Fitness Center Feasibility Study in Utah

Utah fitness: franchise-led and growing

Utah's fitness lending has been gathering pace. The state approved 40 SBA gym loans worth $18.3 million in FY2025 and 31 worth $17.3 million in FY2026, against 11 in FY2018, for a total of 206 approvals and $100.0 million from FY2017 to FY2026. That ranks Utah 22 of 54 among states, and fitness is 5 of 39 among Utah classes, though the location quotient of 0.86x shows the class a little lighter in Utah than nationally. The median loan, $300,000, is 1.16x the national gym median, and no measure clears our screen.

Brands and the banks that fund them

Franchise units make up 45.1% of Utah gym loans, which means many borrowers are buying a brand's format, equipment package and royalty schedule. Utah approvals sit between $112,050 and $524,025 across the middle half, and SBA 7(a) carries 191 of them against 15 under SBA 504. Among holders, The Huntington National Bank has 31 loans for $10.8 million, Zions Bancorporation, National Association 22 for $4.3 million, Central Bank 16 for $7.0 million, Mountain America FCU 14 for $2.2 million and America First Federal Credit Union 9 for $3.3 million. Mountain West Small Business Finance holds 10 of the 504 loans for $13.5 million. Salt Lake County leads with 78 approvals, Utah County has 40 and Davis 32.

The Utah loss record

Utah gym loans funded in FY2017 to FY2021 number 75; at least 8.0% are charged off, with 4.0% lost inside five years, so losses kept coming after the early years. Cancellations run lower, at least 8.1% of FY2017 to FY2024 approvals and 9.6% at the ceiling. With so much recent volume, the newer Utah loans have not yet aged into the period that produced the FY2017 to FY2021 losses.

A Utah gym study has to address saturation directly, because rapid growth in franchise units means more studios chasing the same members. Demand should be measured within the trade area against existing and announced gyms of the same format. Cost should follow the franchisor's specification, priced by a contractor, with equipment financing and replacement planned. Debt service coverage must include royalties and marketing fees and be stressed for churn and for a competing opening nearby. Where the borrower buys the building through 504, the appraisal should value the space for another retail or fitness user.

Lenders shown are current holders as SBA reports them, and the Utah figures cover only SBA-guaranteed loans; every outcome rate is a minimum.