Franchise Failure Rates

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

Style Encore Franchise Failure Rate: 4.3% SBA Loan Defaults (2010–2019 Federal Data)

4.3%
charge-off rate on 23 SBA 7(a) loans to Style Encore franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Style Encore against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Style Encore 4.3%; Other Clothing Stores 10.0%; All franchises 10.2%Style Encore 4.3%; Other Clothing Stores 10.0%; All franchises 10.2%0%2%4%6%8%10%Style Encore4.3%Other Clothing Stores10.0%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Style Encore 4.3%; Other Clothing Stores 10.0%; All franchises 10.2%Style Encore 4.3%; Other Clothing Stores 10.0%; All franchises 10.2%0%2%4%6%8%10%Style Encore4.3%Other Clothing Stores10.0%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 23 Style Encore SBA borrowers failed to repay — well below the Other Clothing Stores average of 10.0%.

Between 2010 and 2019, 23 Style Encore franchisees financed with SBA 7(a) loans. 1 defaulted — a 4.3% charge-off rate, 0.4x the Other Clothing Stores average of 10.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Style Encore franchise failure rate on SBA loans?

Style Encore is a Other 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 Style Encore franchisees: 23 loans approved between fiscal 2010 and 2019, of which 1 was 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 Style Encore compare with other Other Clothing Stores franchises?

The table sets Style Encore's charge-off rate beside its Other 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.

Style Encore versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureStyle EncoreOther Clothing StoresAll franchisesAll SBA borrowers
Default (charge-off) rate4.3%10.0%10.2%8.0%
Loans in sample23———
Defaults1———
Average loan size$198,339———

What has Style Encore SBA lending looked like since 2020?

Since 2020, Style Encore franchisees have taken 2 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 Style Encore 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 1 loans; FY2014 0% of 5 loans; FY2015 10% of 10 loans; FY2016 0% of 2 loans; FY2017 0% of 4 loans; FY2018 0% of 1 loansCharge-off rate by approval year: FY2013 0% of 1 loans; FY2014 0% of 5 loans; FY2015 10% of 10 loans; FY2016 0% of 2 loans; FY2017 0% of 4 loans; FY2018 0% of 1 loans0%5%10%0%2013n=10%2014n=510%2015n=100%2016n=20%2017n=40%2018n=1
Charge-off rate by approval year: FY2013 0% of 1 loans; FY2014 0% of 5 loans; FY2015 10% of 10 loans; FY2016 0% of 2 loans; FY2017 0% of 4 loans; FY2018 0% of 1 loansCharge-off rate by approval year: FY2013 0% of 1 loans; FY2014 0% of 5 loans; FY2015 10% of 10 loans; FY2016 0% of 2 loans; FY2017 0% of 4 loans; FY2018 0% of 1 loans0%5%10%0%’13n=10%’14n=510%’15n=100%’16n=20%’17n=40%’18n=1

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 1; FY2022 1Loans approved since 2020: FY2020 1; FY2022 11202012022
Loans approved since 2020: FY2020 1; FY2022 1Loans approved since 2020: FY2020 1; FY2022 11’201’22

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2013100.0%
FY2014500.0%
FY201510110.0%
FY2016200.0%
FY2017400.0%
FY2018100.0%
FY20201—outstanding
FY20221—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?

Style Encore's figure rests on 23 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 23 resolved loans, one default moves the rate by about 4.3 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 Style Encore figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 23 resolved loans — directional, not precise.

Frequently asked

What is Style Encore's franchise failure rate on SBA loans?
Between 2010 and 2019, 23 Style Encore franchisees financed with SBA 7(a) loans. 1 defaulted — a 4.3% charge-off rate, 0.4x the Other Clothing Stores average of 10.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Style Encore a safe franchise investment?
Between 2010–2019, Style Encore franchisees defaulted on SBA loans at 4.3% versus a 10.0% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Style Encore franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 4.3% (1 of 23 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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