Buying a CRDN franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing CRDN (classified mostly as Drycleaning and Laundry Services (except Coin-Operated)), totaling $6.6M. The median loan was $1,245,000, 93% higher than the $645,250 median for all SBA-financed acquisitions.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of CRDN resale loans landed between $885,000 and $1,585,000.
- Lender experience exists. German American Bank alone has financed 2 CRDN 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 CRDN resale
The median SBA 7(a) loan for a CRDN resale was $1,245,000 across 5 loans (FY2018 to FY2026). German American Bank, T Bank, National Association and St. Louis Bank have financed the most CRDN 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%.
CRDN acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $2.9M | $1,450,500 | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 1 | $885K | $885,000 | |
| FY2021 | 1 | $1.6M | $1,585,000 | |
| FY2022 | 1 | $1.2M | $1,245,000 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 CRDN 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.
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Lenders financing CRDN resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | German American Bank | 2 | 40.0% | $2.9M | |
| 2 | T Bank, National Association | 1 | 20.0% | $1.6M | |
| 3 | St. Louis Bank | 1 | 20.0% | $1.2M | |
| 4 | First Business Bank | 1 | 20.0% | $885K |
States where CRDN units are bought
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How lenders classify CRDN
Lenders code each loan to a NAICS industry. For CRDN the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Drycleaning and Laundry Services (except Coin-Operated) | 4 | 80.0% | $5.7M | |
| 2 | Carpet and Upholstery Cleaning Services | 1 | 20.0% | $885K |
Questions buyers ask
How much do buyers borrow to buy a CRDN franchise?
The median SBA 7(a) loan for a CRDN resale was $1,245,000 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $885,000 to $1,585,000. 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 CRDN acquisitions?
German American Bank has made the most SBA acquisition loans for CRDN (2, 40% of the total). T Bank, National Association, St. Louis Bank, First Business Bank follow.
What interest rate and term do CRDN acquisition loans carry?
The average initial rate at approval was 6.42% (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 CRDN resale riskier than other SBA-financed acquisitions?
Too few CRDN 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 CRDN units being bought with SBA loans?
Ohio (2), Georgia (1), Arizona (1), Florida (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.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- All Drycleaning and Laundry Services (except Coin-Operated) acquisitions
- Ohio acquisitions
- Georgia acquisitions
- Arizona acquisitions
- German American Bank
- T Bank, National Association
- St. Louis Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "CRDN" (franchise code S0357). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.