Top Franchise Brands in SBA Lending
FY2024 Top Franchise Brands in SBA 7(a) Lending
In FY2024 there were 5,572 franchise loan approvals and 3,680 were funded for a total of $2.7 billion and an average loan amount of $722,652. There were 1,115 different franchise brands with borrowers having an SBA 7(a) funded loan. This article highlights the top franchise brands in SBA lending.
Why is a franchise brand being top ranked in SBA lending a good thing?
Because it conveys that SBA lenders are not only familiar with the brand but love it. Overall, banks like the concept, the story, and the cash flow of the deals. When a brand becomes top ranked it draws the attention of other lenders adding to the pool of lenders available to the franchisees. When you are a franchisee of a franchise brand top ranked in SBA lending it means you have lenders lined up ready to do your loan.
Top Franchise Brands for FY2024 Funded SBA 7(a) Loans
When looking at franchise brands with the highest number of loans, it's evident that some have risen to the top through strong business models and high demand from entrepreneurs. Below, we break down the rankings and highlight the top performing franchise brands in SBA lending.
The UPS Store leads the list with an impressive 76 loans, cementing its position as a top choice for franchisees. Known for offering essential services such as shipping, printing, and mailbox rentals, this brand maintains its strong appeal to both small business owners and individual customers.
HOTWORX claims the second spot with 55 loans, reflecting its growing popularity in the fitness and wellness industry. Its innovative approach to providing 24-hour infrared workout facilities has attracted health-conscious entrepreneurs nationwide.
Naturals2Go follows with 33 loans, showcasing the rising trend of healthy vending solutions. By focusing on convenient access to nutritious snacks, this brand is meeting the increasing consumer demand for better food choices on the go.
Anytime Fitness is also a powerhouse in the fitness world, securing 32 loans. With its 24/7 gym access and supportive community model, this franchise continues to expand its global reach.
Subway, a globally recognized brand, ties at the fifth position with 25 loans. Despite challenges in recent years, its reputation for offering affordable and customizable meals keeps it a perennial favorite among franchisees.
Sharing the fifth position, The Grounds Guys also attains 25 loans, highlighting the value of professional landscaping and property care services. This brand appeals to those who want to thrive in the rapidly expanding home services sector.
The Learning Experience, with 25 loans, rounds out a three-way tie for fifth place. This brand is driving growth in early childhood education and care, an industry that continues to see significant demand.
Quality Inn by Choice Hotels, a trusted name in hospitality, follows with 24 loans. With its well-established reputation for quality and affordability, this franchise continues to be a strong contender in the lodging industry.
Scooter's Coffee, also at 24 loans, is a growing force in the coffee sector due to its drive-thru convenience and high-quality beverages. Its rapid expansion is powered by this popular business model.
Super 8 by Wyndham joins the group with 24 loans, solidifying its position as a leader in budget-friendly accommodations. Long recognized for providing reliable and comfortable stays, it remains a favorite for franchisees.
Alloy Personal Training secures 23 loans, reflecting the increasing demand for boutique fitness franchises that focus on personalized workout programs and strong client connections.
Tropical Smoothie Cafe ties for the eleventh spot with 23 loans, leveraging its versatile menu of smoothies and healthy food options to achieve significant growth in the fast-casual dining industry.
BIGGBY Coffee stands out with 20 loans, capitalizing on the booming coffee culture by providing an approachable, community-oriented experience that resonates with customers and franchisees alike.
Budget Blinds and Scenthound both receive 19 loans, demonstrating the rise of specialization in home improvement and pet services, respectively. Budget Blinds caters to personalized window solutions, while Scenthound focuses on dog grooming and wellness.
Aire Serv, D1 Sports, and Domino's each record 18 loans, representing strong franchise opportunities in the HVAC industry, athletic training, and pizza delivery, areas with reliable demand and potential for continued growth.
Floor Coverings International secures 17 loans, reflecting the popularity of its mobile flooring franchise model, which brings home remodeling directly to customers' doors.
Jersey Mike's comes in with 16 loans, celebrated nationwide for its fresh sub sandwiches and an emphasis on high-quality ingredients.
British Swim School, Days Inn by Wyndham, EverLine Coatings and Services, Mr. Handyman, and Rainbow International each achieve 15 loans, demonstrating their leadership in industries ranging from swim lessons and hospitality to property maintenance and disaster restoration.
These rankings highlight the diversity of successful franchise opportunities available across various industries.
Hotel Franchises Top the Charts for SBA Total Funded Dollars
Leading the hotel category is QUALITY INN, which achieved a substantial $72,168,200 across 24 loans. Following closely is SUPER 8, with 24 loans amounting to $56,546,200, and BEST WESTERN, securing $54,801,100 with 14 loans. Other notable mentions include COMFORT INN ($44,847,100 from 12 loans), HOLIDAY INN EXPRESS ($42,710,000 from 9 loans), and LA QUINTA, with $40,399,000 funded across 11 loans. These figures reflect the robust demand for hotel franchises and their strong position within the franchise financing landscape.
Additional hotel brands rounding out the list include MOTEL 6 ($34,851,500 from 13 loans), DAYS INN ($34,253,400 from 15 loans), and RED ROOF INN, with 11 loans, totaling $33,332,000. Mid-tier performers like COUNTRY INN & SUITES ($28,043,000 from 9 loans), SLEEP INN ($23,895,700 from 6 loans), and BAYMONT ($22,396,500 from 9 loans) also highlight the diversity in financing distribution. Meanwhile, emerging brands such as EXTENDED STAY AMERICA SUITES ($21,233,500 from 7 loans) and CANDLEWOOD SUITES ($19,277,000 from 4 loans) emphasize opportunities in niche markets within the hospitality sector.
Non-Hotel Franchises Showcase Diverse Opportunities
Outside of the hotel industry, franchises in the education, retail, and fitness sectors also made a notable impact. The UPS Store led the non-hotel category, securing $34,207,600 across 76 loans. Urban Air Adventure Park followed with $29,880,800 from 8 loans, reflecting the growing interest in entertainment and recreation-based franchises. Similarly, AM/PM MINI-MART recorded significant results with 12 loans totaling $28,294,600.
The food and beverage segment also saw strong performances, notably by Scooter's Coffee, achieving $28,095,800 from 24 loans. Brands in education and childcare, such as The Goddard School ($27,278,300 from 13 loans), Primrose Schools ($21,067,800 from 14 loans), and Kiddie Academy ($19,599,200 from 11 loans), highlighted the growing investment in family-focused services.
Fitness franchises like HOTWORX ($26,334,400 from 55 loans) and Anytime Fitness ($17,931,000 from 32 loans) underscored the increasing demand for wellness-based businesses. These numbers reflect the expanding interest in industries catering to health-conscious consumers.
A Broad Spectrum of Franchise Opportunities and Industries
This year’s list illustrates the immense scope of franchise opportunities across a variety of industries. While hotel brands continue to dominate in terms of total funded loan dollars, non-hotel franchises are making substantial strides, particularly in education, wellness, food, and entertainment.
LoanBox Lenders Targeting All Brands in the Top 25
LoanBox has the top franchise lenders heavily targeting hundreds of franchise brands for startup, debt refinancing, expansion and acquisition lending. When you complete your loan package the LoanBox algorithms go to work and you instantly see the SBA and conventional lenders you match 100% of their dozens of criteria variables. Select one or all of the lenders to access your LoanBox package from their LoanBox. Receive loan proposals, select the winner and continue the process to closing, receiving alerts whenever the loan advances to the next process stage. Or you can have a LoanBox Advisor handle everything for and with you navigating the process to funding.
Getting it right the first time can have immeasurable value with many things to a small business owner. LoanBox helps a franchise get their choice of business loan and lender matched correctly from the outset. It's why LoanBox is for franchisees seeking big small business loans, when delays from not getting it right can end up losing out on the deal all together.
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This article is authored by Darin Manis, founder of LoanBox.
Source: All SBA 7(a) data shared is based on all SBA lending from all sources and not from SBA lending through LoanBox. SBA data and reports are not from the SBA but from SBA data from the lending analytics platform developed and maintained by SBADNA Analytics. SBADNA and LoanBox are both owned by the same parent company FuseSync LLC. LoanBox and SBADNA does not validate or verify the data released by the SBA and provides no warranty of data accuracy or completeness.