How to Finance a Silver Bear Swim School Franchise: Lease or Own
By Anthony Cornella
A Silver Bear Swim School franchise loan usually funds one of the more capital-heavy projects in children’s education: a dedicated indoor swim facility with a warm-water pool, locker and viewing areas, and a staff of trained instructors. Silver Bear also gives owners a choice that shapes the whole financing plan, because its franchise materials show separate startup ranges for a leased facility and an owned facility.
Below we cover the brand’s published startup ranges, how the lease-or-own decision changes a Silver Bear Swim School franchise loan, where SBA and conventional loans fit, and what the brand’s SBA Franchise Directory notes mean.
US Professional Funding is not affiliated with, sponsored by or endorsed by Silver Bear Swim School; 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 lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) with a qualified franchise attorney and accountant.
Silver Bear Swim School Franchise Loan at a Glance
- Estimated initial startup, leased facility: $722,000 to $2,060,000, according to Silver Bear’s franchise website.
- Estimated initial startup, owned facility: $1,207,000 to $4,550,000, according to the same materials.
- Franchise fee, royalty and marketing fees: not published on the franchisor’s pages we reviewed; see Items 5 and 6 of the current FDD.
- Net worth and liquidity requirements: not published; ask the franchisor and review the FDD.
- Brand history: first school opened in Reno, Nevada, in 2006; franchising opportunities became available in 2018.
- Ownership paths: owner-operator or semi-absentee, in a leased or owned facility.
- SBA Franchise Directory: listed as Silver Bear Swim School (code S3612), with notes on lease addendums and real estate purchase options.
What Is Silver Bear Swim School?
Silver Bear Swim School was founded by Tim and Katie Hall, who opened the first school in Reno, Nevada, in 2006. Katie is a former Division I competitive swimmer and leads the aquatics program, and Tim has handled operations and finance. A Sparks, Nevada, school followed in 2012.
The company says franchise opportunities became available in 2018, its first franchisee signed in 2021 and the first franchised school opened in Lehi, Utah, in 2022. Its website lists schools in South Reno, Northwest Reno, Sparks and Lehi.
The concept. Silver Bear teaches children from 6 months to 15 years old, with programs that include Baby Swim, Learn to Swim, Swim Team, Special Abilities lessons and family swim sessions. Its franchise materials describe year-round class enrollment with membership or tuition auto-billing, plus add-on revenue from special programs and clinics, birthday events, parent-child workshops, water-confidence programs and retail.
Why lenders view it the way they do. Recurring tuition billed automatically gives predictable monthly revenue, which lenders like. But a swim school is a purpose-built facility with a long build, so lenders scrutinize construction costs, occupancy terms and the enrollment ramp. Because Silver Bear is a small system with a short franchise history, the owner’s own strength carries extra weight.
Silver Bear Swim School Franchise Costs
Total startup range. Silver Bear’s franchise website shows two estimated initial startup ranges: $722,000 to $2,060,000 for a leased facility and $1,207,000 to $4,550,000 for an owned facility. The wide spread reflects market differences in construction, the condition of the building, and whether the owner is buying land and a building or improving leased space.
Initial franchise fee. The franchisor’s pages we reviewed do not state the initial franchise fee. Item 5 of the current FDD discloses it, along with any multi-unit or development fees and whether any part is refundable.
Real estate and build-out. Usually the largest cost. A leased project funds leasehold improvements such as the pool shell, deck, plumbing, changing rooms and a parent viewing area; an owned project adds land or building acquisition and often ground-up construction. Silver Bear says it provides facility design and construction guidance.
Equipment and furnishings. Pool mechanical and water treatment systems, heating and dehumidification, safety equipment, lockers, furniture, signage and scheduling software.
Opening costs and working capital. Instructor hiring and training, the grand opening program, insurance, deposits and cash for payroll and occupancy while enrollment grows.
Silver Bear’s public pages do not break the totals into line items. Get the Item 7 table from the current FDD; lenders will want your budget to tie back to it.
Ongoing Fees and How They Affect Your Loan
Silver Bear’s franchise pages do not publish its royalty, marketing or technology fees. Item 6 of the FDD lists every recurring fee.
How lenders factor them in. Revenue-based fees come off the top before rent, payroll and debt service. A lender will build them into your projections, alongside occupancy costs and the expense of heating a pool, and test whether the school still covers its payments in a slower enrollment year.
Franchisor Requirements for New Owners
Silver Bear does not publish minimum net worth or liquid capital figures on the franchise pages we reviewed. Ask the franchisor directly and confirm in the FDD.
The brand does describe its support: a proprietary instructor training system covering biomechanics, child psychology and athletic development, hands-on training with the leadership team, operations playbooks, coaching, centralized marketing and a grand opening program.
Approval process. Expect discovery calls, FDD review, conversations with existing owners and a final approval. On the semi-absentee path, lenders will ask who manages the school day to day.
Ways to Own a Silver Bear Swim School
A new school in leased space. This is the lower-cost path on the franchisor’s figures. Financing covers leasehold improvements, equipment and working capital. Read more about education center start-up financing.
A new school in an owned building. The higher range reflects buying or building the real estate. Ownership can mean more collateral and long-term occupancy control, but a larger loan and a larger equity contribution.
Buying an existing school. Franchised schools may come up for sale, subject to transfer approval, and a resale lets a lender review real enrollment history. See our page on financing an education business acquisition.
Multiple schools. Discuss development rights with the franchisor and finance each school in stages.
Financing Options for a Silver Bear Swim School Franchise
SBA 7(a) loans. An SBA 7(a) loan can combine improvements, equipment, the franchise fee and working capital, and can also finance owner-occupied real estate.
SBA 504 loans. If you are buying or building the facility, an SBA 504 loan is designed for owner-occupied real estate and long-lived fixed assets, with a long fixed-rate component. It suits the owned-facility path.
Conventional term loans. Owners with strong liquidity and collateral may use conventional business loans, especially for a second school.
Equipment financing. Pool filtration, heaters, dehumidification units and front-desk technology can sometimes be financed separately. Learn about franchise equipment financing and leasing.
Working capital and lines of credit. Instructors are hired and trained before opening, and classes take time to fill, so a reserve or line of credit helps cover ramp-up. See our education business working capital options.
Seller financing on resales. A seller may carry part of the price; such notes are typically subordinate to the senior loan, and SBA rules may limit them.
SBA Loans for Silver Bear Swim School Franchisees
SBA-guaranteed loans are made by participating lenders. For a franchise, the SBA Franchise Directory simplifies the eligibility check on the brand’s agreements.
Directory listing. Silver Bear Swim School appears on the SBA Franchise Directory under code S3612. A listing means the brand’s documents have been reviewed for eligibility. It is not an endorsement of the brand or an approval of any borrower.
What the directory notes mean. The listing carries two notes, both about owned real estate:
- When the real estate where the school is located will secure the SBA-guaranteed loan, the brand’s lease addendum is not to be executed. In plain English, that addendum is meant for owners who lease; if you own the property and pledge it as collateral, it does not apply.
- The franchisor may not enforce a purchase option on real estate that is owned by the franchisee or an affiliate and taken as collateral for the SBA loan. This protects the lender’s collateral position on an owned facility.
These notes matter most on the owned-facility path; your attorney and lender should confirm which documents apply.
Program size and tips. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Prepare contractor bids, a realistic enrollment ramp and your personal financial documents. Our SBA loan calculator can help with early payment estimates, which are for planning only.
How Lenders Evaluate a Silver Bear Swim School Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. With startup ranges that run well into seven figures, lenders want to see a meaningful equity injection and reserves left after closing.
Industry and management experience. Lenders weigh management and hiring experience plus the franchisor’s training; swim experience helps but is not essential.
Business plan and projections. Model enrollment month by month, tuition, instructor staffing, pool utilities and the Item 6 fees. Lenders discount aggressive ramp assumptions.
The FDD and franchise agreement. Lenders review the term, renewal and transfer rules in Item 17, any financing the franchisor offers in Item 10, and the litigation and bankruptcy disclosures in Items 3 and 4. Our guide to how lenders read an FDD covers what to expect. Silver Bear’s franchise site refers prospects to the current FDD for financial performance information; review Item 19 to see what it includes.
Site, lease or real estate. Lenders want a lease long enough to cover the loan, or an appraisal and environmental review on an owned site.
Historical financials on a resale. For an existing school, lenders review several years of profit and loss statements, enrollment data and tax returns.
Pool, Facility and Construction Deep Dive
The facility is the heart of the loan: the pool, filtration and chemical treatment, water and air heating, dehumidification for an enclosed pool room, drainage and moisture-resistant finishes. Silver Bear describes its centers as designed for high efficiency and lower operating costs. Lenders usually fund construction in draws tied to inspections and expect a contingency, so get firm bids before setting the loan amount.
Lease versus own. Leasing lowers the upfront cost, but you invest heavily in a building you do not own, so the lease term must protect that investment. Owning costs more upfront but builds equity and opens the door to long-term real estate financing. Our page on education facility real estate financing explains those structures.
Multi-Unit Growth and Development Agreements
A second school is usually financed after the first is open and stable, using its results to support the new loan. If you sign for development rights, line up financing for each scheduled opening before you commit. Read more about financing an area development agreement.
Real-World Scenarios
A first-time owner leasing a building. A parent with management experience converts a freestanding building. An SBA 7(a) loan covers improvements, equipment, the franchise fee and working capital, and the lease runs at least as long as the loan.
An owner building on purchased land. An investor holds the real estate in a related entity. An SBA 504 loan funds the building, a separate loan covers equipment and opening costs, and the directory notes are addressed at closing.
Buying an established school. The lender underwrites on actual enrollment, and the seller carries a subordinated note.
Common Mistakes to Avoid
- Borrowing based on the low end of the startup range without contractor bids
- Underestimating the time it takes to fill classes after opening
- Leaving out the cost of heating, treating and dehumidifying an indoor pool
- Signing a lease shorter than the loan term
- Ignoring the SBA directory notes when the franchisee or an affiliate owns the real estate
- Choosing the semi-absentee path without a qualified manager in place
For more pitfalls, read the loan mistakes education business owners make most often.
Next Steps to Finance Your Silver Bear Swim School Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 2: Decide whether to lease or own. This choice drives the loan type, the equity needed and the SBA documents that apply.
Step 3: Vet a site and get bids. Confirm the site suits a pool and build a budget tied to the Item 7 table.
Step 4: Build projections. Model enrollment, staffing, utilities, fees and debt service month by month.
Step 5: Talk with a financing specialist. Compare SBA 7(a), SBA 504 and conventional structures.
Step 6: Close and plan the opening. Coordinate draws with the build schedule and keep a working capital reserve for ramp-up.
Silver Bear Swim School Franchise Loan FAQs
How much does a Silver Bear Swim School franchise cost?
Silver Bear’s franchise website estimates $722,000 to $2,060,000 for a leased facility and $1,207,000 to $4,550,000 for an owned facility.
What is the Silver Bear franchise fee?
The franchisor’s pages we reviewed do not state it. Item 5 of the current FDD lists the initial franchise fee.
What royalty does Silver Bear charge?
The royalty and marketing fees are not published on the franchise website. Item 6 of the FDD lists all ongoing fees.
How much liquid capital or net worth do I need?
Silver Bear does not publish them. Expect lenders to require an equity injection plus reserves.
Is Silver Bear Swim School eligible for SBA loans?
Yes, the brand is listed on the SBA Franchise Directory under code S3612. Each loan still depends on the borrower, the project and lender approval.
Can I buy an existing Silver Bear school?
Yes, if an owner sells and the franchisor approves the transfer.
Can a first-time business owner get a Silver Bear Swim School franchise loan?
Yes, if approved by the franchisor and the lender. Management experience, liquidity and a staffing plan help.
Can I own the school semi-absentee?
Silver Bear says it offers both owner-operator and semi-absentee pathways. A Silver Bear Swim School franchise loan for a semi-absentee owner will usually hinge on a qualified on-site manager.
Does Silver Bear offer financing?
Review Item 10 of the current FDD, which discloses any financing the franchisor offers. Most owners arrange their own loans.
How long is the franchise term?
See Item 17 of the FDD, and make sure your loan term fits within the franchise term and lease.
Final Thoughts
A Silver Bear Swim School franchise loan starts with one decision: lease or own. Get the FDD, price the build carefully, plan a realistic enrollment ramp and match the loan structure to the real estate.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment, real estate and working capital. Learn more about our franchise financing and educational services financing programs.
