Franchise Failure Rates

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

Snap-on Tools Franchise Failure Rate: 14.3% SBA Loan Defaults (2010–2019 Federal Data)

14.3%
charge-off rate on 28 SBA 7(a) loans to Snap-on Tools franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Snap-on Tools against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Snap-on Tools 14.3%; Other Direct Selling Establishments 9.6%; All franchises 10.2%Snap-on Tools 14.3%; Other Direct Selling Establishments 9.6%; All franchises 10.2%0%5%10%15%Snap-on Tools14.3%Other Direct SellingEstablishments9.6%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Snap-on Tools 14.3%; Other Direct Selling Establishments 9.6%; All franchises 10.2%Snap-on Tools 14.3%; Other Direct Selling Establishments 9.6%; All franchises 10.2%0%5%10%15%Snap-on Tools14.3%Other Direct Selling Establishments9.6%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 7 Snap-on Tools SBA borrowers failed to repay — above the Other Direct Selling Establishments average of 9.6%.

Between 2010 and 2019, 28 Snap-on Tools franchisees financed with SBA 7(a) loans. 4 defaulted — a 14.3% charge-off rate, 1.5x the Other Direct Selling Establishments average of 9.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Snap-on Tools franchise failure rate on SBA loans?

Snap-on Tools is a Other Direct Selling Establishments franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Snap-on Tools franchisees: 28 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 Snap-on Tools compare with other Other Direct Selling Establishments franchises?

The table sets Snap-on Tools's charge-off rate beside its Other Direct Selling Establishments 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.

Snap-on Tools versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureSnap-on ToolsOther Direct Selling EstablishmentsAll franchisesAll SBA borrowers
Default (charge-off) rate14.3%9.6%10.2%8.0%
Loans in sample28———
Defaults4———
Average loan size$140,818———
Charge-off rate by approval year — share of each fiscal year's Snap-on Tools 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 50% of 2 loans; FY2012 0% of 3 loans; FY2013 0% of 1 loans; FY2014 0% of 5 loans; FY2015 0% of 5 loans; FY2016 67% of 3 loans; FY2017 50% of 2 loans; FY2018 0% of 1 loansCharge-off rate by approval year: FY2010 0% of 6 loans; FY2011 50% of 2 loans; FY2012 0% of 3 loans; FY2013 0% of 1 loans; FY2014 0% of 5 loans; FY2015 0% of 5 loans; FY2016 67% of 3 loans; FY2017 50% of 2 loans; FY2018 0% of 1 loans0%5%10%0%2010n=650%2011n=20%2012n=30%2013n=10%2014n=50%2015n=567%2016n=350%2017n=20%2018n=1
Charge-off rate by approval year: FY2010 0% of 6 loans; FY2011 50% of 2 loans; FY2012 0% of 3 loans; FY2013 0% of 1 loans; FY2014 0% of 5 loans; FY2015 0% of 5 loans; FY2016 67% of 3 loans; FY2017 50% of 2 loans; FY2018 0% of 1 loansCharge-off rate by approval year: FY2010 0% of 6 loans; FY2011 50% of 2 loans; FY2012 0% of 3 loans; FY2013 0% of 1 loans; FY2014 0% of 5 loans; FY2015 0% of 5 loans; FY2016 67% of 3 loans; FY2017 50% of 2 loans; FY2018 0% of 1 loans0%5%10%0%’10n=650%’11n=20%’12n=30%’13n=10%’14n=50%’15n=567%’16n=350%’17n=20%’18n=1

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010600.0%
FY20112150.0%
FY2012300.0%
FY2013100.0%
FY2014500.0%
FY2015500.0%
FY20163266.7%
FY20172150.0%
FY2018100.0%

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?

Snap-on Tools's figure rests on 28 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 28 resolved loans, one default moves the rate by about 3.6 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 Snap-on Tools figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 28 resolved loans — directional, not precise.

Frequently asked

What is Snap-on Tools's franchise failure rate on SBA loans?
Between 2010 and 2019, 28 Snap-on Tools franchisees financed with SBA 7(a) loans. 4 defaulted — a 14.3% charge-off rate, 1.5x the Other Direct Selling Establishments average of 9.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Snap-on Tools a safe franchise investment?
Between 2010–2019, Snap-on Tools franchisees defaulted on SBA loans at 14.3% versus a 9.6% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Snap-on Tools franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 14.3% (4 of 28 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/snap-on-tools/ · Data & methodology · Download the dataset (CSV)