Buying a Mr. Appliance franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 12 7(a) loans to buy an existing Mr. Appliance (classified mostly as Appliance Repair and Maintenance), totaling $7.9M. The median loan was $602,500, 7% lower than the $645,250 median for all SBA-financed acquisitions. 8 of these loans were approved in the last two fiscal years.
The purchase agreement decides what you bought, not the loan approval.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Mr. Appliance resale loans landed between $392,500 and $776,750.
- Lender experience exists. Pathward National Association alone has financed 3 Mr. Appliance 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 Mr. Appliance resale
The median SBA 7(a) loan for a Mr. Appliance resale was $602,500 across 12 loans (FY2018 to FY2026). Pathward National Association, Live Oak Banking Company and Byline Bank have financed the most Mr. Appliance 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%.
Mr. Appliance acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 1 | $691K | $691,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 1 | $875K | $875,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $458K | $458,100 | |
| FY2024 | 1 | $744K | $744,000 | |
| FY2025 | 2 | $3M | $1,501,500 | |
| FY2026 | 6 | $2.1M | $345,000 |
How often do these acquisition loans fail?
Fewer than 20 Mr. Appliance 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.
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Lenders financing Mr. Appliance resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Pathward National Association | 3 | 25.0% | $2.3M | |
| 2 | Live Oak Banking Company | 3 | 25.0% | $1.6M | |
| 3 | Byline Bank | 2 | 16.7% | $1.7M | |
| 4 | North State Bank | 2 | 16.7% | $1.2M | |
| 5 | Wells Fargo Bank National Association | 1 | 8.3% | $691K | |
| 6 | Waukesha State Bank | 1 | 8.3% | $458K |
States where Mr. Appliance units are bought
Seller note standby terms and third-party consents are reviewed before closing.
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How lenders classify Mr. Appliance
Lenders code each loan to a NAICS industry. For Mr. Appliance the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Appliance Repair and Maintenance | 11 | 91.7% | $7M | |
| 2 | Other Personal and Household Goods Repair and Maintenance | 1 | 8.3% | $875K |
Questions buyers ask
How much do buyers borrow to buy a Mr. Appliance franchise?
The median SBA 7(a) loan for a Mr. Appliance resale was $602,500 across 12 loans (FY2018 to FY2026). The middle half of loans ran from $392,500 to $776,750. 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 Mr. Appliance acquisitions?
Pathward National Association has made the most SBA acquisition loans for Mr. Appliance (3, 25% of the total). Live Oak Banking Company, Byline Bank, North State Bank follow.
What interest rate and term do Mr. Appliance acquisition loans carry?
The average initial rate at approval was 9.16% (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 Mr. Appliance resale riskier than other SBA-financed acquisitions?
Too few Mr. Appliance 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 Mr. Appliance units being bought with SBA loans?
Florida (4), Ohio (2), Texas (2), Arizona (1), Indiana (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.
The purchase agreement decides what you bought, not the loan approval.
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Related
- All Appliance Repair and Maintenance acquisitions
- Florida acquisitions
- Ohio acquisitions
- Texas acquisitions
- Pathward National Association
- Live Oak Banking Company
- Byline Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Mr. Appliance" (franchise code S1137). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.