Fitness Center Feasibility Study in Arkansas

A near-average class with a high local rank

Arkansas fitness centers look statistically ordinary, which is itself informative. The 62 loans approved from FY2017 to FY2026 add up to $23.4 million, the median loan is $253,000 and that sits at 0.98x the nationwide fitness median. The location quotient of 0.94x is just under parity. What does stand out is local standing: fitness centers rank 4 of 39 among Arkansas asset classes, even though the state is only 38 of 54 by loan count. In a state with a small SBA footprint, gyms and studios are one of the main ways small operators use the program. The bulk of loans fall from $100,000 up to $570,450.

Franchises, lenders and where the clubs are

Franchising touches 27.4% of the loans, which suggests that a good portion are brand-backed studio or gym concepts rather than independent clubs. Product choice is lopsided: 57 loans use SBA 7(a) and 5 use SBA 504, which tells a lender that most credit funds equipment and leasehold work, not owned buildings. Arvest Bank is the only lender to reach the listing threshold, with 15 loans worth $3.3 million, a small average that fits studio-scale projects. Northwest Arkansas dominates the geography: Washington County has 14 loans, Benton 11 and Pulaski 11, followed by Sebastian with 7 and Garland with 6.

Cancellation floor, silent loss rate

Fully 14.0% of approvals made up to FY2024 fell away after approval at the floor, and the undisbursed-inclusive bound is also 14.0%. That is a high rate for a class with small tickets, and it hints that many gym plans stall when a lease, a landlord work letter or a franchise approval slips. Loss experience is not quoted because the disbursed FY2017 to FY2021 loans number fewer than 30, so a rate would rest on too few cases; silence here is not a zero. Fitness operators also close without defaulting, since membership businesses can wind down and sell equipment.

Questions for a fitness study in Arkansas

A study for a gym in Arkansas should count competing clubs and low-cost chains within a realistic drive of the site, then estimate membership by price tier, not a single blended number. It must model monthly attrition, because a membership base leaks constantly, and stress debt service coverage on a slow opening where pre-sales fall short. Build-out cost per square foot and the landlord contribution deserve scrutiny, and so does the franchise royalty if one applies. For appraisal, equipment value falls fast and leasehold improvements carry little salvage. Loan Analytics gives borrowers and lenders the approved-loan figures to measure a proposal against.