Opening a Planet Fitness franchise is one of the most accessible paths into the fitness industry. With a well-known brand, a proven low-cost membership model, and millions of members nationwide, Planet Fitness has made gym ownership appealing to first-time franchisees and experienced multi-unit operators alike. But one question stops most aspiring owners before they even get started: how do you finance the investment? A Planet Fitness franchise loan is the answer, and understanding your options is the first step toward getting your location off the ground.
In This Article
A Planet Fitness franchise loan is a financing arrangement designed to help entrepreneurs cover the startup and operational costs of opening a Planet Fitness gym location. Unlike general small business loans, franchise loans take into account the specific capital requirements set by the Planet Fitness Franchise Disclosure Document (FDD), which outlines how much money franchisees must invest to open and operate a location according to brand standards.
These loans typically cover a combination of costs: real estate buildout, gym equipment, signage, technology systems, initial inventory, working capital reserves, and the initial franchise fee itself. Because the Planet Fitness brand is well-established and its business model is proven across thousands of locations, lenders tend to view franchise applicants more favorably than independent gym operators seeking startup funding.
The planet fitness franchise loan market is served by a variety of lenders, including SBA-approved banks, commercial lenders, alternative lenders, and specialty franchise finance companies. Each option carries different rates, terms, and qualification requirements. Working with a financing partner who understands franchise lending can make a significant difference in the outcome of your application.
Industry Insight: According to the International Franchise Association, franchised businesses have a higher success rate than independent startups, making them a preferred lending target for many SBA-approved lenders and commercial banks nationwide.
Before you can secure financing, you need to understand exactly what you are financing. Planet Fitness provides detailed financial requirements in its Franchise Disclosure Document. These figures represent the minimum and maximum costs a franchisee may expect to incur when opening a new gym location.
The total estimated initial investment for a new Planet Fitness franchise typically ranges from approximately $1.1 million to $4.9 million, depending on location, market size, real estate costs, and whether the space is newly constructed or a conversion. That range reflects the variation between a smaller market location with lower real estate costs and a large urban location requiring significant buildout.
Planet Fitness also requires franchisees to meet financial qualification thresholds before granting approval. Prospective franchisees typically need a minimum net worth of approximately $3 million and minimum liquid capital of $1.5 million. These figures are intended to ensure that franchisees are not over-leveraged from day one. Financing can be used to bridge the gap between your liquid assets and the total project cost, as long as you can meet the liquidity minimums independently.
Key Requirement: Planet Fitness franchisees must demonstrate a minimum net worth of approximately $3 million and at least $1.5 million in liquid assets. Lenders evaluating your loan application will also review these benchmarks when assessing creditworthiness.
Ready to Finance Your Planet Fitness Location?
Crestmont Capital specializes in franchise financing. Get fast, flexible funding tailored to gym operators. No obligation - apply in minutes.
Apply Now →Several distinct financing vehicles are available to Planet Fitness franchise applicants, each suited to different financial profiles and project needs. Understanding the strengths and limitations of each will help you build the right financing stack for your opening.
The SBA 7(a) loan program is the most commonly used financing tool for franchise openings. These loans are partially guaranteed by the U.S. Small Business Administration, which reduces lender risk and makes approval more accessible to borrowers who might not qualify for conventional financing alone. SBA 7(a) loans for franchise projects can go up to $5 million, making them well-suited for mid-range Planet Fitness buildouts. Interest rates are typically based on the Prime Rate plus a lender spread, and repayment terms can extend up to 10 years for working capital or up to 25 years when real estate is included in the project.
For franchisees purchasing real estate or making major property improvements, the SBA 504 program is often more advantageous. The 504 loan pairs a conventional bank loan (typically 50% of the project) with a Certified Development Company (CDC) loan (40%) and a borrower down payment (10%). This structure can reduce the up-front equity requirement and lock in a fixed interest rate on the CDC portion, which provides payment certainty over the long term. According to the SBA, 504 loans are specifically designed for major fixed assets and expansion projects, making them appropriate for a full Planet Fitness buildout that includes real estate.
Traditional bank loans and commercial term loans offer another avenue for Planet Fitness financing. These products typically require stronger credit profiles and higher down payments than SBA loans, but they can close faster and involve less paperwork. Franchisees with significant equity, strong business credit, or existing banking relationships may find conventional lending to be a streamlined path to capital.
Because gym equipment represents a major portion of the total project cost, equipment financing can be structured separately from the main buildout loan. Equipment loans use the equipment itself as collateral, often allowing for higher loan-to-value ratios and more flexible approval criteria. This is particularly useful for franchisees who are strong candidates for SBA financing on the real estate and buildout but need a separate facility to address the $400,000 to $900,000 equipment cost.
Even after opening day, many Planet Fitness locations take 12 to 24 months to reach full membership enrollment and stable cash flow. A working capital loan or business line of credit can bridge the gap between opening and profitability. These products are typically shorter in term (12 to 36 months) and are used to cover operating expenses like payroll, marketing, maintenance, and royalty payments during the ramp-up phase.
SBA loans deserve additional attention for Planet Fitness franchisees because the SBA has worked directly with the franchise industry to streamline the lending process. The SBA maintains a Franchise Registry - a database of franchise brands that have been pre-vetted for SBA eligibility. Planet Fitness is included in this registry, which means lenders can process SBA loan applications for Planet Fitness franchisees faster and with less documentation compared to non-registered brands.
When a franchise is on the SBA Franchise Registry, lenders do not have to independently evaluate the franchise agreement for SBA compliance. This can shorten the underwriting timeline by several weeks and reduce the risk of last-minute complications during closing. For a franchisee working within a competitive real estate market where time is critical, this streamlined process can be a meaningful advantage.
SBA loan interest rates as of recent market data generally range from 6.5% to 10% depending on the loan amount, borrower credit profile, and market conditions. Repayment terms of 10 years are standard for working capital and equipment, while longer terms of up to 25 years are available when real estate is part of the project. These extended terms reduce the monthly payment burden and help Planet Fitness franchisees manage cash flow during the member enrollment period. According to CNBC, SBA loans remain among the most cost-effective financing tools available to small business owners, particularly for franchise projects where the brand's track record lowers lender risk.
By the Numbers
Planet Fitness Franchise Financing - Key Statistics
$1.1M
Minimum total franchise investment
2,400+
Planet Fitness locations in the U.S.
$5M
Maximum SBA 7(a) loan for franchise projects
18.7M
Planet Fitness members nationwide
Lender requirements for Planet Fitness franchise loans generally align with the same criteria used for any commercial or SBA loan, with a few franchise-specific additions. Understanding what lenders look for will help you prepare a stronger application.
Most SBA lenders prefer a personal credit score of at least 680, though some will work with scores as low as 650 if other factors are strong. Commercial lenders may require 700 or above. Your business credit profile matters too, especially if you are an existing multi-unit franchisee looking to add a Planet Fitness location.
A well-prepared business plan is essential for franchise loan approval. Lenders will want to see projected membership enrollment curves, revenue projections for the first three years, a detailed breakdown of startup costs, and a clear explanation of how the loan will be repaid. Planet Fitness provides franchisees with financial performance data in its FDD Item 19, which can be used as the basis for realistic financial projections.
SBA lenders typically require the borrower to contribute at least 10% to 20% of the total project cost as equity. For a $2 million buildout, this means bringing $200,000 to $400,000 to the table before financing. The Planet Fitness minimum liquid capital requirement of $1.5 million provides a useful benchmark, though you should speak with your lender about the specific equity injection they require for your project.
Most Planet Fitness locations are built in leased retail spaces rather than owned properties. Lenders will want to review your lease agreement to confirm that the lease term is sufficient to cover the loan repayment period. SBA lenders typically require that the lease has at least as many remaining years as the loan term, plus a renewal option.
Your lender will review the Planet Fitness franchise agreement as part of the underwriting process. Because Planet Fitness is on the SBA Franchise Registry, this review is typically expedited. You will also need a signed or conditionally approved franchise agreement from Planet Fitness corporate before most lenders will fully commit to funding.
Crestmont Capital works with franchisees across the fitness industry to structure financing solutions that align with both the franchisor's requirements and the borrower's long-term financial goals. Our team understands the unique dynamics of gym franchise lending, from the equipment-heavy nature of the startup cost to the membership ramp-up timeline that affects early cash flow.
We offer access to a range of financing products that can be combined to create a comprehensive funding package for your Planet Fitness location. This includes SBA-aligned term loans, gym equipment financing, working capital lines of credit, and bridge funding solutions. Our advisors can help you determine the optimal loan structure for your project, the appropriate equity contribution, and the documentation you will need to support a strong application.
We have also helped fitness entrepreneurs navigate related financing needs beyond the initial buildout. Whether you are looking to open a second location, renovate an existing one, purchase additional equipment as membership grows, or refinance existing debt at better terms, Crestmont Capital is equipped to assist. Explore our fitness company business loan options and gym equipment financing programs for details on what we offer.
For franchisees who are also considering how to structure franchise financing more broadly, our guide on how to finance a franchise covers the full range of options available at each stage of the franchise ownership journey.
Talk to a Franchise Financing Specialist
Our team has helped fitness entrepreneurs across the country structure the right loans for their franchise projects. No obligation - start with a quick conversation.
Apply Now →Understanding how franchise financing works in practice helps applicants prepare for the process with realistic expectations. The following scenarios represent the types of situations Crestmont Capital works with regularly.
A business professional with a $3.5 million net worth and $1.8 million in liquid capital wants to open a Planet Fitness location in a suburban shopping center. Total project cost is estimated at $1.9 million. The borrower applies for an SBA 7(a) loan for $1.5 million and contributes $400,000 as equity. Equipment is included in the SBA loan. The loan closes in 75 days, with a 10-year repayment term and a competitive variable rate.
An existing Planet Fitness franchisee with one successful location generates steady cash flow and wants to open a second gym across town. Because the operator has 18 months of performance history on the first location, the lender can use actual financial statements rather than projections to underwrite the new loan. The borrower qualifies for a larger SBA 7(a) loan with more favorable terms due to the demonstrated business track record.
A franchisee in a high-cost urban market faces a total project cost of $3.8 million. To avoid a single oversized loan, the borrower structures a $2.5 million SBA 7(a) loan for the buildout and real estate improvements, and a separate $900,000 equipment loan secured by the gym equipment itself. This bifurcated structure reduces the SBA loan amount, potentially lowering the guarantee fee and speeding up approval.
A newly opened Planet Fitness location in a competitive market is growing memberships but is not yet profitable. The owner had planned for a 12-month ramp-up but is approaching month 8 with cash reserves lower than projected. A $150,000 business line of credit provides the bridge needed to cover payroll and royalty payments until membership revenue stabilizes, avoiding the need to inject personal funds or request a loan modification.
A prospective Planet Fitness franchisee has a 648 credit score due to a business closure several years ago, but has strong liquid assets and a solid operational background in retail management. By working with a lender who specializes in franchise financing for borrowers with credit challenges, the applicant secures a combination of SBA financing and equipment lending. A larger equity contribution (25%) compensates for the credit profile and enables approval. Read more about small business loans available to a range of credit profiles.
A franchisee in a smaller market finds a standalone retail building that can be converted into a Planet Fitness gym and is available for purchase at $1.2 million. Rather than leasing, the franchisee pursues SBA 504 financing to purchase the building and fund the gym build-out. The 504 structure requires 10% equity from the borrower ($200,000), with the CDC providing 40% at a fixed rate and the bank covering 50%. This creates long-term equity in the property alongside the franchise business.
| Loan Type | Best For | Max Amount | Term | Rate Range |
|---|---|---|---|---|
| SBA 7(a) | Full project funding, working capital, equipment | $5 million | Up to 25 years (w/ real estate) | Prime + 2.25%-4.75% |
| SBA 504 | Real estate purchase, major property improvement | $5.5 million (CDC portion) | 10 or 20 years (fixed) | Fixed, market-based |
| Equipment Financing | Cardio and strength equipment purchase | $1 million+ | 3-7 years | 5%-15% |
| Conventional Term Loan | Strong credit borrowers, faster closing | Varies by lender | 3-10 years | 6%-13% |
| Working Capital Line | Ramp-up cash flow management | $500,000 | 12-36 months | 7%-24% |
According to Forbes, franchise financing through SBA-backed programs remains the most widely used and most accessible funding source for franchise buyers, thanks to the reduced lender risk that comes from the SBA guarantee and the established track record of major franchise brands.
The total initial investment for a Planet Fitness franchise typically ranges from approximately $1.1 million to $4.9 million. This range reflects differences in real estate costs, market size, buildout complexity, and whether the space is a conversion or new construction. The initial franchise fee is $20,000, which is a relatively low entry point compared to other major fitness franchises.
For most franchisees, the SBA 7(a) loan is the most widely used and accessible option for Planet Fitness financing. It offers loan amounts up to $5 million, competitive interest rates, and repayment terms of up to 25 years when real estate is involved. Planet Fitness is on the SBA Franchise Registry, which streamlines approval. However, some franchisees benefit from combining SBA financing with separate equipment loans or a working capital line of credit.
Most SBA lenders prefer a personal credit score of at least 680 for franchise loans. Some alternative lenders will consider borrowers with scores in the 650 range if other factors such as liquid assets, business experience, and equity contribution are strong. Borrowers with scores above 720 generally qualify for better interest rates and more favorable terms.
Yes. Planet Fitness is listed on the SBA Franchise Registry, which means SBA lenders do not need to independently evaluate the franchise agreement for SBA compliance. This speeds up the underwriting process and reduces the risk of last-minute complications. It also signals to lenders that Planet Fitness has been vetted as a legitimate, compliant franchise opportunity.
Planet Fitness requires prospective franchisees to have a minimum of approximately $1.5 million in liquid capital independently of any financed amount. This is a franchisee qualification requirement, not a lender requirement. Your lender will separately assess your ability to meet the equity injection requirement for the loan, typically 10% to 20% of the total project cost.
The timeline varies depending on the loan type and lender. SBA 7(a) loans for franchise projects typically take 60 to 90 days from application to funding, though SBA-preferred lenders can sometimes close in 45 to 60 days. Equipment loans can often close in 2 to 3 weeks. Working with a lender experienced in franchise financing and preparing your documentation in advance can significantly reduce the timeline.
Yes. Many Planet Fitness franchisees use a combination of loans, including a primary SBA or conventional loan for the buildout and a separate equipment financing facility for the gym equipment. This bifurcated approach can reduce the size of the primary loan, lower guarantee fees, and streamline the underwriting process. Equipment financing uses the equipment itself as collateral and often has more flexible approval criteria.
Most lenders will require at least a conditionally approved or in-process franchise agreement from Planet Fitness corporate before providing a final loan commitment. You can typically begin the application process before having a signed agreement, and some lenders will issue a pre-approval or term sheet contingent on franchise agreement execution. Work with your lender early to understand their specific documentation requirements.
Standard documentation for a Planet Fitness franchise loan includes: personal financial statements, personal and business tax returns for the last 2-3 years, a detailed business plan with financial projections, the Planet Fitness franchise agreement or disclosure document, real estate lease agreement or purchase contract, and a construction and buildout cost estimate. Lenders may also request a resume demonstrating business management experience and personal identification documents.
Yes. Multi-unit franchise financing is a common use case for SBA and conventional loans. Existing franchisees with a track record of operating one or more profitable locations are often viewed more favorably by lenders than first-time applicants. Lenders can use actual financial performance data from existing locations rather than projections alone, which strengthens the application and may result in better loan terms.
The SBA guarantee fee for 7(a) loans varies based on loan amount and maturity. For loans above $1 million, the fee is typically 3.5% of the guaranteed portion of the loan. For smaller loans, the fee may be lower or waived depending on current SBA policy. The guarantee fee is generally financed into the loan, meaning you do not need to pay it out of pocket at closing. Check with the SBA or your lender for current fee schedules, as these can change periodically.
SBA 7(a) loans for franchise projects use monthly amortizing payments of principal and interest. For loans that include real estate, terms can extend to 25 years, which significantly reduces the monthly payment compared to a shorter-term loan. Some lenders offer an interest-only period of 6 to 12 months during the construction and ramp-up phase, which can reduce the cash flow burden before your membership revenue reaches a sustainable level.
Planet Fitness has certain requirements regarding approved equipment vendors and buildout standards that can affect your total project costs. All capital expenditures must align with the brand's specifications as outlined in the franchise agreement. From a lending perspective, SBA loans cannot be used for speculative investments or to acquire franchises in industries that the SBA deems ineligible. Planet Fitness does not fall into any ineligible category, so most standard SBA loan restrictions apply rather than any Planet Fitness-specific limitations.
A loan denial from one lender does not mean all financing options are exhausted. Different lenders have different approval criteria, and working with a financing specialist like Crestmont Capital can help you identify alternative sources. Common reasons for denial include insufficient equity, weak credit, inadequate business plan, or a lease term that does not align with the loan term. Addressing these issues before reapplying significantly improves your chances of approval.
Crestmont Capital offers a broader range of loan products and more flexible qualification criteria than most traditional banks. While banks tend to apply rigid credit and revenue requirements, Crestmont Capital works with a wider network of lenders to find the right fit for each borrower's unique situation. We specialize in franchise financing and fitness industry lending, so we understand the specific dynamics of Planet Fitness franchise projects and can structure loans accordingly.
A Planet Fitness franchise loan is a well-defined financing need with multiple viable solutions available to qualified borrowers. Whether you pursue an SBA 7(a) loan for a comprehensive funding package, combine SBA financing with equipment lending for a lower primary loan amount, or explore a 504 structure for a real estate purchase, the key is working with a lender who understands franchise financing and can guide you through the process efficiently.
Planet Fitness represents one of the more attractive franchise opportunities in the fitness sector, with a low-cost membership model, strong brand recognition, and a growing national footprint of over 2,400 locations. Financing your entry into this system requires preparation, documentation, and the right lending partner. Crestmont Capital is here to help you navigate every step of the planet fitness franchise loan process, from initial application to funding day.
Start Your Planet Fitness Franchise Journey Today
Crestmont Capital is rated #1 for small business lending in the U.S. Get fast, flexible franchise financing with no obligation. Apply in minutes.
Apply Now →Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.