FRANCHISE·WATCH·DESK

CALIFORNIA · SBA 7(a)/504 FOIA · FY1991–PRESENT

Franchises in California: the loan record

Since 1991, banks have made 11,639 SBA-backed loans to franchisees of 660 brands in California. SBA loans to California franchisees approved through FY2020 defaulted less often than franchise loans made in the same years nationally: 1,125 charge-offs among 7,532 resolved loans, where about 1,276 would be expected (0.9×).

Evidence, all years: 1,148 of 7,836 resolved loans were charged off (raw rate 14.7%). The raw rate mixes loans from every era, including the 2006–08 loans that met the recession, so it is not compared with anything here. Borrowers are matched to brands by name, so some matches may be wrong.

11,639

SBA loans since 1991

660

Brands financed

0.9×

Loss ratio vs same-year loans

29.5

Loans per 100k residents

The most-financed brands in Californiatop 50 by loan count
#BrandLoansCharged off (all years)Loss ratioDeep dive
1Subway57325 of 463 resolved0.3×LOCAL RECORD →
2Quiznos34676 of 277 resolved1.2×NOT CLEARLOCAL RECORD →
3THE UPS STORE (TRADITIONAL)28314 of 136 resolved0.6×LOCAL RECORD →
4Cold Stone Creamery24428 of 185 resolved0.8×NOT CLEARLOCAL RECORD →
5Baskin-Robbins22828 of 172 resolved0.9×NOT CLEARLOCAL RECORD →
6Mail Boxes Etc. Usa16415 of 147 resolved0.6×LOCAL RECORD →
7BIG O TIRES13719 of 106 resolved1.1×NOT CLEARLOCAL RECORD →
8Days Inn1358 of 104 resolved0.5×LOCAL RECORD →
9Best Western Inn1334 of 80 resolved0.4×LOCAL RECORD →
10Mountain Mike'S Pizza12711 of 82 resolved0.9×NOT CLEARLOCAL RECORD →
11Togo'S Eatery12217 of 106 resolved0.8×NOT CLEARLOCAL RECORD →
12Ace Hardware12111 of 69 resolved1.1×NOT CLEARLOCAL RECORD →
13CIRCLE K1193 of 47 resolved0.5×NOT CLEARLOCAL RECORD →
14DENNY'S1196 of 96 resolved0.4×LOCAL RECORD →
15Motel 61110 of 50 resolved0×LOCAL RECORD →
16Super 81005 of 78 resolved0.4×LOCAL RECORD →
17Travelodge1006 of 79 resolved0.5×LOCAL RECORD →
18Juice It Up9718 of 66 resolved1.2×NOT CLEARLOCAL RECORD →
19Round Table Pizza972 of 60 resolved0.3×LOCAL RECORD →
20DAIRY QUEEN9411 of 76 resolved1.0×NOT CLEARLOCAL RECORD →
21Papa Murphy'S912 of 71 resolved0.1×LOCAL RECORD →
22Wienerschnitzel9113 of 71 resolved1.1×NOT CLEARLOCAL RECORD →
23Maaco9013 of 71 resolved1.0×NOT CLEARLOCAL RECORD →
24Holiday Inn Express871 of 56 resolved0.1×LOCAL RECORD →
25MASSAGE ENVY838 of 70 resolved0.7×NOT CLEARLOCAL RECORD →
26Wetzel'S Pretzel805 of 53 resolved0.6×NOT CLEARLOCAL RECORD →
27Comfort Inn774 of 52 resolved0.4×LOCAL RECORD →
28SERVPRO772 of 47 resolved0.3×LOCAL RECORD →
29Minuteman Press756 of 55 resolved0.6×NOT CLEARLOCAL RECORD →
30ANYTIME FITNESS745 of 42 resolved1.2×NOT CLEARLOCAL RECORD →
31Wingstop744 of 60 resolved0.3×LOCAL RECORD →
32Yogurtland733 of 53 resolved0.6×NOT CLEARLOCAL RECORD →
33Burger King721 of 60 resolved0.1×LOCAL RECORD →
34QUALITY INN710 of 44 resolved0×LOCAL RECORD →
35Domino's Pizza6812 of 50 resolved1.2×NOT CLEARLOCAL RECORD →
36ECONO LODGE665 of 52 resolved0.5×NOT CLEARLOCAL RECORD →
37Aamco Transmissions6516 of 54 resolved1.3×NOT CLEARLOCAL RECORD →
38GREAT CLIPS658 of 57 resolved0.9×NOT CLEARLOCAL RECORD →
39Postal Annex Plus6510 of 53 resolved1.0×NOT CLEARLOCAL RECORD →
40MENCHIE'S643 of 43 resolved0.7×NOT CLEARLOCAL RECORD →
41Ameriprise Financial Services631 of 49 resolved0.2×LOCAL RECORD →
42JIFFY LUBE621 of 42 resolved0.2×LOCAL RECORD →
43JERSEY MIKE'S593 of 40 resolved0.9×NOT CLEARLOCAL RECORD →
44Club Pilates570 of 37 resolved0×LOCAL RECORD →
45Speedee Oil Change & Tune-Up579 of 48 resolved1.2×NOT CLEARLOCAL RECORD →
46Sport Clips578 of 52 resolved1.2×NOT CLEARLOCAL RECORD →
47Home Instead561 of 37 resolved0.2×NOT CLEARLOCAL RECORD →
48Hampton Inns541 of 31 resolved0.2×NOT CLEARLOCAL RECORD →
49Orangetheory520 of 35 resolved0×LOCAL RECORD →
50Ramada Inn521 of 36 resolved0.1×LOCAL RECORD →
Brands whose California loans defaulted more often than same-year franchise loansloans approved through FY2020 · 30+ resolved · statistically clear
Dickey'S Barbeque14 charge-offs vs ~3.7 expected3.8×
All Tune and Lube17 charge-offs vs ~5.6 expected3.1×
ALPHAGRAPHICS11 charge-offs vs ~6.1 expected1.8×
Blimpie13 charge-offs vs ~7.5 expected1.7×
Brands whose California loans defaulted less often than same-year franchise loansloans approved through FY2020 · 30+ resolved · statistically clear
QUALITY INN0 charge-offs vs ~6.1 expected0×
Jack in the Box0 charge-offs vs ~5.1 expected0×
Motel 60 charge-offs vs ~4.6 expected0×
Club Pilates0 charge-offs vs ~4 expected0×
Orangetheory0 charge-offs vs ~3.5 expected0×
Holiday Inn Express1 charge-offs vs ~9 expected0.1×
Burger King1 charge-offs vs ~8.5 expected0.1×
Ramada Inn1 charge-offs vs ~7 expected0.1×
Papa Murphy'S2 charge-offs vs ~14 expected0.1×
JIFFY LUBE1 charge-offs vs ~6.3 expected0.2×
Ameriprise Financial Services1 charge-offs vs ~4.9 expected0.2×
Round Table Pizza2 charge-offs vs ~7.5 expected0.3×
SERVPRO2 charge-offs vs ~6.9 expected0.3×
Subway24 charge-offs vs ~81 expected0.3×
Wingstop4 charge-offs vs ~12 expected0.3×
Methodology & sourcing

Every SBA 7(a) and 504 loan in the FY1991–present FOIA files (data.sba.gov) whose borrower is matched to a franchise brand and whose borrower state is California. Fuel-supply contracts, insurance agencies and other SBA codes that are not franchises a buyer can purchase are excluded. Totals count every such loan, including brands with too few loans here to list. The loss ratio compares charge-offs among loans approved through FY2020 (old enough that most failures have surfaced) with the charge-offs expected if each loan had defaulted at the national rate for franchise loans approved the same year; 1.0× means the same as same-year franchise loans. Only charged-off and paid-in-full loans count, so still-open loans never dilute it. A ratio prints at 30+ resolved loans; “not clear” marks a ratio that chance alone could produce. Local conditions and lender mix sit inside these numbers; read a brand's national record and its FDD before concluding anything.

Before you sign anythingfree · 30 min · no commission

A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing the numbers, including talking you out of a bad deal.

Don Drummond, CPA — Virginia #43775 · what I charge

Book a free 30-minute call →