Buying a Domino's Pizza franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 88 7(a) loans to buy an existing Domino's Pizza (classified mostly as Limited-Service Restaurants), totaling $95.1M. The median loan was $659,850, in line with the $645,250 median for all SBA-financed acquisitions. 29 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 Domino's Pizza resale loans landed between $400,000 and $1,302,500.
- Lender experience exists. Banc of California alone has financed 37 Domino's Pizza 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 Domino's Pizza resale
The median SBA 7(a) loan for a Domino's Pizza resale was $659,850 across 88 loans (FY2018 to FY2026). Banc of California, TowneBank and Live Oak Banking Company have financed the most Domino's Pizza resales. Of 36 seasoned loans (FY2018 to FY2021), 5.6% were charged off, 58% higher than the 3.5% average for all SBA acquisition loans.
Domino's Pizza acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $465K | $465,000 | |
| FY2019 | 7 | $6.3M | $639,000 | |
| FY2020 | 15 | $15.2M | $552,000 | |
| FY2021 | 13 | $14M | $724,000 | |
| FY2022 | 7 | $8.9M | $957,000 | |
| FY2023 | 9 | $8.8M | $621,500 | |
| FY2024 | 7 | $4.5M | $710,000 | |
| FY2025 | 17 | $23M | $850,000 | |
| FY2026 | 12 | $14M | $487,000 |
How often do these acquisition loans fail?
Of the 36 Domino's Pizza acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 5.6% by loan count and 3.6% by dollars. 25 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Domino's Pizza is 58% higher than the acquisition-loan average. 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 Domino's Pizza resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Banc of California | 37 | 42.0% | $36.3M | |
| 2 | TowneBank | 14 | 15.9% | $11.2M | |
| 3 | Live Oak Banking Company | 13 | 14.8% | $27.5M | |
| 4 | United Community Bank | 8 | 9.1% | $9.7M | |
| 5 | Seacoast National Bank | 7 | 8.0% | $5.9M | |
| 6 | The Bancorp Bank National Association | 3 | 3.4% | $1.3M | |
| 7 | Coulee Bank | 1 | 1.1% | $1.9M | |
| 8 | Bank of America, National Association | 1 | 1.1% | $465K | |
| 9 | TruNorth Bank | 1 | 1.1% | $330K | |
| 10 | The Park National Bank | 1 | 1.1% | $203K |
States where Domino's Pizza units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Michigan | 7 | 8.0% | $5.7M | |
| 2 | Ohio | 7 | 8.0% | $4.1M | |
| 3 | New Jersey | 6 | 6.8% | $7M | |
| 4 | California | 6 | 6.8% | $2.9M | |
| 5 | North Carolina | 5 | 5.7% | $11M | |
| 6 | Georgia | 5 | 5.7% | $4.5M | |
| 7 | Washington | 5 | 5.7% | $4M | |
| 8 | Pennsylvania | 5 | 5.7% | $3.7M | |
| 9 | Texas | 4 | 4.5% | $6.8M | |
| 10 | New York | 4 | 4.5% | $5.6M |
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How lenders classify Domino's Pizza
Lenders code each loan to a NAICS industry. For Domino's Pizza the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 87 | 98.9% | $93.9M | |
| 2 | Full-Service Restaurants | 1 | 1.1% | $1.2M |
Questions buyers ask
How much do buyers borrow to buy a Domino's Pizza franchise?
The median SBA 7(a) loan for a Domino's Pizza resale was $659,850 across 88 loans (FY2018 to FY2026). The middle half of loans ran from $400,000 to $1,302,500. 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 Domino's Pizza acquisitions?
Banc of California has made the most SBA acquisition loans for Domino's Pizza (37, 42% of the total). TowneBank, Live Oak Banking Company, United Community Bank follow.
What interest rate and term do Domino's Pizza acquisition loans carry?
The average initial rate at approval was 7.81% (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 Domino's Pizza resale riskier than other SBA-financed acquisitions?
In the seasoned cohort (FY2018 to FY2021), 5.6% charged off, 58% higher than the 3.5% average for all SBA acquisition loans.
Where are Domino's Pizza units being bought with SBA loans?
Michigan (7), Ohio (7), New Jersey (6), California (6), North Carolina (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.
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Related
- All Limited-Service Restaurants acquisitions
- Michigan acquisitions
- Ohio acquisitions
- New Jersey acquisitions
- Banc of California
- TowneBank
- Live Oak Banking Company
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Domino's Pizza" (franchise code S0513). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.