Fitness Center Feasibility Study in the Madison, WI Metro Area

Gyms in Dane County: a wide spread of sizes

Madison's fitness record spreads wider than most. SBA lists 55 fitness center loans from FY2017 to FY2026, $37.7 million approved, and the median is $251,000, 0.97x the national class median. The surprise is the spread: the bottom of the middle half is $50,000 and the top is $760,350, so small studio loans and large gym financings sit in one market. Madison is 46 of 608 in the metro and micro ranking, and fitness is 4 of 39 locally.

Weight, brands and program

A location quotient of 1.69x says fitness takes about two-thirds more than its national weight in Madison lending. Franchise share is 27.3%, below the share in many gym markets. The program counts are 47 for 7(a) and 8 for 504.

Two credit unions and community banks

Lake Ridge Bank is the current 7(a) holder on 7 loans worth $3.2 million, and Summit CU holds 6 worth $160,000. Compare the dollars: for a similar count, one holder's loans are many times larger than the other's. Both figures come from SBA's records and are no judgement of either institution. FY2019 printed 10 loans and $4.3 million, FY2023 printed 6 and $5.7 million, and FY2024 printed 5 and $2.5 million. The remaining years, FY2017, FY2018, FY2020 to FY2022 and FY2025 to FY2026, are withheld.

No outcome rates

Madison fitness lacks a published cancellation rate and a published charge-off rate, and lacking is different from zero. Madison's loans are counted by matching project counties, by name, with the July 2023 delineation.

What a Madison gym study should settle

Student and professional populations create seasonal swings, so membership demand needs a model that includes semester breaks. Because loan sizes range so widely, the study must say which end the project resembles: a boutique studio, or a full club with pool and courts. Cost work covers floor, equipment and mechanical load. Test coverage at $251,000 and at $760,350, and expect the appraiser to find mostly improvements and equipment as collateral. Peak-hour crowding, class scheduling and child care on site are the operating details that decide whether a club keeps its members past the first year, so the study should address each.