% of 11 loans; FY2018 0% of 2 loans0%5%10%100%2012n=20%2014n=10%2015n=20%2016n=39%2017n=110%2018n=2
Charge-off rate by approval year: FY2012 100% of 2 loans; FY2014 0% of 1 loans; FY2015 0% of 2 loans; FY2016 0% of 3 loans; FY2017 9% of 11 loans; FY2018 0% of 2 loansCharge-off rate by approval year: FY2012 100% of 2 loans; FY2014 0% of 1 loans; FY2015 0% of 2 loans; FY2016 0% of 3 loans; FY2017 9% of 11 loans; FY2018 0% of 2 loans0%5%10%100%’12n=20%’14n=10%’15n=20%’16n=39%’17n=110%’18n=2

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY201222100.0%
FY2014100.0%
FY2015200.0%
FY2016300.0%
FY20171119.1%
FY2018200.0%

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?

Cookie Cutters's figure rests on 21 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 21 resolved loans, one default moves the rate by about 4.8 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 Cookie Cutters figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 21 resolved loans — directional, not precise.

Frequently asked

What is Cookie Cutters's franchise failure rate on SBA loans?
Between 2010 and 2019, 21 Cookie Cutters franchisees financed with SBA 7(a) loans. 3 defaulted — a 14.3% charge-off rate, 1.7x the Beauty Salons average of 8.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Cookie Cutters a safe franchise investment?
Between 2010–2019, Cookie Cutters franchisees defaulted on SBA loans at 14.3% versus a 8.6% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Cookie Cutters franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 14.3% (3 of 21 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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