Buying a Sky Zone franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 10 7(a) loans to buy an existing Sky Zone (classified mostly as All Other Amusement and Recreation Industries), totaling $21.8M. The median loan was $1,901,250, 195% higher than the $645,250 median for all SBA-financed acquisitions. 2 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 Sky Zone resale loans landed between $1,725,000 and $2,640,075.
- Lender experience exists. Beacon Bank and Trust alone has financed 1 Sky Zone resales.
- Guaranty. The SBA guaranteed 76% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Sky Zone resale
The median SBA 7(a) loan for a Sky Zone resale was $1,901,250 across 10 loans (FY2018 to FY2026). Beacon Bank and Trust, Valley National Bank and Stock Yards Bank & Trust Company have financed the most Sky Zone 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%.
Sky Zone acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 4 | $9.1M | $2,237,550 | |
| FY2020 | 1 | $1.7M | $1,696,000 | |
| FY2021 | 1 | $1.9M | $1,948,500 | |
| FY2022 | 2 | $5M | $2,478,500 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $1.8M | $1,800,000 | |
| FY2026 | 1 | $2.2M | $2,235,000 |
How often do these acquisition loans fail?
Fewer than 20 Sky Zone 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.
Terms signed in the LOI shape the purchase agreement that follows.
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Lenders financing Sky Zone resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Beacon Bank and Trust | 1 | 10.0% | $3.4M | |
| 2 | Valley National Bank | 1 | 10.0% | $3.1M | |
| 3 | Stock Yards Bank & Trust Company | 1 | 10.0% | $2.8M | |
| 4 | Hometown Bank | 1 | 10.0% | $2.2M | |
| 5 | Pacific National Bank | 1 | 10.0% | $1.9M | |
| 6 | The Freedom Bank of Virginia | 1 | 10.0% | $1.9M | |
| 7 | Wilmington Savings Fund Society FSB | 1 | 10.0% | $1.8M | |
| 8 | Cross River Bank | 1 | 10.0% | $1.7M | |
| 9 | First Internet Bank of Indiana | 1 | 10.0% | $1.7M | |
| 10 | First Business Bank | 1 | 10.0% | $1.3M |
States where Sky Zone units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Indiana | 2 | 20.0% | $4.5M | |
| 2 | Illinois | 1 | 10.0% | $3.4M | |
| 3 | Louisiana | 1 | 10.0% | $3.1M | |
| 4 | Kentucky | 1 | 10.0% | $2.2M | |
| 5 | Ohio | 1 | 10.0% | $1.9M | |
| 6 | Maryland | 1 | 10.0% | $1.9M | |
| 7 | Delaware | 1 | 10.0% | $1.8M | |
| 8 | New Jersey | 1 | 10.0% | $1.7M | |
| 9 | Pennsylvania | 1 | 10.0% | $1.3M |
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
Questions buyers ask
How much do buyers borrow to buy a Sky Zone franchise?
The median SBA 7(a) loan for a Sky Zone resale was $1,901,250 across 10 loans (FY2018 to FY2026). The middle half of loans ran from $1,725,000 to $2,640,075. 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 Sky Zone acquisitions?
Beacon Bank and Trust has made the most SBA acquisition loans for Sky Zone (1, 10% of the total). Valley National Bank, Stock Yards Bank & Trust Company, Hometown Bank follow.
What interest rate and term do Sky Zone acquisition loans carry?
The average initial rate at approval was 7.22% (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 Sky Zone resale riskier than other SBA-financed acquisitions?
Too few Sky Zone 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 Sky Zone units being bought with SBA loans?
Indiana (2), Illinois (1), Louisiana (1), Kentucky (1), Ohio (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.
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Related
- All All Other Amusement and Recreation Industries acquisitions
- Indiana acquisitions
- Illinois acquisitions
- Louisiana acquisitions
- Beacon Bank and Trust
- Valley National Bank
- Stock Yards Bank & Trust Company
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Sky Zone" (franchise code S1580). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.