Buying a Ben & Jerry's franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing Ben & Jerry's (classified mostly as Limited-Service Restaurants), totaling $1.9M. The median loan was $411,300, 36% lower than the $645,250 median for all SBA-financed acquisitions. 2 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 Ben & Jerry's resale loans landed between $337,000 and $416,700.
- Lender experience exists. Fidelity Deposit and Discount Bank alone has financed 1 Ben & Jerry's resales.
- Guaranty. The SBA guaranteed 78% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Ben & Jerry's resale
The median SBA 7(a) loan for a Ben & Jerry's resale was $411,300 across 5 loans (FY2018 to FY2026). Fidelity Deposit and Discount Bank, First Resource Bank and FMS Bank have financed the most Ben & Jerry's resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Ben & Jerry's acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $150K | $150,000 | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 1 | $560K | $560,000 | |
| FY2022 | 1 | $411K | $411,300 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $337K | $337,000 | |
| FY2026 | 1 | $417K | $416,700 |
How often do these acquisition loans fail?
Fewer than 20 Ben & Jerry's acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. 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.
Terms signed in the LOI shape the purchase agreement that follows.
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Lenders financing Ben & Jerry's resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Fidelity Deposit and Discount Bank | 1 | 20.0% | $560K | |
| 2 | First Resource Bank | 1 | 20.0% | $417K | |
| 3 | FMS Bank | 1 | 20.0% | $411K | |
| 4 | Midwest Regional Bank | 1 | 20.0% | $337K | |
| 5 | The Cape Cod Five Cents Savings Bank | 1 | 20.0% | $150K |
States where Ben & Jerry's units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | New Jersey | 1 | 20.0% | $560K | |
| 2 | Minnesota | 1 | 20.0% | $417K | |
| 3 | Colorado | 1 | 20.0% | $411K | |
| 4 | Missouri | 1 | 20.0% | $337K | |
| 5 | Massachusetts | 1 | 20.0% | $150K |
That draft favors the seller. We review it for the buyer, line by line.
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How lenders classify Ben & Jerry's
Lenders code each loan to a NAICS industry. For Ben & Jerry's the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 2 | 40.0% | $971K | |
| 2 | All Other Specialty Food Retailers | 1 | 20.0% | $417K | |
| 3 | Snack and Nonalcoholic Beverage Bars | 1 | 20.0% | $337K | |
| 4 | Full-Service Restaurants | 1 | 20.0% | $150K |
Questions buyers ask
How much do buyers borrow to buy a Ben & Jerry's franchise?
The median SBA 7(a) loan for a Ben & Jerry's resale was $411,300 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $337,000 to $416,700. 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 Ben & Jerry's acquisitions?
Fidelity Deposit and Discount Bank has made the most SBA acquisition loans for Ben & Jerry's (1, 20% of the total). First Resource Bank, FMS Bank, Midwest Regional Bank follow.
What interest rate and term do Ben & Jerry's acquisition loans carry?
The average initial rate at approval was 6.89% (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 Ben & Jerry's resale riskier than other SBA-financed acquisitions?
Too few Ben & Jerry's acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Ben & Jerry's units being bought with SBA loans?
New Jersey (1), Minnesota (1), Colorado (1), Missouri (1), Massachusetts (1). 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 Limited-Service Restaurants acquisitions
- New Jersey acquisitions
- Minnesota acquisitions
- Colorado acquisitions
- Fidelity Deposit and Discount Bank
- First Resource Bank
- Midwest Regional Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Ben & Jerry's" (franchise code S0206). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.