Franchise Failure Rates

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

Dairy Queen Franchise Failure Rate: 4.1% SBA Loan Defaults (2010–2019 Federal Data)

4.1%
charge-off rate on 122 SBA 7(a) loans to Dairy Queen franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Dairy Queen against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Dairy Queen 4.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%Dairy Queen 4.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Dairy Queen4.1%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Dairy Queen 4.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%Dairy Queen 4.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Dairy Queen4.1%Limited-Service Restaurants10.3%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 24 Dairy Queen SBA borrowers failed to repay — well below the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 122 Dairy Queen franchisees financed with SBA 7(a) loans. 5 defaulted — a 4.1% charge-off rate, 0.4x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Dairy Queen franchise failure rate on SBA loans?

Dairy Queen is a Limited-Service Restaurants franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Dairy Queen franchisees: 122 loans approved between fiscal 2010 and 2019, of which 5 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 Dairy Queen compare with other Limited-Service Restaurants franchises?

The table sets Dairy Queen's charge-off rate beside its Limited-Service Restaurants 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.

Dairy Queen versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureDairy QueenLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate4.1%10.3%10.2%8.0%
Loans in sample122———
Defaults5———
Average loan size$462,521———
Charge-off rate by approval year — share of each fiscal year's Dairy Queen SBA 7(a) loans that later defaulted (FY2010–FY2019)
Charge-off rate by approval year: FY2010 3% of 31 loans; FY2011 5% of 43 loans; FY2012 0% of 25 loans; FY2013 9% of 23 loansCharge-off rate by approval year: FY2010 3% of 31 loans; FY2011 5% of 43 loans; FY2012 0% of 25 loans; FY2013 9% of 23 loans0%5%10%3%2010n=315%2011n=430%2012n=259%2013n=23
Charge-off rate by approval year: FY2010 3% of 31 loans; FY2011 5% of 43 loans; FY2012 0% of 25 loans; FY2013 9% of 23 loansCharge-off rate by approval year: FY2010 3% of 31 loans; FY2011 5% of 43 loans; FY2012 0% of 25 loans; FY2013 9% of 23 loans0%5%10%3%’10n=315%’11n=430%’12n=259%’13n=23

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY20103113.2%
FY20114324.7%
FY20122500.0%
FY20132328.7%

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?

Dairy Queen's figure rests on 122 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 122 resolved loans, the sample is large enough that a single default barely moves the figure. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every Dairy Queen figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is Dairy Queen's franchise failure rate on SBA loans?
Between 2010 and 2019, 122 Dairy Queen franchisees financed with SBA 7(a) loans. 5 defaulted — a 4.1% charge-off rate, 0.4x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Dairy Queen a safe franchise investment?
Between 2010–2019, Dairy Queen franchisees defaulted on SBA loans at 4.1% versus a 10.3% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Dairy Queen franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 4.1% (5 of 122 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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