Franchise Failure Rates

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

Wetzel's Pretzels Franchise Failure Rate: 5.1% SBA Loan Defaults (2010–2019 Federal Data)

5.1%
charge-off rate on 39 SBA 7(a) loans to Wetzel's Pretzels franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Wetzel's Pretzels against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Wetzel's Pretzels 5.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%Wetzel's Pretzels 5.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Wetzel's Pretzels5.1%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Wetzel's Pretzels 5.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%Wetzel's Pretzels 5.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Wetzel's Pretzels5.1%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 20 Wetzel's Pretzels SBA borrowers failed to repay — well below the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 39 Wetzel's Pretzels franchisees financed with SBA 7(a) loans. 2 defaulted — a 5.1% charge-off rate, 0.5x 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 Wetzel's Pretzels franchise failure rate on SBA loans?

Wetzel's Pretzels 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 Wetzel's Pretzels franchisees: 39 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 Wetzel's Pretzels compare with other Limited-Service Restaurants franchises?

The table sets Wetzel's Pretzels'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.

Wetzel's Pretzels versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureWetzel's PretzelsLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate5.1%10.3%10.2%8.0%
Loans in sample39———
Defaults2———
Average loan size$289,892———

What has Wetzel's Pretzels SBA lending looked like since 2020?

Since 2020, Wetzel's Pretzels franchisees have taken 50 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 Wetzel's Pretzels 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: FY2013 0% of 3 loans; FY2014 0% of 8 loans; FY2015 0% of 10 loans; FY2016 0% of 10 loans; FY2017 33% of 6 loans; FY2018 0% of 1 loans; FY2019 0% of 1 loansCharge-off rate by approval year: FY2013 0% of 3 loans; FY2014 0% of 8 loans; FY2015 0% of 10 loans; FY2016 0% of 10 loans; FY2017 33% of 6 loans; FY2018 0% of 1 loans; FY2019 0% of 1 loans0%5%10%0%2013n=30%2014n=80%2015n=100%2016n=1033%2017n=60%2018n=10%2019n=1
Charge-off rate by approval year: FY2013 0% of 3 loans; FY2014 0% of 8 loans; FY2015 0% of 10 loans; FY2016 0% of 10 loans; FY2017 33% of 6 loans; FY2018 0% of 1 loans; FY2019 0% of 1 loansCharge-off rate by approval year: FY2013 0% of 3 loans; FY2014 0% of 8 loans; FY2015 0% of 10 loans; FY2016 0% of 10 loans; FY2017 33% of 6 loans; FY2018 0% of 1 loans; FY2019 0% of 1 loans0%5%10%0%’13n=30%’14n=80%’15n=100%’16n=1033%’17n=60%’18n=10%’19n=1

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 4; FY2021 2; FY2022 10; FY2023 10; FY2024 8; FY2025 7; FY2026 9Loans approved since 2020: FY2020 4; FY2021 2; FY2022 10; FY2023 10; FY2024 8; FY2025 7; FY2026 94202022021102022102023820247202592026
Loans approved since 2020: FY2020 4; FY2021 2; FY2022 10; FY2023 10; FY2024 8; FY2025 7; FY2026 9Loans approved since 2020: FY2020 4; FY2021 2; FY2022 10; FY2023 10; FY2024 8; FY2025 7; FY2026 94’202’2110’2210’238’247’259’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2013300.0%
FY2014800.0%
FY20151000.0%
FY20161000.0%
FY20176233.3%
FY2018100.0%
FY2019100.0%
FY20204—outstanding
FY20212—outstanding
FY202210—outstanding
FY202310—outstanding
FY20248—outstanding
FY20257—outstanding
FY20269—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?

Wetzel's Pretzels's figure rests on 39 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 39 resolved loans, one default moves the rate by about 2.6 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 Wetzel's Pretzels figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 39 resolved loans — directional, not precise.

Frequently asked

What is Wetzel's Pretzels's franchise failure rate on SBA loans?
Between 2010 and 2019, 39 Wetzel's Pretzels franchisees financed with SBA 7(a) loans. 2 defaulted — a 5.1% charge-off rate, 0.5x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Wetzel's Pretzels a safe franchise investment?
Between 2010–2019, Wetzel's Pretzels franchisees defaulted on SBA loans at 5.1% 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). Wetzel's Pretzels franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 5.1% (2 of 39 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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