Buying an IHOP franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 5 7(a) loans to buy an existing IHOP (classified mostly as Full-Service Restaurants), totaling $3.9M. The median loan was $712,000, 10% 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 IHOP resale loans landed between $608,700 and $995,000.
- Lender experience exists. Seacoast National Bank alone has financed 1 IHOP 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 an IHOP resale
The median SBA 7(a) loan for an IHOP resale was $712,000 across 5 loans (FY2018 to FY2026). Seacoast National Bank, Banc of California and Hanmi Bank have financed the most IHOP 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%.
IHOP acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $995K | $995,000 | |
| FY2019 | 1 | $712K | $712,000 | |
| FY2020 | 1 | $609K | $608,700 | |
| FY2021 | 1 | $500K | $500,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 1 | $1.1M | $1,102,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 IHOP 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 IHOP resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Seacoast National Bank | 1 | 20.0% | $1.1M | |
| 2 | Banc of California | 1 | 20.0% | $995K | |
| 3 | Hanmi Bank | 1 | 20.0% | $712K | |
| 4 | Renasant Bank | 1 | 20.0% | $609K | |
| 5 | Provident Bank | 1 | 20.0% | $500K |
States where IHOP units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | South Carolina | 1 | 20.0% | $1.1M | |
| 2 | Florida | 1 | 20.0% | $995K | |
| 3 | New York | 1 | 20.0% | $712K | |
| 4 | Georgia | 1 | 20.0% | $609K | |
| 5 | New Jersey | 1 | 20.0% | $500K |
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Questions buyers ask
How much do buyers borrow to buy an IHOP franchise?
The median SBA 7(a) loan for an IHOP resale was $712,000 across 5 loans (FY2018 to FY2026). The middle half of loans ran from $608,700 to $995,000. 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 IHOP acquisitions?
Seacoast National Bank has made the most SBA acquisition loans for IHOP (1, 20% of the total). Banc of California, Hanmi Bank, Renasant Bank follow.
What interest rate and term do IHOP acquisition loans carry?
The average initial rate at approval was 6.95% (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 an IHOP resale riskier than other SBA-financed acquisitions?
Too few IHOP 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 IHOP units being bought with SBA loans?
South Carolina (1), Florida (1), New York (1), Georgia (1), New Jersey (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 Full-Service Restaurants acquisitions
- South Carolina acquisitions
- Florida acquisitions
- New York acquisitions
- Seacoast National Bank
- Banc of California
- Hanmi Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "IHOP; IHOP Express" (franchise code S0846). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.