Franchise Failure Rates

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

Tropical Smoothie Franchise Failure Rate: 3.1% SBA Loan Defaults (2010–2019 Federal Data)

3.1%
charge-off rate on 131 SBA 7(a) loans to Tropical Smoothie franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Tropical Smoothie against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Tropical Smoothie 3.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%Tropical Smoothie 3.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Tropical Smoothie3.1%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Tropical Smoothie 3.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%Tropical Smoothie 3.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Tropical Smoothie3.1%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 32 Tropical Smoothie SBA borrowers failed to repay — well below the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 131 Tropical Smoothie franchisees financed with SBA 7(a) loans. 4 defaulted — a 3.1% 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 franchise failure rate on SBA loans?

Tropical Smoothie 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 franchisees: 131 loans approved between fiscal 2010 and 2019, of which 4 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 compare with other Limited-Service Restaurants franchises?

The table sets Tropical Smoothie'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 versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureTropical SmoothieLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate3.1%10.3%10.2%8.0%
Loans in sample131———
Defaults4———
Average loan size$240,012———
Charge-off rate by approval year — share of each fiscal year's Tropical Smoothie 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 7 loans; FY2011 14% of 7 loans; FY2012 0% of 7 loans; FY2013 0% of 10 loans; FY2014 12% of 8 loans; FY2015 0% of 20 loans; FY2016 3% of 33 loans; FY2017 3% of 31 loans; FY2018 0% of 8 loansCharge-off rate by approval year: FY2010 0% of 7 loans; FY2011 14% of 7 loans; FY2012 0% of 7 loans; FY2013 0% of 10 loans; FY2014 12% of 8 loans; FY2015 0% of 20 loans; FY2016 3% of 33 loans; FY2017 3% of 31 loans; FY2018 0% of 8 loans0%5%10%0%2010n=714%2011n=70%2012n=70%2013n=1012%2014n=80%2015n=203%2016n=333%2017n=310%2018n=8
Charge-off rate by approval year: FY2010 0% of 7 loans; FY2011 14% of 7 loans; FY2012 0% of 7 loans; FY2013 0% of 10 loans; FY2014 12% of 8 loans; FY2015 0% of 20 loans; FY2016 3% of 33 loans; FY2017 3% of 31 loans; FY2018 0% of 8 loansCharge-off rate by approval year: FY2010 0% of 7 loans; FY2011 14% of 7 loans; FY2012 0% of 7 loans; FY2013 0% of 10 loans; FY2014 12% of 8 loans; FY2015 0% of 20 loans; FY2016 3% of 33 loans; FY2017 3% of 31 loans; FY2018 0% of 8 loans0%5%10%0%’10n=714%’11n=70%’12n=70%’13n=1012%’14n=80%’15n=203%’16n=333%’17n=310%’18n=8

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010700.0%
FY20117114.3%
FY2012700.0%
FY20131000.0%
FY20148112.5%
FY20152000.0%
FY20163313.0%
FY20173113.2%
FY2018800.0%

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?

Tropical Smoothie's figure rests on 131 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 131 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 Tropical Smoothie figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is Tropical Smoothie's franchise failure rate on SBA loans?
Between 2010 and 2019, 131 Tropical Smoothie franchisees financed with SBA 7(a) loans. 4 defaulted — a 3.1% 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 a safe franchise investment?
Between 2010–2019, Tropical Smoothie franchisees defaulted on SBA loans at 3.1% 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 franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 3.1% (4 of 131 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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