Franchise Failure Rates

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

Quality Inn Franchise Failure Rate: 4.5% SBA Loan Defaults (2010–2019 Federal Data)

4.5%
charge-off rate on 133 SBA 7(a) loans to Quality Inn franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Quality Inn against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Quality Inn 4.5%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%Quality Inn 4.5%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%0%2%4%6%8%10%Quality Inn4.5%Hotels (except CasinoHotels) and Motels3.0%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Quality Inn 4.5%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%Quality Inn 4.5%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%0%2%4%6%8%10%Quality Inn4.5%Hotels (except Casino Hotels) and Motels3.0%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 22 Quality Inn SBA borrowers failed to repay — above the Hotels (except Casino Hotels) and Motels average of 3.0%.

Between 2010 and 2019, 133 Quality Inn franchisees financed with SBA 7(a) loans. 6 defaulted — a 4.5% charge-off rate, 1.5x the Hotels (except Casino Hotels) and Motels average of 3.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Quality Inn franchise failure rate on SBA loans?

Quality Inn is a Hotels (except Casino Hotels) and Motels franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Quality Inn franchisees: 133 loans approved between fiscal 2010 and 2019, of which 6 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 Quality Inn compare with other Hotels (except Casino Hotels) and Motels franchises?

The table sets Quality Inn's charge-off rate beside its Hotels (except Casino Hotels) and Motels 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.

Quality Inn versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureQuality InnHotels (except Casino Hotels) and MotelsAll franchisesAll SBA borrowers
Default (charge-off) rate4.5%3.0%10.2%8.0%
Loans in sample133———
Defaults6———
Average loan size$2,419,929———

What has Quality Inn SBA lending looked like since 2020?

Since 2020, Quality Inn franchisees have taken 310 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 Quality Inn 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 9% of 11 loans; FY2012 0% of 17 loans; FY2013 0% of 14 loans; FY2014 100% of 1 loans; FY2017 100% of 1 loans; FY2018 2% of 43 loans; FY2019 5% of 42 loansCharge-off rate by approval year: FY2010 0% of 4 loans; FY2011 9% of 11 loans; FY2012 0% of 17 loans; FY2013 0% of 14 loans; FY2014 100% of 1 loans; FY2017 100% of 1 loans; FY2018 2% of 43 loans; FY2019 5% of 42 loans0%5%10%0%2010n=49%2011n=110%2012n=170%2013n=14100%2014n=1100%2017n=12%2018n=435%2019n=42
Charge-off rate by approval year: FY2010 0% of 4 loans; FY2011 9% of 11 loans; FY2012 0% of 17 loans; FY2013 0% of 14 loans; FY2014 100% of 1 loans; FY2017 100% of 1 loans; FY2018 2% of 43 loans; FY2019 5% of 42 loansCharge-off rate by approval year: FY2010 0% of 4 loans; FY2011 9% of 11 loans; FY2012 0% of 17 loans; FY2013 0% of 14 loans; FY2014 100% of 1 loans; FY2017 100% of 1 loans; FY2018 2% of 43 loans; FY2019 5% of 42 loans0%5%10%0%’10n=49%’11n=110%’12n=170%’13n=14100%’14n=1100%’17n=12%’18n=435%’19n=42

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 50; FY2021 67; FY2022 57; FY2023 39; FY2024 29; FY2025 44; FY2026 24Loans approved since 2020: FY2020 50; FY2021 67; FY2022 57; FY2023 39; FY2024 29; FY2025 44; FY2026 24502020672021572022392023292024442025242026
Loans approved since 2020: FY2020 50; FY2021 67; FY2022 57; FY2023 39; FY2024 29; FY2025 44; FY2026 24Loans approved since 2020: FY2020 50; FY2021 67; FY2022 57; FY2023 39; FY2024 29; FY2025 44; FY2026 2450’2067’2157’2239’2329’2444’2524’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010400.0%
FY20111119.1%
FY20121700.0%
FY20131400.0%
FY201411100.0%
FY201711100.0%
FY20184312.3%
FY20194224.8%
FY202050—outstanding
FY202167—outstanding
FY202257—outstanding
FY202339—outstanding
FY202429—outstanding
FY202544—outstanding
FY202624—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?

Quality Inn's figure rests on 133 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 133 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 Quality Inn figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is Quality Inn's franchise failure rate on SBA loans?
Between 2010 and 2019, 133 Quality Inn franchisees financed with SBA 7(a) loans. 6 defaulted — a 4.5% charge-off rate, 1.5x the Hotels (except Casino Hotels) and Motels average of 3.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Quality Inn a safe franchise investment?
Between 2010–2019, Quality Inn franchisees defaulted on SBA loans at 4.5% versus a 3.0% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Quality Inn franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 4.5% (6 of 133 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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