How is the franchise default rate calculated?

Default rate is the charged-off share of all SBA loans on record for a brand, its charged-off loans divided by its total funded loans. We only rank brands with at least 50 SBA loans and high-confidence data so the rate is statistically meaningful. Each brand's rate is shown against its category peer average.

Does a high default rate mean I shouldn't buy that franchise?

No. Default rate reflects the average operator's outcome, not yours. A well-capitalized, experienced buyer in a strong market can outperform a brand's average by a wide margin. The index tells you how lenders will view the deal going in, so you can structure the request, pick the right lender, and set expectations before you apply.

Where does the data come from?

Every figure traces to the SBA's public 7(a) and 504 loan-level FOIA disclosures, 2.1 million records, which PeerSense normalizes to clean franchise brands. Raw SBA data lists the same brand under dozens of inconsistent spellings; our matching engine consolidates them so a brand's true loan count, volume, and default rate can be measured.

How does PeerSense help me finance a franchise?

PeerSense is a capital advisory firm. We match your specific brand, deal size, credit profile, and state to the SBA lenders most likely to approve you, from a pool of 899+ active lenders with performance data on your brand. Our fee is paid at closing and disclosed in writing before engagement.

FRANCHISE FUNDABILITY INDEX · JULY 2026

Which Franchises Do Banks Actually Fund?

Name: PeerSense Franchise Fundability Index
Creator: PeerSense
License: https://peersense.com/terms-and-conditions

PeerSense ranked 5,186 franchise brands by real SBA lending performance, loan volume, average deal size, and default rate, drawn from 2.1 million SBA 7(a) loan records. The brands below carry the strongest track record of getting funded and getting repaid.

Updated July 2026 · Based on SBA loan-level FOIA data · PeerSense is a capital advisory firm, not a lender

Get Matched to Franchise Financing Talk to a Capital Advisor

2.1M

SBA loan records analyzed

5,186

Franchise brands with SBA history

$96.9B

Franchise SBA volume tracked

16.2%

Avg. brand default rate

Quick Answer

Which franchise brands are the most fundable?

The most fundable franchise brands combine a deep SBA lending history with a default rate well below their category average. By PeerSense's Fundability Index, brands like Fazoli's, Denny's, Super 8, Planet Fitness, and Five Guys lead, each has funded 50+ SBA loans while charging off far less than peer concepts (a 5.1% default rate for Fazoli's vs. a 10.3% restaurant-category average, or 0% for Planet Fitness across 173 loans vs. 10.8% for fitness). Lenders reward that track record with easier approvals and tighter rates. The full ranking, and where any specific brand lands, is below.

, PeerSense Capital Advisory · SBA 7(a) FOIA analysis · Updated July 2026.

THE RANKING

Top 40 Franchise Brands by Fundability

Ranked by the PeerSense Fundability Index (FPI). Tap any column to re-sort by SBA loans, average funded amount, or default rate. Each brand links to its full lending profile.

#	Franchise Brand	Category
1	Fazoli's Restaurant	Restaurant	59	$657K	5.1% 5.2pt below peers	64
2	Padgett Business Services Accounting	Accounting	65	$197K	6.2% 1.4pt below peers	61
3	Denny's Restaurant	Restaurant	282	$721K	5.7% 4.6pt below peers	59
4	SmartStyle Beauty / Salon	Beauty / Salon	75	$562K	1.3% 9.5pt below peers	59
5	Super 8 Hotel / Motel	Hotel / Motel	271	$1.5M	1.8% 8.5pt below peers	58
6	Planet Fitness Fitness	Fitness	173	$1.0M	0.0% 10.8pt below peers	58
7	Five Guys Restaurant	Restaurant	105	$806K	1.9% 8.4pt below peers	58
8	ServiceMaster Clean / Restore Cleaning / Restoration	Cleaning / Restoration	83	$486K	0.0% 10.8pt below peers	58
9	Taco Bell Restaurant	Restaurant	158	$553K	4.4% 5.9pt below peers	57
10	Row House Fitness	Fitness	53	$321K	5.7% 2.2pt below peers	57
11	Baymont Inn & Suites Hotel / Motel	Hotel / Motel	103	$2.1M	1.9% 8.4pt below peers	56
12	Valvoline Instant Oil Change Automotive	Automotive	94	$720K	4.3% 6.5pt below peers	56
13	Cookie Cutters Beauty / Salon	Beauty / Salon	50	$150K	2.0% 8.8pt below peers	56
14	Hand & Stone Personal Care	Personal Care	95	$364K	2.1% 8.7pt below peers	55
15	Culligan Home Services	Home Services	94	$332K	0.0% 10.8pt below peers	55
16	Elements Massage Personal Care	Personal Care	71	$250K	2.8% 8.0pt below peers	55
17	Medicap Pharmacy Pharmacy	Pharmacy	131	$223K	3.8% 5.6pt below peers	54
18	Orangetheory Fitness Fitness	Fitness	304	$432K	1.3% 9.5pt below peers	53
19	Servpro Cleaning / Restoration	Cleaning / Restoration	201	$350K	3.0% 7.8pt below peers	53
20	Signs By Tomorrow Signs / Print	Signs / Print	103	$150K	6.8% 0.8pt below peers	53
21	Valero (S.A.S. Petroleum) Fuel / C-Store	Fuel / C-Store	91	$960K	2.2% 7.2pt below peers	53
22	El Pollo Loco Restaurant	Restaurant	61	$634K	4.9% 5.4pt below peers	53
23	Hardware Hank Hardware / Home	Hardware / Home	107	$273K	5.6% 8.0pt below peers	52
24	Allstate Insurance Insurance	Insurance	157	$364K	2.5% 6.4pt below peers	51
25	Honest-1 Auto Care Automotive	Automotive	89	$437K	7.9% 2.9pt below peers	51
26	Wings Etc. Restaurant	Restaurant	73	$463K	6.8% 3.5pt below peers	51
27	Fairfield Inn by Marriott Hotel / Motel	Hotel / Motel	64	$2.1M	1.6% 8.7pt below peers	51
28	AdvantaClean Cleaning / Restoration	Cleaning / Restoration	60	$169K	6.7% 4.1pt below peers	51
29	Penn Station Restaurant	Restaurant	55	$373K	1.8% 8.5pt below peers	51
30	Papa Murphy's Restaurant	Restaurant	480	$204K	5.4% 5.4pt below peers	50
31	Little Caesars Pizza Restaurant	Restaurant	326	$209K	4.3% 6.0pt below peers	50
32	Chevron Fuel / C-Store	Fuel / C-Store	151	$1.5M	0.7% 10.1pt below peers	50
33	Shell (Service Station) Fuel / C-Store	Fuel / C-Store	122	$1.3M	1.6% 7.3pt below peers	50
34	Country Inns & Suites by Carlson Hotel / Motel	Hotel / Motel	84	$2.8M	1.2% 9.1pt below peers	50
35	KOA Kampgrounds RV / Campground	RV / Campground	79	$503K	2.5% 7.8pt below peers	50
36	Microtel Inn & Suites Hotel / Motel	Hotel / Motel	70	$2.1M	1.4% 8.9pt below peers	50
37	Ramada Inns Hotel / Motel	Hotel / Motel	59	$2.4M	1.7% 8.6pt below peers	50
38	Culver's Frozen Custard Restaurant	Restaurant	416	$667K	3.1% 7.7pt below peers	49
39	Gold's Gym Fitness	Fitness	242	$762K	11.2% 0.4pt above peers	49
40	Pump It Up Recreation	Recreation	130	$374K	12.3% 1.5pt above peers	49

Default Rate is the charged-off share of each brand’s SBA loans on record; the colored badge compares it to the brand’s category peer average. Browse all 5,186 tracked brands.

METHODOLOGY

How the Fundability Index Is Built

The index is derived from PeerSense’s analysis of 2.1 million SBA 7(a) and 504 loan-level records published under the Freedom of Information Act. Raw SBA files list a single franchise under dozens of inconsistent spellings, “SUBWAY,” “SUBWAY SANDWICH SHOP,” and “Subway” all appear as separate entries. PeerSense normalizes those variants to a single clean brand so a franchise’s true loan count, dollar volume, and default rate can be measured for the first time.

SBA Track Record

Total funded loans and dollar volume for the brand, banks fund what they know.

Default Performance

Charged-off share of all SBA loans on record for the brand, measured against the category peer average.

Lender Diversity

How many distinct banks fund the brand, breadth signals durable, repeatable approvals.

System Maturity

Lending-history depth and consistency over time, not a single strong year.

Only brands with 50+ SBA loans and high-confidence data are ranked, so every default rate on this page is statistically meaningful, not a small-sample artifact. Across all 272 ranked brands, the average default rate is 16.2%, the leaders below beat that by a wide margin.

WHY IT MATTERS

What Fundability Means for Your Deal

SBA lenders price and approve on historical performance. A brand with a default rate well below its category average signals to underwriters that the concept produces cash flow that services debt, so lenders compete for those deals with lower rates and faster approvals. A brand that runs hot on defaults is not un-fundable, it simply needs a stronger borrower, more equity, or a lender that specializes in the concept.

That is the match PeerSense makes. We track 899+ active SBA lenders and know which ones have funded your exact brand, in your state, at your deal size, and which are approving right now. Whether your target brand sits at the top of this index or further down, we route your deal to the lender most likely to say yes on the best terms available.

Frequently Asked Questions

The Franchise Fundability Index is PeerSense's 0–100 score for how reliably banks fund and how well borrowers repay each franchise brand. It is built from PeerSense's analysis of 2.1 million SBA 7(a) loan records, measuring each brand's SBA lending track record, default rate versus category peers, lender diversity, and system maturity. A higher score means banks have a longer, cleaner history funding that brand, which typically translates to easier approvals and better terms for a qualified buyer.

Know a Brand’s Fundability Before You Sign

PeerSense holds the SBA performance data on 5,186 franchise brands and 899+ active lenders. Tell us your target brand and deal, and we’ll tell you who funds it, on what terms, and match you to the lender most likely to approve.

Submit Your Deal for Matching Book a Capital Strategy Call

Fee at closing only · Complimentary initial consultation

Published by PeerSense Capital Advisory · Data analysis by the PeerSense lender intelligence team. Updated July 2026.

Disclaimer: The Franchise Fundability Index is provided for educational and informational purposes only and does not constitute financial, legal, or investment advice, nor an endorsement, recommendation, or guarantee regarding any franchise brand or lender. Rankings are derived from publicly available SBA loan-level data and PeerSense analysis; past lending and default performance does not predict the outcome of any individual franchise or loan. Default rates reflect brand-average historical experience and not the results any particular operator will achieve. SBA rates, terms, and eligibility are subject to change and to each lender’s underwriting. PeerSense is a capital advisory firm, not a lender; we do not originate, fund, or service loans. Consult qualified financial and legal professionals before making any franchise purchase or financing decision.