Fitness Center Feasibility Study in the Fayetteville-Springdale-Rogers, AR Metro Area

Northwest Arkansas fitness centers: a top-three local class on small loans

Fayetteville-Springdale-Rogers, AR puts fitness centers third (3 of 39) in its class order and sits 82 of 608 nationally, while the 1.43x location quotient lifts gyms above their national share. Loans are modest: the median of $223,000 is 0.86x the nationwide median. FY2017 to FY2026 holds 25 approvals worth $8.3 million, and brand-affiliated centers account for 36.0% of loans.

Counties, range and the holder

Washington County, AR has 14 loans and Benton County, AR has 11, so the two counties cover the whole area's count. A band from $103,800 to $400,000 holds the middle half of loans. FY2019 prints with 6 loans and $932,000, and FY2023 shows no approvals ($0). Remaining years stay out of view, since a small count is not shown. Arvest Bank is recorded holding 9 loans, $1.8 million in all, a record of custody only. Program counts are hidden.

Blank cells

Fayetteville: empty cancellation and charge-off cells, because 25 approvals leave a thin early group, which leaves the gap unknown.

What the pattern suggests

A median near $223,000 with brand ties on more than a third of loans suggests a mix of independent studios and franchised gyms financed mostly for equipment and build-out. A lender will separate the two in review: a franchised unit comes with a track record and fees, an independent studio relies on the operator's plan. A borrower should say which kind of file is being submitted.

Testing a gym or studio in Washington or Benton County

Membership drives income, so the study should model joins, dues and cancellations month by month and test how many members the site can attract within its drive time. Space per member, equipment lists and class capacity set the ceiling. Competing gyms and studios need mapping with their prices and formats, and the study should state what sets the new center apart. Trainers and front-desk coverage are the main running cost. The lease should run past the loan term, since improvements stay behind. Payment coverage has to survive slow membership growth, so lenders will want working capital sized to the months before breakeven.