Franchise Failure Rates

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

Limited-Service Restaurants Franchise Failure Rates: SBA Loan Defaults for 108 Brands

10.3%
charge-off rate across limited-service restaurants franchise SBA 7(a) loans, FY2010–2019

Limited-Service Restaurants franchises charged off 10.3% of SBA 7(a) loans approved FY2010–FY2019, versus 10.2% for all franchises and 8.0% for all SBA borrowers. This page tracks 108 brands: default rates ranged from Wingstop (0.0%) to 1000 Degrees Pizzeria (75.0%). Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.

How do Limited-Service Restaurants franchises perform on SBA loans?

Across the 108 Limited-Service Restaurants brands tracked here, 7,200 SBA 7(a) loans were approved between fiscal 2010 and 2019 and 639 were charged off — a pooled rate of 8.9% for these brands against a 10.3% benchmark for all Limited-Service Restaurants franchise loans. 17 brands with 20+ loans ran at more than twice the industry benchmark; 6 brands with 40+ loans recorded zero defaults. Statuses as of June 30, 2026.

Which Limited-Service Restaurants franchise brands have the highest and lowest SBA default rates?

Every Limited-Service Restaurants 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.

108 brands
Limited-Service Restaurants franchise brands — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026.
BrandLoansDefaultsRatevs industry avgLoans since 2020Early charge-offs
1000 Degrees Pizzeria201575.0%7.3x40
Tom and Chee19947.4%*4.6x00
Burgerim652538.5%3.7x71
Orange Leaf Frozen Yogurt552138.2%3.7x40
MOOYAH Burgers & Fries17635.3%*3.4x00
Dickey's Barbecue Pit1585434.2%3.3x644
Freshii371232.4%3.1x10
CherryBerry22731.8%3.1x00
Papa John's21628.6%2.8x571
Teriyaki Madness28828.6%2.8x1011
Baja Fresh Mexican Grill22627.3%2.6x00
Uncle Maddio's Pizza Joint22627.3%2.6x00
Vitality Bowls15426.7%*2.6x210
Dunn Brothers Coffee23626.1%2.5x50
MidiCi23626.1%2.5x00
Which Wich1132925.7%2.5x100
Jakes WayBack Burgers481122.9%2.2x00
Quiznos35822.9%2.2x40
Pita Pit18422.2%*2.2x61
Togo's18422.2%*2.2x00
Duck Donuts32721.9%2.1x582
Zoup711521.1%2.0x50
Deli Delicious15320.0%*1.9x50
Hungry Howie's Pizza20420.0%1.9x00
The Pita Pit621219.4%1.9x00
PrimoHoagies21419.0%1.8x350
Dickey's Barbeque50918.0%1.8x00
Cicis Pizza23417.4%1.7x90
Saladworks25416.0%1.6x280
Your Pie25416.0%1.6x130
Papa John's Pizza931415.1%1.5x00
Erbert & Gerbert's Subs & Clubs20315.0%1.5x00
Moe's Southwest Grill52713.5%1.3x211
Schlotzsky's23313.0%1.3x210
Fuzzy's Taco Shop31412.9%1.2x81
Baskin-robbins 31 Ice Cream25312.0%1.2x00
Golden Fried Chicken/golden Chick17211.8%*1.1x00
Little Caesars34411.8%1.1x1332
McAlister's Deli19210.5%*1.0x260
Subway6636910.4%1.0x3227
Checkers30310.0%1.0x180
Which Wich Superior Sandwiches3139.7%0.9x00
Papa Murphy's111109.0%0.9x00
Cinnabon2428.3%0.8x240
Firehouse Subs361308.3%0.8x1664
Little Caesar Pizza197157.6%0.7x00
Marco's Pizza221167.2%0.7x1773
Jimmy John's562407.1%0.7x1500
Sonic Drive-in2827.1%0.7x00
Arby's4337.0%0.7x170
Planet Smoothie1516.7%*0.7x220
Cousins Submarines1616.2%*0.6x00
Kentucky Fried Chicken1616.2%*0.6x00
The Flame Broiler1616.2%*0.6x00
Church's Chicken1715.9%*0.6x100
Jamba Juice3425.9%0.6x00
Yogen Fruz1715.9%*0.6x00
Cici's Pizza/ Cici's to Go1815.6%*0.5x00
Qdoba Mexican Grill1815.6%*0.5x00
Bojangles1915.3%*0.5x00
Wetzel's Pretzels3925.1%0.5x500
Dairy Queen Frozen Treat Center6134.9%0.5x00
Jets Pizza8244.9%0.5x470
Burger King6334.8%0.5x410
Charley's Grilled Subs2114.8%0.5x00
Taco Bell2114.8%0.5x80
Papa Murphy's Take & Bake Pizza6434.7%0.5x00
Cousins Subs2314.3%0.4x30
Jersey Mike’s Subs4724.3%0.4x2480
Subway Sandwich Shop548234.2%0.4x00
Dairy Queen12254.1%0.4x00
Smoothie King18273.8%0.4x1782
Round Table Pizza2713.7%0.4x261
Cold Stone Creamery, Inc.2913.4%0.3x00
Tropical Smoothie Cafe6323.2%0.3x2560
Mountain Mike's Pizza3213.1%0.3x620
Tropical Smoothie13143.1%0.3x00
Pizza Ranch3612.8%0.3x240
Zaxby's7322.7%0.3x480
Little Ceasar's Pizza12432.4%0.2x00
Jersey Mike's17931.7%0.2x00
Dunkin Donuts19131.6%0.2x00
Domino's Pizza21631.4%0.1x2372
Dairy Queen Grill & Chill/texas DQ11010.9%0.1x00
American Deli1800.0%*—300
Blaze Pizza2000.0%—150
Chicken Express2300.0%—20
Culver's9600.0%—00
Culver's ButterBurgers & Frozen Custard3200.0%—1030
Culver's Frozen Custard5000.0%—00
DQ Grill & Chill Operating Agreement1700.0%*—720
Dunkin Donuts/baskin-robbins Co-brand4000.0%—00
Dunkin'2200.0%—841
El Pollo Loco1700.0%*—70
Five Guys2800.0%—60
Five Guys Famous Burgers and Fries3000.0%—00
KFC2500.0%—80
Moe's Sw Grill2600.0%—00
Popeye's Famous Fried Chicken2200.0%—00
Popeyes Louisiana Kitchen4000.0%—230
Sonic3600.0%—170
Tim Horton Donuts1500.0%*—00
Tim Hortons1800.0%*—70
Toppers Pizza5000.0%—120
Waba Grill Teriyaki House2200.0%—00
Wendy's2600.0%—180
Wingstop11000.0%—390
Wingstop Restaurant3900.0%—00

* 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 Limited-Service Restaurants franchises have the highest SBA default rates?
Among Limited-Service Restaurants brands with 20 or more SBA 7(a) loans approved FY2010–FY2019, the highest charge-off rates were 1000 Degrees Pizzeria (75.0%), Burgerim (38.5%), Orange Leaf Frozen Yogurt (38.2%). Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
What is the Limited-Service Restaurants franchise SBA default rate benchmark?
Limited-Service Restaurants franchise borrowers charged off 10.3% 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). Limited-Service Restaurants franchise SBA 7(a) default rates, FY2010–FY2019 cohort: 108 brands, pooled 8.9%. Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/industry/limited-service-restaurants/ · Data & methodology · Download the dataset (CSV)