Quick Service Restaurant Feasibility Study in Mississippi

Mississippi quick service: franchise-led and steady

Mississippi's limited-service restaurant loans are mostly franchise deals: 60.8% of the 97 approvals went to franchisees. The class ranks 3 of 39 within Mississippi, though at 0.85x its location quotient is below national weight, and the state places 41 of 54 among states on $51.9 million approved from FY2017 to FY2026. Its median of $320,000 sits close to the national midpoint at 1.03x, so a request near that level is typical for the Mississippi record, while one well above $713,900 lies in the top quarter. The 39-loan funded cohort is small enough that one failed unit would change the charge-off rate.

Community banks lead the Mississippi list

Community Bank of Mississippi holds 13 loans for $4.5 million, BankFirst Financial Services 9 for $4.4 million, Peoples Bank 8, Trustmark Bank 7 and Pinnacle Bank 5, and Three Rivers Local Development Company, Inc. holds 5 of the 504 loans for $5.1 million. Of the 97 loans, 89 used 7(a) and 8 used 504. The middle half sits between $150,000 and $713,900. Harrison and Madison counties have 11 loans each, Rankin 8 and Jackson 6. FY2026 was the largest year for dollars, at $7.7 million on 9 loans.

No losses yet, moderate cancellations

Mississippi's 39 quick-service loans funded in FY2017 to FY2021 carry no losses, a charge-off rate of 0.00% whether measured to date or at five years, but that cohort is only 39 loans and loans remain open, so the clean record is a floor. Cancellations hold at 11.7%, floor and ceiling alike, for Mississippi approvals made in FY2017 to FY2024. For a borrower, the clean record covers a small cohort and does not replace a study of this site.

A Mississippi quick-service study has to test the site against the franchisor's own model: traffic counts, visibility and access, drive-through capacity, and competing units in Harrison, Madison or the site's county. Cost covers land or lease, building, equipment and franchise obligations. Coverage should be shown at the sales a new unit reaches in its first year, set against the franchisor's averages. The appraisal for an owned pad should report its value apart from the franchise. Each lender above is the holder of record today, which is how SBA lists Mississippi loans.