Franchise Failure Rates

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

Tropical Smoothie Cafe Franchise Failure Rate: 3.2% SBA Loan Defaults (2010–2019 Federal Data)

3.2%
charge-off rate on 63 SBA 7(a) loans to Tropical Smoothie Cafe franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Tropical Smoothie Cafe against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Tropical Smoothie Cafe 3.2%; Limited-Service Restaurants 10.3%; All franchises 10.2%Tropical Smoothie Cafe 3.2%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Tropical Smoothie Cafe3.2%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Tropical Smoothie Cafe 3.2%; Limited-Service Restaurants 10.3%; All franchises 10.2%Tropical Smoothie Cafe 3.2%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Tropical Smoothie Cafe3.2%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 31 Tropical Smoothie Cafe SBA borrowers failed to repay — well below the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 63 Tropical Smoothie Cafe franchisees financed with SBA 7(a) loans. 2 defaulted — a 3.2% charge-off rate, 0.3x 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 Tropical Smoothie Cafe franchise failure rate on SBA loans?

Tropical Smoothie Cafe 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 Tropical Smoothie Cafe franchisees: 63 loans approved between fiscal 2010 and 2019, of which 2 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 Tropical Smoothie Cafe compare with other Limited-Service Restaurants franchises?

The table sets Tropical Smoothie Cafe'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.

Tropical Smoothie Cafe versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureTropical Smoothie CafeLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate3.2%10.3%10.2%8.0%
Loans in sample63———
Defaults2———
Average loan size$371,371———

What has Tropical Smoothie Cafe SBA lending looked like since 2020?

Since 2020, Tropical Smoothie Cafe franchisees have taken 256 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 Tropical Smoothie Cafe 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: FY2016 100% of 1 loans; FY2018 0% of 24 loans; FY2019 3% of 38 loansCharge-off rate by approval year: FY2016 100% of 1 loans; FY2018 0% of 24 loans; FY2019 3% of 38 loans0%5%10%100%2016n=10%2018n=243%2019n=38
Charge-off rate by approval year: FY2016 100% of 1 loans; FY2018 0% of 24 loans; FY2019 3% of 38 loansCharge-off rate by approval year: FY2016 100% of 1 loans; FY2018 0% of 24 loans; FY2019 3% of 38 loans0%5%10%100%’16n=10%’18n=243%’19n=38

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 27; FY2021 65; FY2022 31; FY2023 30; FY2024 27; FY2025 47; FY2026 29Loans approved since 2020: FY2020 27; FY2021 65; FY2022 31; FY2023 30; FY2024 27; FY2025 47; FY2026 29272020652021312022302023272024472025292026
Loans approved since 2020: FY2020 27; FY2021 65; FY2022 31; FY2023 30; FY2024 27; FY2025 47; FY2026 29Loans approved since 2020: FY2020 27; FY2021 65; FY2022 31; FY2023 30; FY2024 27; FY2025 47; FY2026 2927’2065’2131’2230’2327’2447’2529’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY201611100.0%
FY20182400.0%
FY20193812.6%
FY202027—outstanding
FY202165—outstanding
FY202231—outstanding
FY202330—outstanding
FY202427—outstanding
FY202547—outstanding
FY202629—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?

Tropical Smoothie Cafe's figure rests on 63 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 63 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 Tropical Smoothie Cafe figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 63 resolved loans — directional, not precise.

Frequently asked

What is Tropical Smoothie Cafe's franchise failure rate on SBA loans?
Between 2010 and 2019, 63 Tropical Smoothie Cafe franchisees financed with SBA 7(a) loans. 2 defaulted — a 3.2% charge-off rate, 0.3x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Tropical Smoothie Cafe a safe franchise investment?
Between 2010–2019, Tropical Smoothie Cafe franchisees defaulted on SBA loans at 3.2% 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). Tropical Smoothie Cafe franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 3.2% (2 of 63 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/tropical-smoothie-cafe/ · Data & methodology · Download the dataset (CSV)