Which Hardware Stores franchises have the highest SBA default rates?

Among Hardware Stores brands with 20 or more SBA 7(a) loans approved FY2010–FY2019, the highest charge-off rates were True Value Hardware (7.4%), Ace Hardware (7.0%), Do IT Best Hardware (4.8%). Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.

What is the Hardware Stores franchise SBA default rate benchmark?

Hardware Stores franchise borrowers charged off 7.6% of SBA 7(a) loans approved FY2010–FY2019, compared with 10.2% for all franchises and 8.0% for all SBA borrowers.

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

Hardware Stores Franchise Failure Rates: SBA Loan Defaults for 6 Brands

7.6%

charge-off rate across hardware stores franchise SBA 7(a) loans, FY2010–2019

Hardware Stores franchises charged off 7.6% of SBA 7(a) loans approved FY2010–FY2019, versus 10.2% for all franchises and 8.0% for all SBA borrowers. This page tracks 6 brands: default rates ranged from Hardware Hank (0.0%) to True Value Hardware (7.4%). Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.

How do Hardware Stores franchises perform on SBA loans?

Across the 6 Hardware Stores brands tracked here, 410 SBA 7(a) loans were approved between fiscal 2010 and 2019 and 24 were charged off — a pooled rate of 5.9% for these brands against a 7.6% benchmark for all Hardware Stores franchise loans. 0 brands with 20+ loans ran at more than twice the industry benchmark; 0 brands with 40+ loans recorded zero defaults. Statuses as of June 30, 2026.

Brands tracked6
SBA 7(a) loans, FY2010–2019410
Charged off24
Pooled rate, these brands5.9%
Hardware Stores benchmark (all franchise loans)7.6%
All-franchise benchmark10.2%
All SBA borrowers8.0%
Lowest rateHardware Hank · 0.0%
Highest rateTrue Value Hardware · 7.4%

Which Hardware Stores franchise brands have the highest and lowest SBA default rates?

Every Hardware Stores brand with at least five resolved SBA 7(a) loans, sorted from highest to lowest default rate. Click a column heading to re-sort; use the filter to find a brand.

Filter brands 6 brands

Hardware Stores franchise brands — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026.

Brand	Loans	Defaults	Rate	vs industry avg	Loans since 2020
True Value Hardware	68	5	7.4%	1.0x	0
Ace Hardware	256	18	7.0%	0.9x	291
Do IT Best Hardware	21	1	4.8%	0.6x	0
Hardware Hank	27	0	0.0%	—	9
True Value Company LLC - Member Agreement	17	0	0.0%*	—	29
Woodcraft	21	0	0.0%	—	5

* Small sample (5–19 loans): rate shown for completeness; treat as a diligence flag, not a verdict. Loans since 2020 and early charge-offs are counts only — that cohort is too young for a rate.

Frequently asked

Which Hardware Stores franchises have the highest SBA default rates?: Among Hardware Stores brands with 20 or more SBA 7(a) loans approved FY2010–FY2019, the highest charge-off rates were True Value Hardware (7.4%), Ace Hardware (7.0%), Do IT Best Hardware (4.8%). Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
What is the Hardware Stores franchise SBA default rate benchmark?: Hardware Stores franchise borrowers charged off 7.6% of SBA 7(a) loans approved FY2010–FY2019, compared with 10.2% for all franchises and 8.0% for all SBA borrowers.

Cite this page

Franchise Default Rates (2026). Hardware Stores franchise SBA 7(a) default rates, FY2010–FY2019 cohort: 6 brands, pooled 5.9%. Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/industry/hardware-stores/ · Data & methodology · Download the dataset (CSV)