Buying a Denny's franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 8 7(a) loans to buy an existing Denny's (classified mostly as Full-Service Restaurants), totaling $11.9M. The median loan was $1,693,750, 162% higher than the $645,250 median for all SBA-financed acquisitions. 5 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Denny's resale loans landed between $914,750 and $1,782,500.
- Lender experience exists. Columbia Bank alone has financed 3 Denny's resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Denny's resale
The median SBA 7(a) loan for a Denny's resale was $1,693,750 across 8 loans (FY2018 to FY2026). Columbia Bank, KeyBank National Association and Woori America Bank have financed the most Denny'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%.
Denny's acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $1.7M | $1,687,500 | |
| FY2019 | 2 | $2.5M | $1,227,500 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $1M | $1,008,000 | |
| FY2026 | 4 | $6.7M | $1,735,000 |
How often do these acquisition loans fail?
Fewer than 20 Denny'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.
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Lenders financing Denny's resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Columbia Bank | 3 | 37.5% | $5M | |
| 2 | KeyBank National Association | 1 | 12.5% | $1.8M | |
| 3 | Woori America Bank | 1 | 12.5% | $1.7M | |
| 4 | Simmons Bank | 1 | 12.5% | $1.7M | |
| 5 | Washington Trust Bank | 1 | 12.5% | $1M | |
| 6 | First Bank | 1 | 12.5% | $635K |
States where Denny's units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | New Jersey | 4 | 50.0% | $5.6M | |
| 2 | Alaska | 1 | 12.5% | $1.8M | |
| 3 | California | 1 | 12.5% | $1.7M | |
| 4 | Texas | 1 | 12.5% | $1.7M | |
| 5 | Washington | 1 | 12.5% | $1M |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
How lenders classify Denny's
Lenders code each loan to a NAICS industry. For Denny's the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Full-Service Restaurants | 7 | 87.5% | $10M | |
| 2 | Limited-Service Restaurants | 1 | 12.5% | $1.8M |
Questions buyers ask
How much do buyers borrow to buy a Denny's franchise?
The median SBA 7(a) loan for a Denny's resale was $1,693,750 across 8 loans (FY2018 to FY2026). The middle half of loans ran from $914,750 to $1,782,500. 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 Denny's acquisitions?
Columbia Bank has made the most SBA acquisition loans for Denny's (3, 38% of the total). KeyBank National Association, Woori America Bank, Simmons Bank follow.
What interest rate and term do Denny's acquisition loans carry?
The average initial rate at approval was 8.16% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 17.5 years.
Is a Denny's resale riskier than other SBA-financed acquisitions?
Too few Denny'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 Denny's units being bought with SBA loans?
New Jersey (4), Alaska (1), California (1), Texas (1), Washington (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 Full-Service Restaurants acquisitions
- New Jersey acquisitions
- Alaska acquisitions
- California acquisitions
- Columbia Bank
- KeyBank National Association
- Woori America Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Denny's" (franchise code S2351). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.