Franchise Failure Rates

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

Hobbytown USA Franchise Failure Rate: 14.3% SBA Loan Defaults (2010–2019 Federal Data)

14.3%
charge-off rate on 21 SBA 7(a) loans to Hobbytown USA franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Hobbytown USA against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Hobbytown USA 14.3%; Hobby, Toy, and Game Stores 10.8%; All franchises 10.2%Hobbytown USA 14.3%; Hobby, Toy, and Game Stores 10.8%; All franchises 10.2%0%5%10%15%Hobbytown USA14.3%Hobby, Toy, and GameStores10.8%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Hobbytown USA 14.3%; Hobby, Toy, and Game Stores 10.8%; All franchises 10.2%Hobbytown USA 14.3%; Hobby, Toy, and Game Stores 10.8%; All franchises 10.2%0%5%10%15%Hobbytown USA14.3%Hobby, Toy, and Game Stores10.8%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 7 Hobbytown USA SBA borrowers failed to repay — above the Hobby, Toy, and Game Stores average of 10.8%.

Between 2010 and 2019, 21 Hobbytown USA franchisees financed with SBA 7(a) loans. 3 defaulted — a 14.3% charge-off rate, 1.3x the Hobby, Toy, and Game Stores average of 10.8%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Hobbytown USA franchise failure rate on SBA loans?

Hobbytown USA is a Hobby, Toy, and Game 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 Hobbytown USA franchisees: 21 loans approved between fiscal 2010 and 2019, of which 3 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 Hobbytown USA compare with other Hobby, Toy, and Game Stores franchises?

The table sets Hobbytown USA's charge-off rate beside its Hobby, Toy, and Game 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.

Hobbytown USA versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureHobbytown USAHobby, Toy, and Game StoresAll franchisesAll SBA borrowers
Default (charge-off) rate14.3%10.8%10.2%8.0%
Loans in sample21———
Defaults3———
Average loan size$176,910———
Charge-off rate by approval year — share of each fiscal year's Hobbytown USA 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 4 loans; FY2012 50% of 2 loans; FY2013 33% of 3 loans; FY2014 0% of 4 loans; FY2015 25% of 4 loans; FY2016 0% of 1 loans; FY2017 0% of 3 loansCharge-off rate by approval year: FY2011 0% of 4 loans; FY2012 50% of 2 loans; FY2013 33% of 3 loans; FY2014 0% of 4 loans; FY2015 25% of 4 loans; FY2016 0% of 1 loans; FY2017 0% of 3 loans0%5%10%0%2011n=450%2012n=233%2013n=30%2014n=425%2015n=40%2016n=10%2017n=3
Charge-off rate by approval year: FY2011 0% of 4 loans; FY2012 50% of 2 loans; FY2013 33% of 3 loans; FY2014 0% of 4 loans; FY2015 25% of 4 loans; FY2016 0% of 1 loans; FY2017 0% of 3 loansCharge-off rate by approval year: FY2011 0% of 4 loans; FY2012 50% of 2 loans; FY2013 33% of 3 loans; FY2014 0% of 4 loans; FY2015 25% of 4 loans; FY2016 0% of 1 loans; FY2017 0% of 3 loans0%5%10%0%’11n=450%’12n=233%’13n=30%’14n=425%’15n=40%’16n=10%’17n=3

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2011400.0%
FY20122150.0%
FY20133133.3%
FY2014400.0%
FY20154125.0%
FY2016100.0%
FY2017300.0%

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?

Hobbytown USA's figure rests on 21 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 21 resolved loans, one default moves the rate by about 4.8 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 Hobbytown USA figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 21 resolved loans — directional, not precise.

Frequently asked

What is Hobbytown USA's franchise failure rate on SBA loans?
Between 2010 and 2019, 21 Hobbytown USA franchisees financed with SBA 7(a) loans. 3 defaulted — a 14.3% charge-off rate, 1.3x the Hobby, Toy, and Game Stores average of 10.8%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Hobbytown USA a safe franchise investment?
Between 2010–2019, Hobbytown USA franchisees defaulted on SBA loans at 14.3% versus a 10.8% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Hobbytown USA franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 14.3% (3 of 21 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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