Franchise Failure Rates

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

HONEST-1 Auto Care Franchise Failure Rate: 10.0% SBA Loan Defaults (2010–2019 Federal Data)

10.0%
charge-off rate on 40 SBA 7(a) loans to HONEST-1 Auto Care franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — HONEST-1 Auto Care against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: HONEST-1 Auto Care 10.0%; General Automotive Repair 7.6%; All franchises 10.2%HONEST-1 Auto Care 10.0%; General Automotive Repair 7.6%; All franchises 10.2%0%2%4%6%8%10%HONEST-1 Auto Care10.0%General AutomotiveRepair7.6%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: HONEST-1 Auto Care 10.0%; General Automotive Repair 7.6%; All franchises 10.2%HONEST-1 Auto Care 10.0%; General Automotive Repair 7.6%; All franchises 10.2%0%2%4%6%8%10%HONEST-1 Auto Care10.0%General Automotive Repair7.6%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 10 HONEST-1 Auto Care SBA borrowers failed to repay — above the General Automotive Repair average of 7.6%.

Between 2010 and 2019, 40 HONEST-1 Auto Care franchisees financed with SBA 7(a) loans. 4 defaulted — a 10.0% charge-off rate, 1.3x the General Automotive Repair average of 7.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the HONEST-1 Auto Care franchise failure rate on SBA loans?

HONEST-1 Auto Care is a General Automotive Repair franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to HONEST-1 Auto Care franchisees: 40 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 HONEST-1 Auto Care compare with other General Automotive Repair franchises?

The table sets HONEST-1 Auto Care's charge-off rate beside its General Automotive Repair 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.

HONEST-1 Auto Care versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureHONEST-1 Auto CareGeneral Automotive RepairAll franchisesAll SBA borrowers
Default (charge-off) rate10.0%7.6%10.2%8.0%
Loans in sample40———
Defaults4———
Average loan size$456,070———
Charge-off rate by approval year — share of each fiscal year's HONEST-1 Auto Care 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 1 loans; FY2012 0% of 6 loans; FY2013 0% of 2 loans; FY2014 25% of 4 loans; FY2015 0% of 10 loans; FY2016 29% of 7 loans; FY2017 0% of 9 loans; FY2018 100% of 1 loansCharge-off rate by approval year: FY2010 0% of 1 loans; FY2012 0% of 6 loans; FY2013 0% of 2 loans; FY2014 25% of 4 loans; FY2015 0% of 10 loans; FY2016 29% of 7 loans; FY2017 0% of 9 loans; FY2018 100% of 1 loans0%5%10%0%2010n=10%2012n=60%2013n=225%2014n=40%2015n=1029%2016n=70%2017n=9100%2018n=1
Charge-off rate by approval year: FY2010 0% of 1 loans; FY2012 0% of 6 loans; FY2013 0% of 2 loans; FY2014 25% of 4 loans; FY2015 0% of 10 loans; FY2016 29% of 7 loans; FY2017 0% of 9 loans; FY2018 100% of 1 loansCharge-off rate by approval year: FY2010 0% of 1 loans; FY2012 0% of 6 loans; FY2013 0% of 2 loans; FY2014 25% of 4 loans; FY2015 0% of 10 loans; FY2016 29% of 7 loans; FY2017 0% of 9 loans; FY2018 100% of 1 loans0%5%10%0%’10n=10%’12n=60%’13n=225%’14n=40%’15n=1029%’16n=70%’17n=9100%’18n=1

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010100.0%
FY2012600.0%
FY2013200.0%
FY20144125.0%
FY20151000.0%
FY20167228.6%
FY2017900.0%
FY201811100.0%

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?

HONEST-1 Auto Care's figure rests on 40 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 40 resolved loans, one default moves the rate by about 2.5 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 HONEST-1 Auto Care figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 40 resolved loans — directional, not precise.

Frequently asked

What is HONEST-1 Auto Care's franchise failure rate on SBA loans?
Between 2010 and 2019, 40 HONEST-1 Auto Care franchisees financed with SBA 7(a) loans. 4 defaulted — a 10.0% charge-off rate, 1.3x the General Automotive Repair average of 7.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is HONEST-1 Auto Care a safe franchise investment?
Between 2010–2019, HONEST-1 Auto Care franchisees defaulted on SBA loans at 10.0% versus a 7.6% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). HONEST-1 Auto Care franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 10.0% (4 of 40 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/honest-1-auto-care/ · Data & methodology · Download the dataset (CSV)