Buying a Brain Balance franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing Brain Balance (classified mostly as Educational Support Services), totaling $2.7M. The median loan was $421,000, 35% lower than the $645,250 median for all SBA-financed acquisitions.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Brain Balance resale loans landed between $357,000 and $556,250.
- Lender experience exists. Oconee State Bank alone has financed 3 Brain Balance resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Brain Balance resale
The median SBA 7(a) loan for a Brain Balance resale was $421,000 across 6 loans (FY2018 to FY2026). Oconee State Bank, The Huntington National Bank and Pinnacle Bank have financed the most Brain Balance 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%.
Brain Balance acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $620K | $310,000 | |
| FY2019 | 2 | $1.2M | $601,000 | |
| FY2020 | 2 | $842K | $421,000 | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Brain Balance 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.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
Lenders financing Brain Balance resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Oconee State Bank | 3 | 50.0% | $1.1M | |
| 2 | The Huntington National Bank | 1 | 16.7% | $615K | |
| 3 | Pinnacle Bank | 1 | 16.7% | $587K | |
| 4 | Newtek Small Business Finance, LLC | 1 | 16.7% | $350K |
States where Brain Balance units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Florida | 2 | 33.3% | $734K | |
| 2 | Texas | 1 | 16.7% | $615K | |
| 3 | North Carolina | 1 | 16.7% | $587K | |
| 4 | South Carolina | 1 | 16.7% | $378K | |
| 5 | California | 1 | 16.7% | $350K |
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
How lenders classify Brain Balance
Lenders code each loan to a NAICS industry. For Brain Balance the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Educational Support Services | 4 | 66.7% | $1.7M | |
| 2 | Exam Preparation and Tutoring | 1 | 16.7% | $615K | |
| 3 | Elementary and Secondary Schools | 1 | 16.7% | $350K |
Questions buyers ask
How much do buyers borrow to buy a Brain Balance franchise?
The median SBA 7(a) loan for a Brain Balance resale was $421,000 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $357,000 to $556,250. 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 Brain Balance acquisitions?
Oconee State Bank has made the most SBA acquisition loans for Brain Balance (3, 50% of the total). The Huntington National Bank, Pinnacle Bank, Newtek Small Business Finance, LLC follow.
What interest rate and term do Brain Balance acquisition loans carry?
The average initial rate at approval was 7.42% (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 Brain Balance resale riskier than other SBA-financed acquisitions?
Too few Brain Balance 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 Brain Balance units being bought with SBA loans?
Florida (2), Texas (1), North Carolina (1), South Carolina (1), California (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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- All Educational Support Services acquisitions
- Florida acquisitions
- Texas acquisitions
- North Carolina acquisitions
- Oconee State Bank
- The Huntington National Bank
- Pinnacle Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Brain Balance" (franchise code S0247). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.