Franchise finance · Gyms and fitness
Franchise finance for gyms and fitness
Gym and fitness finance is lending against recurring membership revenue, used to fund equipment ranges, fit-outs and expansion for gyms, studios and franchised fitness businesses.
How a franchise finance works for gyms and fitness
Much of the Australian fitness market operates under franchise systems with defined equipment packages, fit-out specifications and territory rights. Franchise finance funds the initial fee, the fit-out and the equipment package as one facility, and lenders that have accredited a particular franchise system will often lend on better terms because they already know the model’s performance data. Franchisor-approved suppliers and standardised builds make approval faster; territory and royalty terms will be reviewed closely.
The cash-flow pattern we plan around
Recurring direct-debit membership income with a strong January intake, a soft November–December stretch, and equipment costs incurred entirely up front.
What gyms and fitness typically fund
- Cardio, strength and functional equipment ranges
- Rubber flooring, rigs and mirrors
- Access control, security and member management systems
- Fit-out, change rooms and amenities
- Opening or fitting out a second site
Franchise finance for gyms and fitness: the numbers
| Typical amounts | $50,000 – $3,000,000 |
|---|---|
| Term | 24–84 months |
| Indicative rates | 7.5% – 15% p.a. |
| Repayments | Monthly |
| Speed | 2–6 weeks |
| Documents gyms and fitness usually need | ABN and lease for the premises · 6–12 months of bank statements showing direct-debit revenue · Equipment supplier quote or fit-out schedule |
Rates shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
Key terms
Gym equipment finance
Gym equipment finance is secured lending for commercial fitness equipment — cardio, selectorised and plate-loaded machines, rigs and free weights — usually written over three to five years against the equipment itself.
Recurring membership revenue
Recurring membership revenue is the predictable monthly or fortnightly direct-debit income a fitness business collects from its member base, which lenders use to size and assess a facility.
What is franchise finance?
Franchise finance is business lending used to acquire and establish a franchised outlet. It funds the initial franchise fee, fit-out, equipment and working capital, and is assessed against the franchise system’s documented performance as well as the applicant’s position.
What is an accredited franchise system?
An accredited franchise system is a brand a lender has already assessed and approved, allowing applications from its franchisees to be processed under pre-agreed lending parameters. Accreditation usually means higher funding ratios and faster decisions.
How much deposit do you need for a franchise?
Franchisees typically contribute 30–50% of total establishment cost from their own funds. Where the applicant offers residential property security, the required cash contribution can be lower and the term longer.