Buying a Smoothie King franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 29 7(a) loans to buy an existing Smoothie King (classified mostly as Snack and Nonalcoholic Beverage Bars), totaling $15.9M. The median loan was $332,200, 49% lower than the $645,250 median for all SBA-financed acquisitions. 5 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 Smoothie King resale loans landed between $238,800 and $745,000.
- Lender experience exists. Live Oak Banking Company alone has financed 4 Smoothie King resales.
- Guaranty. The SBA guaranteed 78% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Smoothie King resale
The median SBA 7(a) loan for a Smoothie King resale was $332,200 across 29 loans (FY2018 to FY2026). Live Oak Banking Company, The Bancorp Bank National Association and United Community Bank have financed the most Smoothie King 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%.
Smoothie King acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 7 | $4.2M | $300,000 | |
| FY2020 | 8 | $3.6M | $435,950 | |
| FY2021 | 4 | $3.5M | $965,000 | |
| FY2022 | 4 | $1.4M | $263,000 | |
| FY2023 | 1 | $239K | $238,800 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 4 | $2.3M | $502,500 | |
| FY2026 | 1 | $665K | $665,000 |
How often do these acquisition loans fail?
Fewer than 20 Smoothie King 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.
Terms signed in the LOI shape the purchase agreement that follows.
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Lenders financing Smoothie King resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 4 | 13.8% | $2.4M | |
| 2 | The Bancorp Bank National Association | 4 | 13.8% | $2M | |
| 3 | United Community Bank | 2 | 6.9% | $1.4M | |
| 4 | Citizens Bank | 2 | 6.9% | $1.4M | |
| 5 | Cogent Bank | 2 | 6.9% | $480K | |
| 6 | Mechanics and Farmers Bank | 2 | 6.9% | $420K | |
| 7 | Regions Bank | 1 | 3.4% | $2.1M | |
| 8 | Beacon Bank and Trust | 1 | 3.4% | $1.3M | |
| 9 | The State Bank and Trust Company | 1 | 3.4% | $1M | |
| 10 | Pinnacle Bank | 1 | 3.4% | $665K |
States where Smoothie King units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Florida | 8 | 27.6% | $3.8M | |
| 2 | Texas | 4 | 13.8% | $1.6M | |
| 3 | Mississippi | 3 | 10.3% | $3M | |
| 4 | Illinois | 3 | 10.3% | $2.4M | |
| 5 | Georgia | 2 | 6.9% | $790K | |
| 6 | Alabama | 1 | 3.4% | $1.1M | |
| 7 | Indiana | 1 | 3.4% | $1M | |
| 8 | Kansas | 1 | 3.4% | $595K | |
| 9 | South Carolina | 1 | 3.4% | $576K | |
| 10 | North Carolina | 1 | 3.4% | $332K |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
How lenders classify Smoothie King
Lenders code each loan to a NAICS industry. For Smoothie King the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Snack and Nonalcoholic Beverage Bars | 17 | 58.6% | $11M | |
| 2 | Limited-Service Restaurants | 5 | 17.2% | $1.7M | |
| 3 | All Other Specialty Food Retailers | 4 | 13.8% | $1.5M | |
| 4 | Convenience Retailers | 3 | 10.3% | $1.7M |
Questions buyers ask
How much do buyers borrow to buy a Smoothie King franchise?
The median SBA 7(a) loan for a Smoothie King resale was $332,200 across 29 loans (FY2018 to FY2026). The middle half of loans ran from $238,800 to $745,000. 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 Smoothie King acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Smoothie King (4, 14% of the total). The Bancorp Bank National Association, United Community Bank, Citizens Bank follow.
What interest rate and term do Smoothie King acquisition loans carry?
The average initial rate at approval was 7.05% (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 Smoothie King resale riskier than other SBA-financed acquisitions?
Too few Smoothie King 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 Smoothie King units being bought with SBA loans?
Florida (8), Texas (4), Mississippi (3), Illinois (3), Georgia (2). 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
- Florida acquisitions
- Texas acquisitions
- Mississippi acquisitions
- Live Oak Banking Company
- The Bancorp Bank National Association
- United Community Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Smoothie King" (franchise code S1591). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.