Buying a Baskin-Robbins franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 33 7(a) loans to buy an existing Baskin-Robbins (classified mostly as Snack and Nonalcoholic Beverage Bars), totaling $8.3M. The median loan was $207,300, 68% lower than the $645,250 median for all SBA-financed acquisitions. 5 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Baskin-Robbins resale loans landed between $164,500 and $270,000.
- Lender experience exists. Bank of Hope alone has financed 4 Baskin-Robbins resales.
- Guaranty. The SBA guaranteed 76% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Baskin-Robbins resale
The median SBA 7(a) loan for a Baskin-Robbins resale was $207,300 across 33 loans (FY2018 to FY2026). Bank of Hope, The Huntington National Bank and Neighborhood National Bank have financed the most Baskin-Robbins resales. Of 20 seasoned loans (FY2018 to FY2021), 10.0% were charged off, 184% higher than the 3.5% average for all SBA acquisition loans.
Baskin-Robbins acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 4 | $1.9M | $450,000 | |
| FY2019 | 6 | $1.1M | $187,500 | |
| FY2020 | 4 | $1.4M | $270,000 | |
| FY2021 | 6 | $1M | $167,250 | |
| FY2022 | 4 | $769K | $184,900 | |
| FY2023 | 3 | $818K | $260,500 | |
| FY2024 | 1 | $178K | $178,000 | |
| FY2025 | 2 | $455K | $227,500 | |
| FY2026 | 3 | $722K | $290,000 |
How often do these acquisition loans fail?
Of the 20 Baskin-Robbins acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 10.0% by loan count and 4.9% by dollars. 9 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Baskin-Robbins is 184% higher than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
Seller note standby terms and third-party consents are reviewed before closing.
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Lenders financing Baskin-Robbins resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Bank of Hope | 4 | 12.1% | $803K | |
| 2 | The Huntington National Bank | 2 | 6.1% | $965K | |
| 3 | Neighborhood National Bank | 2 | 6.1% | $959K | |
| 4 | United Community Bank | 2 | 6.1% | $455K | |
| 5 | U.S. Bank, National Association | 2 | 6.1% | $416K | |
| 6 | United Business Bank | 2 | 6.1% | $390K | |
| 7 | Seattle Economic Development Fund dba Community Ca | 2 | 6.1% | $260K | |
| 8 | PNC Bank, National Association | 1 | 3.0% | $800K | |
| 9 | Commerce Bank | 1 | 3.0% | $350K | |
| 10 | Live Oak Banking Company | 1 | 3.0% | $290K |
States where Baskin-Robbins units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 15 | 45.5% | $4.2M | |
| 2 | Texas | 4 | 12.1% | $1.5M | |
| 3 | Washington | 3 | 9.1% | $467K | |
| 4 | Colorado | 2 | 6.1% | $455K | |
| 5 | Montana | 2 | 6.1% | $321K | |
| 6 | Missouri | 1 | 3.0% | $350K | |
| 7 | Louisiana | 1 | 3.0% | $269K | |
| 8 | Mississippi | 1 | 3.0% | $250K | |
| 9 | Arizona | 1 | 3.0% | $189K | |
| 10 | New Mexico | 1 | 3.0% | $165K |
Seller note standby terms and third-party consents are reviewed before closing.
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How lenders classify Baskin-Robbins
Lenders code each loan to a NAICS industry. For Baskin-Robbins the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Snack and Nonalcoholic Beverage Bars | 23 | 69.7% | $5.7M | |
| 2 | Limited-Service Restaurants | 4 | 12.1% | $1.6M | |
| 3 | All Other Specialty Food Retailers | 4 | 12.1% | $664K |
Questions buyers ask
How much do buyers borrow to buy a Baskin-Robbins franchise?
The median SBA 7(a) loan for a Baskin-Robbins resale was $207,300 across 33 loans (FY2018 to FY2026). The middle half of loans ran from $164,500 to $270,000. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Baskin-Robbins acquisitions?
Bank of Hope has made the most SBA acquisition loans for Baskin-Robbins (4, 12% of the total). The Huntington National Bank, Neighborhood National Bank, United Community Bank follow.
What interest rate and term do Baskin-Robbins acquisition loans carry?
The average initial rate at approval was 7.29% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Baskin-Robbins resale riskier than other SBA-financed acquisitions?
In the seasoned cohort (FY2018 to FY2021), 10.0% charged off, 184% higher than the 3.5% average for all SBA acquisition loans.
Where are Baskin-Robbins units being bought with SBA loans?
California (15), Texas (4), Washington (3), Colorado (2), Montana (2). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
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Related
- All Snack and Nonalcoholic Beverage Bars acquisitions
- California acquisitions
- Texas acquisitions
- Washington acquisitions
- Bank of Hope
- The Huntington National Bank
- United Community Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Baskin-Robbins" (franchise code S0195). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.