Franchise Failure Rates

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

Fuzzy's Taco Shop Franchise Failure Rate: 12.9% SBA Loan Defaults (2010–2019 Federal Data)

12.9%
charge-off rate on 31 SBA 7(a) loans to Fuzzy's Taco Shop franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Fuzzy's Taco Shop against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Fuzzy's Taco Shop 12.9%; Limited-Service Restaurants 10.3%; All franchises 10.2%Fuzzy's Taco Shop 12.9%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%5%10%Fuzzy's Taco Shop12.9%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Fuzzy's Taco Shop 12.9%; Limited-Service Restaurants 10.3%; All franchises 10.2%Fuzzy's Taco Shop 12.9%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%5%10%Fuzzy's Taco Shop12.9%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 8 Fuzzy's Taco Shop SBA borrowers failed to repay — above the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 31 Fuzzy's Taco Shop franchisees financed with SBA 7(a) loans. 4 defaulted — a 12.9% charge-off rate, 1.2x 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 Fuzzy's Taco Shop franchise failure rate on SBA loans?

Fuzzy's Taco Shop 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 Fuzzy's Taco Shop franchisees: 31 loans approved between fiscal 2010 and 2019, of which 4 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 Fuzzy's Taco Shop compare with other Limited-Service Restaurants franchises?

The table sets Fuzzy's Taco Shop'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.

Fuzzy's Taco Shop versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureFuzzy's Taco ShopLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate12.9%10.3%10.2%8.0%
Loans in sample31———
Defaults4———
Average loan size$400,071———

What has Fuzzy's Taco Shop SBA lending looked like since 2020?

Since 2020, Fuzzy's Taco Shop franchisees have taken 8 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 Fuzzy's Taco Shop 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 1 loans; FY2014 0% of 2 loans; FY2015 0% of 7 loans; FY2016 20% of 10 loans; FY2017 17% of 6 loans; FY2018 33% of 3 loansCharge-off rate by approval year: FY2010 0% of 2 loans; FY2011 0% of 1 loans; FY2014 0% of 2 loans; FY2015 0% of 7 loans; FY2016 20% of 10 loans; FY2017 17% of 6 loans; FY2018 33% of 3 loans0%10%20%0%2010n=20%2011n=10%2014n=20%2015n=720%2016n=1017%2017n=633%2018n=3
Charge-off rate by approval year: FY2010 0% of 2 loans; FY2011 0% of 1 loans; FY2014 0% of 2 loans; FY2015 0% of 7 loans; FY2016 20% of 10 loans; FY2017 17% of 6 loans; FY2018 33% of 3 loansCharge-off rate by approval year: FY2010 0% of 2 loans; FY2011 0% of 1 loans; FY2014 0% of 2 loans; FY2015 0% of 7 loans; FY2016 20% of 10 loans; FY2017 17% of 6 loans; FY2018 33% of 3 loans0%10%20%0%’10n=20%’11n=10%’14n=20%’15n=720%’16n=1017%’17n=633%’18n=3

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: FY2021 2; FY2022 2; FY2025 2; FY2026 2Loans approved since 2020: FY2021 2; FY2022 2; FY2025 2; FY2026 222021220222202522026
Loans approved since 2020: FY2021 2; FY2022 2; FY2025 2; FY2026 2Loans approved since 2020: FY2021 2; FY2022 2; FY2025 2; FY2026 22’212’222’252’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010200.0%
FY2011100.0%
FY2014200.0%
FY2015700.0%
FY201610220.0%
FY20176116.7%
FY20183133.3%
FY20212—outstanding
FY20222—outstanding
FY20252—outstanding
FY20262—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?

Fuzzy's Taco Shop's figure rests on 31 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 31 resolved loans, one default moves the rate by about 3.2 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 Fuzzy's Taco Shop figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 31 resolved loans — directional, not precise.

Frequently asked

What is Fuzzy's Taco Shop's franchise failure rate on SBA loans?
Between 2010 and 2019, 31 Fuzzy's Taco Shop franchisees financed with SBA 7(a) loans. 4 defaulted — a 12.9% charge-off rate, 1.2x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Fuzzy's Taco Shop a safe franchise investment?
Between 2010–2019, Fuzzy's Taco Shop franchisees defaulted on SBA loans at 12.9% 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). Fuzzy's Taco Shop franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 12.9% (4 of 31 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/fuzzys-taco-shop/ · Data & methodology · Download the dataset (CSV)