SharpShooter Funding Business Loan
Borrow up to $300,000
- Borrow from $1,000
- Free online loan quote
- Quick application process
Gyms have seen a steady increase in membership in the last few years. Canadians interest in a healthy lifestyle has only continued to grow, resulting in a search for the place to work out. If you’re interested in starting your own business but aren’t sure how to find financing or you’d like some support in running your first gym, a franchise can be a great place to start. We’ll introduce you to the costs of buying into a franchise and how you can finance your next big business venture.
The total cost of a gym franchise varies by brand, but you should expect to pay anywhere from $45,000 to $400,000 to get started. Common starting costs include:
You’ll also need to factor in the price of maintaining your gym. When developing your business plan, consider how you’ll tackle your:
Compare the franchise fees of five popular gym franchises below. Keep in mind the franchise fee is a one-time charge paid to join the company’s organization. It’s only a portion of the initial costs when opening a franchise.
|Orangetheory Fitness||Approx. $55,000|
|LA Fitness||$15,000 – $30,000|
These details are accurate as of September 2019.
Before you invest in a franchise, do some research on the company. What are the opinions of people in online forums? There’s no point buying into a franchise that has a terrible reputation among customers and former employees.
Once you’ve settled on a franchise and are ready to take the first step, consider the location, competition and convenience for customers. Like any business, your plan should take into account the demographics of the area and what people expect from a gym, whether that’s a fully-equipped health centre or a minimalist space to get into shape. Think about how you’ll differentiate your gym from others in the area. Are you offering any bonuses like a low monthly fee or a small spa? Are you in a location that receives a lot of foot traffic? All of these factors will play into the profitability of your fitness franchise and could influence the success of your business.
Mitzi, a personal trainer and fitness enthusiast, wants to open a women’s gym franchise in the downtown core of her city. Franchise fees alone will cost around $40,000.00, while a commercial business lease in the area she’s looking at will cost around $2,300.00/month. Along with all the other expenses of opening a gym – including equipment, staffing, insurance and administrative costs – Mitzi figures she’ll need about $200,000.00 to support her business for the first year while it grows.
She applies for a business loan from a local bank and is approved, thanks to her solid credit score and compelling business plan. Mitzi signs the loan documents, and the funds are deposited into her account within a couple of business days.
|Cost of purchasing a pharmacy||$200,000.00|
|Loan type||Business loan (term loan)|
|Interest rate (APR)||8.40%|
|Loan term||8 years|
|Additional fees||Origination fee of 3.00% ($6,000.00)|
|Total loan cost||$275,344.32|
*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.
Not everyone has hundreds of thousands of dollars in liquid assets to sink into a gym franchise. When you’re ready to submit a loan application, consider these important questions:
A lender wants to know that you’re capable of running a a gym before extending you a loan. You’ll have to meet a few basic criteria in order to apply.
As a gym owner, you’ll no doubt be well aware of the equipment needs of your business. The good news is that there are financing options available to help you purchase all the essential items that any successful gym needs, including:
When you get equipment financing, some lenders will require you to provide a small down payment of 10% to 20% of the total cost. Your equipment acts as security for your loan, giving you access to lower rates than an unsecured loan. This means you can buy your ellipticals, weight machines and treadmills all at once and pay them off over time.
Whether you choose to buy a franchise or open your own gym is entirely up to how you see yourself running a business and how you want to spend your money. Both have their own benefits, so weigh your options carefully before committing.
Gyms are a booming business across Canada and can be a solid franchise option for people looking to get into the industry or expand their current options. The total investment costs vary, but you have a range of loan options available to help you fund your venture. Browse our business loans page to find out more information on the different types of loans available, or check out our franchise financing guide for tips on industry-specific franchises.
You must be logged in to post a comment.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.