Franchise Failure Rates

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

Red Roof Inn Franchise Failure Rate: 1.3% SBA Loan Defaults (2010–2019 Federal Data)

1.3%
charge-off rate on 152 SBA 7(a) loans to Red Roof Inn franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Red Roof Inn against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Red Roof Inn 1.3%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%Red Roof Inn 1.3%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%0%2%4%6%8%10%Red Roof Inn1.3%Hotels (except CasinoHotels) and Motels3.0%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Red Roof Inn 1.3%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%Red Roof Inn 1.3%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%0%2%4%6%8%10%Red Roof Inn1.3%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 77 Red Roof Inn SBA borrowers failed to repay — well below the Hotels (except Casino Hotels) and Motels average of 3.0%.

Between 2010 and 2019, 152 Red Roof Inn franchisees financed with SBA 7(a) loans. 2 defaulted — a 1.3% charge-off rate, 0.4x 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 Red Roof Inn franchise failure rate on SBA loans?

Red Roof 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 Red Roof Inn franchisees: 152 loans approved between fiscal 2010 and 2019, of which 2 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 Red Roof Inn compare with other Hotels (except Casino Hotels) and Motels franchises?

The table sets Red Roof 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.

Red Roof Inn versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureRed Roof InnHotels (except Casino Hotels) and MotelsAll franchisesAll SBA borrowers
Default (charge-off) rate1.3%3.0%10.2%8.0%
Loans in sample152———
Defaults2———
Average loan size$1,968,187———

What has Red Roof Inn SBA lending looked like since 2020?

Since 2020, Red Roof Inn franchisees have taken 169 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 Red Roof 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 3 loans; FY2011 12% of 8 loans; FY2012 0% of 10 loans; FY2013 0% of 8 loans; FY2014 0% of 19 loans; FY2015 0% of 20 loans; FY2016 5% of 20 loans; FY2017 0% of 17 loans; FY2018 0% of 27 loans; FY2019 0% of 20 loansCharge-off rate by approval year: FY2010 0% of 3 loans; FY2011 12% of 8 loans; FY2012 0% of 10 loans; FY2013 0% of 8 loans; FY2014 0% of 19 loans; FY2015 0% of 20 loans; FY2016 5% of 20 loans; FY2017 0% of 17 loans; FY2018 0% of 27 loans; FY2019 0% of 20 loans0%5%10%0%2010n=312%2011n=80%2012n=100%2013n=80%2014n=190%2015n=205%2016n=200%2017n=170%2018n=270%2019n=20
Charge-off rate by approval year: FY2010 0% of 3 loans; FY2011 12% of 8 loans; FY2012 0% of 10 loans; FY2013 0% of 8 loans; FY2014 0% of 19 loans; FY2015 0% of 20 loans; FY2016 5% of 20 loans; FY2017 0% of 17 loans; FY2018 0% of 27 loans; FY2019 0% of 20 loansCharge-off rate by approval year: FY2010 0% of 3 loans; FY2011 12% of 8 loans; FY2012 0% of 10 loans; FY2013 0% of 8 loans; FY2014 0% of 19 loans; FY2015 0% of 20 loans; FY2016 5% of 20 loans; FY2017 0% of 17 loans; FY2018 0% of 27 loans; FY2019 0% of 20 loans0%5%10%0%’10n=312%’11n=80%’12n=100%’13n=80%’14n=190%’15n=205%’16n=200%’17n=170%’18n=270%’19n=20

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 35; FY2021 44; FY2022 31; FY2023 10; FY2024 16; FY2025 15; FY2026 18Loans approved since 2020: FY2020 35; FY2021 44; FY2022 31; FY2023 10; FY2024 16; FY2025 15; FY2026 18352020442021312022102023162024152025182026
Loans approved since 2020: FY2020 35; FY2021 44; FY2022 31; FY2023 10; FY2024 16; FY2025 15; FY2026 18Loans approved since 2020: FY2020 35; FY2021 44; FY2022 31; FY2023 10; FY2024 16; FY2025 15; FY2026 1835’2044’2131’2210’2316’2415’2518’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010300.0%
FY20118112.5%
FY20121000.0%
FY2013800.0%
FY20141900.0%
FY20152000.0%
FY20162015.0%
FY20171700.0%
FY20182700.0%
FY20192000.0%
FY202035—outstanding
FY202144—outstanding
FY202231—outstanding
FY202310—outstanding
FY202416—outstanding
FY202515—outstanding
FY202618—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?

Red Roof Inn's figure rests on 152 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 152 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 Red Roof Inn figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is Red Roof Inn's franchise failure rate on SBA loans?
Between 2010 and 2019, 152 Red Roof Inn franchisees financed with SBA 7(a) loans. 2 defaulted — a 1.3% charge-off rate, 0.4x 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 Red Roof Inn a safe franchise investment?
Between 2010–2019, Red Roof Inn franchisees defaulted on SBA loans at 1.3% 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). Red Roof Inn franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 1.3% (2 of 152 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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