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.
Seller note standby terms and third-party consents are reviewed before closing.
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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
| Fiscal year | Loans | Total approved | Median 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.
Terms signed in the LOI shape the purchase agreement that follows.
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Lenders financing Honey Dew Donuts resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Salem Five Cents Savings Bank | 1 | 16.7% | $556K | |
| 2 | Ameris Bank | 1 | 16.7% | $456K | |
| 3 | TD Bank, National Association | 1 | 16.7% | $450K | |
| 4 | Navigant CU | 1 | 16.7% | $315K | |
| 5 | Bristol County Savings Bank | 1 | 16.7% | $287K | |
| 6 | Santander Bank, National Association | 1 | 16.7% | $159K |
States where Honey Dew Donuts units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Massachusetts | 5 | 83.3% | $1.9M | |
| 2 | Rhode Island | 1 | 16.7% | $315K |
Terms signed in the LOI shape the purchase agreement that follows.
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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 | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 4 | 66.7% | $1.4M | |
| 2 | All Other Specialty Food Retailers | 1 | 16.7% | $556K | |
| 3 | Snack and Nonalcoholic Beverage Bars | 1 | 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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- All Limited-Service Restaurants acquisitions
- Massachusetts acquisitions
- Rhode Island acquisitions
- Salem Five Cents Savings Bank
- Ameris Bank
- TD Bank, National Association
- All franchise brands
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.