Franchise Failure Rates

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

Liberty Tax Service Franchise Failure Rate: 9.8% SBA Loan Defaults (2010–2019 Federal Data)

9.8%
charge-off rate on 122 SBA 7(a) loans to Liberty Tax Service franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Liberty Tax Service against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Liberty Tax Service 9.8%; Tax Preparation Services 9.7%; All franchises 10.2%Liberty Tax Service 9.8%; Tax Preparation Services 9.7%; All franchises 10.2%0%2%4%6%8%10%Liberty Tax Service9.8%Tax Preparation Services9.7%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Liberty Tax Service 9.8%; Tax Preparation Services 9.7%; All franchises 10.2%Liberty Tax Service 9.8%; Tax Preparation Services 9.7%; All franchises 10.2%0%2%4%6%8%10%Liberty Tax Service9.8%Tax Preparation Services9.7%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 Liberty Tax Service SBA borrowers failed to repay — in line with the Tax Preparation Services average of 9.7%.

Between 2010 and 2019, 122 Liberty Tax Service franchisees financed with SBA 7(a) loans. 12 defaulted — a 9.8% charge-off rate, 1.0x the Tax Preparation Services average of 9.7%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Liberty Tax Service franchise failure rate on SBA loans?

Liberty Tax Service is a Tax Preparation 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 Liberty Tax Service franchisees: 122 loans approved between fiscal 2010 and 2019, of which 12 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 Liberty Tax Service compare with other Tax Preparation Services franchises?

The table sets Liberty Tax Service's charge-off rate beside its Tax Preparation 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.

Liberty Tax Service versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureLiberty Tax ServiceTax Preparation ServicesAll franchisesAll SBA borrowers
Default (charge-off) rate9.8%9.7%10.2%8.0%
Loans in sample122———
Defaults12———
Average loan size$124,834———

What has Liberty Tax Service SBA lending looked like since 2020?

Since 2020, Liberty Tax Service franchisees have taken 26 new SBA 7(a) loans. 2 have 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 Liberty Tax Service 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 15% of 13 loans; FY2011 0% of 16 loans; FY2012 10% of 10 loans; FY2013 0% of 11 loans; FY2014 14% of 14 loans; FY2015 0% of 24 loans; FY2016 21% of 14 loans; FY2017 29% of 7 loans; FY2018 0% of 9 loans; FY2019 50% of 4 loansCharge-off rate by approval year: FY2010 15% of 13 loans; FY2011 0% of 16 loans; FY2012 10% of 10 loans; FY2013 0% of 11 loans; FY2014 14% of 14 loans; FY2015 0% of 24 loans; FY2016 21% of 14 loans; FY2017 29% of 7 loans; FY2018 0% of 9 loans; FY2019 50% of 4 loans0%12%25%15%2010n=130%2011n=1610%2012n=100%2013n=1114%2014n=140%2015n=2421%2016n=1429%2017n=70%2018n=950%2019n=4
Charge-off rate by approval year: FY2010 15% of 13 loans; FY2011 0% of 16 loans; FY2012 10% of 10 loans; FY2013 0% of 11 loans; FY2014 14% of 14 loans; FY2015 0% of 24 loans; FY2016 21% of 14 loans; FY2017 29% of 7 loans; FY2018 0% of 9 loans; FY2019 50% of 4 loansCharge-off rate by approval year: FY2010 15% of 13 loans; FY2011 0% of 16 loans; FY2012 10% of 10 loans; FY2013 0% of 11 loans; FY2014 14% of 14 loans; FY2015 0% of 24 loans; FY2016 21% of 14 loans; FY2017 29% of 7 loans; FY2018 0% of 9 loans; FY2019 50% of 4 loans0%12%25%15%’10n=130%’11n=1610%’12n=100%’13n=1114%’14n=140%’15n=2421%’16n=1429%’17n=70%’18n=950%’19n=4

Loans approved since 2020, by fiscal year — counts only: 2 have charged off to date and most are still outstanding, so no rate is drawn.

Loans approved since 2020: FY2020 6; FY2021 6; FY2022 5; FY2024 2; FY2025 3; FY2026 4Loans approved since 2020: FY2020 6; FY2021 6; FY2022 5; FY2024 2; FY2025 3; FY2026 4620206202152022220243202542026
Loans approved since 2020: FY2020 6; FY2021 6; FY2022 5; FY2024 2; FY2025 3; FY2026 4Loans approved since 2020: FY2020 6; FY2021 6; FY2022 5; FY2024 2; FY2025 3; FY2026 46’206’215’222’243’254’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY201013215.4%
FY20111600.0%
FY201210110.0%
FY20131100.0%
FY201414214.3%
FY20152400.0%
FY201614321.4%
FY20177228.6%
FY2018900.0%
FY20194250.0%
FY20206—outstanding
FY20216—outstanding
FY20225—outstanding
FY20242—outstanding
FY20253—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?

Liberty Tax Service's figure rests on 122 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 122 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 Liberty Tax Service figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is Liberty Tax Service's franchise failure rate on SBA loans?
Between 2010 and 2019, 122 Liberty Tax Service franchisees financed with SBA 7(a) loans. 12 defaulted — a 9.8% charge-off rate, 1.0x the Tax Preparation Services average of 9.7%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Liberty Tax Service a safe franchise investment?
Between 2010–2019, Liberty Tax Service franchisees defaulted on SBA loans at 9.8% versus a 9.7% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Liberty Tax Service franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 9.8% (12 of 122 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/liberty-tax-service/ · Data & methodology · Download the dataset (CSV)