Buying a Fully Promoted franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing Fully Promoted (classified mostly as Other Services Related to Advertising), totaling $2.2M. The median loan was $244,000, 62% lower than the $645,250 median for all SBA-financed acquisitions. 2 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 Fully Promoted resale loans landed between $203,125 and $360,250.
- Lender experience exists. Truliant FCU alone has financed 1 Fully Promoted resales.
- Guaranty. The SBA guaranteed 72% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Fully Promoted resale
The median SBA 7(a) loan for a Fully Promoted resale was $244,000 across 6 loans (FY2018 to FY2026). Truliant FCU, Gulf Coast Bank and Trust Company and Byline Bank have financed the most Fully Promoted 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%.
Fully Promoted acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 2 | $355K | $177,500 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 2 | $589K | $294,250 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $268K | $268,000 | |
| FY2026 | 1 | $947K | $946,700 |
How often do these acquisition loans fail?
Fewer than 20 Fully Promoted 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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Lenders financing Fully Promoted resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Truliant FCU | 1 | 16.7% | $947K | |
| 2 | Gulf Coast Bank and Trust Company | 1 | 16.7% | $391K | |
| 3 | Byline Bank | 1 | 16.7% | $268K | |
| 4 | EagleBank | 1 | 16.7% | $220K | |
| 5 | Gateway Bank | 1 | 16.7% | $198K | |
| 6 | Manufacturers and Traders Trust Company | 1 | 16.7% | $135K |
States where Fully Promoted units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Illinois | 1 | 16.7% | $947K | |
| 2 | Florida | 1 | 16.7% | $391K | |
| 3 | California | 1 | 16.7% | $268K | |
| 4 | Pennsylvania | 1 | 16.7% | $220K | |
| 5 | Minnesota | 1 | 16.7% | $198K | |
| 6 | Maryland | 1 | 16.7% | $135K |
Seller note standby terms and third-party consents are reviewed before closing.
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How lenders classify Fully Promoted
Lenders code each loan to a NAICS industry. For Fully Promoted the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Other Services Related to Advertising | 2 | 33.3% | $659K | |
| 2 | Clothing and Clothing Accessories Retailers | 1 | 16.7% | $220K | |
| 3 | Advertising Agencies | 1 | 16.7% | $135K |
Questions buyers ask
How much do buyers borrow to buy a Fully Promoted franchise?
The median SBA 7(a) loan for a Fully Promoted resale was $244,000 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $203,125 to $360,250. 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 Fully Promoted acquisitions?
Truliant FCU has made the most SBA acquisition loans for Fully Promoted (1, 17% of the total). Gulf Coast Bank and Trust Company, Byline Bank, EagleBank follow.
What interest rate and term do Fully Promoted acquisition loans carry?
The average initial rate at approval was 7.71% (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 Fully Promoted resale riskier than other SBA-financed acquisitions?
Too few Fully Promoted 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 Fully Promoted units being bought with SBA loans?
Illinois (1), Florida (1), California (1), Pennsylvania (1), Minnesota (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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- All Other Services Related to Advertising acquisitions
- Illinois acquisitions
- Florida acquisitions
- California acquisitions
- Truliant FCU
- Gulf Coast Bank and Trust Company
- Byline Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Fully Promoted a/k/a Embroid Me" (franchise code S0577). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.