Franchise Failure Rates

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

Papa Murphy's Franchise Failure Rate: 9.0% SBA Loan Defaults (2010–2019 Federal Data)

9.0%
charge-off rate on 111 SBA 7(a) loans to Papa Murphy's franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Papa Murphy's against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Papa Murphy's 9.0%; Limited-Service Restaurants 10.3%; All franchises 10.2%Papa Murphy's 9.0%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Papa Murphy's9.0%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Papa Murphy's 9.0%; Limited-Service Restaurants 10.3%; All franchises 10.2%Papa Murphy's 9.0%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Papa Murphy's9.0%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 11 Papa Murphy's SBA borrowers failed to repay — below the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 111 Papa Murphy's franchisees financed with SBA 7(a) loans. 10 defaulted — a 9.0% charge-off rate, 0.9x 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 Murphy's franchise failure rate on SBA loans?

Papa Murphy's 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 Murphy's franchisees: 111 loans approved between fiscal 2010 and 2019, of which 10 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 Murphy's compare with other Limited-Service Restaurants franchises?

The table sets Papa Murphy's'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 Murphy's versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasurePapa Murphy'sLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate9.0%10.3%10.2%8.0%
Loans in sample111———
Defaults10———
Average loan size$267,871———
Charge-off rate by approval year — share of each fiscal year's Papa Murphy's 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: FY2013 0% of 3 loans; FY2014 0% of 26 loans; FY2015 14% of 35 loans; FY2016 13% of 30 loans; FY2017 6% of 16 loans; FY2018 0% of 1 loansCharge-off rate by approval year: FY2013 0% of 3 loans; FY2014 0% of 26 loans; FY2015 14% of 35 loans; FY2016 13% of 30 loans; FY2017 6% of 16 loans; FY2018 0% of 1 loans0%8%15%0%2013n=30%2014n=2614%2015n=3513%2016n=306%2017n=160%2018n=1
Charge-off rate by approval year: FY2013 0% of 3 loans; FY2014 0% of 26 loans; FY2015 14% of 35 loans; FY2016 13% of 30 loans; FY2017 6% of 16 loans; FY2018 0% of 1 loansCharge-off rate by approval year: FY2013 0% of 3 loans; FY2014 0% of 26 loans; FY2015 14% of 35 loans; FY2016 13% of 30 loans; FY2017 6% of 16 loans; FY2018 0% of 1 loans0%8%15%0%’13n=30%’14n=2614%’15n=3513%’16n=306%’17n=160%’18n=1

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2013300.0%
FY20142600.0%
FY201535514.3%
FY201630413.3%
FY20171616.2%
FY2018100.0%

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 Murphy's's figure rests on 111 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 111 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 Papa Murphy's figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is Papa Murphy's's franchise failure rate on SBA loans?
Between 2010 and 2019, 111 Papa Murphy's franchisees financed with SBA 7(a) loans. 10 defaulted — a 9.0% charge-off rate, 0.9x 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 Murphy's a safe franchise investment?
Between 2010–2019, Papa Murphy's franchisees defaulted on SBA loans at 9.0% 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 Murphy's franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 9.0% (10 of 111 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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