How to Finance a Fitness 1440 Franchise: 24-Hour Gym Costs
By Anthony Cornella
A Fitness 1440 franchise loan finances a full-size, 24-hour health club rather than a small studio. The franchisor describes clubs of 6,000 to 25,000 square feet with cardio, group exercise, personal training, locker rooms and a sauna, so the build-out, equipment package and working capital all scale with the size of the space you choose.
This article covers the franchisor’s published requirements, the costs to confirm in the Franchise Disclosure Document (FDD), what the brand’s SBA Franchise Directory listing and its three notes mean, and how lenders look at a new or existing club.
US Professional Funding is not affiliated with, sponsored by or endorsed by Fitness 1440; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice.
Fitness 1440 Franchise Loan at a Glance
- Club size: 6,000 to 25,000 square feet, with designs customized to each location, according to the franchisor.
- Liquid capital: $100,000 to $250,000, per the franchisor’s financial requirements.
- Net worth: $200,000.
- Household income: $75,000, along with a minimum credit standard.
- Locations: the company’s locations page lists more than 40 clubs across 16 states.
- Fees and investment: the franchise fee, royalty and Item 7 range are not published on the franchisor’s pages; get them from the current FDD.
- SBA Franchise Directory: listed, with notes on lease riders, lien position and area representative agreements.
What Is Fitness 1440?
Fitness 1440 (styled FITNESS:1440) operates and franchises 24-hour fitness centers. The company says it has served members for more than a decade, and its locations page lists clubs from Georgia and Tennessee to Oregon, Arizona, Texas, Pennsylvania and Wisconsin.
The club format. The franchisor describes amenities such as a cardio movie theater, group exercise, personal training, full locker rooms, a sauna, Zumba and a Zen studio. It also lists branded programs called Target 24 and Fit Number. Clubs are designed to fit their location rather than following one fixed footprint.
The operating model. The franchisor says its clubs run with lower payroll than other clubs, and it emphasizes 24-hour access. For lenders, a leaner staffing model can help cash flow, but they will still want to see how the club handles security, cleaning and member service during unstaffed hours.
Why lenders see it as a mid-size gym deal. A club of this size carries a long lease, significant tenant improvements and a large equipment package. Lenders underwrite the build-out much like any full-service gym, focusing on the lease, the local market and the operator’s ability to sell memberships quickly.
Fitness 1440 Franchise Costs
The franchisor’s site lists the factors that drive cost: location, club size, amenities and equipment. It does not publish an initial franchise fee or a total investment range, so use Item 5 and Item 7 of the current FDD for exact figures.
Initial franchise fee. Disclosed in Item 5. Ask whether it covers one club or a protected territory and whether any portion is refundable.
Real estate and build-out. With clubs ranging from 6,000 to 25,000 square feet, leasehold improvements are often the biggest line in the budget: locker rooms and showers, a sauna, HVAC sized for a crowded workout floor, rubber flooring, lighting, restrooms and a group exercise room. Landlord tenant improvement allowances can offset part of this cost.
Equipment. A full cardio deck, selectorized strength machines, plate-loaded equipment, free weights and racks, group exercise gear and the audio-visual system for a cardio theater. The franchisor says it helps owners choose equipment suited to their community.
Technology and security. Twenty-four-hour access depends on door access control, cameras and member management software.
Opening costs and working capital. Pre-sale marketing, staff recruiting and training, insurance, deposits and additional funds to carry rent and payroll while memberships build.
Total investment. When you receive the FDD, review the Item 7 table line by line:
- Initial franchise fee
- Lease deposits and rent before opening
- Leasehold improvements, locker rooms and sauna
- Cardio, strength and free-weight equipment
- Access control, security and software
- Signage, furniture and audio-visual systems
- Grand-opening and pre-sale marketing
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists royalties, marketing contributions, technology fees and transfer or renewal fees. The franchisor describes turnkey branding and marketing packages and yearly marketing plans; ask how those are paid for.
How lenders factor fees in. Lenders look at the cash flow left after rent, payroll, utilities, equipment payments and franchise fees. A big-box club has high fixed occupancy costs, so lenders often stress-test projections with slower membership growth to make sure the loan still works.
Franchisor Requirements for New Owners
The franchisor’s financial requirements page lists:
- Liquid capital of $100,000 to $250,000
- Net worth of $200,000
- Household income of $75,000
- A minimum credit score
The company says it looks for owners who are positive, confident, honest and passionate about helping people. It says franchisees work directly with a founding member rather than a sales representative, and that it provides site selection assistance, a club design guide, staff recruitment help and ongoing training.
The practical point for a Fitness 1440 franchise loan: the liquid capital requirement will usually cover your equity injection and some reserves, while the loan funds the remaining build-out and equipment.
Ways to Own a Fitness 1440
Opening a new club. Most owners open a new location in a protected territory. Lenders underwrite projections, so the lease, the market study and pre-sale plans matter a great deal. See our page on fitness center start-up financing.
Buying an existing club. With more than 40 locations listed, a resale may be an option. A buyer gets membership history and an existing build-out, and the franchisor must approve the transfer. Our page on fitness center acquisition financing covers how these deals are structured.
Converting an existing gym. If the franchisor allows conversions, an independent gym owner may be able to rebrand. Ask the franchisor whether conversions are offered and what upgrades are required.
Financing Options for a Fitness 1440 Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can combine the franchise fee, build-out, equipment and working capital in one loan for eligible borrowers.
SBA 504 loans. If you buy the building, an SBA 504 loan can finance owner-occupied real estate and long-lived improvements. Read the SBA notes below if the property will secure the loan.
Conventional term loans. Established operators with strong credit and collateral may use conventional business loans, especially for a second club.
Equipment financing. Cardio, strength and free-weight equipment can be financed or leased separately. Learn about gym equipment financing and leasing.
Working capital and lines of credit. Many gyms see a surge of sign-ups in January and slower summers. A reserve or line of credit helps cover rent and payroll through the opening ramp and seasonal dips. See fitness center working capital options.
Seller financing on resales. A seller may carry part of the price on a resale. A seller note is typically subordinate to the senior loan, and program rules may limit its terms.
SBA Loans for Fitness 1440 Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. A listing does not approve any borrower.
Fitness 1440’s listing and notes. Fitness 1440 is listed under code S0649 with three notes:
- Lease rider: when the real estate where the club operates will secure the SBA-guaranteed loan, the lease rider may not be executed. In other words, if you own the building and pledge it, the franchisor’s lease addendum is not used.
- Lien position: the lender must obtain the correct lien position on all collateral as SBA rules require. Expect your lender to check that equipment, the business and any real estate are pledged in the right order.
- Area representatives: applicants operating under an Area Representative Agreement are not eligible for SBA financing. If you would be an area representative, which typically means recruiting and supporting other franchisees in a region, plan on conventional financing for that role.
The SBA 7(a) program maximum is currently $5 million, and program rules can change. Our article on SBA loans for gyms explains how lenders handle fitness businesses in the SBA program.
How Lenders Evaluate a Fitness 1440 Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement and require personal guarantees. The franchisor’s own credit and income standards are a useful benchmark.
Net worth and liquidity. Meeting the franchisor’s $200,000 net worth and liquid capital requirements is a starting point. Lenders also want reserves after closing.
Industry and management experience. Gym management, sales or multi-site experience strengthens a request. The franchisor’s training helps, but lenders will look for leadership experience.
Business plan and projections. Build projections around presale memberships, pricing, attrition and a realistic ramp. Show how payroll fits a 24-hour model and include equipment payments.
The FDD and franchise agreement. Lenders read the fees, term, renewal and transfer provisions. Review Item 19 to see whether the FDD includes financial performance representations.
Site and lease. Lenders review lease length, renewal options, tenant improvement allowances and co-tenancy. Our gym lease guide covers assignment and landlord consent.
Historical financials for resales. For an existing club, expect to provide several years of financial statements, membership reports and billing data.
Equipment and Build-Out for a 24-Hour Club
A Fitness 1440 club’s equipment package is one of the largest costs, and equipment ages faster in a 24-hour gym. Plan for a replacement cycle and service contracts from the start.
Amenities like a sauna, locker rooms and a cardio theater add to plumbing, electrical and HVAC costs. Get contractor bids early so your loan request reflects the real number.
Multi-Unit Growth and Development Agreements
The franchisor offers protected territories. If you sign for more than one club, lenders will want to see the first location stabilize before financing the next. Our article on multi-location gym financing explains how lenders evaluate a group of clubs.
Remember the SBA note: an area representative arrangement is not eligible for SBA financing, so multi-unit owners should confirm which agreement they are signing.
Real-World Scenarios
A first-time owner opens a mid-size club. A former gym manager meets the liquid capital requirement and opens a new club. An SBA 7(a) loan funds the build-out, equipment and working capital.
An investor buys an existing club. A buyer acquires a club with an established member base. The lender underwrites billing history and attrition, and the seller carries a small subordinate note.
An owner buys the building. A franchisee buys the building with a 504 loan. Because the property secures the loan, the franchisor’s lease rider is not used.
Common Mistakes to Avoid
- Choosing a larger footprint than the market can fill
- Underestimating locker room, sauna and HVAC build-out costs
- Assuming SBA financing will work under an area representative agreement
- Projecting fast membership growth without a presale plan
- Skipping equipment replacement and service costs
For more gym-specific pitfalls, read the fitness center loan mistakes owners regret.
Next Steps to Finance Your Fitness 1440 Franchise
Step 1: Confirm you meet the requirements. Check your liquid capital, net worth, household income and credit against the franchisor’s standards.
Step 2: Request and review the FDD. Study Items 5, 6, 7, 17 and 19 with a franchise attorney and accountant.
Step 3: Choose a site and club size. Work with the franchisor on site selection and size the club to the market.
Step 4: Build projections and get bids. Use contractor and equipment quotes. Our SBA loan calculator gives planning-only payment estimates.
Step 5: Apply for financing. Submit tax returns, a personal financial statement, the FDD, the franchise agreement, a lease or letter of intent and projections.
Step 6: Close and launch. Coordinate funding with construction, equipment delivery and your presale campaign.
Fitness 1440 Franchise Loan FAQs
How much does it cost to open a Fitness 1440?
The franchisor does not publish a total investment range on its pages. Costs depend on location, club size, amenities and equipment; Item 7 of the FDD gives the estimate.
What is the Fitness 1440 franchise fee?
The fee is disclosed in Item 5 of the FDD and is not listed on the franchisor’s website.
How much liquid capital do I need?
The franchisor lists $100,000 to $250,000 in liquid capital.
What net worth does Fitness 1440 require?
A net worth of $200,000, plus household income of $75,000, according to the franchisor.
Can I get an SBA loan for a Fitness 1440?
Yes, the brand is listed on the SBA Franchise Directory under code S0649. Individual borrowers still need lender approval, and area representative agreements are not eligible.
How big is a Fitness 1440 club?
The franchisor describes clubs of 6,000 to 25,000 square feet, designed to fit each location.
Can I finance gym equipment separately?
Yes. Cardio and strength equipment can often be financed or leased separately from the main Fitness 1440 franchise loan.
Can I buy an existing Fitness 1440?
If a franchisee is selling, yes, with franchisor approval. Lenders will underwrite the club’s membership and billing history.
Does Fitness 1440 offer financing?
Check Item 10 of the FDD for any franchisor financing. Most owners arrange outside financing.
What support does the franchisor provide?
The company lists site selection assistance, a protected territory, marketing support, a club design guide, operating procedures, staff recruitment and ongoing training.
Final Thoughts
A Fitness 1440 franchise loan is a mid-size gym deal: a sizable build-out, a large equipment package and a membership ramp that needs working capital behind it. Owners who meet the franchisor’s requirements, read the SBA notes carefully and size the club to the market give themselves the strongest footing.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and gym and fitness center financing solutions.
