Buying a Duck Donuts franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 8 7(a) loans to buy an existing Duck Donuts (classified mostly as All Other Specialty Food Retailers), totaling $3.2M. The median loan was $408,250, 37% lower than the $645,250 median for all SBA-financed acquisitions. 2 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 Duck Donuts resale loans landed between $349,500 and $448,750.
- Lender experience exists. Locus Bank Inc alone has financed 1 Duck Donuts 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 Duck Donuts resale
The median SBA 7(a) loan for a Duck Donuts resale was $408,250 across 8 loans (FY2018 to FY2026). Locus Bank Inc, Live Oak Banking Company and First Business Bank have financed the most Duck Donuts 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%.
Duck Donuts acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $175K | $175,000 | |
| FY2019 | 1 | $541K | $540,600 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 1 | $348K | $348,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 2 | $870K | $435,000 | |
| FY2024 | 1 | $425K | $425,000 | |
| FY2025 | 2 | $817K | $408,250 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Duck Donuts 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 Duck Donuts resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Locus Bank Inc | 1 | 12.5% | $541K | |
| 2 | Live Oak Banking Company | 1 | 12.5% | $520K | |
| 3 | First Business Bank | 1 | 12.5% | $425K | |
| 4 | Countybank | 1 | 12.5% | $414K | |
| 5 | The First Bank and Trust Company | 1 | 12.5% | $403K | |
| 6 | BayFirst National Bank | 1 | 12.5% | $350K | |
| 7 | First Commonwealth Bank | 1 | 12.5% | $348K | |
| 8 | Manufacturers and Traders Trust Company | 1 | 12.5% | $175K |
States where Duck Donuts units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Virginia | 3 | 37.5% | $1.1M | |
| 2 | Pennsylvania | 2 | 25.0% | $698K | |
| 3 | New Jersey | 1 | 12.5% | $520K | |
| 4 | South Carolina | 1 | 12.5% | $414K | |
| 5 | North Carolina | 1 | 12.5% | $403K |
Seller note standby terms and third-party consents are reviewed before closing.
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How lenders classify Duck Donuts
Lenders code each loan to a NAICS industry. For Duck Donuts the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | All Other Specialty Food Retailers | 2 | 25.0% | $889K | |
| 2 | Baked Goods Retailers | 2 | 25.0% | $870K | |
| 3 | Limited-Service Restaurants | 2 | 25.0% | $589K | |
| 4 | Snack and Nonalcoholic Beverage Bars | 1 | 12.5% | $425K | |
| 5 | Cafeterias, Grill Buffets, and Buffets | 1 | 12.5% | $403K |
Questions buyers ask
How much do buyers borrow to buy a Duck Donuts franchise?
The median SBA 7(a) loan for a Duck Donuts resale was $408,250 across 8 loans (FY2018 to FY2026). The middle half of loans ran from $349,500 to $448,750. 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 Duck Donuts acquisitions?
Locus Bank Inc has made the most SBA acquisition loans for Duck Donuts (1, 13% of the total). Live Oak Banking Company, First Business Bank, Countybank follow.
What interest rate and term do Duck Donuts acquisition loans carry?
The average initial rate at approval was 8.88% (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 Duck Donuts resale riskier than other SBA-financed acquisitions?
Too few Duck Donuts 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 Duck Donuts units being bought with SBA loans?
Virginia (3), Pennsylvania (2), New Jersey (1), South Carolina (1), North Carolina (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 All Other Specialty Food Retailers acquisitions
- Virginia acquisitions
- Pennsylvania acquisitions
- New Jersey acquisitions
- Live Oak Banking Company
- First Business Bank
- Countybank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Duck Donuts" (franchise code S2179). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.