Dairy Mart vs Straw Hat Pizza
Dairy Mart vs Straw Hat Pizza: Dairy Mart costs $15K to $261K to open; Straw Hat Pizza costs $57K to $747K. Dairy Mart has 10 units, Straw Hat Pizza has 14. SBA loan history: Dairy Mart = 11 loans (9.1% default); Straw Hat Pizza = 17 loans (29.4% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Dairy Mart vs Straw Hat Pizza: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Dairy Mart requires the lower minimum capital commitment ($15K vs $57K for Straw Hat Pizza), a 73% spread. Initial franchise fees come in at $18K for Dairy Mart versus $48K for Straw Hat Pizza, Dairy Mart has the lower entry fee.
System Scale & Tenure
On scale, Straw Hat Pizza operates 14 units to Dairy Mart's 10. Straw Hat Pizza has been operating 66 years (founded 1960) versus 24 for Dairy Mart (founded 2002), a 42-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Straw Hat Pizza has the deeper SBA lending track record, with 17 7(a) approvals compared with 11 for Dairy Mart. Dairy Mart's peak SBA year was 2002 (2 loans); Straw Hat Pizza's peak was 1999 (3 loans). Dairy Mart's more recent peak generally indicates fresher lender appetite. Dairy Mart has the most SBA funded units in MA, with 2. Straw Hat Pizza leads in CA, with 16. Borrowers should pick the brand whose strongest SBA state matches their own state for warmer lender introductions. Average SBA loan size on funded Dairy Mart deals is $134K vs $367K for Straw Hat Pizza, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 9.1% for Dairy Mart and 29.4% for Straw Hat Pizza, Dairy Mart has the cleaner SBA loss record by 20.3 points. PeerSense FPI scores come in at 35 (Fair) for Dairy Mart and 20 (Fair) for Straw Hat Pizza, giving Dairy Mart the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 35/100 | 20/100 |
Health Tier | Fair | Limited |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 11 | 17 |
SBA Volume | – | – |
Default Rate | 9.1% | 29.4% |
Peer Tier | growing | growing |
Investment & Costs
Total Investment | $15K to $261K | $57K to $747K |
Franchise Fee | $18K | $48K |
Royalty Rate | 7% | N/A |
Ad Fund | N/A | N/A |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Not Disclosed |
System Size & Operations
Total Units | 10 | 14 |
Franchised Units | 10 | 14 |
Company Owned | – | – |
Term Length | N/A | N/A |
Brand Information
Year Founded | 2002 | 1960 |
Franchising Since | N/A | N/A |
Years Franchising | N/A | N/A |
Headquarters | Columbus, KY | SAN JOSE, CA |
Category | Convenience Stores | Convenience Stores |
Website | ||
FDD Year | N/A | N/A |
Which Is Better, Dairy Mart or Straw Hat Pizza?
Lower upfront capital required
Tie
Dairy Mart: $15K starting · Straw Hat Pizza: $57K starting
More SBA lender confidence
Straw Hat Pizza
Dairy Mart: 11 SBA loans · Straw Hat Pizza: 17 SBA loans
Lower SBA default rate
Dairy Mart
Dairy Mart: 9.1% · Straw Hat Pizza: 29.4%
Larger system & brand presence
Tie
Dairy Mart: 10 units · Straw Hat Pizza: 14 units
More lender financing options
Straw Hat Pizza
Dairy Mart: 10 unique lenders · Straw Hat Pizza: 14 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Dairy Mart vs Straw Hat Pizza: Franchise Funding Comparison
Comparing Dairy Mart and Straw Hat Pizza is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $15K to $747K.
Dairy Mart has 11 SBA loans on record and Straw Hat Pizza has 17. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Dairy Mart vs Straw Hat Pizza, Frequently Asked Questions
Which is a better franchise investment, Dairy Mart or Straw Hat Pizza?
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Which has a lower SBA default rate, Dairy Mart or Straw Hat Pizza?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman