Franchise Failure Rates

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

Zoup Franchise Failure Rate: 21.1% SBA Loan Defaults (2010–2019 Federal Data)

21.1%
charge-off rate on 71 SBA 7(a) loans to Zoup franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Zoup against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Zoup 21.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%Zoup 21.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%5%10%15%20%Zoup21.1%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Zoup 21.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%Zoup 21.1%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%5%10%15%20%Zoup21.1%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 5 Zoup SBA borrowers failed to repay — more than double the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 71 Zoup franchisees financed with SBA 7(a) loans. 15 defaulted — a 21.1% charge-off rate, 2.0x 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 Zoup franchise failure rate on SBA loans?

Zoup 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 Zoup franchisees: 71 loans approved between fiscal 2010 and 2019, of which 15 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 Zoup compare with other Limited-Service Restaurants franchises?

The table sets Zoup'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. A cell in red is more than twice the industry benchmark.

Zoup versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureZoupLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate21.1%10.3%10.2%8.0%
Loans in sample71———
Defaults15———
Average loan size$282,826———

What has Zoup SBA lending looked like since 2020?

Since 2020, Zoup franchisees have taken 5 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 Zoup 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 4 loans; FY2011 0% of 2 loans; FY2012 0% of 3 loans; FY2013 0% of 5 loans; FY2014 40% of 10 loans; FY2015 38% of 13 loans; FY2016 29% of 14 loans; FY2017 10% of 10 loans; FY2018 17% of 6 loans; FY2019 0% of 4 loansCharge-off rate by approval year: FY2010 0% of 4 loans; FY2011 0% of 2 loans; FY2012 0% of 3 loans; FY2013 0% of 5 loans; FY2014 40% of 10 loans; FY2015 38% of 13 loans; FY2016 29% of 14 loans; FY2017 10% of 10 loans; FY2018 17% of 6 loans; FY2019 0% of 4 loans0%20%40%0%2010n=40%2011n=20%2012n=30%2013n=540%2014n=1038%2015n=1329%2016n=1410%2017n=1017%2018n=60%2019n=4
Charge-off rate by approval year: FY2010 0% of 4 loans; FY2011 0% of 2 loans; FY2012 0% of 3 loans; FY2013 0% of 5 loans; FY2014 40% of 10 loans; FY2015 38% of 13 loans; FY2016 29% of 14 loans; FY2017 10% of 10 loans; FY2018 17% of 6 loans; FY2019 0% of 4 loansCharge-off rate by approval year: FY2010 0% of 4 loans; FY2011 0% of 2 loans; FY2012 0% of 3 loans; FY2013 0% of 5 loans; FY2014 40% of 10 loans; FY2015 38% of 13 loans; FY2016 29% of 14 loans; FY2017 10% of 10 loans; FY2018 17% of 6 loans; FY2019 0% of 4 loans0%20%40%0%’10n=40%’11n=20%’12n=30%’13n=540%’14n=1038%’15n=1329%’16n=1410%’17n=1017%’18n=60%’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: FY2023 3; FY2024 2Loans approved since 2020: FY2023 3; FY2024 23202322024
Loans approved since 2020: FY2023 3; FY2024 2Loans approved since 2020: FY2023 3; FY2024 23’232’24

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010400.0%
FY2011200.0%
FY2012300.0%
FY2013500.0%
FY201410440.0%
FY201513538.5%
FY201614428.6%
FY201710110.0%
FY20186116.7%
FY2019400.0%
FY20233—outstanding
FY20242—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?

Zoup's figure rests on 71 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 71 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 Zoup figure is recomputed from the public SBA FOIA file on each rebuild.

Based on 71 resolved loans — directional, not precise.

Frequently asked

What is Zoup's franchise failure rate on SBA loans?
Between 2010 and 2019, 71 Zoup franchisees financed with SBA 7(a) loans. 15 defaulted — a 21.1% charge-off rate, 2.0x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Zoup a safe franchise investment?
Between 2010–2019, Zoup franchisees defaulted on SBA loans at 21.1% 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). Zoup franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 21.1% (15 of 71 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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