Franchise Failure Rates

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

Pita Pit Franchise Failure Rate on SBA Loans: 4 of 18 Charged Off (Federal Data)

4 of 18
SBA 7(a) loans to Pita Pit franchisees (FY2010–2019) ended in charge-off
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Pita Pit against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Pita Pit 22.2%; Limited-Service Restaurants 10.3%; All franchises 10.2%Pita Pit 22.2%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%5%10%15%20%Pita Pit22.2% (small sample)Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Pita Pit 22.2%; Limited-Service Restaurants 10.3%; All franchises 10.2%Pita Pit 22.2%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%5%10%15%20%Pita Pit22.2% (small sample)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.

4 of 18 Pita Pit SBA borrowers failed to repay — too few loans to call a rate; read it as a flag, not a verdict.

4 of 18 SBA 7(a) loans to Pita Pit franchisees (2010–2019) ended in charge-off. The sample is small; treat this as a diligence flag, not a verdict. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Pita Pit franchise failure rate on SBA loans?

Pita Pit 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 Pita Pit franchisees: 18 loans approved between fiscal 2010 and 2019, of which 4 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 Pita Pit compare with other Limited-Service Restaurants franchises?

The table sets Pita Pit'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. A cell in red is more than twice the industry benchmark.

Pita Pit versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasurePita PitLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate22.2% (small sample)10.3%10.2%8.0%
Loans in sample18———
Defaults4———
Average loan size$279,150———

What has Pita Pit SBA lending looked like since 2020?

Since 2020, Pita Pit franchisees have taken 6 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 Pita Pit 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 50% of 2 loans; FY2012 25% of 4 loans; FY2013 0% of 4 loans; FY2018 20% of 5 loans; FY2019 33% of 3 loansCharge-off rate by approval year: FY2010 50% of 2 loans; FY2012 25% of 4 loans; FY2013 0% of 4 loans; FY2018 20% of 5 loans; FY2019 33% of 3 loans0%5%10%50%2010n=225%2012n=40%2013n=420%2018n=533%2019n=3
Charge-off rate by approval year: FY2010 50% of 2 loans; FY2012 25% of 4 loans; FY2013 0% of 4 loans; FY2018 20% of 5 loans; FY2019 33% of 3 loansCharge-off rate by approval year: FY2010 50% of 2 loans; FY2012 25% of 4 loans; FY2013 0% of 4 loans; FY2018 20% of 5 loans; FY2019 33% of 3 loans0%5%10%50%’10n=225%’12n=40%’13n=420%’18n=533%’19n=3

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: FY2020 2; FY2021 2; FY2022 2Loans approved since 2020: FY2020 2; FY2021 2; FY2022 2220202202122022
Loans approved since 2020: FY2020 2; FY2021 2; FY2022 2Loans approved since 2020: FY2020 2; FY2021 2; FY2022 22’202’212’22

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY20102150.0%
FY20124125.0%
FY2013400.0%
FY20185120.0%
FY20193133.3%
FY20202—outstanding
FY20212—outstanding
FY20222—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?

Pita Pit's figure rests on 18 resolved SBA 7(a) loans approved between fiscal 2010 and 2019 — a matured cohort, so the count is a settled outcome, not a projection. With 18 resolved loans, one default moves the rate by about 5.6 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 Pita Pit figure is recomputed from the public SBA FOIA file on each rebuild.

Small sample (18 loans). A single default moves this figure substantially.

Frequently asked

What is Pita Pit's franchise failure rate on SBA loans?
4 of 18 SBA 7(a) loans to Pita Pit franchisees (2010–2019) ended in charge-off. The sample is small; treat this as a diligence flag, not a verdict. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Pita Pit a safe franchise investment?
Between 2010–2019, 4 of 18 SBA loans to Pita Pit franchisees were charged off. The sample is small. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Pita Pit franchise SBA 7(a) loan outcomes, FY2010–FY2019 cohort: 4 of 18 loans charged off. Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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