Buying a Menchie's franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 11 7(a) loans to buy an existing Menchie's (classified mostly as Limited-Service Restaurants), totaling $3.3M. The median loan was $247,000, 62% lower than the $645,250 median for all SBA-financed acquisitions. 3 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Menchie's resale loans landed between $149,500 and $500,000.
- Lender experience exists. The Huntington National Bank alone has financed 6 Menchie's resales.
- Guaranty. The SBA guaranteed 74% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Menchie's resale
The median SBA 7(a) loan for a Menchie's resale was $247,000 across 11 loans (FY2018 to FY2026). The Huntington National Bank, Citizens Bank and TowneBank have financed the most Menchie's 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%.
Menchie's acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 2 | $299K | $149,500 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $200K | $200,000 | |
| FY2024 | 5 | $2M | $500,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 3 | $782K | $247,000 |
How often do these acquisition loans fail?
Fewer than 20 Menchie's 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.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
Lenders financing Menchie's resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 6 | 54.5% | $1.5M | |
| 2 | Citizens Bank | 1 | 9.1% | $510K | |
| 3 | TowneBank | 1 | 9.1% | $500K | |
| 4 | HomeTrust Bank | 1 | 9.1% | $331K | |
| 5 | Mountain West Small Business Finance | 1 | 9.1% | $247K | |
| 6 | Lincoln Savings Bank | 1 | 9.1% | $200K |
States where Menchie's units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Michigan | 4 | 36.4% | $983K | |
| 2 | Florida | 3 | 27.3% | $1M | |
| 3 | Texas | 2 | 18.2% | $531K | |
| 4 | Pennsylvania | 1 | 9.1% | $510K | |
| 5 | Utah | 1 | 9.1% | $247K |
The purchase agreement decides what you bought, not the loan approval.
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How lenders classify Menchie's
Lenders code each loan to a NAICS industry. For Menchie's the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 8 | 72.7% | $2M | |
| 2 | Snack and Nonalcoholic Beverage Bars | 3 | 27.3% | $1.3M |
Questions buyers ask
How much do buyers borrow to buy a Menchie's franchise?
The median SBA 7(a) loan for a Menchie's resale was $247,000 across 11 loans (FY2018 to FY2026). The middle half of loans ran from $149,500 to $500,000. 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 Menchie's acquisitions?
The Huntington National Bank has made the most SBA acquisition loans for Menchie's (6, 55% of the total). Citizens Bank, TowneBank, HomeTrust Bank follow.
What interest rate and term do Menchie's acquisition loans carry?
The average initial rate at approval was 9.95% (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 a Menchie's resale riskier than other SBA-financed acquisitions?
Too few Menchie's 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 Menchie's units being bought with SBA loans?
Michigan (4), Florida (3), Texas (2), Pennsylvania (1), Utah (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
- All Limited-Service Restaurants acquisitions
- Michigan acquisitions
- Florida acquisitions
- Texas acquisitions
- The Huntington National Bank
- Citizens Bank
- TowneBank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Menchie's" (franchise code S1103). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.