Fitness Center Feasibility Study in the Denver-Aurora-Centennial, CO Metro Area

A branded, heavily franchised gym market

In Denver-Aurora-Centennial, 56.8% of fitness center loans carry a franchise flag. The area ranks 13 of 608 for the class, with the class in fourth place among the 39 classes counted for the area. Across FY2017 to FY2026 the file has 227 approvals and $125.2 million gross. With a location quotient of 1.25x, gyms are a somewhat bigger piece of Denver-area lending than of lending nationwide.

The median loan, $327,600, is 1.26x the national median; half of the loans fall between $124,200 and $629,200. SBA 7(a) carries 215 loans and SBA 504 carries 12. Denver County has 67 loans, Douglas County 48, Jefferson County 46, Arapahoe County 38, Adams County 21 and Broomfield County 7.

Lender record

Rows in the lender table follow SBA in naming whoever holds the loan today. Huntington leads the 7(a) list with 48 loans and $12.0 million. After it, Wells Fargo Bank National Association carries 18 ($6.2 million) and U.S. Bank, National Association 14 ($3.8 million), while KeyBank National Association shows 7 ($1.2 million); JPMorgan Chase Bank, National Association shows only 5, but they total $5.0 million. B:Side Capital is the one 504 holder with enough loans to list, with 6 worth $8.5 million. These figures describe portfolios. A borrower should not infer a holder's requirements from them.

Cancellation took 14.5% or more of Denver approvals in FY2017 to FY2024, and 10.2% or more of the 98 loans disbursed in FY2017 to FY2021 stand charged off to date. Both are floors. Loan Analytics withholds two more values for Denver, the cancellation ceiling and the five-year loss rate; the page prints no figure for either, and the blanks are not zeros. Approvals were 27 in FY2017, 12 in FY2022 and 42 in FY2025, worth $12.2 million.

What a Denver gym study should test

Because most borrowers are franchisees, the study tests the franchisor's membership targets against the actual trade area: the households within a short drive, the other gyms and studios already there. Franchise fees and remodel cycles should be in the cash flow. Revenue is memberships, so the ramp, churn and presale volume decide whether debt service is covered. The 10.2% charge-off floor argues for a conservative base case. The appraisal should treat leasehold improvements and equipment on their own. Because a loan must have its county matched to the July 2023 list to count, area totals are minimums.