Franchise Failure Rates

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

Zaxby's Franchise Failure Rate: 2.7% SBA Loan Defaults (2010–2019 Federal Data)

2.7%
charge-off rate on 73 SBA 7(a) loans to Zaxby's franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Zaxby's against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Zaxby's 2.7%; Limited-Service Restaurants 10.3%; All franchises 10.2%Zaxby's 2.7%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Zaxby's2.7%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Zaxby's 2.7%; Limited-Service Restaurants 10.3%; All franchises 10.2%Zaxby's 2.7%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Zaxby's2.7%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 37 Zaxby's SBA borrowers failed to repay — well below the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 73 Zaxby's franchisees financed with SBA 7(a) loans. 2 defaulted — a 2.7% 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 Zaxby's franchise failure rate on SBA loans?

Zaxby's 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 Zaxby's franchisees: 73 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 Zaxby's compare with other Limited-Service Restaurants franchises?

The table sets Zaxby's'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.

Zaxby's versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureZaxby'sLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate2.7%10.3%10.2%8.0%
Loans in sample73———
Defaults2———
Average loan size$1,210,589———

What has Zaxby's SBA lending looked like since 2020?

Since 2020, Zaxby's franchisees have taken 48 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 Zaxby's 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 2 loans; FY2011 0% of 8 loans; FY2012 0% of 5 loans; FY2013 8% of 12 loans; FY2014 0% of 7 loans; FY2015 0% of 15 loans; FY2016 0% of 9 loans; FY2017 14% of 7 loans; FY2018 0% of 4 loans; FY2019 0% of 4 loansCharge-off rate by approval year: FY2010 0% of 2 loans; FY2011 0% of 8 loans; FY2012 0% of 5 loans; FY2013 8% of 12 loans; FY2014 0% of 7 loans; FY2015 0% of 15 loans; FY2016 0% of 9 loans; FY2017 14% of 7 loans; FY2018 0% of 4 loans; FY2019 0% of 4 loans0%5%10%0%2010n=20%2011n=80%2012n=58%2013n=120%2014n=70%2015n=150%2016n=914%2017n=70%2018n=40%2019n=4
Charge-off rate by approval year: FY2010 0% of 2 loans; FY2011 0% of 8 loans; FY2012 0% of 5 loans; FY2013 8% of 12 loans; FY2014 0% of 7 loans; FY2015 0% of 15 loans; FY2016 0% of 9 loans; FY2017 14% of 7 loans; FY2018 0% of 4 loans; FY2019 0% of 4 loansCharge-off rate by approval year: FY2010 0% of 2 loans; FY2011 0% of 8 loans; FY2012 0% of 5 loans; FY2013 8% of 12 loans; FY2014 0% of 7 loans; FY2015 0% of 15 loans; FY2016 0% of 9 loans; FY2017 14% of 7 loans; FY2018 0% of 4 loans; FY2019 0% of 4 loans0%5%10%0%’10n=20%’11n=80%’12n=58%’13n=120%’14n=70%’15n=150%’16n=914%’17n=70%’18n=40%’19n=4

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 7; FY2022 5; FY2023 9; FY2024 5; FY2025 8; FY2026 10Loans approved since 2020: FY2020 4; FY2021 7; FY2022 5; FY2023 9; FY2024 5; FY2025 8; FY2026 10420207202152022920235202482025102026
Loans approved since 2020: FY2020 4; FY2021 7; FY2022 5; FY2023 9; FY2024 5; FY2025 8; FY2026 10Loans approved since 2020: FY2020 4; FY2021 7; FY2022 5; FY2023 9; FY2024 5; FY2025 8; FY2026 104’207’215’229’235’248’2510’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010200.0%
FY2011800.0%
FY2012500.0%
FY20131218.3%
FY2014700.0%
FY20151500.0%
FY2016900.0%
FY20177114.3%
FY2018400.0%
FY2019400.0%
FY20204—outstanding
FY20217—outstanding
FY20225—outstanding
FY20239—outstanding
FY20245—outstanding
FY20258—outstanding
FY202610—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?

Zaxby's's figure rests on 73 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 73 resolved loans, one default moves the rate by about 1.4 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 Zaxby's figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 73 resolved loans — directional, not precise.

Frequently asked

What is Zaxby's's franchise failure rate on SBA loans?
Between 2010 and 2019, 73 Zaxby's franchisees financed with SBA 7(a) loans. 2 defaulted — a 2.7% 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 Zaxby's a safe franchise investment?
Between 2010–2019, Zaxby's franchisees defaulted on SBA loans at 2.7% 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). Zaxby's franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 2.7% (2 of 73 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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