Franchise Failure Rates

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

The Learning Experience Franchise Failure Rate: 7.4% SBA Loan Defaults (2010–2019 Federal Data)

7.4%
charge-off rate on 108 SBA 7(a) loans to The Learning Experience franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — The Learning Experience against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: The Learning Experience 7.4%; Child Day Care Services 4.5%; All franchises 10.2%The Learning Experience 7.4%; Child Day Care Services 4.5%; All franchises 10.2%0%2%4%6%8%10%The Learning Experience7.4%Child Day Care Services4.5%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: The Learning Experience 7.4%; Child Day Care Services 4.5%; All franchises 10.2%The Learning Experience 7.4%; Child Day Care Services 4.5%; All franchises 10.2%0%2%4%6%8%10%The Learning Experience7.4%Child Day Care Services4.5%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 The Learning Experience SBA borrowers failed to repay — well above the Child Day Care Services average of 4.5%.

Between 2010 and 2019, 108 The Learning Experience franchisees financed with SBA 7(a) loans. 8 defaulted — a 7.4% charge-off rate, 1.6x the Child Day Care Services average of 4.5%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the The Learning Experience franchise failure rate on SBA loans?

The Learning Experience is a Child Day Care Services 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 Learning Experience franchisees: 108 loans approved between fiscal 2010 and 2019, of which 8 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 The Learning Experience compare with other Child Day Care Services franchises?

The table sets The Learning Experience's charge-off rate beside its Child Day Care Services 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 Learning Experience versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureThe Learning ExperienceChild Day Care ServicesAll franchisesAll SBA borrowers
Default (charge-off) rate7.4%4.5%10.2%8.0%
Loans in sample108———
Defaults8———
Average loan size$573,753———

What has The Learning Experience SBA lending looked like since 2020?

Since 2020, The Learning Experience franchisees have taken 188 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 The Learning Experience 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 17% of 6 loans; FY2011 0% of 2 loans; FY2013 0% of 6 loans; FY2014 0% of 16 loans; FY2015 7% of 14 loans; FY2016 10% of 10 loans; FY2017 18% of 17 loans; FY2018 11% of 18 loans; FY2019 0% of 19 loansCharge-off rate by approval year: FY2010 17% of 6 loans; FY2011 0% of 2 loans; FY2013 0% of 6 loans; FY2014 0% of 16 loans; FY2015 7% of 14 loans; FY2016 10% of 10 loans; FY2017 18% of 17 loans; FY2018 11% of 18 loans; FY2019 0% of 19 loans0%10%20%17%2010n=60%2011n=20%2013n=60%2014n=167%2015n=1410%2016n=1018%2017n=1711%2018n=180%2019n=19
Charge-off rate by approval year: FY2010 17% of 6 loans; FY2011 0% of 2 loans; FY2013 0% of 6 loans; FY2014 0% of 16 loans; FY2015 7% of 14 loans; FY2016 10% of 10 loans; FY2017 18% of 17 loans; FY2018 11% of 18 loans; FY2019 0% of 19 loansCharge-off rate by approval year: FY2010 17% of 6 loans; FY2011 0% of 2 loans; FY2013 0% of 6 loans; FY2014 0% of 16 loans; FY2015 7% of 14 loans; FY2016 10% of 10 loans; FY2017 18% of 17 loans; FY2018 11% of 18 loans; FY2019 0% of 19 loans0%10%20%17%’10n=60%’11n=20%’13n=60%’14n=167%’15n=1410%’16n=1018%’17n=1711%’18n=180%’19n=19

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 20; FY2021 31; FY2022 16; FY2023 26; FY2024 33; FY2025 37; FY2026 25Loans approved since 2020: FY2020 20; FY2021 31; FY2022 16; FY2023 26; FY2024 33; FY2025 37; FY2026 25202020312021162022262023332024372025252026
Loans approved since 2020: FY2020 20; FY2021 31; FY2022 16; FY2023 26; FY2024 33; FY2025 37; FY2026 25Loans approved since 2020: FY2020 20; FY2021 31; FY2022 16; FY2023 26; FY2024 33; FY2025 37; FY2026 2520’2031’2116’2226’2333’2437’2525’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY20106116.7%
FY2011200.0%
FY2013600.0%
FY20141600.0%
FY20151417.1%
FY201610110.0%
FY201717317.6%
FY201818211.1%
FY20191900.0%
FY202020—outstanding
FY202131—outstanding
FY202216—outstanding
FY202326—outstanding
FY202433—outstanding
FY202537—outstanding
FY202625—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?

The Learning Experience's figure rests on 108 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 108 resolved loans, the sample is large enough that a single default barely moves the figure. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every The Learning Experience figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is The Learning Experience's franchise failure rate on SBA loans?
Between 2010 and 2019, 108 The Learning Experience franchisees financed with SBA 7(a) loans. 8 defaulted — a 7.4% charge-off rate, 1.6x the Child Day Care Services average of 4.5%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is The Learning Experience a safe franchise investment?
Between 2010–2019, The Learning Experience franchisees defaulted on SBA loans at 7.4% versus a 4.5% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). The Learning Experience franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 7.4% (8 of 108 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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