The fitness industry shows no signs of slowed growth, so it can be a smart business move to consider buying a fitness franchise. Sufficient fitness franchise financing will be essential to make the purchase and cover the various necessary investments in your franchise.
Choosing a Fitness Franchise
The franchise that you decide to buy can make a difference in how easily you can obtain financing. Lenders are more likely to approve loans for franchises that are well-known, with a strong cash flow and a successful track record in other locations. These are also good reasons for you to select a particular fitness franchise over others.
Look for a franchise whose mission, values, clientele and atmosphere are a good fit with your personal outlook. Because franchisees have limited flexibility in how they run their franchises, it is best to choose one that you already admire.
Create a Business Plan
A business plan can be extremely helpful in obtaining fitness franchise financing, as well as for guiding your business operations. Your plan should cover several areas, including a description of the company and the services offered, an analysis of your local market, your marketing initiatives, and the financial details of your franchise. The franchisor will provide you with a Franchise Disclosure Document that can be a good source of information for your business plan.
Be prepared to present your business plan when you meet with potential lenders. Because you will use your plan not just for the purpose of obtaining financing, but also in your franchise operations going forward, you should be thoroughly familiar with all of its details and prepared to answer any questions lenders will ask.
Finding a Lender
There are multiple sources of fitness franchise financing you can explore. We can direct you, and help you with all of them. Your credit score will help determine the terms of a loan, along with your financial statements and down payment.
You can also investigate loans offered by the Small Business Administration (SBA). These loans are partially guaranteed by the government. To purchase and establish a franchise, you will need a real estate loan. Once your franchise has been in operation for a while, you may consider another SBA loan with a shorter term to provide additional cash for capital improvements or other business expenses.
To obtain fitness franchise financing, you will need to make several decisions and do a great deal of planning upfront. All of this work is essential not just for the purpose of getting a loan, but to successfully guide your franchise business operations for years to come.
