Franchise Failure Rates

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

Flip Flop Shops Franchise Failure Rate on SBA Loans: 8 of 16 Charged Off (Federal Data)

8 of 16
SBA 7(a) loans to Flip Flop Shops franchisees (FY2010–2019) ended in charge-off
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Flip Flop Shops against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Flip Flop Shops 50.0%; Shoe Stores 13.1%; All franchises 10.2%Flip Flop Shops 50.0%; Shoe Stores 13.1%; All franchises 10.2%0%10%20%30%40%50%Flip Flop Shops50.0% (small sample)Shoe Stores13.1%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Flip Flop Shops 50.0%; Shoe Stores 13.1%; All franchises 10.2%Flip Flop Shops 50.0%; Shoe Stores 13.1%; All franchises 10.2%0%10%20%30%40%50%Flip Flop Shops50.0% (small sample)Shoe Stores13.1%All franchises10.2%

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.

8 of 16 Flip Flop Shops SBA borrowers failed to repay — too few loans to call a rate; read it as a flag, not a verdict.

8 of 16 SBA 7(a) loans to Flip Flop Shops franchisees (2010–2019) ended in charge-off. The sample is small; treat this as a diligence flag, not a verdict. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Flip Flop Shops franchise failure rate on SBA loans?

Flip Flop Shops is a Shoe 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 Flip Flop Shops franchisees: 16 loans approved between fiscal 2010 and 2019, of which 8 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 Flip Flop Shops compare with other Shoe Stores franchises?

The table sets Flip Flop Shops's charge-off rate beside its Shoe 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. A cell in red is more than twice the industry benchmark.

Flip Flop Shops versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureFlip Flop ShopsShoe StoresAll franchisesAll SBA borrowers
Default (charge-off) rate50.0% (small sample)13.1%10.2%8.0%
Loans in sample16———
Defaults8———
Average loan size$153,900———

What has Flip Flop Shops SBA lending looked like since 2020?

Since 2020, Flip Flop Shops franchisees have taken 8 new SBA 7(a) loans. 2 have 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 Flip Flop Shops 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 38% of 8 loans; FY2014 50% of 2 loans; FY2015 100% of 4 loans; FY2016 0% of 1 loansCharge-off rate by approval year: FY2011 0% of 1 loans; FY2013 38% of 8 loans; FY2014 50% of 2 loans; FY2015 100% of 4 loans; FY2016 0% of 1 loans0%5%10%0%2011n=138%2013n=850%2014n=2100%2015n=40%2016n=1
Charge-off rate by approval year: FY2011 0% of 1 loans; FY2013 38% of 8 loans; FY2014 50% of 2 loans; FY2015 100% of 4 loans; FY2016 0% of 1 loansCharge-off rate by approval year: FY2011 0% of 1 loans; FY2013 38% of 8 loans; FY2014 50% of 2 loans; FY2015 100% of 4 loans; FY2016 0% of 1 loans0%5%10%0%’11n=138%’13n=850%’14n=2100%’15n=40%’16n=1

Loans approved since 2020, by fiscal year — counts only: 2 have charged off to date and most are still outstanding, so no rate is drawn.

Loans approved since 2020: FY2021 2; FY2022 1; FY2023 2; FY2024 2; FY2026 1Loans approved since 2020: FY2021 2; FY2022 1; FY2023 2; FY2024 2; FY2026 12202112022220232202412026
Loans approved since 2020: FY2021 2; FY2022 1; FY2023 2; FY2024 2; FY2026 1Loans approved since 2020: FY2021 2; FY2022 1; FY2023 2; FY2024 2; FY2026 12’211’222’232’241’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2011100.0%
FY20138337.5%
FY20142150.0%
FY201544100.0%
FY2016100.0%
FY20212—outstanding
FY20221—outstanding
FY20232—outstanding
FY20242—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?

Flip Flop Shops's figure rests on 16 resolved SBA 7(a) loans approved between fiscal 2010 and 2019 — a matured cohort, so the count is a settled outcome, not a projection. With 16 resolved loans, one default moves the rate by about 6.2 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 Flip Flop Shops figure is recomputed from the public SBA FOIA file on each rebuild.

Small sample (16 loans). A single default moves this figure substantially.

Frequently asked

What is Flip Flop Shops's franchise failure rate on SBA loans?
8 of 16 SBA 7(a) loans to Flip Flop Shops franchisees (2010–2019) ended in charge-off. The sample is small; treat this as a diligence flag, not a verdict. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Flip Flop Shops a safe franchise investment?
Between 2010–2019, 8 of 16 SBA loans to Flip Flop Shops franchisees were charged off. The sample is small. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Flip Flop Shops franchise SBA 7(a) loan outcomes, FY2010–FY2019 cohort: 8 of 16 loans charged off. Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/flip-flop-shops/ · Data & methodology · Download the dataset (CSV)