# Fitness and Studio Franchise Funding

> Funding for operating gym and studio franchises: equipment replacement cycles, membership draft cash flow, studio build-outs and trainer payroll, explained.

Source: https://mfebusinessloans.com/franchise-funding/sectors/fitness/ (Merchant Fund Express, updated 2026-10-21)

## The short answer

Fitness franchise funding should follow the club's draft rhythm: monthly ACH membership drafts arrive in clusters, while equipment, build-outs and trainer payroll are paid on their own schedule. Merchant Fund Express reviews operating gyms and studios on about 3 months of bank statements, counts royalty and ad fund debits as normal obligations, and sizes working capital, lines of credit, equipment financing or revenue-based financing from $25,000 to $5,000,000.

## Why do gym deposits look different from a restaurant's?

Most club revenue arrives as monthly ACH membership drafts, often grouped around one or two draft dates. A bank statement therefore shows a few large deposits each month instead of daily card batches, with smaller card income from enrollment fees, retail and personal training packages in between. Merchant Fund Express reads that pattern as normal for a club, but it does mean the monthly total matters more than the daily count.
Draft income also moves in ways a restaurant's does not. Freezes and cancellations reduce the next draft with little warning, January sign-ups lift it, and summer often softens it. Failed drafts (declined cards, closed accounts) show up as a gap between the scheduled draft and what actually settles. Read what deposits count as revenue for how draft processor settlements are treated.

## Fitness sector cash-flow table: what funds each cost line?

Cost line | Timing | What usually funds it |
Cardio and strength replacement | Rolling cycle as machines wear | Equipment financing with a vendor quote and useful life |
Urgent equipment repair | Unplanned, when a machine goes down | Working capital; see fitness equipment repair funding |
Membership draft gaps | Freezes, cancellations, failed drafts | A line of credit drawn between draft dates |
Trainer and front desk payroll | Weekly or biweekly | Working capital or line of credit |
Studio build-out at an existing club | Planned project with a bid | Term loan for Tier 1 files; working capital or revenue-based financing otherwise |
Royalty and ad fund debits | Recurring, automatic | Counted as an obligation before sizing; not a funding purpose |

## Which costs press hardest on an operating club?

Equipment replacement cycles. Treadmills, bikes and cable machines wear at different rates, so replacement rarely happens all at once. Financing a batch against a vendor quote keeps the floor current without draining the operating account.
Draft timing. When the main draft lands on the 1st and payroll is due on the 7th and the 21st, the second payroll can fall in the thinnest part of the month.
Freezes and cancellations. A wave of freezes after a holiday period cuts the next draft while costs stay fixed.
Trainer payroll. Coaching staff are often paid before the packages they sell are fully collected. Fitness payroll funding covers this in detail.
Studio build-outs. Adding a recovery room, turf zone or class studio inside an existing club is a planned project best matched to a fixed-term structure.

## How does a review read a fitness franchise location?

Each club entity is read on its own account. Membership drafts are counted as revenue when they settle into the business account; the review looks at the monthly total, the trend across the 3 months, and whether failed drafts are growing. Royalty, advertising fund and technology fee withdrawals are subtracted as recurring obligations, and payment capacity is sized after them.
Because draft income arrives in a few large deposits, the deposit count rule matters for Tier 1: 8 or more deposits a month alongside $25K a month in revenue. Card settlements from retail and training packages usually help meet that count. Existing positions are counted, and a new structure can lower the payment instead of stacking another one. Full thresholds sit on the requirements page.

## Worked example: a floor refresh and a soft draft month

Take a hypothetical club whose deposits average $78,000 a month, mostly from membership drafts. Royalty and ad fund debits, rent and an existing equipment payment total $21,000 a month. The owner plans to replace 12 cardio units with a vendor quote of $54,000 and wants a $15,000 cushion for the summer draft dip.
Monthly deposits after recurring obligations: $78,000 minus $21,000 = $57,000 before payroll and utilities.
Cardio replacement: $54,000 as equipment financing, spread over the machines' useful life.
Summer cushion: a $15,000 line drawn only in the months the draft falls, repaid when January sign-ups return.
The review checks that trainer and staff payroll still clear after the new equipment payment, using the payment burden calculator as a quick test.
Figures in this example are illustrations of the arithmetic, not an offer, quote or approval. Real terms depend on the file and the funder.

## Where do fitness brand and industry pages fit?

Brand pages carry checked fact panels and brand-specific problems; this page stays with shared club economics.
Anytime Fitness franchise funding: a 24-hour access club's equipment and draft pattern
Fitness industry funding: independent gyms and studios
Fitness equipment repair funding: when a machine is down now
Opening your first club needs an operating history before Merchant Fund Express can review it. See opening a gym franchise and the existing vs new owner guide.

## Which fitness brands have funding pages?

Anytime Fitness
Any operating fitness franchise can apply, listed or not. Merchant Fund Express funds existing owners with business loans, merchant cash advances, revenue-based financing, lines of credit, equipment financing and working capital; see every product for franchise owners.

## What should a gym or studio owner send?

About 3 months of business bank statements as PDFs from the bank
A draft processor summary if drafts settle through a third party
Vendor quotes for any equipment in the request
A contractor bid for a studio build-out
A list of existing advances or loans with their payments
A typical first review needs no tax returns; full financials usually only above $250,000. The application takes about 5 minutes with a soft credit pull.

## Keep reading

Franchise funding hub: products, requirements and brand pages
Anytime Fitness franchise funding: brand fact panel and owner problems
Franchise equipment financing: structuring a floor refresh
Multi-unit franchise funding: how several clubs are reviewed entity by entity
Fitness payroll funding: trainer and staff payroll between drafts

## Common questions

### Does Merchant Fund Express fund existing fitness franchise owners?

Yes. Merchant Fund Express reviews operating gyms and studios for equipment financing, working capital, lines of credit, term loans and revenue-based financing, sized from $25,000 to $5,000,000.

### Do membership drafts count as revenue?

Yes, when they settle into the business account. The review reads the monthly total and the trend, and notes whether failed drafts are rising.

### Can I finance a batch of cardio machines?

Yes. Equipment financing is reviewed with the vendor quote, the equipment as the purpose and its useful life.

### Will a cancellation wave hurt my file?

A single soft month is expected in a club. A steady decline across the 3 months matters more, and it may shape the size or structure offered.

### How quickly can a club get a decision?

Same-day decision on a complete file; funding often the next business day.

### Are sole proprietor studios eligible?

Yes. Sole proprietors are eligible, and ITIN applicants are accepted with Spanish-speaking support available.

Apply with Merchant Fund Express: https://merchantfundexpress.com/current-application.html?utm_source=mfebusinessloans.com&utm_medium=franchise&utm_campaign=franchise-funding&utm_content=sector-fitness