Buying a barre3 franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 7 7(a) loans to buy an existing barre3 (classified mostly as Fitness and Recreational Sports Centers), totaling $1.9M. The median loan was $266,000, 59% lower than the $645,250 median for all SBA-financed acquisitions. 1 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 barre3 resale loans landed between $184,000 and $290,000.
- Lender experience exists. KeyBank National Association alone has financed 1 barre3 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 barre3 resale
The median SBA 7(a) loan for a barre3 resale was $266,000 across 7 loans (FY2018 to FY2026). KeyBank National Association, First Commonwealth Bank and Wells Fargo Bank National Association have financed the most barre3 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%.
barre3 acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $505K | $252,500 | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 1 | $60K | $59,900 | |
| FY2021 | 2 | $868K | $434,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 1 | $150K | $150,000 | |
| FY2025 | 1 | $293K | $293,000 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 barre3 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.
The purchase agreement decides what you bought, not the loan approval.
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Lenders financing barre3 resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | KeyBank National Association | 1 | 14.3% | $602K | |
| 2 | First Commonwealth Bank | 1 | 14.3% | $293K | |
| 3 | Wells Fargo Bank National Association | 1 | 14.3% | $287K | |
| 4 | Columbia Bank | 1 | 14.3% | $266K | |
| 5 | Renasant Bank | 1 | 14.3% | $218K | |
| 6 | NBKC Bank | 1 | 14.3% | $150K | |
| 7 | Capitol Federal Savings Bank | 1 | 14.3% | $60K |
States where barre3 units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Washington | 3 | 42.9% | $1.2M | |
| 2 | Pennsylvania | 1 | 14.3% | $293K | |
| 3 | Georgia | 1 | 14.3% | $218K | |
| 4 | Missouri | 1 | 14.3% | $150K | |
| 5 | Kansas | 1 | 14.3% | $60K |
Terms signed in the LOI shape the purchase agreement that follows.
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How lenders classify barre3
Lenders code each loan to a NAICS industry. For barre3 the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Fitness and Recreational Sports Centers | 5 | 71.4% | $1.5M | |
| 2 | All Other Personal Services | 2 | 28.6% | $416K |
Questions buyers ask
How much do buyers borrow to buy a barre3 franchise?
The median SBA 7(a) loan for a barre3 resale was $266,000 across 7 loans (FY2018 to FY2026). The middle half of loans ran from $184,000 to $290,000. 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 barre3 acquisitions?
KeyBank National Association has made the most SBA acquisition loans for barre3 (1, 14% of the total). First Commonwealth Bank, Wells Fargo Bank National Association, Columbia Bank follow.
What interest rate and term do barre3 acquisition loans carry?
The average initial rate at approval was 7.32% (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 barre3 resale riskier than other SBA-financed acquisitions?
Too few barre3 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 barre3 units being bought with SBA loans?
Washington (3), Pennsylvania (1), Georgia (1), Missouri (1), Kansas (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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
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Related
- All Fitness and Recreational Sports Centers acquisitions
- Washington acquisitions
- Pennsylvania acquisitions
- Georgia acquisitions
- KeyBank National Association
- First Commonwealth Bank
- Wells Fargo Bank National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "barre3" (franchise code S2428). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.