Franchise Failure Rates

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

The Pita Pit Franchise Failure Rate: 19.4% SBA Loan Defaults (2010–2019 Federal Data)

19.4%
charge-off rate on 62 SBA 7(a) loans to The Pita Pit franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — The Pita Pit against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: The Pita Pit 19.4%; Limited-Service Restaurants 10.3%; All franchises 10.2%The Pita Pit 19.4%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%5%10%15%20%The Pita Pit19.4%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: The Pita Pit 19.4%; Limited-Service Restaurants 10.3%; All franchises 10.2%The Pita Pit 19.4%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%5%10%15%20%The Pita Pit19.4%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 5 The Pita Pit SBA borrowers failed to repay — well above the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 62 The Pita Pit franchisees financed with SBA 7(a) loans. 12 defaulted — a 19.4% charge-off rate, 1.9x 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 The Pita Pit franchise failure rate on SBA loans?

The Pita Pit 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 The Pita Pit franchisees: 62 loans approved between fiscal 2010 and 2019, of which 12 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 Pita Pit compare with other Limited-Service Restaurants franchises?

The table sets The Pita Pit'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.

The Pita Pit versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureThe Pita PitLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate19.4%10.3%10.2%8.0%
Loans in sample62———
Defaults12———
Average loan size$226,745———
Charge-off rate by approval year — share of each fiscal year's The Pita Pit 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 0% of 2 loans; FY2011 0% of 1 loans; FY2012 0% of 1 loans; FY2013 20% of 5 loans; FY2014 10% of 10 loans; FY2015 18% of 17 loans; FY2016 18% of 17 loans; FY2017 43% of 7 loans; FY2018 50% of 2 loansCharge-off rate by approval year: FY2010 0% of 2 loans; FY2011 0% of 1 loans; FY2012 0% of 1 loans; FY2013 20% of 5 loans; FY2014 10% of 10 loans; FY2015 18% of 17 loans; FY2016 18% of 17 loans; FY2017 43% of 7 loans; FY2018 50% of 2 loans0%10%20%0%2010n=20%2011n=10%2012n=120%2013n=510%2014n=1018%2015n=1718%2016n=1743%2017n=750%2018n=2
Charge-off rate by approval year: FY2010 0% of 2 loans; FY2011 0% of 1 loans; FY2012 0% of 1 loans; FY2013 20% of 5 loans; FY2014 10% of 10 loans; FY2015 18% of 17 loans; FY2016 18% of 17 loans; FY2017 43% of 7 loans; FY2018 50% of 2 loansCharge-off rate by approval year: FY2010 0% of 2 loans; FY2011 0% of 1 loans; FY2012 0% of 1 loans; FY2013 20% of 5 loans; FY2014 10% of 10 loans; FY2015 18% of 17 loans; FY2016 18% of 17 loans; FY2017 43% of 7 loans; FY2018 50% of 2 loans0%10%20%0%’10n=20%’11n=10%’12n=120%’13n=510%’14n=1018%’15n=1718%’16n=1743%’17n=750%’18n=2

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010200.0%
FY2011100.0%
FY2012100.0%
FY20135120.0%
FY201410110.0%
FY201517317.6%
FY201617317.6%
FY20177342.9%
FY20182150.0%

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 Pita Pit's figure rests on 62 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 62 resolved loans, one default moves the rate by about 1.6 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 The Pita Pit figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 62 resolved loans — directional, not precise.

Frequently asked

What is The Pita Pit's franchise failure rate on SBA loans?
Between 2010 and 2019, 62 The Pita Pit franchisees financed with SBA 7(a) loans. 12 defaulted — a 19.4% charge-off rate, 1.9x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is The Pita Pit a safe franchise investment?
Between 2010–2019, The Pita Pit franchisees defaulted on SBA loans at 19.4% 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). The Pita Pit franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 19.4% (12 of 62 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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