How to Finance a C2 Tactical Franchise: Range Build-Out Costs
By Chris Cornella
A C2 Tactical franchise loan finances one of the most construction-heavy concepts in franchising: an indoor shooting range with lanes, ventilation, sound control, a retail counter, classrooms and member areas. The building and its range systems drive the budget, so the way a buyer handles real estate shapes the whole financing plan.
This article covers the brand, what to look for in the Franchise Disclosure Document (FDD), how the brand’s SBA Franchise Directory listing and its lease note work, and the loan options that fit a new range or an existing one.
US Professional Funding is not affiliated with, sponsored by or endorsed by C2 Tactical; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice; review the current FDD and franchise agreement with a franchise attorney and an accountant before you sign.
C2 Tactical Franchise Loan at a Glance
- Concept: indoor shooting ranges that combine lane rental, memberships, firearm training, rentals, retail and gunsmithing.
- Background: the company says it opened its first indoor range in Tempe, Arizona, in 2013.
- Locations: the company’s website lists three Arizona ranges, in Tempe, Mesa and Phoenix/Scottsdale.
- Flagship scale: the company describes a three-story, 33,000-square-foot facility with 35 lanes, VIP areas, retail, gunsmithing, classrooms and long-range tunnels.
- Fees and investment range: not verified from a current FDD for this article; Items 5, 6 and 7 of the disclosure document set them out.
- SBA Franchise Directory: listed as “C2 Tactical” under code S8305, with a note about the collateral assignment of lease when real estate secures the loan.
What Is C2 Tactical?
C2 Tactical began with a single indoor range in Tempe in 2013 and has grown into a small group of Arizona ranges.
Range features. The company describes climate-controlled lanes, programmable target carriers, ventilation systems and quiet backstops that accept suppressed fire. Those features are expensive to install, and they are what lenders will see in the construction budget.
Several revenue streams. Revenue comes from lane time, memberships, firearm rentals, shooting packages, training courses, private lessons, retail sales, an online store and gunsmithing. The company also sells laser simulator packages, corporate group events, bachelor and bachelorette parties and even wedding packages, and it runs weekly competitive matches.
The membership model. According to the company, members can reserve lanes online without additional lane fees, while non-members pay per lane to reserve ahead or use walk-in lane time. Recurring membership dues give a range a base of predictable revenue, which lenders value.
Why lenders see it the way they do. Lenders reviewing a C2 Tactical franchise loan tend to view an indoor range as a specialty-use property with high build-out costs and multiple revenue streams. Collateral is strong if the owner holds the real estate but weaker when most of the money goes into leasehold improvements. Some lenders also have internal policies on firearms-related businesses, so finding the right lender matters. The brand is a young franchise system, which our article on financing an emerging franchise brand covers in more detail.
C2 Tactical Franchise Costs
A current FDD could not be reviewed for this article, so fees and the investment range are left to the disclosure document. These are the cost categories to read closely in Item 7.
Initial franchise fee. Item 5 lists the fee, when it is due and any refund conditions or multi-unit pricing.
Real estate and build-out. This is the largest piece. A range needs a large, clear-span building with heavy structural work, baffles, bullet traps, sound attenuation, lead-safe ventilation and filtration, and fire protection. Whether you buy, build or lease the building changes the loan structure.
Range systems and equipment. Target carriers, lane dividers, backstops, control systems, simulators, rental firearms, cleaning equipment, security systems and point-of-sale software.
Retail inventory. Firearms, ammunition, accessories and apparel need an opening inventory, which ties up cash before the first lane is rented.
Opening costs and working capital. Licensing and permits, insurance, staffing and training, pre-opening marketing and membership pre-sales, and reserves for the first months of operation.
When you receive the FDD, use these questions to test the Item 7 table:
- What building size and lane count does the estimate assume?
- Does it include land or building purchase, or only leasehold improvements?
- How much is assigned to ventilation and range systems?
- How large is the opening retail inventory?
- How many months of operating expenses does the additional funds line cover?
Our article on how lenders read a Franchise Disclosure Document shows which items get the most attention.
Ongoing Fees and How They Affect Your Loan
Royalty and brand fund. Check Item 6 for the royalty, any brand or advertising fund, technology fees and how they are calculated. Fees based on gross sales may also apply to retail sales, which carry thinner margins than lane fees, so read the definition closely.
Maintenance and compliance. Ventilation filters, bullet trap maintenance, lead management and air quality testing are recurring costs that lenders expect to see in projections.
How lenders factor these in. Lenders subtract royalties, marketing, payroll, occupancy and range maintenance from projected revenue, then compare what is left with total debt service. Because the build-out is large, the loan payment is often the biggest fixed cost, so the ramp-up period matters.
Franchisor Requirements for New Owners
The company’s public pages reviewed for this article do not list a minimum net worth or liquid capital. Given the cost of a range, expect the franchisor and lenders to look for significant net worth, liquidity, business management experience and the ability to obtain the required firearms licensing for retail sales.
The approval process. Expect an inquiry, an FDD review, discovery meetings, site evaluation and franchisor approval of both you and the location before financing closes.
Ways to Own a C2 Tactical
A new range. Most buyers in a young system will build a new location. Lenders underwrite these deals on projections, the borrower’s experience and collateral. See our entertainment business start-up financing options.
Buying an existing range. If a franchised range comes up for sale, the buyer gets an operating history and a membership base, and the franchisor must approve the transfer. Our entertainment business acquisition financing page covers how we approach these purchases.
Financing Options for a C2 Tactical Franchise
SBA 7(a) loans. Because C2 Tactical is on the SBA Franchise Directory, an SBA 7(a) loan can combine build-out, equipment, inventory, franchise fees and working capital, and can include real estate, subject to lender approval.
SBA 504 loans. If you buy or build the range building, an SBA 504 loan can finance the real estate and long-lived fixed assets with long terms. The 504 structure fits well when the owner will occupy the building.
Conventional term loans. Owners with strong financials can use a conventional business loan, particularly for a resale or for an owner with other businesses.
Equipment financing. Target carriers, simulators, ventilation components, security systems and rental firearms can sometimes be financed separately. Learn about entertainment equipment financing and leasing.
Working capital and lines of credit. Ammunition and firearm inventory, payroll during ramp-up and the timing of membership sales all call for working capital. Demand for firearms and ammunition can swing, so a line of credit helps. See our entertainment working capital and lines of credit.
Seller financing on resales. A seller may carry part of the price on a resale. A seller note is typically subordinate to the senior loan, and SBA programs may limit how it is structured.
SBA Loans for C2 Tactical Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed for SBA eligibility. Lenders check it before making an SBA-guaranteed loan to a franchisee.
The listing and its note. C2 Tactical appears under code S8305. The directory note says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Collateral Assignment of Lease and Addendum to Lease may not be executed. In plain English, the franchise documents include a lease assignment and lease addendum that give the franchisor rights in the location’s lease. If you own the building and pledge it as collateral for the SBA loan, those lease documents should not be signed, so they do not conflict with the lender’s lien on the property. If you lease the building, the documents apply as written.
Loan size. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Larger range projects may combine a 504 loan for real estate with a 7(a) loan for equipment and working capital.
Application tips. Get a construction budget from a contractor who knows range ventilation, show local demand, model a membership ramp-up and have your licensing plan and insurance quotes ready.
Our SBA loan calculator can help with rough payment estimates for planning; it is not an offer or approval.
How Lenders Evaluate a C2 Tactical Deal
Personal credit and financial history. Expect a review of personal credit, tax returns, a personal financial statement and a personal guarantee.
Net worth and liquidity. A range is a large project, so lenders look closely at the equity injection and reserves after closing.
Industry and management experience. Experience running a range, a retail store, a training business or a hospitality venue helps. Firearms instruction experience is a plus.
Business plan and projections. Build around lane utilization, membership counts, training class volume, retail margins, events and seasonality, with conservative ramp-up assumptions.
The FDD and franchise agreement. Lenders review the term, renewal, transfer rules and territory protection.
Site and real estate. Zoning approval, building suitability, lease length and the cost to remove lead or restore the space at lease end all matter. For leased sites, lenders want a lease that runs at least as long as the loan.
Historical financials for resales. Expect to provide the seller’s tax returns, profit and loss statements, membership data and sales reports.
The Building: Why Real Estate Drives the Deal
An indoor range is a specialty building. The company’s flagship has 35 lanes over three stories, with long-range tunnels and classrooms, which shows how much space and construction a full-size range can involve.
Owning the building can make the most sense because so much money goes into improvements that are hard to move. Our article on franchise real estate financing explains how buying versus leasing changes a franchise loan.
Multi-Unit Growth and Development
Most owners prove one range before adding another. When you add a second range, lenders look at the first range’s results and the combined debt. Each new location needs franchisor approval and its own construction budget.
Real-World Scenarios
An owner-occupied new range. A buyer purchases a building and builds out a range. An SBA 504 loan covers the real estate, and an SBA 7(a) loan covers equipment, inventory and working capital. Because the building secures the loan, the lease assignment documents are not signed.
A leased range. A buyer leases a large building with a long lease and finances the build-out with an SBA 7(a) loan. The lease assignment and addendum apply.
A resale purchase. A buyer acquires an existing range with an established membership base. The lender reviews actual results and the franchisor approves the transfer.
Common Mistakes to Avoid
- Underestimating ventilation, ballistic and acoustic construction costs
- Signing a lease that is shorter than the loan term
- Starting the project before zoning and licensing are confirmed
- Assuming full memberships from the first month
- Leaving too little cash for retail inventory and ramp-up
- Overlooking the SBA directory note on lease documents when buying the building
For more pitfalls, read the entertainment center loan mistakes that cost owners the most.
Next Steps to Finance Your C2 Tactical Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 10, 12, 17 and 19 with a franchise attorney.
Step 2: Decide on real estate. Decide whether you will buy, build or lease, since this determines the loan structure.
Step 3: Get a construction budget. Price the building, range systems, ventilation and fit-out.
Step 4: Build projections. Model lanes, memberships, training, retail and events with a realistic ramp-up.
Step 5: Choose the loan structure. Decide how a C2 Tactical franchise loan will combine SBA 7(a), SBA 504, conventional or equipment financing.
Step 6: Apply and coordinate approvals. Keep financing in step with zoning, licensing and franchisor approval.
Step 7: Close and open. Fund reserves, stock inventory and start pre-selling memberships.
C2 Tactical Franchise Loan FAQs
How much does a C2 Tactical franchise cost?
Item 7 of the current FDD gives the estimated initial investment. The real estate plan, building size and lane count drive most of the cost.
Is C2 Tactical on the SBA Franchise Directory?
Yes. It is listed under code S8305 with a note about lease documents when real estate secures the loan.
What does the SBA directory note mean?
If the real estate where the range operates secures the SBA loan, the Collateral Assignment of Lease and Addendum to Lease should not be signed. If you lease, they apply normally.
Can I use an SBA 504 loan for a C2 Tactical range?
Yes, if you buy or build the building and occupy it. The 504 loan finances the real estate and long-lived fixed assets.
Can I finance range equipment separately?
Often yes. Target systems, simulators and some range components can be financed with equipment loans or leases.
What are the royalty and other fees?
Item 6 of the current FDD lists the royalty, any brand fund and other fees.
How much liquid capital do I need?
The company’s public pages reviewed for this article do not publish a minimum. Expect strong liquidity requirements given the size of a range project.
Can a first-time owner get a C2 Tactical franchise loan?
Possibly, if the franchisor approves you and you show strong finances and management experience. Range or retail experience helps.
Does C2 Tactical offer financing?
Check Item 10 of the current FDD for any franchisor financing. Most buyers arrange their own loans.
Can I buy an existing range?
If a franchised range is for sale, the franchisor must approve the transfer, and lenders can underwrite actual results.
Does the FDD include financial performance information?
Review Item 19 of the current FDD to see whether it includes financial performance representations.
Final Thoughts
A C2 Tactical franchise loan is really a real estate and construction project with a multi-revenue business on top. Decide on real estate early, budget carefully for range systems and follow the SBA note if you buy the building.
US Professional Funding helps franchise owners and buyers finance start-ups, real estate, equipment and working capital. Learn more about our franchise financing and family entertainment financing solutions.
