FRANCHISE·WATCH·DESK

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

Franchises in Texas: the loan record

Since 1991, banks have made 14,881 SBA-backed loans to franchisees of 809 brands in Texas. SBA loans to Texas franchisees approved through FY2020 defaulted more often than franchise loans made in the same years nationally: 1,748 charge-offs among 8,916 resolved loans, where about 1,474 would be expected (1.2×).

Evidence, all years: 1,808 of 9,478 resolved loans were charged off (raw rate 19.1%). 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.

14,881

SBA loans since 1991

809

Brands financed

1.2×

Loss ratio vs same-year loans

47.6

Loans per 100k residents

The most-financed brands in Texastop 50 by loan count
#BrandLoansCharged off (all years)Loss ratioDeep dive
1Subway37027 of 299 resolved0.5×LOCAL RECORD →
2Quiznos34576 of 306 resolved1.2×NOT CLEARLOCAL RECORD →
3Best Western Inn24314 of 147 resolved0.6×LOCAL RECORD →
4PRIMROSE SCHOOLS2171 of 142 resolved0.04×LOCAL RECORD →
5Smoothie King20019 of 137 resolved0.9×NOT CLEARLOCAL RECORD →
6Days Inn19021 of 132 resolved1.1×NOT CLEARLOCAL RECORD →
7Holiday Inn Express18518 of 108 resolved0.8×NOT CLEARLOCAL RECORD →
8Super 818010 of 123 resolved0.5×LOCAL RECORD →
9THE UPS STORE (TRADITIONAL)17910 of 108 resolved0.5×LOCAL RECORD →
10La Quinta Inn17717 of 90 resolved1.3×NOT CLEARLOCAL RECORD →
11Wingstop1664 of 148 resolved0.1×LOCAL RECORD →
12Schlotzsky'S16119 of 130 resolved1.0×NOT CLEARLOCAL RECORD →
13Kids R Kids1552 of 115 resolved0.1×LOCAL RECORD →
14Sport Clips1543 of 136 resolved0.1×LOCAL RECORD →
15Chicken Express1441 of 92 resolved0.07×LOCAL RECORD →
16Cicis Pizza14018 of 125 resolved0.9×NOT CLEARLOCAL RECORD →
17Mail Boxes Etc. Usa13524 of 119 resolved1.1×NOT CLEARLOCAL RECORD →
18Christian Brothers Automotive1290 of 100 resolved0×LOCAL RECORD →
19ANYTIME FITNESS12311 of 69 resolved1.4×NOT CLEARLOCAL RECORD →
20DAIRY QUEEN12213 of 90 resolved0.9×NOT CLEARLOCAL RECORD →
21HOTWORX1181 of 33 resolved—LOCAL RECORD →
22QUALITY INN11510 of 77 resolved0.8×NOT CLEARLOCAL RECORD →
23Comfort Inn11214 of 79 resolved1.0×NOT CLEARLOCAL RECORD →
24Dickey'S Barbeque11125 of 91 resolved1.6×LOCAL RECORD →
25Kiddie Academy1053 of 34 resolved0.9×NOT CLEARLOCAL RECORD →
26The Goddard School1051 of 38 resolved0.2×NOT CLEARLOCAL RECORD →
27Marco's Pizza1032 of 53 resolved0.4×NOT CLEARLOCAL RECORD →
28Bahama Buck's10113 of 58 resolved1.8×LOCAL RECORD →
29Ace Hardware9910 of 50 resolved1.2×NOT CLEARLOCAL RECORD →
30GREAT CLIPS979 of 84 resolved0.7×NOT CLEARLOCAL RECORD →
31MARBLE SLAB CREAMERY9516 of 79 resolved1.1×NOT CLEARLOCAL RECORD →
32Childrens Lighthouse930 of 39 resolved0×LOCAL RECORD →
33Jimmy John's936 of 66 resolved0.8×NOT CLEARLOCAL RECORD →
34Motel 6902 of 42 resolved0.4×NOT CLEARLOCAL RECORD →
35Cold Stone Creamery8529 of 66 resolved2.0×LOCAL RECORD →
36MASSAGE ENVY834 of 71 resolved0.2×LOCAL RECORD →
37Little Caesars786 of 64 resolved0.8×NOT CLEARLOCAL RECORD →
38Hampton Inns766 of 41 resolved1.0×NOT CLEARLOCAL RECORD →
39Holiday Inn763 of 41 resolved0.6×NOT CLEARLOCAL RECORD →
40Maaco7613 of 59 resolved1.3×NOT CLEARLOCAL RECORD →
41Meineke7622 of 48 resolved3.2×LOCAL RECORD →
42Minuteman Press7621 of 64 resolved1.9×LOCAL RECORD →
43JERSEY MIKE'S750 of 41 resolved0×LOCAL RECORD →
44Ramada Inn7511 of 61 resolved1.0×NOT CLEARLOCAL RECORD →
45Baskin-Robbins7412 of 59 resolved1.1×NOT CLEARLOCAL RECORD →
46Choice Hotels International7414 of 61 resolved1.1×NOT CLEARLOCAL RECORD →
47SERVPRO746 of 60 resolved0.7×NOT CLEARLOCAL RECORD →
48The Learning Experience736 of 28 resolved—LOCAL RECORD →
49Firehouse Subs715 of 48 resolved0.8×NOT CLEARLOCAL RECORD →
50Matco Tools7123 of 66 resolved2.0×LOCAL RECORD →
Brands whose Texas loans defaulted more often than same-year franchise loansloans approved through FY2020 · 30+ resolved · statistically clear
All Tune and Lube26 charge-offs vs ~7.9 expected3.3×
Meineke22 charge-offs vs ~6.9 expected3.2×
Blimpie26 charge-offs vs ~9.6 expected2.7×
Cottman Transmission20 charge-offs vs ~7.6 expected2.6×
ALPHAGRAPHICS17 charge-offs vs ~6.6 expected2.6×
Golf Etc.14 charge-offs vs ~6.4 expected2.2×
Doubledave'S Pizzaworks16 charge-offs vs ~8 expected2.0×
Matco Tools23 charge-offs vs ~12 expected2.0×
Planet Beach15 charge-offs vs ~7.6 expected2.0×
Cold Stone Creamery29 charge-offs vs ~15 expected2.0×
Aamco Transmissions13 charge-offs vs ~6.7 expected1.9×
Minuteman Press21 charge-offs vs ~11 expected1.9×
Smoothie Factory15 charge-offs vs ~8.1 expected1.8×
Bahama Buck's13 charge-offs vs ~7.2 expected1.8×
POSTNET14 charge-offs vs ~8.1 expected1.7×
Brands whose Texas loans defaulted less often than same-year franchise loansloans approved through FY2020 · 30+ resolved · statistically clear
Christian Brothers Automotive0 charge-offs vs ~15 expected0×
Childrens Lighthouse0 charge-offs vs ~6.5 expected0×
European Wax Center0 charge-offs vs ~5.1 expected0×
JERSEY MIKE'S0 charge-offs vs ~3.5 expected0×
PRIMROSE SCHOOLS1 charge-offs vs ~23 expected0.04×
Chicken Express1 charge-offs vs ~14 expected0.07×
Kids R Kids2 charge-offs vs ~20 expected0.1×
Sport Clips3 charge-offs vs ~27 expected0.1×
Wingstop4 charge-offs vs ~27 expected0.1×
MASSAGE ENVY4 charge-offs vs ~16 expected0.2×
Super 810 charge-offs vs ~22 expected0.5×
Subway27 charge-offs vs ~52 expected0.5×
THE UPS STORE (TRADITIONAL)10 charge-offs vs ~19 expected0.5×
Best Western Inn13 charge-offs vs ~22 expected0.6×
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 Texas. 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 →