Buying a Papa John's franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 35 7(a) loans to buy an existing Papa John's (classified mostly as Limited-Service Restaurants), totaling $27.3M. The median loan was $510,000, 21% lower than the $645,250 median for all SBA-financed acquisitions. 6 of these loans were approved in the last two fiscal years.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Papa John's resale loans landed between $205,750 and $1,111,500.
- Lender experience exists. United Business Bank alone has financed 8 Papa John's resales.
- Guaranty. The SBA guaranteed 76% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Papa John's resale
The median SBA 7(a) loan for a Papa John's resale was $510,000 across 35 loans (FY2018 to FY2026). United Business Bank, Byline Bank and The Huntington National Bank have financed the most Papa John's resales. Of 24 seasoned loans (FY2018 to FY2021), 8.3% were charged off, 137% higher than the 3.5% average for all SBA acquisition loans.
Papa John's acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 8 | $2.3M | $135,000 | |
| FY2019 | 5 | $3.6M | $370,000 | |
| FY2020 | 6 | $3.2M | $397,000 | |
| FY2021 | 5 | $3.9M | $800,000 | |
| FY2022 | 3 | $919K | $329,000 | |
| FY2023 | 1 | $2M | $2,000,000 | |
| FY2024 | 1 | $1.2M | $1,238,000 | |
| FY2025 | 4 | $4.8M | $1,190,000 | |
| FY2026 | 2 | $5.4M | $2,690,000 |
How often do these acquisition loans fail?
Of the 24 Papa John's acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 2 have been charged off by the SBA, a rate of 8.3% by loan count and 9.9% by dollars. 18 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Papa John's is 137% higher than the acquisition-loan average. 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.
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAll 50 states. Free consultation.
Lenders financing Papa John's resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | United Business Bank | 8 | 22.9% | $4.8M | |
| 2 | Byline Bank | 5 | 14.3% | $4.8M | |
| 3 | The Huntington National Bank | 4 | 11.4% | $3.3M | |
| 4 | Bank of Hope | 4 | 11.4% | $365K | |
| 5 | Royal Business Bank | 3 | 8.6% | $4.2M | |
| 6 | Live Oak Banking Company | 2 | 5.7% | $5.6M | |
| 7 | Village Bank and Trust, National Association | 2 | 5.7% | $354K | |
| 8 | Beacon Bank and Trust | 1 | 2.9% | $1.5M | |
| 9 | BankUnited, National Association | 1 | 2.9% | $1.1M | |
| 10 | Metro City Bank | 1 | 2.9% | $380K |
States where Papa John's units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 17 | 48.6% | $9.7M | |
| 2 | Illinois | 8 | 22.9% | $10.4M | |
| 3 | Wisconsin | 3 | 8.6% | $1.7M | |
| 4 | Ohio | 2 | 5.7% | $2.2M | |
| 5 | Washington | 1 | 2.9% | $1.5M | |
| 6 | Hawaii | 1 | 2.9% | $885K | |
| 7 | Minnesota | 1 | 2.9% | $515K | |
| 8 | South Carolina | 1 | 2.9% | $230K | |
| 9 | New York | 1 | 2.9% | $150K |
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
How lenders classify Papa John's
Lenders code each loan to a NAICS industry. For Papa John's the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Limited-Service Restaurants | 34 | 97.1% | $27M | |
| 2 | Full-Service Restaurants | 1 | 2.9% | $250K |
Questions buyers ask
How much do buyers borrow to buy a Papa John's franchise?
The median SBA 7(a) loan for a Papa John's resale was $510,000 across 35 loans (FY2018 to FY2026). The middle half of loans ran from $205,750 to $1,111,500. 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 Papa John's acquisitions?
United Business Bank has made the most SBA acquisition loans for Papa John's (8, 23% of the total). Byline Bank, The Huntington National Bank, Bank of Hope follow.
What interest rate and term do Papa John's acquisition loans carry?
The average initial rate at approval was 7.23% (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 Papa John's resale riskier than other SBA-financed acquisitions?
In the seasoned cohort (FY2018 to FY2021), 8.3% charged off, 137% higher than the 3.5% average for all SBA acquisition loans.
Where are Papa John's units being bought with SBA loans?
California (17), Illinois (8), Wisconsin (3), Ohio (2), Washington (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.
Request Engagement AssessmentAll 50 states. Free consultation.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- All Limited-Service Restaurants acquisitions
- California acquisitions
- Illinois acquisitions
- Wisconsin acquisitions
- United Business Bank
- Byline Bank
- The Huntington National Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Papa John's" (franchise code S1273). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.