Buying a Dairy Queen franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 94 7(a) loans to buy an existing Dairy Queen (classified mostly as Limited-Service Restaurants), totaling $63.3M. The median loan was $600,000, 7% lower than the $645,250 median for all SBA-financed acquisitions. Volume fell 40% from FY2024 to FY2026. 15 of these loans were approved in the last two fiscal years.
- Loans, FY2018-FY2026
- 94
- Median loan
- $600,000 (middle half $350,500 to $913,500)
- Top lender
- Live Oak Banking Company (10%, 9 loans)
- Top state
- Indiana
- Charge-off, FY2018-FY2021 loans
- 0.0% (all-acquisition: 3.5%)
- FY2026 loans (latest complete year)
- 6
SBA lenders approved 94 7(a) loans to buy an existing Dairy Queen from FY2018-FY2026, with a median of $600,000 and a middle half of $350,500 to $913,500. Live Oak Banking Company made 10% of them. None of 54 seasoned loans were charged off, against the 3.5% all-acquisition rate.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Dairy Queen resale loans landed between $350,500 and $913,500.
- Lender experience exists. Live Oak Banking Company alone has financed 9 Dairy Queen 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.
How Dairy Queen compares
| Measure | Dairy Queen | Limited-Service Restaurants | All acquisitions |
|---|---|---|---|
| Median loan | $600,000 | $350,000 | $645,250 |
| Middle half of loans | $350,500 to $913,500 | $202,500 to $693,375 | $283,000 to $1,465,000 |
| Average initial rate | 7.31% | 7.83% | 7.76% |
| Median term | 10.3 years | 10 years | 10 years |
| Charge-off rate (seasoned loans) | 0.0% | 5.3% | 3.5% |
| Loans in sample | 94 | 2,222 | 48,902 |
The median for Dairy Queen resale loans is $600,000, well above the $350,000 median for limited-service restaurants and slightly below the $645,250 median for all SBA-financed acquisitions nationally.
The middle half runs $350,500 to $913,500, against $283,000 to $1,465,000 nationally; the median term is 10.3 years, longer than the national median of 10 years; the average initial rate is 7.31%, below the 7.76% national average.
None of the seasoned loans were charged off, against 5.3% for limited-service restaurants and 3.5% for all acquisition loans.
Loan size distribution
| Loan size | Dairy Queen | All acquisitions |
|---|---|---|
| Under $350K | 24% | 30% |
| $350K to under $1M | 54% | 33% |
| $1M to under $2M | 20% | 19% |
| $2M and over | 1% | 17% |
Most Dairy Queen resale loans (79%) were under $1M, and the largest single band is $350K to under $1M at 54%, against 33% of all acquisition loans.
Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.
Lender concentration
Live Oak Banking Company made 10% of Dairy Queen resale loans, and the top three lenders together made 22%. 11 of the 53 lenders involved made three or more. Repeat experience is spread across many banks. That is a rough guide to how many banks have seen this kind of deal before.
Recent activity
In FY2025 and FY2026 combined, 15 Dairy Queen resale loans were approved. That is 25% fewer than the 20 approved in FY2023 and FY2024. The median was $860,000, well above the $600,000 median across all years.
Financing a Dairy Queen resale: what lenders financed
The median SBA 7(a) loan for a Dairy Queen resale was $600,000 across 94 loans (FY2018 to FY2026). Live Oak Banking Company, Stearns Bank National Association and The Huntington National Bank have financed the most Dairy Queen resales. Of 54 seasoned loans (FY2018 to FY2021), none were charged off, against the 3.5% average for all SBA acquisition loans.
Dairy Queen acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 19 | $12.4M | $572,400 | |
| FY2019 | 14 | $5.9M | $440,700 | |
| FY2020 | 9 | $4.3M | $304,000 | |
| FY2021 | 12 | $7.7M | $683,500 | |
| FY2022 | 5 | $3.5M | $600,000 | |
| FY2023 | 10 | $7.8M | $766,900 | |
| FY2024 | 10 | $7.7M | $475,000 | |
| FY2025 | 9 | $7.9M | $740,000 | |
| FY2026 | 6 | $6.1M | $1,027,500 |
How often do these acquisition loans fail?
Of the 54 Dairy Queen acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 36 have already been paid in full.
For comparison, Dairy Queen has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. 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 Dairy Queen resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 9 | 9.6% | $7.5M | |
| 2 | Stearns Bank National Association | 7 | 7.4% | $2.5M | |
| 3 | The Huntington National Bank | 5 | 5.3% | $3.1M | |
| 4 | Centier Bank | 4 | 4.3% | $677K | |
| 5 | First Internet Bank of Indiana | 3 | 3.2% | $3.5M | |
| 6 | Beacon Bank and Trust | 3 | 3.2% | $2.9M | |
| 7 | T Bank, National Association | 3 | 3.2% | $2.7M | |
| 8 | Community National Bank & Trust | 3 | 3.2% | $2.3M | |
| 9 | Wells Fargo Bank National Association | 3 | 3.2% | $2.2M | |
| 10 | Meredith Village Savings Bank | 3 | 3.2% | $1.4M |
States where Dairy Queen units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Indiana | 10 | 10.6% | $6.4M | |
| 2 | Illinois | 10 | 10.6% | $6M | |
| 3 | Wisconsin | 8 | 8.5% | $3.8M | |
| 4 | Kansas | 7 | 7.4% | $6.1M | |
| 5 | Florida | 5 | 5.3% | $6.8M | |
| 6 | Minnesota | 5 | 5.3% | $3.7M | |
| 7 | Washington | 4 | 4.3% | $3.5M | |
| 8 | Michigan | 4 | 4.3% | $2.7M | |
| 9 | Ohio | 4 | 4.3% | $2.3M | |
| 10 | California | 3 | 3.2% | $1.6M |
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
How lenders classify Dairy Queen
Lenders code each loan to a NAICS industry. For Dairy Queen the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 80 | 85.1% | $56.3M | |
| 2 | Snack and Nonalcoholic Beverage Bars | 7 | 7.4% | $3.4M | |
| 3 | Full-Service Restaurants | 5 | 5.3% | $3.3M | |
| 4 | All Other Specialty Food Retailers | 2 | 2.1% | $285K |
Questions buyers ask
How much do buyers borrow to buy a Dairy Queen franchise?
The median SBA 7(a) loan for a Dairy Queen resale was $600,000 across 94 loans (FY2018 to FY2026). The middle half of loans ran from $350,500 to $913,500. 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 Dairy Queen acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Dairy Queen (9, 10% of the total). Stearns Bank National Association, The Huntington National Bank, Centier Bank follow.
What interest rate and term do Dairy Queen acquisition loans carry?
The average initial rate at approval was 7.31% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10.3 years.
Is a Dairy Queen resale riskier than other SBA-financed acquisitions?
In the seasoned cohort (FY2018 to FY2021), none charged off, against the 3.5% average for all SBA acquisition loans.
Where are Dairy Queen units being bought with SBA loans?
Indiana (10), Illinois (10), Wisconsin (8), Kansas (7), Florida (5). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
How much do you need down for an SBA loan to buy a Dairy Queen franchise?
The SBA requires the buyer to make an equity injection, commonly 10% of total project cost, and a lender may ask for more. The SBA file does not record injections, so the figures here are the financed portion: the median for Dairy Queen resale loans was $600,000, and the middle half ran $350,500 to $913,500.
How long does an SBA acquisition loan take?
For a change-of-ownership 7(a) loan, 45 to 90 days from application to close is typical. It varies by lender and by how quickly third-party reports, such as the business valuation and appraisal, come back. The SBA file records approval dates, not application dates, so this site cannot measure it. Lenders approved 15 Dairy Queen resale loans in FY2025 and FY2026.
Which banks make SBA loans for a Dairy Queen franchise?
By loan count, FY2018 to FY2026: Live Oak Banking Company (9), Stearns Bank National Association (7), The Huntington National Bank (5), Centier Bank (4), First Internet Bank of Indiana (3). Live Oak Banking Company made 10% of Dairy Queen resale loans. Counts show past approvals only and do not predict whether a lender will approve a particular deal.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- All Limited-Service Restaurants acquisitions
- Indiana acquisitions
- Illinois acquisitions
- Wisconsin acquisitions
- Live Oak Banking Company
- Stearns Bank National Association
- The Huntington National Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "DQ Grill & Chill Operating Agreement (American Dairy Queen)" (franchise code S0480). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.
Cite this data
SBA Acquisition Data, "Dairy Queen: SBA acquisition loan data", https://sbaacquisitiondata.com/franchise/dairy-queen (data as of September 30, 2026). Source: U.S. Small Business Administration 7(a) loan file, data.sba.gov. Aggregated by SBA Acquisition Data.
The figures on this page are also published as JSON at https://sbaacquisitiondata.com/data/franchise/dairy-queen.json.