How to Finance a Skiptown Franchise: Dog Social Club Costs
By Anthony Cornella
A Skiptown franchise loan funds a large-format dog care facility built around daycare, overnight boarding, full-service grooming and in-home services such as dog walking. Because the brand is new to franchising and its full cost structure lives in the Franchise Disclosure Document (FDD), buyers need to build their financing plan from that document, a signed lease and a realistic ramp-up budget.
Below we cover the Skiptown model, its SBA Franchise Directory listing, the loan programs that fit a dog care build-out and how lenders evaluate a new owner.
US Professional Funding is not affiliated with, sponsored by or endorsed by Skiptown; the name is used only to describe the business. Figures from the franchisor’s disclosure document 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, and buyers should review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Skiptown Franchise Loan at a Glance
- Concept: a tech-enabled dog care brand offering daycare, overnight boarding, full-service grooming and dog walking.
- Franchise model: the company says its franchise units follow a pet care only model focused on daycare, overnight boarding, full-service grooming and in-home services.
- Corporate locations: Charlotte, North Carolina; Denver, Colorado; and Atlanta, Georgia.
- Membership model: recurring plans sold through the Skiptown Club, supported by the company’s own booking app.
- Franchise fee, royalty and brand fund: not published on pages we could verify; see Items 5 and 6 of the current FDD.
- Estimated initial investment: see the Item 7 table in the current FDD.
- SBA Franchise Directory: listed under code S8657, with a note about the Agreement with Landlord.
What Is Skiptown?
Skiptown is a dog care company with corporate locations in Charlotte, Denver and Atlanta. Its company-operated sites pair indoor and outdoor turfed off-leash play areas with daycare, overnight boarding, bathing, grooming and walking. The company built its own technology for booking, plan management and customer communication rather than relying on outside software.
The brand sells memberships through the Skiptown Club, which bundles grooming, play access and daycare perks into monthly or annual plans. Lenders value recurring membership revenue because it can make cash flow more predictable than one-off visits.
The franchise model. Skiptown has said that franchise units will follow a pet care only format focused on daycare, overnight boarding, full-service grooming and in-home services. Confirm which services and features the franchise agreement permits, because that scope drives the build-out budget.
Growth so far. The company has announced multi-unit franchise agreements in several states, and its first franchisee group has signed a lease in the Charlotte area. Most franchise units are still in development, so lenders will lean on projections, the owner’s experience and the FDD.
How lenders view the concept. Lenders like recurring demand and membership revenue, but they will scrutinize the lease, the ramp-up period and the owner’s ability to staff a seven-day operation.
Skiptown Franchise Costs
We could not verify Skiptown’s initial franchise fee or Item 7 investment range from the franchisor’s own published materials, so this section outlines the cost categories to confirm in the current FDD rather than quoting figures.
Initial franchise fee. Item 5 of the FDD lists the initial franchise fee and any development fee for multi-unit agreements. Ask when development fees are due and whether they are credited toward later units.
Real estate and build-out. Facilities usually need a large freestanding or industrial-flex building with room for indoor play, kennel suites, grooming and, where allowed, outdoor turf yards. Landlord improvement allowances can reduce the borrowed amount, so negotiate them before finalizing your loan request.
Equipment and fixtures. Expect kennels or suites, play structures, grooming tables and tubs, dryers, washers and dryers for bedding, cameras, access control and front-desk technology.
Opening costs and working capital. Pre-opening payroll, training, grand opening marketing, insurance, licenses and permits, and opening supplies all come before revenue. Item 7 typically includes an additional funds line for the first months of operation.
Total investment. When you review Item 7, map each line to a funding source. Typical line items to confirm:
- Initial franchise fee and any development fee
- Lease deposits and pre-opening rent
- Leasehold improvements and construction
- Kennels, play equipment and grooming equipment
- Technology, cameras and point-of-sale systems
- Signage and decor
- Opening supplies and inventory
- Training, insurance, licenses and professional fees
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists ongoing fees such as royalties, brand or marketing fund contributions, technology or app fees, renewal and transfer fees. Membership-based brands sometimes charge technology fees tied to the booking platform, so read that section closely.
How lenders use these fees. Lenders deduct royalties, marketing contributions and technology fees from projected revenue before calculating debt service coverage, so show every Item 6 fee as a separate line.
Refresh obligations. Ask whether the franchise agreement requires periodic refreshes of play areas, turf or technology. Turf and flooring in a dog facility wear quickly, so replacement cycles belong in any Skiptown franchise loan budget.
Franchisor Requirements for New Owners
We could not verify Skiptown’s minimum net worth or liquid capital requirements from its own published materials. The franchisor will share them during the discovery process, and they should match what lenders see on your personal financial statement.
Because Skiptown has signed multi-unit agreements, ask whether single-unit deals are available or a development commitment is expected; lenders will want to see how you will fund each unit.
The approval process. Expect an inquiry, introductory calls, FDD review, meetings with leadership and final approval, followed by site approval and lease negotiation. Line up financing before committing to construction.
Ways to Own a Skiptown
A new franchise unit. Most Skiptown opportunities are new builds. Financing covers the franchise fee, build-out, equipment and working capital, and lenders underwrite projections because there is no history yet. See our pet care facility start-up financing for how we approach these requests.
Buying an existing location. Because the franchise system is young, resales may be limited. If one becomes available, a transfer under Item 17 of the FDD requires franchisor approval, and the buyer’s lender will underwrite the unit’s actual results. Our page on pet care facility acquisition loans explains that process.
Financing Options for a Skiptown Franchise
SBA 7(a) loans. Because Skiptown appears on the SBA Franchise Directory, SBA 7(a) loans are a natural fit for a new unit. A single 7(a) loan can cover the franchise fee, leasehold improvements, equipment and working capital.
SBA 504 loans. If you buy or build the facility instead of leasing, an SBA 504 loan can finance the land, building and long-lived fixed assets.
Conventional term loans. Borrowers with strong liquidity and experience may prefer conventional business loans, which can offer more flexible structures for multi-unit groups.
Equipment financing. Kennel suites, grooming tables and tubs, high-velocity dryers, commercial laundry machines, camera systems and play equipment can be financed separately. Learn more about pet care equipment financing.
Working capital and lines of credit. Boarding demand rises around holidays and summer travel, while daycare follows the workweek. A line of credit helps cover payroll during the ramp-up and seasonal staffing peaks. See our pet care working capital and lines of credit.
Seller financing on resales. On a resale, a seller may agree to carry part of the price. Any seller note is typically subordinate to the senior loan, and SBA programs may limit how it is structured.
SBA Loans and the Skiptown Franchise Loan Process
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to one of its franchisees. A listing confirms that the franchise documents have been reviewed for SBA eligibility; it does not approve any individual borrower.
Skiptown’s listing. Skiptown is listed under code S8657. The directory note says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Agreement with Landlord may not be executed.
What the note means in plain English. The Agreement with Landlord typically gives the franchisor rights with the property owner, such as stepping into the lease. That works when you lease. If you or an affiliate own the building and pledge it as SBA collateral, the agreement may not be signed, so the franchisor’s rights do not compete with the lender’s lien. Raise this early if you plan to buy.
Loan size. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
Application tips. Bring the FDD, the signed or draft franchise agreement, your lease or letter of intent, contractor bids, an equipment list and month-by-month projections. Our SBA loan calculator can help you estimate payments for planning only; results are not an offer.
How Lenders Evaluate a Skiptown Deal
Net worth and liquidity. Lenders want to see your equity injection plus reserves left over after closing. A facility that needs months to build membership benefits from extra cash on hand.
Industry and management experience. Experience in pet care, hospitality, fitness or multi-unit retail helps; without it, a strong general manager matters more.
Business plan and projections. Projections should show daycare attendance building over time, boarding demand rising around holidays, grooming capacity limited by groomer staffing and membership plans adding recurring revenue. Staffing ratios for supervising dogs drive labor costs, so show them clearly.
The FDD and franchise agreement. Lenders read Items 5, 6, 7 and 17 closely, and you should review Items 3 and 4 and check whether Item 19 includes financial performance representations. See how lenders read an FDD.
Site and lease. Zoning for dog care, noise and odor rules, outdoor play permissions and lease length all affect approval. Lenders typically want a lease term that covers the loan term plus renewal options.
Credit and resale history. Expect a review of credit, tax returns and a personal financial statement, plus a personal guarantee. On a resale, lenders also review the unit’s profit and loss statements and membership reports.
Facility Build-Out and Equipment
Floor drains and sealed surfaces make daily cleaning possible, strong air exchange controls odor, and sound control protects neighbors. Turf yards need drainage and periodic replacement. Kennel suites, grooming tubs, dryers and laundry machines are working assets that wear out, so lenders prefer them itemized in vendor quotes to clarify collateral.
Multi-Unit Growth and Development Agreements
Skiptown’s announced deals include multi-unit agreements in Colorado and Texas. A development agreement sets dates by which each unit must open, and missing them can affect territory rights. Financing usually comes as a series of loans: the first unit is underwritten on projections and your personal strength, and later units can lean on its results. Read our article on multi-unit franchise financing to plan the sequence.
Real-World Scenarios
A first-time owner with a hospitality background. A former hotel manager signs for a single unit, leases an industrial-flex building and finances the build-out, equipment and working capital with an SBA 7(a) loan, keeping reserves for the membership ramp-up.
A multi-unit group buying its first building. A group signs a development agreement and decides to own its first facility. It uses an SBA 504 loan for the real estate and a separate loan for equipment and opening costs, and coordinates the Agreement with Landlord issue with its attorney.
An owner adding grooming capacity. After the first year, an owner uses equipment financing for additional grooming stations and dryers to meet member demand.
Common Mistakes to Avoid
- Signing a lease before confirming zoning for dog daycare and boarding
- Underestimating drainage, ventilation and sound control costs in the build-out
- Projecting full membership in the first months instead of a gradual ramp
- Ignoring the Agreement with Landlord note when buying the building
- Leaving out technology or app fees from Item 6 in cash flow projections
For more pitfalls specific to this industry, read the pet care business loan mistakes to avoid.
Next Steps to Finance Your Skiptown Franchise
Step 1: Request and study the FDD. Focus on Items 5, 6, 7, 10, 17 and 19, and review Items 3 and 4.
Step 2: Clarify the unit commitment. Confirm whether you are signing for one unit or a development schedule, and what the franchisor requires in net worth and liquidity.
Step 3: Do your due diligence. Speak with current franchisees and company staff, and work through a franchise due diligence checklist.
Step 4: Talk to a financing specialist. Learn how large a Skiptown franchise loan you can support and what equity injection lenders will expect.
Step 5: Secure a site. Confirm zoning, negotiate improvement allowances and decide whether to lease or buy.
Step 6: Submit your loan package and close. Include projections, contractor bids, equipment quotes, the lease or purchase contract and franchise documents, then coordinate construction draws and hiring with your opening date.
Skiptown Franchise Loan FAQs
How much does it cost to open a Skiptown franchise?
See Item 7 of the current FDD. Costs depend on building size, outdoor space, construction prices and whether you lease or buy.
What is the Skiptown franchise fee?
The initial franchise fee and any development fee are disclosed in Item 5 of the FDD. We could not verify them from the franchisor’s published materials.
What royalty does Skiptown charge?
Royalty, marketing fund and technology fees are disclosed in Item 6.
How much liquid capital or net worth do I need?
The franchisor shares its minimums during discovery, and lenders also expect an equity injection and reserves.
Can I get an SBA loan for a Skiptown franchise?
Skiptown is listed on the SBA Franchise Directory under code S8657, so eligible borrowers can apply for SBA 7(a) or 504 financing, subject to lender approval.
Does Skiptown offer financing?
Check Item 10 of the FDD, which discloses any financing the franchisor or its affiliates offer.
Can a first-time owner get a Skiptown franchise loan?
Yes, if the franchisor approves you and you meet lender requirements; management experience and reserves help.
Can I buy an existing Skiptown location?
Resales may be limited in a young system, and any transfer needs franchisor approval.
Can I open more than one location?
Yes, Skiptown signs multi-unit agreements; financing is usually arranged unit by unit.
How long is the Skiptown franchise term?
The initial term and renewal conditions are listed in Item 17 of the FDD. Lenders generally want the remaining franchise term and lease term to cover the loan.
Final Thoughts
A Skiptown franchise combines recurring membership revenue with a facility that is expensive and specialized to build. Buyers who start from the FDD, secure an appropriate site, plan for a measured ramp-up and line up the right SBA or conventional financing put themselves in a stronger position from day one.
US Professional Funding helps franchise buyers and owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and pet care facility financing solutions.
