Franchise Failure Rates

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

Papa John's Pizza Franchise Failure Rate: 15.1% SBA Loan Defaults (2010–2019 Federal Data)

15.1%
charge-off rate on 93 SBA 7(a) loans to Papa John's Pizza franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Papa John's Pizza against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Papa John's Pizza 15.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%Papa John's Pizza 15.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%5%10%15%Papa John's Pizza15.1%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Papa John's Pizza 15.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%Papa John's Pizza 15.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%5%10%15%Papa John's Pizza15.1%Limited-Service Restaurants10.3%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 7 Papa John's Pizza SBA borrowers failed to repay — above the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 93 Papa John's Pizza franchisees financed with SBA 7(a) loans. 14 defaulted — a 15.1% charge-off rate, 1.5x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Papa John's Pizza franchise failure rate on SBA loans?

Papa John's Pizza is a Limited-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 Papa John's Pizza franchisees: 93 loans approved between fiscal 2010 and 2019, of which 14 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 Papa John's Pizza compare with other Limited-Service Restaurants franchises?

The table sets Papa John's Pizza's charge-off rate beside its Limited-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.

Papa John's Pizza versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasurePapa John's PizzaLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate15.1%10.3%10.2%8.0%
Loans in sample93———
Defaults14———
Average loan size$220,284———
Charge-off rate by approval year — share of each fiscal year's Papa John's Pizza 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 20% of 5 loans; FY2011 29% of 17 loans; FY2012 10% of 10 loans; FY2013 17% of 6 loans; FY2014 14% of 7 loans; FY2015 0% of 19 loans; FY2016 20% of 10 loans; FY2017 19% of 16 loans; FY2018 0% of 3 loansCharge-off rate by approval year: FY2010 20% of 5 loans; FY2011 29% of 17 loans; FY2012 10% of 10 loans; FY2013 17% of 6 loans; FY2014 14% of 7 loans; FY2015 0% of 19 loans; FY2016 20% of 10 loans; FY2017 19% of 16 loans; FY2018 0% of 3 loans0%15%30%20%2010n=529%2011n=1710%2012n=1017%2013n=614%2014n=70%2015n=1920%2016n=1019%2017n=160%2018n=3
Charge-off rate by approval year: FY2010 20% of 5 loans; FY2011 29% of 17 loans; FY2012 10% of 10 loans; FY2013 17% of 6 loans; FY2014 14% of 7 loans; FY2015 0% of 19 loans; FY2016 20% of 10 loans; FY2017 19% of 16 loans; FY2018 0% of 3 loansCharge-off rate by approval year: FY2010 20% of 5 loans; FY2011 29% of 17 loans; FY2012 10% of 10 loans; FY2013 17% of 6 loans; FY2014 14% of 7 loans; FY2015 0% of 19 loans; FY2016 20% of 10 loans; FY2017 19% of 16 loans; FY2018 0% of 3 loans0%15%30%20%’10n=529%’11n=1710%’12n=1017%’13n=614%’14n=70%’15n=1920%’16n=1019%’17n=160%’18n=3

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY20105120.0%
FY201117529.4%
FY201210110.0%
FY20136116.7%
FY20147114.3%
FY20151900.0%
FY201610220.0%
FY201716318.8%
FY2018300.0%

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?

Papa John's Pizza's figure rests on 93 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 93 resolved loans, one default moves the rate by about 1.1 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 Papa John's Pizza figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 93 resolved loans — directional, not precise.

Frequently asked

What is Papa John's Pizza's franchise failure rate on SBA loans?
Between 2010 and 2019, 93 Papa John's Pizza franchisees financed with SBA 7(a) loans. 14 defaulted — a 15.1% charge-off rate, 1.5x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Papa John's Pizza a safe franchise investment?
Between 2010–2019, Papa John's Pizza franchisees defaulted on SBA loans at 15.1% versus a 10.3% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Papa John's Pizza franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 15.1% (14 of 93 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/papa-johns-pizza/ · Data & methodology · Download the dataset (CSV)