Buying a Snap Fitness franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 14 7(a) loans to buy an existing Snap Fitness (classified mostly as Fitness and Recreational Sports Centers), totaling $2.9M. The median loan was $190,000, 71% lower than the $645,250 median for all SBA-financed acquisitions. 3 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 Snap Fitness resale loans landed between $129,050 and $237,250.
- Lender experience exists. Zions Bancorporation, National Association alone has financed 1 Snap Fitness 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 Snap Fitness resale
The median SBA 7(a) loan for a Snap Fitness resale was $190,000 across 14 loans (FY2018 to FY2026). Zions Bancorporation, National Association, BayFirst National Bank and Pathward National Association have financed the most Snap Fitness 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%.
Snap Fitness acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $76K | $75,600 | |
| FY2019 | 6 | $1.3M | $227,500 | |
| FY2020 | 1 | $148K | $147,900 | |
| FY2021 | 1 | $240K | $240,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $99K | $98,700 | |
| FY2024 | 1 | $180K | $180,000 | |
| FY2025 | 2 | $325K | $162,500 | |
| FY2026 | 1 | $494K | $493,500 |
How often do these acquisition loans fail?
Fewer than 20 Snap Fitness 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 Snap Fitness resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Zions Bancorporation, National Association | 1 | 7.1% | $494K | |
| 2 | BayFirst National Bank | 1 | 7.1% | $318K | |
| 3 | Pathward National Association | 1 | 7.1% | $300K | |
| 4 | Liberty Bank | 1 | 7.1% | $240K | |
| 5 | Beacon Bank and Trust | 1 | 7.1% | $229K | |
| 6 | Security Bank USA | 1 | 7.1% | $226K | |
| 7 | ConnectOne Bank | 1 | 7.1% | $200K | |
| 8 | BANKWEST | 1 | 7.1% | $180K | |
| 9 | Economic and Community Development Institute | 1 | 7.1% | $148K | |
| 10 | Stearns Bank National Association | 1 | 7.1% | $141K |
States where Snap Fitness units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Minnesota | 3 | 21.4% | $509K | |
| 2 | Idaho | 1 | 7.1% | $494K | |
| 3 | Florida | 1 | 7.1% | $318K | |
| 4 | Washington | 1 | 7.1% | $300K | |
| 5 | Connecticut | 1 | 7.1% | $240K | |
| 6 | Pennsylvania | 1 | 7.1% | $229K | |
| 7 | Georgia | 1 | 7.1% | $200K | |
| 8 | Ohio | 1 | 7.1% | $148K | |
| 9 | California | 1 | 7.1% | $141K | |
| 10 | Wisconsin | 1 | 7.1% | $125K |
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsFree consultation. All 50 states.
How lenders classify Snap Fitness
Lenders code each loan to a NAICS industry. For Snap Fitness the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Fitness and Recreational Sports Centers | 11 | 78.6% | $2.4M | |
| 2 | All Other Personal Services | 3 | 21.4% | $502K |
Questions buyers ask
How much do buyers borrow to buy a Snap Fitness franchise?
The median SBA 7(a) loan for a Snap Fitness resale was $190,000 across 14 loans (FY2018 to FY2026). The middle half of loans ran from $129,050 to $237,250. 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 Snap Fitness acquisitions?
Zions Bancorporation, National Association has made the most SBA acquisition loans for Snap Fitness (1, 7% of the total). BayFirst National Bank, Pathward National Association, Liberty Bank follow.
What interest rate and term do Snap Fitness acquisition loans carry?
The average initial rate at approval was 7.94% (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 Snap Fitness resale riskier than other SBA-financed acquisitions?
Too few Snap Fitness 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 Snap Fitness units being bought with SBA loans?
Minnesota (3), Idaho (1), Florida (1), Washington (1), Connecticut (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.
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Related
- All Fitness and Recreational Sports Centers acquisitions
- Minnesota acquisitions
- Idaho acquisitions
- Florida acquisitions
- Zions Bancorporation, National Association
- BayFirst National Bank
- Pathward National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Snap Fitness" (franchise code S1592). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.