Buying a Ritter's Frozen Custard franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing Ritter's Frozen Custard (classified mostly as Snack and Nonalcoholic Beverage Bars), totaling $1M. The median loan was $121,750, 81% lower than the $645,250 median for all SBA-financed acquisitions. 2 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 Ritter's Frozen Custard resale loans landed between $101,400 and $154,475.
- Lender experience exists. Stock Yards Bank & Trust Company alone has financed 3 Ritter's Frozen Custard 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 Ritter's Frozen Custard resale
The median SBA 7(a) loan for a Ritter's Frozen Custard resale was $121,750 across 6 loans (FY2018 to FY2026). Stock Yards Bank & Trust Company, The Huntington National Bank and Lake City Bank have financed the most Ritter's Frozen Custard 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%.
Ritter's Frozen Custard acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 1 | $100K | $100,000 | |
| FY2020 | 2 | $298K | $148,950 | |
| FY2021 | 1 | $106K | $105,600 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 2 | $540K | $270,000 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Ritter's Frozen Custard 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 Ritter's Frozen Custard resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Stock Yards Bank & Trust Company | 3 | 50.0% | $404K | |
| 2 | The Huntington National Bank | 2 | 33.3% | $540K | |
| 3 | Lake City Bank | 1 | 16.7% | $100K |
States where Ritter's Frozen Custard units are bought
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
How lenders classify Ritter's Frozen Custard
Lenders code each loan to a NAICS industry. For Ritter's Frozen Custard the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Snack and Nonalcoholic Beverage Bars | 3 | 50.0% | $640K | |
| 2 | Full-Service Restaurants | 3 | 50.0% | $404K |
Questions buyers ask
How much do buyers borrow to buy a Ritter's Frozen Custard franchise?
The median SBA 7(a) loan for a Ritter's Frozen Custard resale was $121,750 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $101,400 to $154,475. 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 Ritter's Frozen Custard acquisitions?
Stock Yards Bank & Trust Company has made the most SBA acquisition loans for Ritter's Frozen Custard (3, 50% of the total). The Huntington National Bank, Lake City Bank follow.
What interest rate and term do Ritter's Frozen Custard acquisition loans carry?
The average initial rate at approval was 6.77% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 7 years.
Is a Ritter's Frozen Custard resale riskier than other SBA-financed acquisitions?
Too few Ritter's Frozen Custard 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 Ritter's Frozen Custard units being bought with SBA loans?
Michigan (3), Indiana (3). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Snack and Nonalcoholic Beverage Bars acquisitions
- Michigan acquisitions
- Indiana acquisitions
- Stock Yards Bank & Trust Company
- The Huntington National Bank
- Lake City Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Ritter's Frozen Custard" (franchise code S1436). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.