Buying a Rita's Ice-Custard-Happiness franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 15 7(a) loans to buy an existing Rita's Ice-Custard-Happiness (classified mostly as Snack and Nonalcoholic Beverage Bars), totaling $4.7M. The median loan was $250,300, 61% lower than the $645,250 median for all SBA-financed acquisitions. 1 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 Rita's Ice-Custard-Happiness resale loans landed between $181,100 and $309,100.
- Lender experience exists. Manufacturers and Traders Trust Company alone has financed 5 Rita's Ice-Custard-Happiness resales.
- Guaranty. The SBA guaranteed 71% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Rita's Ice-Custard-Happiness resale
The median SBA 7(a) loan for a Rita's Ice-Custard-Happiness resale was $250,300 across 15 loans (FY2018 to FY2026). Manufacturers and Traders Trust Company, PNC Bank, National Association and The Huntington National Bank have financed the most Rita's Ice-Custard-Happiness 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%.
Rita's Ice-Custard-Happiness acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 4 | $965K | $242,000 | |
| FY2019 | 1 | $144K | $144,000 | |
| FY2020 | 1 | $187K | $187,200 | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 3 | $1.9M | $350,000 | |
| FY2023 | 4 | $1M | $250,350 | |
| FY2024 | 1 | $309K | $309,000 | |
| FY2025 | 1 | $175K | $175,000 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Rita's Ice-Custard-Happiness 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 Rita's Ice-Custard-Happiness resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Manufacturers and Traders Trust Company | 5 | 33.3% | $1.3M | |
| 2 | PNC Bank, National Association | 2 | 13.3% | $437K | |
| 3 | The Huntington National Bank | 1 | 6.7% | $1.3M | |
| 4 | Peoples Bank & Trust | 1 | 6.7% | $350K | |
| 5 | Choice Financial Group | 1 | 6.7% | $309K | |
| 6 | BayFirst National Bank | 1 | 6.7% | $309K | |
| 7 | KeyBank National Association | 1 | 6.7% | $284K | |
| 8 | Fulton Bank, National Association | 1 | 6.7% | $175K | |
| 9 | Truist Bank | 1 | 6.7% | $172K | |
| 10 | Magnifi Financial CU | 1 | 6.7% | $117K |
States where Rita's Ice-Custard-Happiness units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Pennsylvania | 9 | 60.0% | $2.2M | |
| 2 | Maryland | 2 | 13.3% | $1.4M | |
| 3 | Georgia | 1 | 6.7% | $350K | |
| 4 | Minnesota | 1 | 6.7% | $309K | |
| 5 | New Jersey | 1 | 6.7% | $250K | |
| 6 | Delaware | 1 | 6.7% | $144K |
That draft favors the seller. We review it for the buyer, line by line.
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How lenders classify Rita's Ice-Custard-Happiness
Lenders code each loan to a NAICS industry. For Rita's Ice-Custard-Happiness the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Snack and Nonalcoholic Beverage Bars | 9 | 60.0% | $2.1M | |
| 2 | Limited-Service Restaurants | 5 | 33.3% | $2.3M |
Questions buyers ask
How much do buyers borrow to buy a Rita's Ice-Custard-Happiness franchise?
The median SBA 7(a) loan for a Rita's Ice-Custard-Happiness resale was $250,300 across 15 loans (FY2018 to FY2026). The middle half of loans ran from $181,100 to $309,100. 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 Rita's Ice-Custard-Happiness acquisitions?
Manufacturers and Traders Trust Company has made the most SBA acquisition loans for Rita's Ice-Custard-Happiness (5, 33% of the total). PNC Bank, National Association, The Huntington National Bank, Peoples Bank & Trust follow.
What interest rate and term do Rita's Ice-Custard-Happiness acquisition loans carry?
The average initial rate at approval was 8.16% (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 Rita's Ice-Custard-Happiness resale riskier than other SBA-financed acquisitions?
Too few Rita's Ice-Custard-Happiness 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 Rita's Ice-Custard-Happiness units being bought with SBA loans?
Pennsylvania (9), Maryland (2), Georgia (1), Minnesota (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.
The purchase agreement decides what you bought, not the loan approval.
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Related
- All Snack and Nonalcoholic Beverage Bars acquisitions
- Pennsylvania acquisitions
- Maryland acquisitions
- Georgia acquisitions
- Manufacturers and Traders Trust Company
- PNC Bank, National Association
- The Huntington National Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Rita's Ice-Custard-Happiness" (franchise code S1435). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.