Fitness Center Feasibility Study in the Sacramento-Roseville-Folsom, CA Metro Area

More than half franchised

Franchised clubs make up 56.4% of fitness center loans in the Sacramento area, the signature of this cell. Across FY2017 to FY2026 SBA approved 117 loans here, worth $51.0 million, placing the area 27 of 608 and the class 5 of 39 locally. A location quotient of 1.11x sits a little above the national share. Sizes are ordinary: a $262,000 median is 1.01x the nationwide midpoint for the asset class, with the middle half from $100,000 and $502,700. A brand's agreement, territory and fees therefore shape most borrowers' projects, and a study needs to read the franchise documents alongside the market.

Seven-a, 504 and who holds what

The program split is 109 loans on 7(a) and 8 on 504. SBA credits The Huntington National Bank with 22 loans ($7.8 million), then Simmons Bank with 10 ($2.1 million), 9 loans ($4.1 million) under Wells Fargo Bank National Association, U.S. Bank, National Association with 8 ($2.1 million) and, last, Newtek Bank, National Association at 7 loans ($1.7 million). The record says who holds the loans and no more. Sacramento County has 59 loans, Placer County 43, El Dorado 8 and Yolo 7.

Early losses are not the whole story

Looking at outcomes, 15.6% or more of approved loans from FY2017 to FY2024 were cancelled and 14.3% or more of the loans disbursed over FY2017 to FY2021 stand charged off at this point, from a cohort of only 35 loans. Both numbers are floors, and with so small a cohort a few cases move the rate noticeably. Left blank for lack of loans are an upper limit for cancellations and a five-year charge-off percentage; blanks are not zeros.

Missing years and the study

Several yearly counts are blank for the same reason. Where printed, FY2017 shows 17 loans and $4.8 million, FY2024 18 loans and $6.9 million, and FY2026 16 loans and $13.4 million, the most dollars in any printed year. The boundary is administrative: a project is included only when the county name given for the project is found in the 2023 metro definitions. For a Sacramento-area club, a sound analysis here asks how much of the brand's disclosed sales carries over to this trade area, whether local competitors have saturated the commuter belts, the rent per member the lease implies, equipment and tenant-improvement cost, and whether dues can service the debt in the first year of membership build-up.