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The failure rate represents the number of loans in liquidation or charged off, divided by the number of loans disbursed.” The Matco Tools was deemed the riskiest franchise with a 36% franchise loan default rate.
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The Curves franchise was the 4th worst, with a 16% SBA loan default rate (no surprise to readers of this site or to those who left 600 comments on our Curves franchise discussion) Also posting a double-digit default rate is heavily promoted The UPS Store franchise with a 12% SBA franchise loan default rate.
The winners include Super 8 and Days Inn motel franchises with 4% and 6% respectively, Subway with a 7% default rate and Dairy Queen & Dunkin’ Donuts franchises with 8% default rates.
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