FranchiseIQ Rankings 2026
The 30 franchise brands with the lowest SBA 7(a) loan default rates. Based on real loan performance data from 57,000+ franchise loans across 2,400+ brands.
The SBA 7(a) loan default rate is one of the most reliable indicators of franchisee financial health. When franchisees default on SBA loans, it typically means the business could not generate enough revenue to service debt. Brands with 0% default rates across hundreds of loans have a strong track record of franchisee success. Data covers loans from 2010-2026.
Unlike franchisor-provided success rates, SBA default data comes from the federal government and is independently verified. It reflects actual franchisee outcomes, not marketing claims. A low default rate means real operators are succeeding with real money on the line. This is why FranchiseIQ uses SBA data as a core risk metric.
Below 5% is considered strong. Below 2% is excellent. Zero percent across 100+ loans is exceptional and indicates a franchise system where the vast majority of operators succeed financially.
Several well-known brands maintain 0% SBA default rates across hundreds of loans. These include established brands in childcare, fitness, food service, and home services. The full list is shown in our ranking above.
FranchiseIQ tracks SBA 7(a) loan performance for over 57,000+ franchise loans across 2,400+ brands. This is the largest publicly available franchise loan performance dataset. Loan data spans 2010-2026.
SBA default rate data sourced from U.S. Small Business Administration 7(a) loan performance records via FOIA request. Default rate reflects charge-off rate (loans charged off / total loans originated). Only brands with 50+ SBA loans are included. Rankings are for informational purposes and do not constitute investment advice.