Franchise Failure Rates

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

Tom and Chee Franchise Failure Rate on SBA Loans: 9 of 19 Charged Off (Federal Data)

9 of 19
SBA 7(a) loans to Tom and Chee franchisees (FY2010–2019) ended in charge-off
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Tom and Chee against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Tom and Chee 47.4%; Limited-Service Restaurants 10.3%; All franchises 10.2%Tom and Chee 47.4%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%10%20%30%40%50%Tom and Chee47.4% (small sample)Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Tom and Chee 47.4%; Limited-Service Restaurants 10.3%; All franchises 10.2%Tom and Chee 47.4%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%10%20%30%40%50%Tom and Chee47.4% (small sample)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.

9 of 19 Tom and Chee SBA borrowers failed to repay — too few loans to call a rate; read it as a flag, not a verdict.

9 of 19 SBA 7(a) loans to Tom and Chee franchisees (2010–2019) ended in charge-off. The sample is small; treat this as a diligence flag, not a verdict. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Tom and Chee franchise failure rate on SBA loans?

Tom and Chee 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 Tom and Chee franchisees: 19 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 Tom and Chee compare with other Limited-Service Restaurants franchises?

The table sets Tom and Chee'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. A cell in red is more than twice the industry benchmark.

Tom and Chee versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureTom and CheeLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate47.4% (small sample)10.3%10.2%8.0%
Loans in sample19———
Defaults9———
Average loan size$216,074———
Charge-off rate by approval year — share of each fiscal year's Tom and Chee 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: FY2014 29% of 7 loans; FY2015 50% of 6 loans; FY2016 67% of 3 loans; FY2017 100% of 2 loans; FY2018 0% of 1 loansCharge-off rate by approval year: FY2014 29% of 7 loans; FY2015 50% of 6 loans; FY2016 67% of 3 loans; FY2017 100% of 2 loans; FY2018 0% of 1 loans0%5%10%29%2014n=750%2015n=667%2016n=3100%2017n=20%2018n=1
Charge-off rate by approval year: FY2014 29% of 7 loans; FY2015 50% of 6 loans; FY2016 67% of 3 loans; FY2017 100% of 2 loans; FY2018 0% of 1 loansCharge-off rate by approval year: FY2014 29% of 7 loans; FY2015 50% of 6 loans; FY2016 67% of 3 loans; FY2017 100% of 2 loans; FY2018 0% of 1 loans0%5%10%29%’14n=750%’15n=667%’16n=3100%’17n=20%’18n=1

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY20147228.6%
FY20156350.0%
FY20163266.7%
FY201722100.0%
FY2018100.0%

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?

Tom and Chee's figure rests on 19 resolved SBA 7(a) loans approved between fiscal 2010 and 2019 — a matured cohort, so the count is a settled outcome, not a projection. With 19 resolved loans, one default moves the rate by about 5.3 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 Tom and Chee figure is recomputed from the public SBA FOIA file on each rebuild.

Small sample (19 loans). A single default moves this figure substantially.

Frequently asked

What is Tom and Chee's franchise failure rate on SBA loans?
9 of 19 SBA 7(a) loans to Tom and Chee franchisees (2010–2019) ended in charge-off. The sample is small; treat this as a diligence flag, not a verdict. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Tom and Chee a safe franchise investment?
Between 2010–2019, 9 of 19 SBA loans to Tom and Chee franchisees were charged off. The sample is small. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Tom and Chee franchise SBA 7(a) loan outcomes, FY2010–FY2019 cohort: 9 of 19 loans charged off. Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/tom-and-chee/ · Data & methodology · Download the dataset (CSV)