Franchise Failure Rates

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

Sonic Drive-in Franchise Failure Rate: 7.1% SBA Loan Defaults (2010–2019 Federal Data)

7.1%
charge-off rate on 28 SBA 7(a) loans to Sonic Drive-in franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Sonic Drive-in against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Sonic Drive-in 7.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%Sonic Drive-in 7.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Sonic Drive-in7.1%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Sonic Drive-in 7.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%Sonic Drive-in 7.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Sonic Drive-in7.1%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 14 Sonic Drive-in SBA borrowers failed to repay — well below the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 28 Sonic Drive-in franchisees financed with SBA 7(a) loans. 2 defaulted — a 7.1% charge-off rate, 0.7x 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 Sonic Drive-in franchise failure rate on SBA loans?

Sonic Drive-in 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 Sonic Drive-in franchisees: 28 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 Sonic Drive-in compare with other Limited-Service Restaurants franchises?

The table sets Sonic Drive-in'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.

Sonic Drive-in versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureSonic Drive-inLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate7.1%10.3%10.2%8.0%
Loans in sample28———
Defaults2———
Average loan size$860,407———
Charge-off rate by approval year — share of each fiscal year's Sonic Drive-in 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: FY2013 0% of 2 loans; FY2014 0% of 7 loans; FY2015 0% of 8 loans; FY2016 11% of 9 loans; FY2017 50% of 2 loansCharge-off rate by approval year: FY2013 0% of 2 loans; FY2014 0% of 7 loans; FY2015 0% of 8 loans; FY2016 11% of 9 loans; FY2017 50% of 2 loans0%5%10%0%2013n=20%2014n=70%2015n=811%2016n=950%2017n=2
Charge-off rate by approval year: FY2013 0% of 2 loans; FY2014 0% of 7 loans; FY2015 0% of 8 loans; FY2016 11% of 9 loans; FY2017 50% of 2 loansCharge-off rate by approval year: FY2013 0% of 2 loans; FY2014 0% of 7 loans; FY2015 0% of 8 loans; FY2016 11% of 9 loans; FY2017 50% of 2 loans0%5%10%0%’13n=20%’14n=70%’15n=811%’16n=950%’17n=2

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2013200.0%
FY2014700.0%
FY2015800.0%
FY20169111.1%
FY20172150.0%

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?

Sonic Drive-in'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 Sonic Drive-in figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 28 resolved loans — directional, not precise.

Frequently asked

What is Sonic Drive-in's franchise failure rate on SBA loans?
Between 2010 and 2019, 28 Sonic Drive-in franchisees financed with SBA 7(a) loans. 2 defaulted — a 7.1% charge-off rate, 0.7x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Sonic Drive-in a safe franchise investment?
Between 2010–2019, Sonic Drive-in franchisees defaulted on SBA loans at 7.1% 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). Sonic Drive-in franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 7.1% (2 of 28 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/sonic-drive-in/ · Data & methodology · Download the dataset (CSV)