SBA Acquisition Data

Buying a Honey Dew Donuts franchise: SBA acquisition loan data

Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing Honey Dew Donuts (classified mostly as Limited-Service Restaurants), totaling $2.2M. The median loan was $382,500, 41% lower than the $645,250 median for all SBA-financed acquisitions.

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SBA-financed deals. All 50 states.

acquisition loans
6
FY2018 to FY2026
total approved
$2.2M
gross loan amount
median loan
$382,500
6 loans
avg initial rate
5.92%
at approval, mixed years
median term
10 years
120 months

What this tells a buyer

  • Price range to expect. Loan size tracks purchase price. Half of Honey Dew Donuts resale loans landed between $294,000 and $454,500.
  • Lender experience exists. Salem Five Cents Savings Bank alone has financed 1 Honey Dew Donuts resales.
  • Guaranty. The SBA guaranteed 80% of the dollars lent here.
  • What the file leaves out. The SBA file does not record franchisor transfer terms or fees.

Financing a Honey Dew Donuts resale

The median SBA 7(a) loan for a Honey Dew Donuts resale was $382,500 across 6 loans (FY2018 to FY2026). Salem Five Cents Savings Bank, Ameris Bank and TD Bank, National Association have financed the most Honey Dew 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%.

Honey Dew Donuts acquisition loans by year

Honey Dew Donuts SBA acquisition loans by fiscal year. SBA fiscal years run October 1 to September 30.
Fiscal yearLoansTotal approvedMedian loan
FY2018 0
$0 -
FY2019 4
$1.5M $371,500
FY2020 0
$0 -
FY2021 2
$765K $382,500
FY2022 0
$0 -
FY2023 0
$0 -
FY2024 0
$0 -
FY2025 0
$0 -
FY2026 0
$0 -

How often do these acquisition loans fail?

Fewer than 20 Honey Dew 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 Honey Dew Donuts resales

Lender ranked by SBA acquisition loans
#LenderLoansShareDollars
1Salem Five Cents Savings Bank1
16.7%$556K
2Ameris Bank1
16.7%$456K
3TD Bank, National Association1
16.7%$450K
4Navigant CU1
16.7%$315K
5Bristol County Savings Bank1
16.7%$287K
6Santander Bank, National Association1
16.7%$159K

States where Honey Dew Donuts units are bought

State ranked by SBA acquisition loans
#StateLoansShareDollars
1Massachusetts5
83.3%$1.9M
2Rhode Island1
16.7%$315K
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How lenders classify Honey Dew Donuts

Lenders code each loan to a NAICS industry. For Honey Dew Donuts the codes used were:

Industry ranked by SBA acquisition loans
#IndustryLoansShareDollars
1Limited-Service Restaurants4
66.7%$1.4M
2All Other Specialty Food Retailers1
16.7%$556K
3Snack and Nonalcoholic Beverage Bars1
16.7%$315K

Questions buyers ask

How much do buyers borrow to buy a Honey Dew Donuts franchise?

The median SBA 7(a) loan for a Honey Dew Donuts resale was $382,500 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $294,000 to $454,500. 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 Honey Dew Donuts acquisitions?

Salem Five Cents Savings Bank has made the most SBA acquisition loans for Honey Dew Donuts (1, 17% of the total). Ameris Bank, TD Bank, National Association, Navigant CU follow.

What interest rate and term do Honey Dew Donuts acquisition loans carry?

The average initial rate at approval was 5.92% (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 Honey Dew Donuts resale riskier than other SBA-financed acquisitions?

Too few Honey Dew 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 Honey Dew Donuts units being bought with SBA loans?

Massachusetts (5), Rhode Island (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

Brand name as recorded by lenders in the SBA file: "Honey Dew Donuts" (franchise code S0820). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.