Franchise Failure Rates

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

Econo Lodge Franchise Failure Rate: 1.6% SBA Loan Defaults (2010–2019 Federal Data)

1.6%
charge-off rate on 129 SBA 7(a) loans to Econo Lodge franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Econo Lodge against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Econo Lodge 1.6%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%Econo Lodge 1.6%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%0%2%4%6%8%10%Econo Lodge1.6%Hotels (except CasinoHotels) and Motels3.0%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Econo Lodge 1.6%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%Econo Lodge 1.6%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%0%2%4%6%8%10%Econo Lodge1.6%Hotels (except Casino Hotels) and Motels3.0%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 62 Econo Lodge SBA borrowers failed to repay — well below the Hotels (except Casino Hotels) and Motels average of 3.0%.

Between 2010 and 2019, 129 Econo Lodge franchisees financed with SBA 7(a) loans. 2 defaulted — a 1.6% charge-off rate, 0.5x the Hotels (except Casino Hotels) and Motels average of 3.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Econo Lodge franchise failure rate on SBA loans?

Econo Lodge is a Hotels (except Casino Hotels) and Motels franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Econo Lodge franchisees: 129 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 Econo Lodge compare with other Hotels (except Casino Hotels) and Motels franchises?

The table sets Econo Lodge's charge-off rate beside its Hotels (except Casino Hotels) and Motels 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.

Econo Lodge versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureEcono LodgeHotels (except Casino Hotels) and MotelsAll franchisesAll SBA borrowers
Default (charge-off) rate1.6%3.0%10.2%8.0%
Loans in sample129———
Defaults2———
Average loan size$1,577,080———

What has Econo Lodge SBA lending looked like since 2020?

Since 2020, Econo Lodge franchisees have taken 136 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 Econo Lodge 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: FY2011 0% of 1 loans; FY2013 0% of 4 loans; FY2014 0% of 16 loans; FY2015 0% of 24 loans; FY2016 0% of 23 loans; FY2017 4% of 25 loans; FY2018 5% of 19 loans; FY2019 0% of 17 loansCharge-off rate by approval year: FY2011 0% of 1 loans; FY2013 0% of 4 loans; FY2014 0% of 16 loans; FY2015 0% of 24 loans; FY2016 0% of 23 loans; FY2017 4% of 25 loans; FY2018 5% of 19 loans; FY2019 0% of 17 loans0%5%10%0%2011n=10%2013n=40%2014n=160%2015n=240%2016n=234%2017n=255%2018n=190%2019n=17
Charge-off rate by approval year: FY2011 0% of 1 loans; FY2013 0% of 4 loans; FY2014 0% of 16 loans; FY2015 0% of 24 loans; FY2016 0% of 23 loans; FY2017 4% of 25 loans; FY2018 5% of 19 loans; FY2019 0% of 17 loansCharge-off rate by approval year: FY2011 0% of 1 loans; FY2013 0% of 4 loans; FY2014 0% of 16 loans; FY2015 0% of 24 loans; FY2016 0% of 23 loans; FY2017 4% of 25 loans; FY2018 5% of 19 loans; FY2019 0% of 17 loans0%5%10%0%’11n=10%’13n=40%’14n=160%’15n=240%’16n=234%’17n=255%’18n=190%’19n=17

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: FY2020 27; FY2021 40; FY2022 27; FY2023 13; FY2024 8; FY2025 15; FY2026 6Loans approved since 2020: FY2020 27; FY2021 40; FY2022 27; FY2023 13; FY2024 8; FY2025 15; FY2026 62720204020212720221320238202415202562026
Loans approved since 2020: FY2020 27; FY2021 40; FY2022 27; FY2023 13; FY2024 8; FY2025 15; FY2026 6Loans approved since 2020: FY2020 27; FY2021 40; FY2022 27; FY2023 13; FY2024 8; FY2025 15; FY2026 627’2040’2127’2213’238’2415’256’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2011100.0%
FY2013400.0%
FY20141600.0%
FY20152400.0%
FY20162300.0%
FY20172514.0%
FY20181915.3%
FY20191700.0%
FY202027—outstanding
FY202140—outstanding
FY202227—outstanding
FY202313—outstanding
FY20248—outstanding
FY202515—outstanding
FY20266—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?

Econo Lodge's figure rests on 129 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 129 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 Econo Lodge figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is Econo Lodge's franchise failure rate on SBA loans?
Between 2010 and 2019, 129 Econo Lodge franchisees financed with SBA 7(a) loans. 2 defaulted — a 1.6% charge-off rate, 0.5x the Hotels (except Casino Hotels) and Motels average of 3.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Econo Lodge a safe franchise investment?
Between 2010–2019, Econo Lodge franchisees defaulted on SBA loans at 1.6% versus a 3.0% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Econo Lodge franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 1.6% (2 of 129 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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