Franchise Failure Rates

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

The Brass Tap Franchise Failure Rate: 3.8% SBA Loan Defaults (2010–2019 Federal Data)

3.8%
charge-off rate on 26 SBA 7(a) loans to The Brass Tap franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — The Brass Tap against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: The Brass Tap 3.8%; Drinking Places (Alcoholic Beverages) 8.1%; All franchises 10.2%The Brass Tap 3.8%; Drinking Places (Alcoholic Beverages) 8.1%; All franchises 10.2%0%2%4%6%8%10%The Brass Tap3.8%Drinking Places(Alcoholic Beverages)8.1%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: The Brass Tap 3.8%; Drinking Places (Alcoholic Beverages) 8.1%; All franchises 10.2%The Brass Tap 3.8%; Drinking Places (Alcoholic Beverages) 8.1%; All franchises 10.2%0%2%4%6%8%10%The Brass Tap3.8%Drinking Places (Alcoholic Beverages)8.1%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 The Brass Tap SBA borrowers failed to repay — well below the Drinking Places (Alcoholic Beverages) average of 8.1%.

Between 2010 and 2019, 26 The Brass Tap franchisees financed with SBA 7(a) loans. 1 defaulted — a 3.8% charge-off rate, 0.5x the Drinking Places (Alcoholic Beverages) average of 8.1%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the The Brass Tap franchise failure rate on SBA loans?

The Brass Tap is a Drinking Places (Alcoholic Beverages) franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to The Brass Tap franchisees: 26 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 The Brass Tap compare with other Drinking Places (Alcoholic Beverages) franchises?

The table sets The Brass Tap's charge-off rate beside its Drinking Places (Alcoholic Beverages) 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.

The Brass Tap versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureThe Brass TapDrinking Places (Alcoholic Beverages)All franchisesAll SBA borrowers
Default (charge-off) rate3.8%8.1%10.2%8.0%
Loans in sample26———
Defaults1———
Average loan size$650,800———
Charge-off rate by approval year — share of each fiscal year's The Brass Tap 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 5 loans; FY2015 0% of 3 loans; FY2016 0% of 4 loans; FY2017 12% of 8 loans; FY2018 0% of 4 loansCharge-off rate by approval year: FY2013 0% of 2 loans; FY2014 0% of 5 loans; FY2015 0% of 3 loans; FY2016 0% of 4 loans; FY2017 12% of 8 loans; FY2018 0% of 4 loans0%5%10%0%2013n=20%2014n=50%2015n=30%2016n=412%2017n=80%2018n=4
Charge-off rate by approval year: FY2013 0% of 2 loans; FY2014 0% of 5 loans; FY2015 0% of 3 loans; FY2016 0% of 4 loans; FY2017 12% of 8 loans; FY2018 0% of 4 loansCharge-off rate by approval year: FY2013 0% of 2 loans; FY2014 0% of 5 loans; FY2015 0% of 3 loans; FY2016 0% of 4 loans; FY2017 12% of 8 loans; FY2018 0% of 4 loans0%5%10%0%’13n=20%’14n=50%’15n=30%’16n=412%’17n=80%’18n=4

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2013200.0%
FY2014500.0%
FY2015300.0%
FY2016400.0%
FY20178112.5%
FY2018400.0%

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?

The Brass Tap's figure rests on 26 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 26 resolved loans, one default moves the rate by about 3.8 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 The Brass Tap figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 26 resolved loans — directional, not precise.

Frequently asked

What is The Brass Tap's franchise failure rate on SBA loans?
Between 2010 and 2019, 26 The Brass Tap franchisees financed with SBA 7(a) loans. 1 defaulted — a 3.8% charge-off rate, 0.5x the Drinking Places (Alcoholic Beverages) average of 8.1%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is The Brass Tap a safe franchise investment?
Between 2010–2019, The Brass Tap franchisees defaulted on SBA loans at 3.8% versus a 8.1% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). The Brass Tap franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 3.8% (1 of 26 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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