Franchise Failure Rates

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

Temporary Franchises Franchise Failure Rate: 10.1% SBA Loan Defaults (2010–2019 Federal Data)

10.1%
charge-off rate on 89 SBA 7(a) loans to Temporary Franchises franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Temporary Franchises against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Temporary Franchises 10.1%; Full-Service Restaurants 9.6%; All franchises 10.2%Temporary Franchises 10.1%; Full-Service Restaurants 9.6%; All franchises 10.2%0%2%4%6%8%10%Temporary Franchises10.1%Full-Service Restaurants9.6%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Temporary Franchises 10.1%; Full-Service Restaurants 9.6%; All franchises 10.2%Temporary Franchises 10.1%; Full-Service Restaurants 9.6%; All franchises 10.2%0%2%4%6%8%10%Temporary Franchises10.1%Full-Service Restaurants9.6%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 10 Temporary Franchises SBA borrowers failed to repay — in line with the Full-Service Restaurants average of 9.6%.

Between 2010 and 2019, 89 Temporary Franchises franchisees financed with SBA 7(a) loans. 9 defaulted — a 10.1% charge-off rate, 1.1x the Full-Service Restaurants average of 9.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Temporary Franchises franchise failure rate on SBA loans?

Temporary Franchises is a Full-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 Temporary Franchises franchisees: 89 loans approved between fiscal 2010 and 2019, of which 9 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 Temporary Franchises compare with other Full-Service Restaurants franchises?

The table sets Temporary Franchises's charge-off rate beside its Full-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.

Temporary Franchises versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureTemporary FranchisesFull-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate10.1%9.6%10.2%8.0%
Loans in sample89———
Defaults9———
Average loan size$330,697———
Charge-off rate by approval year — share of each fiscal year's Temporary Franchises SBA 7(a) loans that later defaulted (FY2010–FY2019)
Charge-off rate by approval year: FY2010 9% of 55 loans; FY2011 12% of 34 loansCharge-off rate by approval year: FY2010 9% of 55 loans; FY2011 12% of 34 loans0%8%15%9%2010n=5512%2011n=34
Charge-off rate by approval year: FY2010 9% of 55 loans; FY2011 12% of 34 loansCharge-off rate by approval year: FY2010 9% of 55 loans; FY2011 12% of 34 loans0%8%15%9%’10n=5512%’11n=34

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY20105559.1%
FY201134411.8%

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?

Temporary Franchises's figure rests on 89 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 89 resolved loans, one default moves the rate by about 1.1 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 Temporary Franchises figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 89 resolved loans — directional, not precise.

Frequently asked

What is Temporary Franchises's franchise failure rate on SBA loans?
Between 2010 and 2019, 89 Temporary Franchises franchisees financed with SBA 7(a) loans. 9 defaulted — a 10.1% charge-off rate, 1.1x the Full-Service Restaurants average of 9.6%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Temporary Franchises a safe franchise investment?
Between 2010–2019, Temporary Franchises franchisees defaulted on SBA loans at 10.1% 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). Temporary Franchises franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 10.1% (9 of 89 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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