Franchise Failure Rates

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

Smoothie King Franchise Failure Rate: 3.8% SBA Loan Defaults (2010–2019 Federal Data)

3.8%
charge-off rate on 182 SBA 7(a) loans to Smoothie King franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Smoothie King against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Smoothie King 3.8%; Limited-Service Restaurants 10.3%; All franchises 10.2%Smoothie King 3.8%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Smoothie King3.8%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Smoothie King 3.8%; Limited-Service Restaurants 10.3%; All franchises 10.2%Smoothie King 3.8%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Smoothie King3.8%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.

About 1 in 26 Smoothie King SBA borrowers failed to repay — well below the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 182 Smoothie King franchisees financed with SBA 7(a) loans. 7 defaulted — a 3.8% charge-off rate, 0.4x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Smoothie King franchise failure rate on SBA loans?

Smoothie King 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 Smoothie King franchisees: 182 loans approved between fiscal 2010 and 2019, of which 7 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 Smoothie King compare with other Limited-Service Restaurants franchises?

The table sets Smoothie King'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.

Smoothie King versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureSmoothie KingLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate3.8%10.3%10.2%8.0%
Loans in sample182———
Defaults7———
Average loan size$255,176———

What has Smoothie King SBA lending looked like since 2020?

Since 2020, Smoothie King franchisees have taken 178 new SBA 7(a) loans. 2 have 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 Smoothie King 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 6 loans; FY2011 0% of 4 loans; FY2012 0% of 3 loans; FY2013 0% of 10 loans; FY2014 6% of 16 loans; FY2015 9% of 32 loans; FY2016 6% of 34 loans; FY2017 0% of 29 loans; FY2018 4% of 27 loans; FY2019 0% of 21 loansCharge-off rate by approval year: FY2010 0% of 6 loans; FY2011 0% of 4 loans; FY2012 0% of 3 loans; FY2013 0% of 10 loans; FY2014 6% of 16 loans; FY2015 9% of 32 loans; FY2016 6% of 34 loans; FY2017 0% of 29 loans; FY2018 4% of 27 loans; FY2019 0% of 21 loans0%5%10%0%2010n=60%2011n=40%2012n=30%2013n=106%2014n=169%2015n=326%2016n=340%2017n=294%2018n=270%2019n=21
Charge-off rate by approval year: FY2010 0% of 6 loans; FY2011 0% of 4 loans; FY2012 0% of 3 loans; FY2013 0% of 10 loans; FY2014 6% of 16 loans; FY2015 9% of 32 loans; FY2016 6% of 34 loans; FY2017 0% of 29 loans; FY2018 4% of 27 loans; FY2019 0% of 21 loansCharge-off rate by approval year: FY2010 0% of 6 loans; FY2011 0% of 4 loans; FY2012 0% of 3 loans; FY2013 0% of 10 loans; FY2014 6% of 16 loans; FY2015 9% of 32 loans; FY2016 6% of 34 loans; FY2017 0% of 29 loans; FY2018 4% of 27 loans; FY2019 0% of 21 loans0%5%10%0%’10n=60%’11n=40%’12n=30%’13n=106%’14n=169%’15n=326%’16n=340%’17n=294%’18n=270%’19n=21

Loans approved since 2020, by fiscal year — counts only: 2 have charged off to date and most are still outstanding, so no rate is drawn.

Loans approved since 2020: FY2020 35; FY2021 36; FY2022 28; FY2023 26; FY2024 12; FY2025 23; FY2026 18Loans approved since 2020: FY2020 35; FY2021 36; FY2022 28; FY2023 26; FY2024 12; FY2025 23; FY2026 18352020362021282022262023122024232025182026
Loans approved since 2020: FY2020 35; FY2021 36; FY2022 28; FY2023 26; FY2024 12; FY2025 23; FY2026 18Loans approved since 2020: FY2020 35; FY2021 36; FY2022 28; FY2023 26; FY2024 12; FY2025 23; FY2026 1835’2036’2128’2226’2312’2423’2518’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010600.0%
FY2011400.0%
FY2012300.0%
FY20131000.0%
FY20141616.2%
FY20153239.4%
FY20163425.9%
FY20172900.0%
FY20182713.7%
FY20192100.0%
FY202035—outstanding
FY202136—outstanding
FY202228—outstanding
FY202326—outstanding
FY202412—outstanding
FY202523—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?

Smoothie King's figure rests on 182 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 182 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 Smoothie King figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is Smoothie King's franchise failure rate on SBA loans?
Between 2010 and 2019, 182 Smoothie King franchisees financed with SBA 7(a) loans. 7 defaulted — a 3.8% charge-off rate, 0.4x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Smoothie King a safe franchise investment?
Between 2010–2019, Smoothie King franchisees defaulted on SBA loans at 3.8% versus a 10.3% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Smoothie King franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 3.8% (7 of 182 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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