Buying a Cinnabon franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing Cinnabon (classified mostly as Fitness and Recreational Sports Centers), totaling $4.8M. The median loan was $699,500, 8% higher than the $645,250 median for all SBA-financed acquisitions.
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 Cinnabon resale loans landed between $695,700 and $1,200,000.
- Lender experience exists. Plumas Bank alone has financed 1 Cinnabon 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 Cinnabon resale
The median SBA 7(a) loan for a Cinnabon resale was $699,500 across 5 loans (FY2018 to FY2026). Plumas Bank, Beacon Bank and Trust and State Empl CU have financed the most Cinnabon 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%.
Cinnabon acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 1 | $696K | $695,700 | |
| FY2020 | 1 | $2M | $2,040,000 | |
| FY2021 | 1 | $150K | $150,000 | |
| FY2022 | 1 | $1.2M | $1,200,000 | |
| FY2023 | 1 | $700K | $699,500 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Cinnabon 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.
Seller note standby terms and third-party consents are reviewed before closing.
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Lenders financing Cinnabon resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Plumas Bank | 1 | 20.0% | $2M | |
| 2 | Beacon Bank and Trust | 1 | 20.0% | $1.2M | |
| 3 | State Empl CU | 1 | 20.0% | $700K | |
| 4 | Wells Fargo Bank National Association | 1 | 20.0% | $696K | |
| 5 | First Federal Bank & Trust | 1 | 20.0% | $150K |
States where Cinnabon units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 2 | 40.0% | $1.9M | |
| 2 | Nevada | 1 | 20.0% | $2M | |
| 3 | New Mexico | 1 | 20.0% | $700K | |
| 4 | Montana | 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 Cinnabon
Lenders code each loan to a NAICS industry. For Cinnabon the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Fitness and Recreational Sports Centers | 1 | 20.0% | $2M | |
| 2 | Full-Service Restaurants | 1 | 20.0% | $1.2M | |
| 3 | Limited-Service Restaurants | 1 | 20.0% | $700K | |
| 4 | All Other Miscellaneous Schools and Instruction | 1 | 20.0% | $696K | |
| 5 | Snack and Nonalcoholic Beverage Bars | 1 | 20.0% | $150K |
Questions buyers ask
How much do buyers borrow to buy a Cinnabon franchise?
The median SBA 7(a) loan for a Cinnabon resale was $699,500 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $695,700 to $1,200,000. 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 Cinnabon acquisitions?
Plumas Bank has made the most SBA acquisition loans for Cinnabon (1, 20% of the total). Beacon Bank and Trust, State Empl CU, Wells Fargo Bank National Association follow.
What interest rate and term do Cinnabon acquisition loans carry?
The average initial rate at approval was 6.70% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 9.5 years.
Is a Cinnabon resale riskier than other SBA-financed acquisitions?
Too few Cinnabon 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 Cinnabon units being bought with SBA loans?
Texas (2), Nevada (1), New Mexico (1), Montana (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.
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Related
- All Fitness and Recreational Sports Centers acquisitions
- Texas acquisitions
- Nevada acquisitions
- New Mexico acquisitions
- Plumas Bank
- Beacon Bank and Trust
- Wells Fargo Bank National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Cinnabon" (franchise code S0380). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.