Buying a Culver's franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 21 7(a) loans to buy an existing Culver's (classified mostly as Limited-Service Restaurants), totaling $26.9M. The median loan was $802,000, 24% higher than the $645,250 median for all SBA-financed acquisitions. 4 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 Culver's resale loans landed between $307,300 and $1,386,000.
- Lender experience exists. Wells Fargo Bank National Association alone has financed 3 Culver's 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 Culver's resale
The median SBA 7(a) loan for a Culver's resale was $802,000 across 21 loans (FY2018 to FY2026). Wells Fargo Bank National Association, The Huntington National Bank and Fifth Third Bank have financed the most Culver'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%.
Culver's acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 4 | $2.4M | $403,650 | |
| FY2019 | 5 | $8.1M | $811,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 2 | $3M | $1,496,600 | |
| FY2022 | 6 | $6.1M | $335,000 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 2 | $1.3M | $639,500 | |
| FY2026 | 2 | $6M | $3,005,250 |
How often do these acquisition loans fail?
Fewer than 20 Culver'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.
The purchase agreement decides what you bought, not the loan approval.
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Lenders financing Culver's resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 3 | 14.3% | $3.8M | |
| 2 | The Huntington National Bank | 3 | 14.3% | $1.8M | |
| 3 | Fifth Third Bank | 3 | 14.3% | $1.7M | |
| 4 | Bank Five Nine | 3 | 14.3% | $970K | |
| 5 | Alerus Financial, National Association | 2 | 9.5% | $5M | |
| 6 | Old National Bank | 1 | 4.8% | $4.7M | |
| 7 | One Community Bank | 1 | 4.8% | $4.3M | |
| 8 | Dairy State Bank | 1 | 4.8% | $2.2M | |
| 9 | Bank of Utah | 1 | 4.8% | $1.4M | |
| 10 | BankVista | 1 | 4.8% | $802K |
States where Culver's units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Wisconsin | 4 | 19.0% | $8.2M | |
| 2 | Minnesota | 3 | 14.3% | $5.5M | |
| 3 | Tennessee | 3 | 14.3% | $1.7M | |
| 4 | Illinois | 3 | 14.3% | $1.6M | |
| 5 | North Dakota | 2 | 9.5% | $5M | |
| 6 | Kansas | 1 | 4.8% | $2.2M | |
| 7 | Utah | 1 | 4.8% | $1.4M | |
| 8 | Texas | 1 | 4.8% | $500K | |
| 9 | Missouri | 1 | 4.8% | $307K | |
| 10 | North Carolina | 1 | 4.8% | $300K |
Seller note standby terms and third-party consents are reviewed before closing.
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How lenders classify Culver's
Lenders code each loan to a NAICS industry. For Culver's the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 18 | 85.7% | $25.1M | |
| 2 | Full-Service Restaurants | 3 | 14.3% | $1.8M |
Questions buyers ask
How much do buyers borrow to buy a Culver's franchise?
The median SBA 7(a) loan for a Culver's resale was $802,000 across 21 loans (FY2018 to FY2026). The middle half of loans ran from $307,300 to $1,386,000. 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 Culver's acquisitions?
Wells Fargo Bank National Association has made the most SBA acquisition loans for Culver's (3, 14% of the total). The Huntington National Bank, Fifth Third Bank, Bank Five Nine follow.
What interest rate and term do Culver's acquisition loans carry?
The average initial rate at approval was 6.29% (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 Culver's resale riskier than other SBA-financed acquisitions?
Too few Culver'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 Culver's units being bought with SBA loans?
Wisconsin (4), Minnesota (3), Tennessee (3), Illinois (3), North Dakota (2). 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
- Wisconsin acquisitions
- Minnesota acquisitions
- Tennessee acquisitions
- Wells Fargo Bank National Association
- The Huntington National Bank
- Fifth Third Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Culver's" (franchise code S0449). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.