Buying a Burger King franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 10 7(a) loans to buy an existing Burger King (classified mostly as Limited-Service Restaurants), totaling $22.3M. The median loan was $1,806,800, 180% higher than the $645,250 median for all SBA-financed acquisitions. 3 of these loans were approved in the last two fiscal years.
The purchase agreement decides what you bought, not the loan approval.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Burger King resale loans landed between $1,289,550 and $2,570,000.
- Lender experience exists. Live Oak Banking Company alone has financed 4 Burger King resales.
- Guaranty. The SBA guaranteed 77% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Burger King resale
The median SBA 7(a) loan for a Burger King resale was $1,806,800 across 10 loans (FY2018 to FY2026). Live Oak Banking Company, Eclipse Bank Inc and The Park National Bank have financed the most Burger King 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%.
Burger King acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 2 | $6.5M | $3,234,300 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $750K | $750,000 | |
| FY2024 | 4 | $5.2M | $1,342,100 | |
| FY2025 | 1 | $2.7M | $2,700,000 | |
| FY2026 | 2 | $7.2M | $3,590,000 |
How often do these acquisition loans fail?
Fewer than 20 Burger King 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 Burger King resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 4 | 40.0% | $13.3M | |
| 2 | Eclipse Bank Inc | 2 | 20.0% | $2.7M | |
| 3 | The Park National Bank | 1 | 10.0% | $2.2M | |
| 4 | Open Bank | 1 | 10.0% | $2M | |
| 5 | SouthState Bank, National Association | 1 | 10.0% | $1.6M | |
| 6 | Village Bank and Trust, National Association | 1 | 10.0% | $500K |
States where Burger King units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Ohio | 3 | 30.0% | $4.9M | |
| 2 | North Carolina | 1 | 10.0% | $5M | |
| 3 | California | 1 | 10.0% | $4.9M | |
| 4 | New York | 1 | 10.0% | $2.7M | |
| 5 | Texas | 1 | 10.0% | $2M | |
| 6 | Florida | 1 | 10.0% | $1.6M | |
| 7 | Maryland | 1 | 10.0% | $750K | |
| 8 | Illinois | 1 | 10.0% | $500K |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Questions buyers ask
How much do buyers borrow to buy a Burger King franchise?
The median SBA 7(a) loan for a Burger King resale was $1,806,800 across 10 loans (FY2018 to FY2026). The middle half of loans ran from $1,289,550 to $2,570,000. 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 Burger King acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Burger King (4, 40% of the total). Eclipse Bank Inc, The Park National Bank, Open Bank follow.
What interest rate and term do Burger King acquisition loans carry?
The average initial rate at approval was 8.17% (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 Burger King resale riskier than other SBA-financed acquisitions?
Too few Burger King 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 Burger King units being bought with SBA loans?
Ohio (3), North Carolina (1), California (1), New York (1), Texas (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
- Ohio acquisitions
- North Carolina acquisitions
- California acquisitions
- Live Oak Banking Company
- Open Bank
- SouthState Bank, National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Burger King" (franchise code S0275). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.