Franchise Failure Rates

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

Great Clips Franchise Failure Rate: 2.3% SBA Loan Defaults (2010–2019 Federal Data)

2.3%
charge-off rate on 222 SBA 7(a) loans to Great Clips franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Great Clips against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Great Clips 2.3%; Beauty Salons 8.6%; All franchises 10.2%Great Clips 2.3%; Beauty Salons 8.6%; All franchises 10.2%0%2%4%6%8%10%Great Clips2.3%Beauty Salons8.6%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Great Clips 2.3%; Beauty Salons 8.6%; All franchises 10.2%Great Clips 2.3%; Beauty Salons 8.6%; All franchises 10.2%0%2%4%6%8%10%Great Clips2.3%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 43 Great Clips SBA borrowers failed to repay — well below the Beauty Salons average of 8.6%.

Between 2010 and 2019, 222 Great Clips franchisees financed with SBA 7(a) loans. 5 defaulted — a 2.3% charge-off rate, 0.3x 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 Great Clips franchise failure rate on SBA loans?

Great Clips 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 Great Clips franchisees: 222 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 Great Clips compare with other Beauty Salons franchises?

The table sets Great Clips'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.

Great Clips versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureGreat ClipsBeauty SalonsAll franchisesAll SBA borrowers
Default (charge-off) rate2.3%8.6%10.2%8.0%
Loans in sample222———
Defaults5———
Average loan size$219,089———

What has Great Clips SBA lending looked like since 2020?

Since 2020, Great Clips franchisees have taken 43 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 Great Clips 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 8 loans; FY2011 0% of 13 loans; FY2012 0% of 23 loans; FY2013 0% of 20 loans; FY2014 5% of 37 loans; FY2015 0% of 28 loans; FY2016 5% of 40 loans; FY2017 0% of 24 loans; FY2018 5% of 21 loans; FY2019 0% of 8 loansCharge-off rate by approval year: FY2010 0% of 8 loans; FY2011 0% of 13 loans; FY2012 0% of 23 loans; FY2013 0% of 20 loans; FY2014 5% of 37 loans; FY2015 0% of 28 loans; FY2016 5% of 40 loans; FY2017 0% of 24 loans; FY2018 5% of 21 loans; FY2019 0% of 8 loans0%5%10%0%2010n=80%2011n=130%2012n=230%2013n=205%2014n=370%2015n=285%2016n=400%2017n=245%2018n=210%2019n=8
Charge-off rate by approval year: FY2010 0% of 8 loans; FY2011 0% of 13 loans; FY2012 0% of 23 loans; FY2013 0% of 20 loans; FY2014 5% of 37 loans; FY2015 0% of 28 loans; FY2016 5% of 40 loans; FY2017 0% of 24 loans; FY2018 5% of 21 loans; FY2019 0% of 8 loansCharge-off rate by approval year: FY2010 0% of 8 loans; FY2011 0% of 13 loans; FY2012 0% of 23 loans; FY2013 0% of 20 loans; FY2014 5% of 37 loans; FY2015 0% of 28 loans; FY2016 5% of 40 loans; FY2017 0% of 24 loans; FY2018 5% of 21 loans; FY2019 0% of 8 loans0%5%10%0%’10n=80%’11n=130%’12n=230%’13n=205%’14n=370%’15n=285%’16n=400%’17n=245%’18n=210%’19n=8

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 15; FY2021 5; FY2022 6; FY2023 3; FY2024 3; FY2025 7; FY2026 4Loans approved since 2020: FY2020 15; FY2021 5; FY2022 6; FY2023 3; FY2024 3; FY2025 7; FY2026 4152020520216202232023320247202542026
Loans approved since 2020: FY2020 15; FY2021 5; FY2022 6; FY2023 3; FY2024 3; FY2025 7; FY2026 4Loans approved since 2020: FY2020 15; FY2021 5; FY2022 6; FY2023 3; FY2024 3; FY2025 7; FY2026 415’205’216’223’233’247’254’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010800.0%
FY20111300.0%
FY20122300.0%
FY20132000.0%
FY20143725.4%
FY20152800.0%
FY20164025.0%
FY20172400.0%
FY20182114.8%
FY2019800.0%
FY202015—outstanding
FY20215—outstanding
FY20226—outstanding
FY20233—outstanding
FY20243—outstanding
FY20257—outstanding
FY20264—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?

Great Clips's figure rests on 222 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 222 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 Great Clips figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is Great Clips's franchise failure rate on SBA loans?
Between 2010 and 2019, 222 Great Clips franchisees financed with SBA 7(a) loans. 5 defaulted — a 2.3% charge-off rate, 0.3x the Beauty Salons average of 8.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Great Clips a safe franchise investment?
Between 2010–2019, Great Clips franchisees defaulted on SBA loans at 2.3% 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). Great Clips franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 2.3% (5 of 222 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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