Buying a Schlotzsky's franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing Schlotzsky's (classified mostly as Limited-Service Restaurants), totaling $9.2M. The median loan was $1,122,000, 74% higher than the $645,250 median for all SBA-financed acquisitions.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Schlotzsky's resale loans landed between $468,750 and $2,038,500.
- Lender experience exists. Gulf Coast Bank and Trust Company alone has financed 1 Schlotzsky's 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 Schlotzsky's resale
The median SBA 7(a) loan for a Schlotzsky's resale was $1,122,000 across 6 loans (FY2018 to FY2026). Gulf Coast Bank and Trust Company, Southern Bank and BancFirst have financed the most Schlotzsky's 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%.
Schlotzsky's acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 2 | $3M | $1,495,000 | |
| FY2022 | 1 | $345K | $345,000 | |
| FY2023 | 1 | $370K | $370,000 | |
| FY2024 | 2 | $5.5M | $2,737,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Schlotzsky's 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.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
Lenders financing Schlotzsky's resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Gulf Coast Bank and Trust Company | 1 | 16.7% | $4M | |
| 2 | Southern Bank | 1 | 16.7% | $2.2M | |
| 3 | BancFirst | 1 | 16.7% | $1.5M | |
| 4 | Bank of Luxemburg | 1 | 16.7% | $765K | |
| 5 | Metro City Bank | 1 | 16.7% | $370K | |
| 6 | Live Oak Banking Company | 1 | 16.7% | $345K |
States where Schlotzsky's units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 3 | 50.0% | $6.6M | |
| 2 | Oklahoma | 1 | 16.7% | $1.5M | |
| 3 | Wisconsin | 1 | 16.7% | $765K | |
| 4 | South Carolina | 1 | 16.7% | $345K |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Questions buyers ask
How much do buyers borrow to buy a Schlotzsky's franchise?
The median SBA 7(a) loan for a Schlotzsky's resale was $1,122,000 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $468,750 to $2,038,500. 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 Schlotzsky's acquisitions?
Gulf Coast Bank and Trust Company has made the most SBA acquisition loans for Schlotzsky's (1, 17% of the total). Southern Bank, BancFirst, Bank of Luxemburg follow.
What interest rate and term do Schlotzsky's acquisition loans carry?
The average initial rate at approval was 7.67% (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 Schlotzsky's resale riskier than other SBA-financed acquisitions?
Too few Schlotzsky's 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 Schlotzsky's units being bought with SBA loans?
Texas (3), Oklahoma (1), Wisconsin (1), South Carolina (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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- All Limited-Service Restaurants acquisitions
- Texas acquisitions
- Oklahoma acquisitions
- Wisconsin acquisitions
- Gulf Coast Bank and Trust Company
- Southern Bank
- BancFirst
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Schlotzsky's" (franchise code S1529). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.