Franchise Financing Options for Gyms: SBA Loans, Grants & Alternative Funding
Disclaimer: This content is for informational purposes only and should not be considered financial, legal, or tax advice. Franchise financing decisions should be made in consultation with qualified professionals who understand your unique financial situation. Snap Fitness does not provide lending services, and all funding decisions are made solely by third-party lenders or financial institutions.
Launching a gym franchise can be a realized dream for some, but step one of achieving this goal for almost all aspiring owners isn’t selecting equipment or hiring staff. It’s figuring out how to fund the business. From fitness enthusiasts to entrepreneurs making a career shift, many prospective franchisees face a simple question: How do I pay for this?
Don’t worry; this article outlines the good news about funding your fitness business. Various franchise financing options are available to help you open your gym or fitness business. From government-backed SBA loans to grants and alternative funding solutions, today’s franchisees have more paths to gym ownership than ever. At Snap Fitness, we want to help as many aspiring fitness entrepreneurs as possible, so we’ve prepared this guide to help you understand each option for financing.
Understanding Franchise Financing for Gym Ownership
What Is Franchise Financing?
Franchise financing refers to funding solutions specifically designed to help individuals purchase and operate a franchise. Unlike traditional business loans, franchise financing considers the strength of the franchise brand as a significant part of the loan decision. Lenders are generally more comfortable financing a franchise with a proven model and national brand recognition than an untested startup because it lowers their risk and liability of the business failing.
Why lenders prefer Snap Fitness:
State-of-the-art equipment and incredible gym culture aside, Snap Fitness provides a variety of advantages lenders consider, including:
Proven business model
Predictable recurring revenue structure
Recognized brand in the fitness industry
Turnkey support systems for new owners
Lenders will also assess your credit score, financial history, business plan, and the projected return on investment for the gym location. So, if your finances are in disarray, Snap Fitness may not be able to help you start your business since it takes both parties to inspire confidence in the overall loan.
Financial Considerations for Gym Franchisees
When evaluating your funding needs, consider these three critical components:
Startup Costs: Includes the franchise fee, gym equipment, lease deposits, build-out costs, and initial marketing campaigns.
Credit Requirements: A strong personal credit score (typically 680 or higher) increases the odds of approval. Some lenders also evaluate business credit, if applicable.
Business Plan: A detailed, realistic business plan is essential. To increase lender confidence, financial projections, local market analysis, and operational plans should be included.
A lender wants to see that you’ve been thoughtful and intentional about your entrepreneurial goals. If it feels like you woke up that morning and decided to pursue a small business loan for your fitness business, you’re likely to end up disappointed in the result of your loan application.
Whatever your finances and current plans are, it’s helpful to understand the breakdown of each loan opportunity so that you can either pursue or consider it as you prepare to apply.
SBA Loans for Gym Franchises
What Is an SBA Loan?
An SBA loan for gyms is a financing program backed by the U.S. Small Business Administration. It makes it easier for small businesses to secure funding through banks and lenders. Though the SBA doesn’t issue loans directly, it guarantees a portion of each loan, lowering the lender's risk.
Benefits:
Lower interest rates
Longer repayment terms (up to 25 years for real estate)Smaller down payments
Favorable terms for first-time business owners
Types of SBA Loans for Gym Owners
SBA 7(a) Loan (Most common option)
Covers equipment, working capital, and franchise fees
Maximum loan amount: $5 million
SBA 504 Loan
Ideal for property acquisition, renovations, and major facility investments
Requires collaboration with a Certified Development Company (CDC)
SBA Microloan
For small-scale needs (up to $50,000)
Best suited for early-stage entrepreneurs since it puts a reasonable cap on your debt load
How to Apply for an SBA Loan
Check eligibility: You’ll need a strong credit score, business plan, and financial documentation.
Choose the right loan type: Match the loan with your funding purpose (startup vs. expansion vs. real estate). A financial planning or lending professional can help advise on this decision.
Prepare documentation: Include personal financial statements, tax returns, business plans, and franchise disclosure documents. They’ll ask for them, so have them ready.
Find an SBA-approved lender: Banks, credit unions, and specialized franchise lenders often participate in SBA programs. We can help connect you with local options if you partner with Snap Fitness.
Business Grants for Gym Franchises
Are Grants a Viable Option for Gym Owners?
While it’s a shared hope, grants are generally limited for for-profit businesses, especially franchises. Most grants prioritize nonprofits or very specific demographics or industries. However, they do exist, and savvy gym owners may still find federal, state, or local opportunities.
Where to Find Business Grants
Federal & State Grants: Sites like Grants.gov and SBA.gov list available programs.
Industry Grants: Some health and wellness organizations offer limited funding for fitness-related startups. If you find them, join their newsletter or follow them on social media. They’re likely to announce grant opportunities as they become available.
Diversity Grants: If you’re a woman, minority, or veteran entrepreneur, you may qualify for targeted funding programs.
Grants are best treated as supplemental funding, not a primary path to franchise financing. If your business model relies entirely on business grants, you may not be in business for long.
Alternative Franchise Financing Options
When SBA loans or grants aren’t the right fit, consider these other franchise financing options:
Traditional Business Loans
Banks and Credit Unions: Offer competitive interest rates but require strong credit and collateral.
Franchise-Specific Lenders: These lenders understand how franchises work and are often more flexible with new franchisees.
Equipment Leasing & Financing
Many gym owners finance or lease fitness equipment separately from their primary loan. This decision reduces upfront costs and preserves cash for operations.
Why lease gym equipment?
Lower startup capital requirements
Access to the latest equipment (like a car lease, where you always drive off the lot with the newest model)
Possible tax benefits depending on your state
Investor or Partner Financing
Bringing in a partner or private investor can provide upfront capital in exchange for equity or a profit share. While this can accelerate growth, it also means sharing control.
Advantages:
Access to significant funding, accelerating your timeline to go to market
No repayment is required if structured as equity
Disadvantages:
Giving up a share of ownership
With more chefs in the kitchen, there is a higher potential for conflict if goals misalign
Crowdfunding & Community-Based Funding
Platforms like Kickstarter, GoFundMe, or community investment groups allow gym owners to raise funds from their network. While less traditional, these options are growing in popularity. Your business and financial plan can help you understand if crowd-sourcing may be viable. As with grants, don’t rely too much on crowdfunding, as that usually has a pretty low ceiling.
Financial Strategies for Franchise Success
Strengthen Your Loan Application
A lender-friendly application includes:
Clear business plan with 3–5 years of financial projections
Credit history and score in good standing
Industry insights and local market research
Documentation of franchise benefits (Snap Fitness FDD, support materials)
Consider Pre-Approved “App-Only” Financing
Suppose your financing need is under $100,000 and your business has operated for at least two years. In that case, Snap Fitness franchisees may qualify for an expedited “App-Only” credit process through Mitsubishi HC Capital America. This simplified route typically requires:
A completed credit application
A brief summary of your financing request
For newer businesses (less than two years old), Mitsubishi HC Capital America offers startup-friendly funding solutions. Applicants may need to provide:
A detailed “sources and uses” breakdown of capital
Lease and tenant improvement details
Personal financial statements and recent tax returns
This flexible approach helps franchisees secure funding faster, so you can move from planning to opening with fewer roadblocks.
Combine Multiple Funding Sources
Many Snap Fitness franchisees use a blended approach, such as:
SBA 7(a) loan + equipment leasing
Traditional loan + personal savings
Grant + investor funding
This increases the chances of approval and helps preserve working capital. Remember that you’re taking a calculated risk to put yourself in a position to realize the long-term benefits of having your own business. Don’t take shortcuts in getting it off the ground, and pursue as many financing and capital options as possible.
Maximize Tax Benefits
Owning a gym brings major tax benefits to starting a business. Expenses like franchise fees, equipment, rent, and marketing are often deductible. Our article, “How Owning a Gym Can Save You Thousands in Taxes,” is an excellent guide for finding savings during tax season.
Spotlight Partner: Mitsubishi HC Capital America
Snap Fitness works closely with Mitsubishi HC Capital America to support franchisees with flexible, fitness-focused financing solutions. With a simplified process and deep experience in the health and wellness sector, this financing partner makes it easier to secure funding for:
Equipment, flooring, signage, and tenant improvements
Both startups and existing businesses
Lease structures or installment plans tailored to your growth goals
Additional benefits include:
No commitment fees or debt service ratio requirements
Fixed-rate financing with optional deferrals or interest-only periods
Digital documentation and streamlined vendor payments for faster setup
This partnership reflects Snap Fitness’s commitment to helping new gym owners hit the ground running with the support of trusted industry professionals.
Explore Franchise Financing with Confidence
From SBA loans to specialized fitness financing through partners like Mitsubishi HC Capital America, Snap Fitness gives you multiple ways to fund your gym. Let’s work together to find the best path to ownership and get your club open faster, with less friction and more support.
What Sets Snap Franchisees Apart?
Trusted Brand: Lenders are more likely to finance a franchise with a strong reputation and proven success.
Startup Flexibility: Competitive startup costs and scalable gym models for different markets.
Franchise Financing Support: We work with industry-specific financing partners who understand the needs of fitness entrepreneurs.
Ongoing Resources: Access to a dedicated team, training, and financial planning tools to help you build a sustainable business.
Launch Your Gym With Snap Fitness
Snap Fitness makes franchise financing accessible. Whether you’re applying for an SBA loan for gyms, seeking business loan options, or just starting your research, we’re here to help you succeed. Take the first step toward building a fitness business of your own with a partner who’s invested in your success!