Franchise Failure Rates

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

Plato's Closet Franchise Failure Rate: 1.2% SBA Loan Defaults (2010–2019 Federal Data)

1.2%
charge-off rate on 80 SBA 7(a) loans to Plato's Closet franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Plato's Closet against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Plato's Closet 1.2%; Used Merchandise Stores 9.7%; All franchises 10.2%Plato's Closet 1.2%; Used Merchandise Stores 9.7%; All franchises 10.2%0%2%4%6%8%10%Plato's Closet1.2%Used Merchandise Stores9.7%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Plato's Closet 1.2%; Used Merchandise Stores 9.7%; All franchises 10.2%Plato's Closet 1.2%; Used Merchandise Stores 9.7%; All franchises 10.2%0%2%4%6%8%10%Plato's Closet1.2%Used Merchandise Stores9.7%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 83 Plato's Closet SBA borrowers failed to repay — well below the Used Merchandise Stores average of 9.7%.

Between 2010 and 2019, 80 Plato's Closet franchisees financed with SBA 7(a) loans. 1 defaulted — a 1.2% charge-off rate, 0.1x the Used Merchandise Stores average of 9.7%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Plato's Closet franchise failure rate on SBA loans?

Plato's Closet is a Used Merchandise 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 Plato's Closet franchisees: 80 loans approved between fiscal 2010 and 2019, of which 1 was 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 Plato's Closet compare with other Used Merchandise Stores franchises?

The table sets Plato's Closet's charge-off rate beside its Used Merchandise 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.

Plato's Closet versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasurePlato's ClosetUsed Merchandise StoresAll franchisesAll SBA borrowers
Default (charge-off) rate1.2%9.7%10.2%8.0%
Loans in sample80———
Defaults1———
Average loan size$222,080———

What has Plato's Closet SBA lending looked like since 2020?

Since 2020, Plato's Closet franchisees have taken 44 new SBA 7(a) loans. None have charged off to date, though most remain outstanding and unresolved.

Charge-off rate by approval year — share of each fiscal year's Plato's Closet 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 7 loans; FY2011 0% of 10 loans; FY2012 0% of 9 loans; FY2013 20% of 5 loans; FY2014 0% of 10 loans; FY2015 0% of 16 loans; FY2016 0% of 9 loans; FY2017 0% of 7 loans; FY2018 0% of 4 loans; FY2019 0% of 3 loansCharge-off rate by approval year: FY2010 0% of 7 loans; FY2011 0% of 10 loans; FY2012 0% of 9 loans; FY2013 20% of 5 loans; FY2014 0% of 10 loans; FY2015 0% of 16 loans; FY2016 0% of 9 loans; FY2017 0% of 7 loans; FY2018 0% of 4 loans; FY2019 0% of 3 loans0%5%10%0%2010n=70%2011n=100%2012n=920%2013n=50%2014n=100%2015n=160%2016n=90%2017n=70%2018n=40%2019n=3
Charge-off rate by approval year: FY2010 0% of 7 loans; FY2011 0% of 10 loans; FY2012 0% of 9 loans; FY2013 20% of 5 loans; FY2014 0% of 10 loans; FY2015 0% of 16 loans; FY2016 0% of 9 loans; FY2017 0% of 7 loans; FY2018 0% of 4 loans; FY2019 0% of 3 loansCharge-off rate by approval year: FY2010 0% of 7 loans; FY2011 0% of 10 loans; FY2012 0% of 9 loans; FY2013 20% of 5 loans; FY2014 0% of 10 loans; FY2015 0% of 16 loans; FY2016 0% of 9 loans; FY2017 0% of 7 loans; FY2018 0% of 4 loans; FY2019 0% of 3 loans0%5%10%0%’10n=70%’11n=100%’12n=920%’13n=50%’14n=100%’15n=160%’16n=90%’17n=70%’18n=40%’19n=3

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.

Loans approved since 2020: FY2020 3; FY2021 7; FY2022 10; FY2023 11; FY2024 4; FY2025 4; FY2026 5Loans approved since 2020: FY2020 3; FY2021 7; FY2022 10; FY2023 11; FY2024 4; FY2025 4; FY2026 53202072021102022112023420244202552026
Loans approved since 2020: FY2020 3; FY2021 7; FY2022 10; FY2023 11; FY2024 4; FY2025 4; FY2026 5Loans approved since 2020: FY2020 3; FY2021 7; FY2022 10; FY2023 11; FY2024 4; FY2025 4; FY2026 53’207’2110’2211’234’244’255’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010700.0%
FY20111000.0%
FY2012900.0%
FY20135120.0%
FY20141000.0%
FY20151600.0%
FY2016900.0%
FY2017700.0%
FY2018400.0%
FY2019300.0%
FY20203—outstanding
FY20217—outstanding
FY202210—outstanding
FY202311—outstanding
FY20244—outstanding
FY20254—outstanding
FY20265—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?

Plato's Closet's figure rests on 80 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 80 resolved loans, one default moves the rate by about 1.2 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 Plato's Closet figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 80 resolved loans — directional, not precise.

Frequently asked

What is Plato's Closet's franchise failure rate on SBA loans?
Between 2010 and 2019, 80 Plato's Closet franchisees financed with SBA 7(a) loans. 1 defaulted — a 1.2% charge-off rate, 0.1x the Used Merchandise Stores average of 9.7%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Plato's Closet a safe franchise investment?
Between 2010–2019, Plato's Closet franchisees defaulted on SBA loans at 1.2% versus a 9.7% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Plato's Closet franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 1.2% (1 of 80 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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