Buying a Sonic franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 8 7(a) loans to buy an existing Sonic (classified mostly as Limited-Service Restaurants), totaling $17M. The median loan was $1,942,000, 201% higher than the $645,250 median for all SBA-financed acquisitions.
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 Sonic resale loans landed between $1,405,500 and $2,577,000.
- Lender experience exists. Live Oak Banking Company alone has financed 3 Sonic 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 Sonic resale
The median SBA 7(a) loan for a Sonic resale was $1,942,000 across 8 loans (FY2018 to FY2026). Live Oak Banking Company, SouthState Bank, National Association and United Business Bank have financed the most Sonic 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%.
Sonic acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $5.8M | $1,859,000 | |
| FY2019 | 1 | $1.6M | $1,550,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 1 | $170K | $170,000 | |
| FY2022 | 2 | $7M | $3,512,500 | |
| FY2023 | 1 | $2.5M | $2,460,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Sonic 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 Sonic resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Live Oak Banking Company | 3 | 37.5% | $8.6M | |
| 2 | SouthState Bank, National Association | 1 | 12.5% | $2.9M | |
| 3 | United Business Bank | 1 | 12.5% | $2.5M | |
| 4 | PNC Bank, National Association | 1 | 12.5% | $1.9M | |
| 5 | Armstrong Bank | 1 | 12.5% | $972K | |
| 6 | Glacier Bank | 1 | 12.5% | $170K |
States where Sonic units are bought
Seller note standby terms and third-party consents are reviewed before closing.
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Questions buyers ask
How much do buyers borrow to buy a Sonic franchise?
The median SBA 7(a) loan for a Sonic resale was $1,942,000 across 8 loans (FY2018 to FY2026). The middle half of loans ran from $1,405,500 to $2,577,000. 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 Sonic acquisitions?
Live Oak Banking Company has made the most SBA acquisition loans for Sonic (3, 38% of the total). SouthState Bank, National Association, United Business Bank, PNC Bank, National Association follow.
What interest rate and term do Sonic acquisition loans carry?
The average initial rate at approval was 6.02% (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 Sonic resale riskier than other SBA-financed acquisitions?
Too few Sonic 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 Sonic units being bought with SBA loans?
Florida (2), Minnesota (1), Texas (1), California (1), Nebraska (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.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Limited-Service Restaurants acquisitions
- Florida acquisitions
- Minnesota acquisitions
- Texas acquisitions
- Live Oak Banking Company
- SouthState Bank, National Association
- United Business Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Sonic" (franchise code S1598). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.