Buying a Rocky Mountain Chocolate Factory franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 7 7(a) loans to buy an existing Rocky Mountain Chocolate Factory (classified mostly as Confectionery and Nut Retailers), totaling $3.4M. The median loan was $396,300, 39% lower than the $645,250 median for all SBA-financed acquisitions. 4 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 Rocky Mountain Chocolate Factory resale loans landed between $252,100 and $702,500.
- Lender experience exists. U.S. Bank, National Association alone has financed 2 Rocky Mountain Chocolate Factory resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Rocky Mountain Chocolate Factory resale
The median SBA 7(a) loan for a Rocky Mountain Chocolate Factory resale was $396,300 across 7 loans (FY2018 to FY2026). U.S. Bank, National Association, Celtic Bank Corporation and Newtek Bank, National Association have financed the most Rocky Mountain Chocolate Factory 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%.
Rocky Mountain Chocolate Factory acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $249K | $249,000 | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $825K | $825,000 | |
| FY2024 | 1 | $396K | $396,300 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 4 | $1.9M | $417,600 |
How often do these acquisition loans fail?
Fewer than 20 Rocky Mountain Chocolate Factory 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 Rocky Mountain Chocolate Factory resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | U.S. Bank, National Association | 2 | 28.6% | $1.1M | |
| 2 | Celtic Bank Corporation | 2 | 28.6% | $976K | |
| 3 | Newtek Bank, National Association | 1 | 14.3% | $825K | |
| 4 | Bank of Colorado | 1 | 14.3% | $255K | |
| 5 | BancFirst | 1 | 14.3% | $246K |
States where Rocky Mountain Chocolate Factory units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 2 | 28.6% | $976K | |
| 2 | Colorado | 2 | 28.6% | $504K | |
| 3 | Utah | 1 | 14.3% | $836K | |
| 4 | Minnesota | 1 | 14.3% | $825K | |
| 5 | Oklahoma | 1 | 14.3% | $246K |
Terms signed in the LOI shape the purchase agreement that follows.
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How lenders classify Rocky Mountain Chocolate Factory
Lenders code each loan to a NAICS industry. For Rocky Mountain Chocolate Factory the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Confectionery and Nut Retailers | 6 | 85.7% | $3M | |
| 2 | Limited-Service Restaurants | 1 | 14.3% | $396K |
Questions buyers ask
How much do buyers borrow to buy a Rocky Mountain Chocolate Factory franchise?
The median SBA 7(a) loan for a Rocky Mountain Chocolate Factory resale was $396,300 across 7 loans (FY2018 to FY2026). The middle half of loans ran from $252,100 to $702,500. 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 Rocky Mountain Chocolate Factory acquisitions?
U.S. Bank, National Association has made the most SBA acquisition loans for Rocky Mountain Chocolate Factory (2, 29% of the total). Celtic Bank Corporation, Newtek Bank, National Association, Bank of Colorado follow.
What interest rate and term do Rocky Mountain Chocolate Factory acquisition loans carry?
The average initial rate at approval was 8.95% (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 Rocky Mountain Chocolate Factory resale riskier than other SBA-financed acquisitions?
Too few Rocky Mountain Chocolate Factory 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 Rocky Mountain Chocolate Factory units being bought with SBA loans?
California (2), Colorado (2), Utah (1), Minnesota (1), Oklahoma (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.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- All Confectionery and Nut Retailers acquisitions
- California acquisitions
- Colorado acquisitions
- Utah acquisitions
- U.S. Bank, National Association
- Celtic Bank Corporation
- Newtek Bank, National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Rocky Mountain Chocolate Factory" (franchise code S1442). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.