Franchise Failure Rates

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

Hand and Stone Franchise Failure Rate: 2.2% SBA Loan Defaults (2010–2019 Federal Data)

2.2%
charge-off rate on 90 SBA 7(a) loans to Hand and Stone franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Hand and Stone against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Hand and Stone 2.2%; Other Personal Care Services 10.0%; All franchises 10.2%Hand and Stone 2.2%; Other Personal Care Services 10.0%; All franchises 10.2%0%2%4%6%8%10%Hand and Stone2.2%Other Personal CareServices10.0%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Hand and Stone 2.2%; Other Personal Care Services 10.0%; All franchises 10.2%Hand and Stone 2.2%; Other Personal Care Services 10.0%; All franchises 10.2%0%2%4%6%8%10%Hand and Stone2.2%Other Personal Care Services10.0%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 45 Hand and Stone SBA borrowers failed to repay — well below the Other Personal Care Services average of 10.0%.

Between 2010 and 2019, 90 Hand and Stone franchisees financed with SBA 7(a) loans. 2 defaulted — a 2.2% charge-off rate, 0.2x the Other Personal Care Services average of 10.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Hand and Stone franchise failure rate on SBA loans?

Hand and Stone is a Other Personal Care Services franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Hand and Stone franchisees: 90 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 Hand and Stone compare with other Other Personal Care Services franchises?

The table sets Hand and Stone's charge-off rate beside its Other Personal Care Services 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.

Hand and Stone versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureHand and StoneOther Personal Care ServicesAll franchisesAll SBA borrowers
Default (charge-off) rate2.2%10.0%10.2%8.0%
Loans in sample90———
Defaults2———
Average loan size$348,437———
Charge-off rate by approval year — share of each fiscal year's Hand and Stone 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; FY2012 0% of 3 loans; FY2013 0% of 12 loans; FY2014 7% of 14 loans; FY2015 3% of 30 loans; FY2016 0% of 17 loans; FY2017 0% of 9 loans; FY2018 0% of 4 loansCharge-off rate by approval year: FY2011 0% of 1 loans; FY2012 0% of 3 loans; FY2013 0% of 12 loans; FY2014 7% of 14 loans; FY2015 3% of 30 loans; FY2016 0% of 17 loans; FY2017 0% of 9 loans; FY2018 0% of 4 loans0%5%10%0%2011n=10%2012n=30%2013n=127%2014n=143%2015n=300%2016n=170%2017n=90%2018n=4
Charge-off rate by approval year: FY2011 0% of 1 loans; FY2012 0% of 3 loans; FY2013 0% of 12 loans; FY2014 7% of 14 loans; FY2015 3% of 30 loans; FY2016 0% of 17 loans; FY2017 0% of 9 loans; FY2018 0% of 4 loansCharge-off rate by approval year: FY2011 0% of 1 loans; FY2012 0% of 3 loans; FY2013 0% of 12 loans; FY2014 7% of 14 loans; FY2015 3% of 30 loans; FY2016 0% of 17 loans; FY2017 0% of 9 loans; FY2018 0% of 4 loans0%5%10%0%’11n=10%’12n=30%’13n=127%’14n=143%’15n=300%’16n=170%’17n=90%’18n=4

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2011100.0%
FY2012300.0%
FY20131200.0%
FY20141417.1%
FY20153013.3%
FY20161700.0%
FY2017900.0%
FY2018400.0%

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?

Hand and Stone's figure rests on 90 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 90 resolved loans, one default moves the rate by about 1.1 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 Hand and Stone figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 90 resolved loans — directional, not precise.

Frequently asked

What is Hand and Stone's franchise failure rate on SBA loans?
Between 2010 and 2019, 90 Hand and Stone franchisees financed with SBA 7(a) loans. 2 defaulted — a 2.2% charge-off rate, 0.2x the Other Personal Care Services average of 10.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Hand and Stone a safe franchise investment?
Between 2010–2019, Hand and Stone franchisees defaulted on SBA loans at 2.2% versus a 10.0% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Hand and Stone franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 2.2% (2 of 90 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/hand-and-stone/ · Data & methodology · Download the dataset (CSV)