Buying a Golden Chick franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing Golden Chick (classified mostly as Limited-Service Restaurants), totaling $8.8M. The median loan was $1,537,500, 138% higher than the $645,250 median for all SBA-financed acquisitions.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Golden Chick resale loans landed between $709,500 and $2,066,250.
- Lender experience exists. Commonwealth Business Bank alone has financed 3 Golden Chick resales.
- Guaranty. The SBA guaranteed 77% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Golden Chick resale
The median SBA 7(a) loan for a Golden Chick resale was $1,537,500 across 6 loans (FY2018 to FY2026). Commonwealth Business Bank, Banc of California and Security State Bank and Trust have financed the most Golden Chick 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%.
Golden Chick acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 2 | $2.2M | $1,096,500 | |
| FY2020 | 1 | $2.6M | $2,618,000 | |
| FY2021 | 1 | $1.4M | $1,350,000 | |
| FY2022 | 2 | $2.7M | $1,338,000 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Golden Chick 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 Golden Chick resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Commonwealth Business Bank | 3 | 50.0% | $5.3M | |
| 2 | Banc of California | 1 | 16.7% | $1.7M | |
| 3 | Security State Bank and Trust | 1 | 16.7% | $1.4M | |
| 4 | Bank of Hope | 1 | 16.7% | $496K |
States where Golden Chick units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 6 | 100.0% | $8.8M |
The purchase agreement decides what you bought, not the loan approval.
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Questions buyers ask
How much do buyers borrow to buy a Golden Chick franchise?
The median SBA 7(a) loan for a Golden Chick resale was $1,537,500 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $709,500 to $2,066,250. 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 Golden Chick acquisitions?
Commonwealth Business Bank has made the most SBA acquisition loans for Golden Chick (3, 50% of the total). Banc of California, Security State Bank and Trust, Bank of Hope follow.
What interest rate and term do Golden Chick acquisition loans carry?
The average initial rate at approval was 4.75% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 25 years.
Is a Golden Chick resale riskier than other SBA-financed acquisitions?
Too few Golden Chick 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 Golden Chick units being bought with SBA loans?
Texas (6). 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
- Texas acquisitions
- Commonwealth Business Bank
- Banc of California
- Bank of Hope
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Golden Chick" (franchise code S0728). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.