So…you’ve decided to open a fitness club franchise. With the flourishing fitness industry, that’s a very smart and potentially lucrative decision. As a new entrepreneur, you might already know that obtaining conventional bank loans for your venture could be difficult. However, that’s when using fitness franchise financing for entrepreneurs proves to be a wise idea.

Research: the First Key to Find Fitness Franchise Financing

In your quest to secure funds for your fitness club franchise, it is important to research and select a strong brand. Review several brands and select one showing consistent profitability and a solid industry reputation. Keep any supporting documents you find, as you’ll need to include these in your loan package: but more on that later.

You’ll also need to figure out your startup costs, which determine how much funding you should seek. For your health club franchise, remember to include items such as equipment, fees, staffing, the purchase or lease of land and buildings, utilities, technology, insurance, and any merchandise you’d like to sell.

Finally, it’s essential to research finance companies specializing in funding franchisees. Some firms are experts at using fitness franchise financing for entrepreneurs to build and open their new clubs. They assist by connecting prospective owners with lenders offering SBA loans for startup capital.

What’s an SBA Loan?

The SBA, or the Small Business Administration, is a government agency dedicated to supporting small businesses. Lenders partner with them to offer SBA loans, which are small business financing vehicles partially backed by the U.S. government. Franchise financing companies often have lenders who deal in these types of loans in their networks, allowing franchisees to access startup money which might be otherwise hard to get.

The Loan Package

Finance companies also aid hopeful entrepreneurs by helping them construct a loan package, which consists of a business plan and other supporting documentation. Your plan should include the research you’ve already done on your chosen brand and startup costs. Don’t forget to include your market research, a marketing plan, and projected sales figures. Finally, you should clearly demonstrate your own managerial qualifications. Keep in mind that lenders review your personal credit history and typically expect you to come up with 20% of startup costs on your own.

Startup Money for Your Fitness Franchise Is Out There

Organizations using fitness franchise financing for entrepreneurs connect them with sources of capital they might not otherwise be able to access. With a loan package containing a well-written business plan and other supporting documents, they use their network of lenders to connect you with the money you need. With a finance firm in your corner, you’ll be one step closer to building and start your fitness club franchise.