Franchise Failure Rates

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

WaterStation Franchise Failure Rate: 4.8% SBA Loan Defaults (2010–2019 Federal Data)

4.8%
charge-off rate on 21 SBA 7(a) loans to WaterStation franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — WaterStation against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: WaterStation 4.8%; Vending Machine Operators 7.8%; All franchises 10.2%WaterStation 4.8%; Vending Machine Operators 7.8%; All franchises 10.2%0%2%4%6%8%10%WaterStation4.8%Vending MachineOperators7.8%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: WaterStation 4.8%; Vending Machine Operators 7.8%; All franchises 10.2%WaterStation 4.8%; Vending Machine Operators 7.8%; All franchises 10.2%0%2%4%6%8%10%WaterStation4.8%Vending Machine Operators7.8%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 21 WaterStation SBA borrowers failed to repay — well below the Vending Machine Operators average of 7.8%.

Between 2010 and 2019, 21 WaterStation franchisees financed with SBA 7(a) loans. 1 defaulted — a 4.8% charge-off rate, 0.6x the Vending Machine Operators average of 7.8%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the WaterStation franchise failure rate on SBA loans?

WaterStation is a Vending Machine Operators franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to WaterStation franchisees: 21 loans approved between fiscal 2010 and 2019, of which 1 was 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 WaterStation compare with other Vending Machine Operators franchises?

The table sets WaterStation's charge-off rate beside its Vending Machine Operators 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.

WaterStation versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureWaterStationVending Machine OperatorsAll franchisesAll SBA borrowers
Default (charge-off) rate4.8%7.8%10.2%8.0%
Loans in sample21———
Defaults1———
Average loan size$458,952———

What has WaterStation SBA lending looked like since 2020?

Since 2020, WaterStation franchisees have taken 109 new SBA 7(a) loans. 1 has already charged off. Early defaults on loans under six years old are notable — most SBA failures take longer to develop.

Charge-off rate by approval year — share of each fiscal year's WaterStation 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: FY2018 12% of 8 loans; FY2019 0% of 13 loansCharge-off rate by approval year: FY2018 12% of 8 loans; FY2019 0% of 13 loans0%5%10%12%2018n=80%2019n=13
Charge-off rate by approval year: FY2018 12% of 8 loans; FY2019 0% of 13 loansCharge-off rate by approval year: FY2018 12% of 8 loans; FY2019 0% of 13 loans0%5%10%12%’18n=80%’19n=13

Loans approved since 2020, by fiscal year — counts only: 1 has charged off to date and most are still outstanding, so no rate is drawn.

Loans approved since 2020: FY2020 54; FY2021 49; FY2022 5; FY2023 1Loans approved since 2020: FY2020 54; FY2021 49; FY2022 5; FY2023 15420204920215202212023
Loans approved since 2020: FY2020 54; FY2021 49; FY2022 5; FY2023 1Loans approved since 2020: FY2020 54; FY2021 49; FY2022 5; FY2023 154’2049’215’221’23

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY20188112.5%
FY20191300.0%
FY202054—outstanding
FY202149—outstanding
FY20225—outstanding
FY20231—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?

WaterStation's figure rests on 21 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 21 resolved loans, one default moves the rate by about 4.8 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 WaterStation figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 21 resolved loans — directional, not precise.

Frequently asked

What is WaterStation's franchise failure rate on SBA loans?
Between 2010 and 2019, 21 WaterStation franchisees financed with SBA 7(a) loans. 1 defaulted — a 4.8% charge-off rate, 0.6x the Vending Machine Operators average of 7.8%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is WaterStation a safe franchise investment?
Between 2010–2019, WaterStation franchisees defaulted on SBA loans at 4.8% versus a 7.8% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). WaterStation franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 4.8% (1 of 21 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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