Fitness Center and Gym Financing
By Trevor Damyan, Commercial Mortgage Broker at Commercial Lending Solutions
Fitness center, health club, and gym financing is one of the more active SBA-driven owner-user CRE niches in the country. The asset class spans large multi-purpose health clubs (Equinox, Lifetime, 24 Hour Fitness type properties), mid-size franchise gyms (Anytime Fitness, Planet Fitness, Snap Fitness), boutique fitness studios (yoga, pilates, barre, spin, CrossFit, Orangetheory, Pure Barre), and independent gym operators. The lender ecosystem is dominated by SBA 504 and 7(a), specialty health club banks, conventional bank balance sheet for established operators, and equipment financing for gym equipment.
Get a Fitness / Gym Quote →Fitness Center and Gym Financing Snapshot
Where Fitness Center and Gym Loans Come From
Fitness center financing operates primarily through SBA 504 and 7(a). Specialty fitness lenders (Live Oak Bank dominantly, plus several regional banks) offer SBA-wrapped and conventional execution. Equipment financing handles gym equipment, cardio machines, weights, and FF&E.
Pricing is indicative and reflects active CLS CRE quote pipeline as of May 2026. Actual pricing depends on property condition, sponsor profile, deal size, and market dynamics.
Typical Fitness Center and Gym Deal
Single-unit franchise gym acquisitions (Anytime Fitness, Planet Fitness, Snap Fitness) typically run $500K to $2M. Boutique studio acquisitions (yoga, CrossFit, spin) run $250K to $1.5M. Mid-size health club acquisitions run $1.5M to $5M. Large multi-purpose health clubs (Lifetime, Equinox, 24 Hour Fitness type) run $5M to $25M+. Multi-unit franchisee territories and brand consolidation run $5M to $50M+.
Sponsor profiles span first-time franchisee owner-operators (often executives transitioning to entrepreneurship), multi-unit franchisees with 5 to 50+ locations, and institutional consolidators of franchise gym networks. Industry experience matters but is less specialized than other operating businesses.
Operating revenue is dominated by membership fees with secondary income from personal training, retail (apparel, supplements), and ancillary services. Member retention and acquisition cost (CAC) are core metrics. Member churn typically runs 4 to 8 percent monthly across the industry.
Fitness Center and Gym Underwriting Considerations
Fitness center underwriting is operating-business intensive. Lenders evaluate the property, the operating business, brand strength (for franchises), and management capability.
- Membership: active member count, member retention, average revenue per member
- Member acquisition cost: CAC and the marketing budget required to grow membership
- Concept and brand: franchise brand strength versus independent concept risk
- Demographics: local population density and demographics for membership pool
- Personal training revenue: trainer count, hours, and revenue mix
- Equipment: cardio, strength, free weight, and specialty equipment age and condition
- Real estate: club square footage, parking, locker rooms, group fitness studios, and showers
- Sponsor experience: gym operating experience or relevant management background
Common Fitness Center and Gym Financing Pitfalls
Fitness center transactions have specific failure modes around membership churn, equipment costs, and concept obsolescence.
- High member churn: industry average churn of 4 to 8 percent monthly creates ongoing acquisition pressure
- Concept obsolescence: fitness concepts evolve rapidly (boutique studios, functional training, recovery, etc.)
- Equipment refresh: cardio and strength equipment requires replacement every 5 to 8 years
- Special-purpose SBA: gyms are special-purpose for SBA 504 (20 percent down)
- Insurance: liability exposure from member injuries drives insurance costs
- Lease versus own: many gyms lease space; SBA-financed owner-occupied real estate is a smaller subset
- Pandemic legacy: COVID-19 pandemic devastated the industry; durability of recovery is still being assessed
- Personal training quality: trainer turnover and quality affect member retention
A Real Fitness Center and Gym Deal
On a $1.2M acquisition of a Planet Fitness franchise in a suburban Midwest market, the buyer was a first-time franchisee with 12 years of corporate management experience and a strong personal balance sheet. The deal allocated $700K to real estate (an 8,500 square foot facility leased on a 15-year ground lease), $300K to equipment (cardio, strength, locker room build-out), $150K to franchise fees, and $50K to working capital. SBA 504 financed the leasehold build-out and equipment as the franchise was a leased model rather than owned real estate. SBA 7(a) financed equipment, franchise fees, and working capital at $500K. The deal closed in 75 days. Year-one membership reached 2,800 members at month 14, slightly above pro forma.
All deal references anonymize borrower and lender identities and use city-level geography only.
Fitness centers are one of the more active SBA niches but also one with higher operating volatility. The financing exists, the franchise programs streamline execution, and operators with management experience can succeed. The underlying business is durable but requires constant member acquisition.
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Fitness Center and Gym Financing FAQ
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