Franchise Failure Rates

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

Merle Norman Cosmetics Franchise Failure Rate: 12.5% SBA Loan Defaults (2010–2019 Federal Data)

12.5%
charge-off rate on 24 SBA 7(a) loans to Merle Norman Cosmetics franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Merle Norman Cosmetics against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Merle Norman Cosmetics 12.5%; Cosmetics, Beauty Supplies, and Perfume Stores 12.2%; All franchises 10.2%Merle Norman Cosmetics 12.5%; Cosmetics, Beauty Supplies, and Perfume Stores 12.2%; All franchises 10.2%0%5%10%Merle Norman Cosmetics12.5%Cosmetics, BeautySupplies, and Perfume12.2%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Merle Norman Cosmetics 12.5%; Cosmetics, Beauty Supplies, and Perfume Stores 12.2%; All franchises 10.2%Merle Norman Cosmetics 12.5%; Cosmetics, Beauty Supplies, and Perfume Stores 12.2%; All franchises 10.2%0%5%10%Merle Norman Cosmetics12.5%Cosmetics, Beauty Supplies, and Perfume Stores12.2%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 8 Merle Norman Cosmetics SBA borrowers failed to repay — in line with the Cosmetics, Beauty Supplies, and Perfume Stores average of 12.2%.

Between 2010 and 2019, 24 Merle Norman Cosmetics franchisees financed with SBA 7(a) loans. 3 defaulted — a 12.5% charge-off rate, 1.0x the Cosmetics, Beauty Supplies, and Perfume Stores average of 12.2%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Merle Norman Cosmetics franchise failure rate on SBA loans?

Merle Norman Cosmetics is a Cosmetics, Beauty Supplies, and Perfume 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 Merle Norman Cosmetics franchisees: 24 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 Merle Norman Cosmetics compare with other Cosmetics, Beauty Supplies, and Perfume Stores franchises?

The table sets Merle Norman Cosmetics's charge-off rate beside its Cosmetics, Beauty Supplies, and Perfume 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.

Merle Norman Cosmetics versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureMerle Norman CosmeticsCosmetics, Beauty Supplies, and Perfume StoresAll franchisesAll SBA borrowers
Default (charge-off) rate12.5%12.2%10.2%8.0%
Loans in sample24———
Defaults3———
Average loan size$98,458———
Charge-off rate by approval year — share of each fiscal year's Merle Norman Cosmetics 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 4 loans; FY2011 50% of 2 loans; FY2012 0% of 1 loans; FY2013 0% of 4 loans; FY2014 33% of 3 loans; FY2015 0% of 5 loans; FY2016 33% of 3 loans; FY2017 0% of 2 loansCharge-off rate by approval year: FY2010 0% of 4 loans; FY2011 50% of 2 loans; FY2012 0% of 1 loans; FY2013 0% of 4 loans; FY2014 33% of 3 loans; FY2015 0% of 5 loans; FY2016 33% of 3 loans; FY2017 0% of 2 loans0%5%10%0%2010n=450%2011n=20%2012n=10%2013n=433%2014n=30%2015n=533%2016n=30%2017n=2
Charge-off rate by approval year: FY2010 0% of 4 loans; FY2011 50% of 2 loans; FY2012 0% of 1 loans; FY2013 0% of 4 loans; FY2014 33% of 3 loans; FY2015 0% of 5 loans; FY2016 33% of 3 loans; FY2017 0% of 2 loansCharge-off rate by approval year: FY2010 0% of 4 loans; FY2011 50% of 2 loans; FY2012 0% of 1 loans; FY2013 0% of 4 loans; FY2014 33% of 3 loans; FY2015 0% of 5 loans; FY2016 33% of 3 loans; FY2017 0% of 2 loans0%5%10%0%’10n=450%’11n=20%’12n=10%’13n=433%’14n=30%’15n=533%’16n=30%’17n=2

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010400.0%
FY20112150.0%
FY2012100.0%
FY2013400.0%
FY20143133.3%
FY2015500.0%
FY20163133.3%
FY2017200.0%

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?

Merle Norman Cosmetics's figure rests on 24 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 24 resolved loans, one default moves the rate by about 4.2 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 Merle Norman Cosmetics figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 24 resolved loans — directional, not precise.

Frequently asked

What is Merle Norman Cosmetics's franchise failure rate on SBA loans?
Between 2010 and 2019, 24 Merle Norman Cosmetics franchisees financed with SBA 7(a) loans. 3 defaulted — a 12.5% charge-off rate, 1.0x the Cosmetics, Beauty Supplies, and Perfume Stores average of 12.2%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Merle Norman Cosmetics a safe franchise investment?
Between 2010–2019, Merle Norman Cosmetics franchisees defaulted on SBA loans at 12.5% versus a 12.2% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Merle Norman Cosmetics franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 12.5% (3 of 24 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/merle-norman-cosmetics/ · Data & methodology · Download the dataset (CSV)