Franchise Failure Rates

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

Scout & Molly's Franchise Failure Rate on SBA Loans: 4 of 17 Charged Off (Federal Data)

4 of 17
SBA 7(a) loans to Scout & Molly's franchisees (FY2010–2019) ended in charge-off
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Scout & Molly's against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Scout & Molly's 23.5%; Women's Clothing Stores 13.2%; All franchises 10.2%Scout & Molly's 23.5%; Women's Clothing Stores 13.2%; All franchises 10.2%0%5%10%15%20%25%Scout & Molly's23.5% (small sample)Women's Clothing Stores13.2%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Scout & Molly's 23.5%; Women's Clothing Stores 13.2%; All franchises 10.2%Scout & Molly's 23.5%; Women's Clothing Stores 13.2%; All franchises 10.2%0%5%10%15%20%25%Scout & Molly's23.5% (small sample)Women's Clothing Stores13.2%All franchises10.2%

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.

4 of 17 Scout & Molly's SBA borrowers failed to repay — too few loans to call a rate; read it as a flag, not a verdict.

4 of 17 SBA 7(a) loans to Scout & Molly's 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 Scout & Molly's franchise failure rate on SBA loans?

Scout & Molly's is a Women's Clothing 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 Scout & Molly's franchisees: 17 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 Scout & Molly's compare with other Women's Clothing Stores franchises?

The table sets Scout & Molly's's charge-off rate beside its Women's Clothing 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.

Scout & Molly's versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureScout & Molly'sWomen's Clothing StoresAll franchisesAll SBA borrowers
Default (charge-off) rate23.5% (small sample)13.2%10.2%8.0%
Loans in sample17———
Defaults4———
Average loan size$195,041———
Charge-off rate by approval year — share of each fiscal year's Scout & Molly'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: FY2015 0% of 2 loans; FY2016 57% of 7 loans; FY2017 0% of 6 loans; FY2018 0% of 1 loans; FY2019 0% of 1 loansCharge-off rate by approval year: FY2015 0% of 2 loans; FY2016 57% of 7 loans; FY2017 0% of 6 loans; FY2018 0% of 1 loans; FY2019 0% of 1 loans0%5%10%0%2015n=257%2016n=70%2017n=60%2018n=10%2019n=1
Charge-off rate by approval year: FY2015 0% of 2 loans; FY2016 57% of 7 loans; FY2017 0% of 6 loans; FY2018 0% of 1 loans; FY2019 0% of 1 loansCharge-off rate by approval year: FY2015 0% of 2 loans; FY2016 57% of 7 loans; FY2017 0% of 6 loans; FY2018 0% of 1 loans; FY2019 0% of 1 loans0%5%10%0%’15n=257%’16n=70%’17n=60%’18n=10%’19n=1

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2015200.0%
FY20167457.1%
FY2017600.0%
FY2018100.0%
FY2019100.0%

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?

Scout & Molly's's figure rests on 17 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 17 resolved loans, one default moves the rate by about 5.9 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 Scout & Molly's figure is recomputed from the public SBA FOIA file on each rebuild.

Small sample (17 loans). A single default moves this figure substantially.

Frequently asked

What is Scout & Molly's's franchise failure rate on SBA loans?
4 of 17 SBA 7(a) loans to Scout & Molly's 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 Scout & Molly's a safe franchise investment?
Between 2010–2019, 4 of 17 SBA loans to Scout & Molly's 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). Scout & Molly's franchise SBA 7(a) loan outcomes, FY2010–FY2019 cohort: 4 of 17 loans charged off. Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/scout-and-mollys/ · Data & methodology · Download the dataset (CSV)