SBA 7(a) loan outcomes · FY2010–FY2019 cohort · Statuses as of June 30, 2026 · Last updated August 17, 2026
Mellow Mushroom Franchise Failure Rate: 15.2% SBA Loan Defaults (2010–2019 Federal Data)
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.
About 1 in 7 Mellow Mushroom SBA borrowers failed to repay — well above the Full-Service Restaurants average of 9.6%.
Between 2010 and 2019, 79 Mellow Mushroom franchisees financed with SBA 7(a) loans. 12 defaulted — a 15.2% charge-off rate, 1.6x the Full-Service Restaurants average of 9.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
What is the Mellow Mushroom franchise failure rate on SBA loans?
Mellow Mushroom is a Full-Service Restaurants franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Mellow Mushroom franchisees: 79 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.
- SBA 7(a) loans approved FY2010–FY201979
- Charged off12
- Charge-off rate15.2%
- Full-Service Restaurants franchise benchmark9.6%
- Brand vs industry1.6x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$1,154,957
- New SBA loans since 202010
- Early charge-offs since 20200
How does Mellow Mushroom compare with other Full-Service Restaurants franchises?
The table sets Mellow Mushroom's charge-off rate beside its Full-Service Restaurants 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.
| Measure | Mellow Mushroom | Full-Service Restaurants | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 15.2% | 9.6% | 10.2% | 8.0% |
| Loans in sample | 79 | — | — | — |
| Defaults | 12 | — | — | — |
| Average loan size | $1,154,957 | — | — | — |
What has Mellow Mushroom SBA lending looked like since 2020?
Since 2020, Mellow Mushroom franchisees have taken 10 new SBA 7(a) loans. None have charged off to date, though most remain outstanding and unresolved.
Loans approved since 2020, by fiscal year — counts only: 0 have charged off to date and most are still outstanding, so no rate is drawn.
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
Show the numbers behind this chart
| Fiscal year | Loans | Charged off | Rate |
|---|---|---|---|
| FY2010 | 7 | 0 | 0.0% |
| FY2011 | 10 | 1 | 10.0% |
| FY2012 | 8 | 4 | 50.0% |
| FY2013 | 8 | 1 | 12.5% |
| FY2014 | 13 | 5 | 38.5% |
| FY2015 | 12 | 0 | 0.0% |
| FY2016 | 10 | 1 | 10.0% |
| FY2017 | 6 | 0 | 0.0% |
| FY2018 | 3 | 0 | 0.0% |
| FY2019 | 2 | 0 | 0.0% |
| FY2020 | 2 | — | outstanding |
| FY2021 | 2 | — | outstanding |
| FY2022 | 2 | — | outstanding |
| FY2024 | 2 | — | outstanding |
| FY2026 | 2 | — | 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?
Mellow Mushroom's figure rests on 79 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 79 resolved loans, one default moves the rate by about 1.3 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 Mellow Mushroom figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 79 resolved loans — directional, not precise.
Frequently asked
- What is Mellow Mushroom's franchise failure rate on SBA loans?
- Between 2010 and 2019, 79 Mellow Mushroom franchisees financed with SBA 7(a) loans. 12 defaulted — a 15.2% charge-off rate, 1.6x the Full-Service Restaurants average of 9.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
- Is Mellow Mushroom a safe franchise investment?
- Between 2010–2019, Mellow Mushroom franchisees defaulted on SBA loans at 15.2% 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). Mellow Mushroom franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 15.2% (12 of 79 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/mellow-mushroom/ · Data & methodology · Download the dataset (CSV)