Franchise Failure Rates

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

Matco Tools Franchise Failure Rate: 21.7% SBA Loan Defaults (2010–2019 Federal Data)

21.7%
charge-off rate on 23 SBA 7(a) loans to Matco Tools franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Matco Tools against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Matco Tools 21.7%; Other Direct Selling Establishments 9.6%; All franchises 10.2%Matco Tools 21.7%; Other Direct Selling Establishments 9.6%; All franchises 10.2%0%5%10%15%20%Matco Tools21.7%Other Direct SellingEstablishments9.6%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Matco Tools 21.7%; Other Direct Selling Establishments 9.6%; All franchises 10.2%Matco Tools 21.7%; Other Direct Selling Establishments 9.6%; All franchises 10.2%0%5%10%15%20%Matco Tools21.7%Other Direct Selling Establishments9.6%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 5 Matco Tools SBA borrowers failed to repay — more than double the Other Direct Selling Establishments average of 9.6%.

Between 2010 and 2019, 23 Matco Tools franchisees financed with SBA 7(a) loans. 5 defaulted — a 21.7% charge-off rate, 2.3x the Other Direct Selling Establishments average of 9.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Matco Tools franchise failure rate on SBA loans?

Matco Tools is a Other Direct Selling Establishments franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Matco Tools franchisees: 23 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 Matco Tools compare with other Other Direct Selling Establishments franchises?

The table sets Matco Tools's charge-off rate beside its Other Direct Selling Establishments 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. A cell in red is more than twice the industry benchmark.

Matco Tools versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureMatco ToolsOther Direct Selling EstablishmentsAll franchisesAll SBA borrowers
Default (charge-off) rate21.7%9.6%10.2%8.0%
Loans in sample23———
Defaults5———
Average loan size$60,474———

What has Matco Tools SBA lending looked like since 2020?

Since 2020, Matco Tools franchisees have taken 16 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 Matco Tools 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 3 loans; FY2011 0% of 3 loans; FY2013 50% of 4 loans; FY2014 50% of 2 loans; FY2016 0% of 1 loans; FY2017 0% of 5 loans; FY2018 50% of 4 loans; FY2019 0% of 1 loansCharge-off rate by approval year: FY2010 0% of 3 loans; FY2011 0% of 3 loans; FY2013 50% of 4 loans; FY2014 50% of 2 loans; FY2016 0% of 1 loans; FY2017 0% of 5 loans; FY2018 50% of 4 loans; FY2019 0% of 1 loans0%5%10%0%2010n=30%2011n=350%2013n=450%2014n=20%2016n=10%2017n=550%2018n=40%2019n=1
Charge-off rate by approval year: FY2010 0% of 3 loans; FY2011 0% of 3 loans; FY2013 50% of 4 loans; FY2014 50% of 2 loans; FY2016 0% of 1 loans; FY2017 0% of 5 loans; FY2018 50% of 4 loans; FY2019 0% of 1 loansCharge-off rate by approval year: FY2010 0% of 3 loans; FY2011 0% of 3 loans; FY2013 50% of 4 loans; FY2014 50% of 2 loans; FY2016 0% of 1 loans; FY2017 0% of 5 loans; FY2018 50% of 4 loans; FY2019 0% of 1 loans0%5%10%0%’10n=30%’11n=350%’13n=450%’14n=20%’16n=10%’17n=550%’18n=40%’19n=1

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: FY2021 3; FY2022 4; FY2023 1; FY2024 2; FY2025 1; FY2026 5Loans approved since 2020: FY2021 3; FY2022 4; FY2023 1; FY2024 2; FY2025 1; FY2026 5320214202212023220241202552026
Loans approved since 2020: FY2021 3; FY2022 4; FY2023 1; FY2024 2; FY2025 1; FY2026 5Loans approved since 2020: FY2021 3; FY2022 4; FY2023 1; FY2024 2; FY2025 1; FY2026 53’214’221’232’241’255’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010300.0%
FY2011300.0%
FY20134250.0%
FY20142150.0%
FY2016100.0%
FY2017500.0%
FY20184250.0%
FY2019100.0%
FY20213—outstanding
FY20224—outstanding
FY20231—outstanding
FY20242—outstanding
FY20251—outstanding
FY20265—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?

Matco Tools's figure rests on 23 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 23 resolved loans, one default moves the rate by about 4.3 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 Matco Tools figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 23 resolved loans — directional, not precise.

Frequently asked

What is Matco Tools's franchise failure rate on SBA loans?
Between 2010 and 2019, 23 Matco Tools franchisees financed with SBA 7(a) loans. 5 defaulted — a 21.7% charge-off rate, 2.3x the Other Direct Selling Establishments average of 9.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Matco Tools a safe franchise investment?
Between 2010–2019, Matco Tools franchisees defaulted on SBA loans at 21.7% versus a 9.6% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Matco Tools franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 21.7% (5 of 23 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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