Fitness Center Feasibility Study in Delaware

Fitness is a top-three class in Delaware

Fitness centers matter more in Delaware lending than the state's size would suggest. They rank 3 of 39 among Delaware's asset classes, even though the state ranks 43 of 54 on volume for the class. SBA approved 39 loans for fitness centers over FY2017 to FY2026, worth $13.7 million, with a median of $250,000 that is 0.96x the national class median and a location quotient of 1.05x. Nothing in the median or the location quotient departs far from the national class, so this cell is a close match to the national pattern, with small numbers.

Franchise-heavy and 7(a)-driven

Franchise brands account for 38.5% of loans, so franchise units are a large part of the count. The 7(a) programme supplied 38 loans and the 504 programme 1. Half of the fitness loans sit between $50,000 and $422,000, a modest range. Manufacturers and Traders Trust Company has 14 loans worth $2.1 million, while Wilmington Savings Fund Society FSB has 7 worth $4.1 million, the larger average ticket. New Castle County has 22 loans and Sussex 15, but Kent has only 2. Volume rose to 7 loans in FY2024 and again in FY2026, with $4.1 million in FY2026.

Rates that cannot be shown

Loan Analytics withholds both cancellation and charge-off for Delaware, as the loans behind each fall short of 30. We print neither and do not call either zero. For a lender, the absence means that Delaware fitness outcomes cannot be separated from noise. No loans were approved in FY2021 and only 1 in FY2022.

What the study must prove

A fitness feasibility study should count the households and workers within a short drive, the competing gyms and boutique studios, and the membership base the business needs to cover its fixed costs. It should model membership growth with attrition, since churn is the main risk, and show debt service coverage if the opening year attracts fewer members than planned. Leasehold improvements and equipment should be priced against a median near $250,000. For a franchise, include fees and brand standards. The appraisal of a leasehold gym turns on the lease term and the earnings record, so the study must make the lease length a first-order question.