Flip Flop Shops vs Style Encore
Flip Flop Shops vs Style Encore: Flip Flop Shops costs $183K to $349K to open; Style Encore costs $33K to $328K. Flip Flop Shops has 47 units, Style Encore has 18. SBA loan history: Flip Flop Shops = 26 loans (38.5% default); Style Encore = 24 loans (4.2% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Flip Flop Shops vs Style Encore: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Style Encore requires the lower minimum capital commitment ($33K vs $183K for Flip Flop Shops), a 454% spread. Initial franchise fees come in at $30K for Flip Flop Shops versus $25K for Style Encore, Style Encore has the lower entry fee. Ongoing royalty load is 5% for Flip Flop Shops and 5% for Style Encore, equal royalty drag.
System Scale & Tenure
On scale, Flip Flop Shops operates 47 units to Style Encore's 18, roughly 3× the system size.
SBA Lending Profile
Flip Flop Shops has the deeper SBA lending track record, with 26 7(a) approvals compared with 24 for Style Encore. Flip Flop Shops's peak SBA year was 2013 (9 loans); Style Encore's peak was 2015 (11 loans). Style Encore's more recent peak generally indicates fresher lender appetite. Flip Flop Shops has the most SBA funded units in FL, with 7. Style Encore leads in TX, with 4. Borrowers should pick the brand whose strongest SBA state matches their own state for warmer lender introductions. Average SBA loan size on funded Flip Flop Shops deals is $150K vs $196K for Style Encore, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 38.5% for Flip Flop Shops and 4.2% for Style Encore, Style Encore has the cleaner SBA loss record by 34.3 points. PeerSense FPI scores come in at 34 (Fair) for Flip Flop Shops and 51 (Moderate) for Style Encore, giving Style Encore the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 34/100 | 51/100 |
Health Tier | Limited | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 26 | 24 |
SBA Volume | – | – |
Default Rate | 38.5% | 4.2% |
Peer Tier | established | growing |
Investment & Costs
Total Investment | $183K to $349K | $33K to $328K |
Franchise Fee | $30K | $25K |
Royalty Rate | 5% | 5% |
Ad Fund | 1% | 2% |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Disclosed |
System Size & Operations
Total Units | 47 | 18 |
Franchised Units | 47 | 18 |
Company Owned | – | – |
Term Length | 8 yrs | 10 yrs |
Brand Information
Year Founded | N/A | 2013 |
Franchising Since | 2007 | 2013 |
Years Franchising | 19 yrs | 13 yrs |
Headquarters | MISSION VIEJO, CA | AUSTIN, TX |
Category | Clothing Accessories Stores | Clothing Accessories Stores |
Website | ||
FDD Year | 2026 | 2026 |
Which Is Better, Flip Flop Shops or Style Encore?
Lower upfront capital required
Style Encore
Flip Flop Shops: $183K starting · Style Encore: $33K starting
More SBA lender confidence
Flip Flop Shops
Flip Flop Shops: 26 SBA loans · Style Encore: 24 SBA loans
Lower SBA default rate
Style Encore
Flip Flop Shops: 38.5% · Style Encore: 4.2%
Larger system & brand presence
Flip Flop Shops
Flip Flop Shops: 47 units · Style Encore: 18 units
Lower ongoing royalty load
Tie
Flip Flop Shops: 5% · Style Encore: 5%
More lender financing options
Flip Flop Shops
Flip Flop Shops: 19 unique lenders · Style Encore: 14 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Flip Flop Shops vs Style Encore: Franchise Funding Comparison
Comparing Flip Flop Shops and Style Encore is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $33K to $349K.
Flip Flop Shops has 26 SBA loans on record and Style Encore has 24. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Flip Flop Shops vs Style Encore, Frequently Asked Questions
Which is a better franchise investment, Flip Flop Shops or Style Encore?
How much does a Flip Flop Shops franchise cost compared to Style Encore?
Can I finance Flip Flop Shops or Style Encore with an SBA loan?
Which has a lower SBA default rate, Flip Flop Shops or Style Encore?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman