How the numbers are built
How CapBench scores franchise financing risk
Each franchise brand page is built from that brand's own SBA 7(a) financing history. We aggregate every 7(a) loan tied to the brand to show what units typically cost to finance, how those loans were priced, and how often they have failed.
Data sources
- •SBA 7(a) loan records matched to franchise brand names
- •SBA Franchise Directory (eligibility and brand identity)
- •CapBench brand matching and aggregation
What we aggregate per brand
For each brand we summarize the typical project cost financed, the range of loan sizes, the rates lenders charged, and the most active lenders — all from loans tagged to that brand.
We also surface the brand's charge-off rate: the share of its seasoned 7(a) loans that ended in a charge-off.
Ranking brands
Brands can be ordered by financing volume or by failure rate. The riskiest and safest views sort scored brands by their observed charge-off rate, with enough loan history behind each to be meaningful.
What this does not tell you
- •A brand's past loan performance is not a forecast for a specific unit or location.
- •Brand matching relies on lender-entered names in SBA records; small or newer brands may have thin loan history.
- •A higher failure rate reflects the brand's historical SBA cohort, not current franchisor support, unit economics, or your specific market.
AI summary
This page explains the methodology behind how capbench scores franchise financing risk on CapBench: where the underlying data comes from, exactly how the numbers are calculated, and what the result can and cannot tell you. Every figure is derived from public SBA 7(a) and FDIC records.
It exists so any stat CapBench publishes can be traced back to its source and computation rather than taken on faith. This is general information, not legal, tax, or financial advice, and CapBench is not a lender.
Source: CapBench SBA Intelligence, based on public SBA, lender, franchise, FDIC, and related records. CapBench is not a lender and does not guarantee financing.
How this content is made
CapBench's guides and data pages are compiled from public records — SBA 7(a) FOIA loan data, FDIC filings, the eCFR (13 CFR Part 120), and the SBA SOP 50 10 — and checked against the current rulebook. Content is produced by CapBench's SBA-intelligence system with editorial review; every figure traces to a named public source, and pages show the date they reflect.
It is general information from the public record, notlegal, tax, financial, or investment advice — confirm specifics with a qualified professional or the SBA. See our methodology and data sources. CapBench is an independent information service and is not a lender or an SBA representative.
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