How to Finance a Hard Exercise Works Franchise: Gym Startup Costs
By Chris Cornella
A Hard Exercise Works franchise loan pays for a functional training gym where members climb ropes, swing kettlebells, row, sprint and flip tires in coached group sessions. The money usually goes into a leased space with open floor area, rubber flooring, rigs and free weights, a sound system, a member software platform and enough working capital to carry the gym while the member base grows.
This article covers how a Hard Exercise Works gym is put together, how the costs in the Franchise Disclosure Document (FDD) are organized, what the brand’s SBA Franchise Directory listing means and how lenders size up a new gym from an owner who may never have run one.
US Professional Funding is not affiliated with, sponsored by or endorsed by Hard Exercise Works; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, so request the current FDD and read it before relying on any number. Loan programs vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
Hard Exercise Works Franchise Loan at a Glance
- Concept: a high-intensity group training gym that mixes endurance, strength and bodyweight work, with a new workout programmed every day.
- Franchisor: HEW Franchising, LLC, which grew the brand from Florida into locations in several states, including California.
- Initial franchise fee, royalty and marketing fees: disclosed in Items 5 and 6 of the FDD; we could not review a current document, so confirm today’s amounts with the franchisor.
- Estimated initial investment: disclosed in Item 7; for a gym like this it typically covers the lease, build-out, flooring, training equipment, technology, pre-opening marketing and working capital.
- Candidate requirements: set by the franchisor and not published in materials we could verify.
- SBA Franchise Directory: listed as Hard Exercise Workout / HEW Fitness under code S0789, with no special note attached.
- Availability: before spending money on site work, confirm that the franchisor is currently awarding new territories in your market.
What Is Hard Exercise Works?
Hard Exercise Works, often shortened to HEW, is a fitness gym brand built on a blunt idea captured in its tagline: it’s not complicated, hard exercise works. Sessions blend running, rowing, kettlebells, pull-ups, squats, deadlifts, burpees and rope climbs into one coached workout, and the brand’s programming team writes a different routine for each day so members rarely repeat the same session.
New members do not jump straight into the hardest classes. The brand starts them in a structured introductory program and scales workouts to each person’s fitness level, with goals such as a first rope climb or first pull-up.
Why lenders view it the way they do. A lender sees a membership business with recurring monthly revenue, a moderate equipment package and a lease-heavy cost structure. Because the brand is a smaller system, lenders will rely less on brand-wide history and more on the owner’s finances, the local market and a credible plan for signing members before and after opening.
Hard Exercise Works Franchise Costs
We could not access a current Hard Exercise Works FDD, so this section explains how the costs are organized rather than quoting numbers. Use the Item 7 table in the document you receive as the starting point for your loan request.
Initial franchise fee
Item 5 states the initial fee, when it is due and whether any of it is refundable. An SBA loan can generally include the fee in the total project cost, although some owners pay it from their own cash to show commitment.
Lease and build-out
Functional training needs space: an open floor with high enough ceilings for rope climbs and overhead lifts, room for a sled or sprint lane, locker rooms, restrooms and a front desk. Build-out typically covers demolition, rubber flooring, turf, HVAC sized for intense group sessions, lighting, electrical and wall graphics. A landlord improvement allowance can shrink the amount you need to borrow.
Training equipment
Expect a mix of rigs and pull-up bars, climbing ropes, barbells and plates, kettlebells, dumbbells, medicine balls, plyo boxes, rowers, bikes and truck tires.
Technology, opening costs and working capital
Member software, point-of-sale, a sound system and workout screens round out the budget. Item 7 also includes additional funds for the first months, when rent and coach payroll run ahead of membership dues.
Total investment
When you receive the FDD, expect the Item 7 table to group costs along these lines:
- Initial franchise fee
- Lease deposits and rent during construction
- Leasehold improvements, rubber flooring and turf
- Rigs, racks, free weights, rowers, bikes and conditioning equipment
- Sound system, screens and member software
- Signage and interior graphics
- Opening inventory of apparel and supplements, if offered
- Training, travel and grand opening marketing
- Insurance, licenses and professional fees
- Additional funds for the initial operating period
Assign each line a source of funds, such as your cash injection, a term loan, equipment financing, a tenant improvement allowance or a working capital line, so nothing is left unfunded at opening.
Ongoing Fees and How They Affect Your Loan
Royalty and marketing contributions. Item 6 lists the royalty and any brand or local advertising requirement. Flat fees and percentage fees behave differently in a slow month.
Technology and programming fees. Daily programming, software, music licensing and any franchisor technology fee recur every month and belong in your projections.
How lenders factor fees in. A lender projects membership revenue, subtracts rent, coach payroll, franchise fees and other expenses, then checks that what remains covers the loan payment with a margin. A Hard Exercise Works franchise loan is most exposed in the first year, so that is where underwriting attention goes.
Franchisor Requirements for New Owners
HEW Franchising, LLC sets its own net worth, liquidity and background expectations, and we could not verify them from published franchisor materials. Ask for them on your first call. The franchisor will also want to see that you can sell memberships and lead coaches.
The approval process. Expect an introductory call, the FDD and its waiting period, talks with existing owners, a territory and site review and final approval. Start financing in parallel so your loan and lease line up.
Ways to Own a Hard Exercise Works Gym
Opening a new gym. Most owners build a new location, and a Hard Exercise Works franchise loan for a new gym rests on personal strength and a business plan. See how our fitness center start-up loans work.
Buying an existing gym. If a current owner sells, the buyer gets real membership counts, attrition data and tax returns to show a lender. The franchisor must approve the transfer, and the buyer may need to sign the current franchise agreement. Our fitness center acquisition financing page explains how purchases are structured.
Adding locations. Ask whether multi-unit rights are available in your area. Lenders typically want the first gym performing before funding a second.
Financing Options for a Hard Exercise Works Franchise
SBA 7(a) loans
Because the brand appears on the SBA Franchise Directory, an SBA 7(a) loan is often the primary route. One loan can cover the franchise fee, build-out, equipment and working capital.
SBA 504 loans
A 504 loan fits when you buy a building or make a large fixed-asset purchase. Most HEW gyms lease, so 504 is usually only relevant to owners who purchase the property where the gym will operate.
Conventional term loans
Owners with strong credit, outside collateral or an existing profitable gym may qualify for a conventional business loan, especially for a second location.
Equipment financing
Rigs, rowers, bikes, free weights and flooring can sometimes be financed separately, leaving the main loan for build-out and working capital. Review our gym equipment financing and leasing options.
Working capital and lines of credit
Gym sign-ups tend to surge in January and soften in summer, while rent and payroll do not. A line of credit can carry the gym through slower months and fund marketing pushes. Learn more about fitness center working capital.
Seller financing on resales
When buying an existing gym, a seller may agree to carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules can restrict how they are paid, so bring your lender in before agreeing to terms.
SBA Loans for Hard Exercise Works Franchisees
The SBA Franchise Directory lists brands whose franchise documents have been reviewed for SBA eligibility. Listing does not approve any borrower; it spares the lender a separate review of whether the franchisor controls too much of your business.
The listing. The brand appears as Hard Exercise Workout / HEW Fitness under code S0789. The directory shows no special note for this listing, so there is no brand-specific lease or collateral condition to work around.
Loan size. The SBA 7(a) program maximum is currently $5 million, though program rules can change. A single gym typically needs far less, so cash flow, equity and the lease matter more than the cap.
SBA application tips. Gather tax returns, a personal financial statement, a resume, the franchise documents, a lease or letter of intent, quotes and a business plan. Our SBA loans for gyms article walks through how these requests are reviewed.
How Lenders Evaluate a Hard Exercise Works Deal
Personal credit and financial history. Expect a full review of credit, tax returns and existing debt, plus a personal guarantee from each significant owner.
Net worth and liquidity. Plan for an equity injection and reserves after closing. Liquidity matters because a gym can take many months to reach a steady member count.
Industry and management experience. Coaching credentials help, but lenders care just as much about sales, hiring and management experience.
Business plan and projections. Base your plan on the local population, competing gyms and the capacity of each class. Show founding member presales, coach payroll, the cost of the intro program and seasonal swings in sign-ups. Review whether Item 19 of the FDD includes financial performance representations; our article on reading an FDD for financing explains how lenders use it.
The FDD and franchise agreement. Lenders look at the term, renewal rights, transfer rules, default provisions and any franchisor financing described in Item 10.
Site and lease. Dropped weights and loud music make noise a landlord issue. Lenders want a lease that runs at least as long as the loan, including renewal options.
Equipment, Flooring and the Training Floor
Heavy-duty rubber flooring protects the slab and reduces noise, rigs must be anchored properly, and ropes, sleds and tires need open space and high ceilings. Plan the layout with the franchisor’s specifications before signing a lease. Equipment wears quickly in high-intensity programs and has limited resale value, so lenders treat it as thin collateral; keep a replacement reserve so a broken rower does not force an expensive short-term loan.
Multi-Unit Growth and Development Agreements
An owner with one successful gym may open a second nearby, sharing coaches and marketing. Lenders review the first gym’s results, global cash flow and liquidity. Development agreements, if offered, may set opening deadlines, so line up financing before committing to a schedule.
Real-World Scenarios
A coach turning owner. A longtime trainer with a loyal client base opens a gym in a growing suburb. An SBA 7(a) loan funds the franchise fee, build-out, equipment and working capital, and presales to existing clients strengthen the projections.
A buyer taking over an existing gym. A corporate manager buys an established HEW gym from a relocating owner. The lender relies on actual membership and billing records, and the seller carries a small subordinate note.
Common Mistakes to Avoid
- Choosing a space without the ceiling height or floor area the program needs
- Underestimating flooring, HVAC and soundproofing costs
- Opening without a founding member campaign
- Leaving technology, programming and music licensing fees out of projections
- Signing a lease shorter than the loan term
- Skipping a reserve for equipment replacement
Read more in the fitness center loan mistakes that cost owners the most.
Next Steps to Finance Your Hard Exercise Works Franchise
Step 1: Confirm availability. Ask the franchisor whether territories are open in your market and request the current FDD.
Step 2: Review the FDD with advisors. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Study your market. Map competing gyms, population and potential sites with enough space and ceiling height.
Step 4: Build your business plan. Model presales, membership growth, coach payroll, rent and fees month by month.
Step 5: Compare Hard Exercise Works franchise loan options. Review SBA 7(a), conventional, equipment and working capital financing with a specialist, and use our SBA loan calculator for early payment estimates.
Step 6: Secure your site. Negotiate a lease term that matches the loan and an improvement allowance where possible.
Step 7: Close and open. Coordinate closing, construction, equipment delivery, coach hiring and your founding member launch.
Hard Exercise Works Franchise Loan FAQs
How much does a Hard Exercise Works franchise cost?
The full estimated investment appears in Item 7 of the FDD. The biggest drivers are the size of the space, build-out and the equipment package.
What are the franchise fee and royalty?
The initial fee is in Item 5 and ongoing fees are in Item 6. Request the current FDD for exact amounts.
How much liquid capital or net worth do I need?
The franchisor sets its own requirements. Lenders also expect a cash injection and reserves after closing.
Can I get an SBA loan for a Hard Exercise Works gym?
Qualified borrowers may. The brand is listed on the SBA Franchise Directory under code S0789 with no special note.
Can I finance gym equipment separately?
Often, yes. Equipment financing can cover rigs, rowers, bikes and weights, though your main lender will include that payment in its cash flow review.
Can I buy an existing Hard Exercise Works gym?
If an owner is selling, yes, with franchisor approval. Financing is based on the gym’s actual membership and financial records.
Does Hard Exercise Works offer financing?
Any franchisor financing is described in Item 10 of the FDD.
How long is the franchise term?
Term, renewal and transfer conditions appear in Item 17 and the franchise agreement. Lenders prefer a term at least as long as the loan.
Does the FDD include financial performance data?
Check Item 19 of the current FDD to see whether it includes financial performance representations.
Final Thoughts
A Hard Exercise Works gym sells sweat, results and community, but it gets financed on the same fundamentals as any gym: a qualified owner, a well-chosen space, realistic membership projections and enough cash to carry the ramp-up. Confirming franchise availability, reading the FDD closely and matching each cost to the right loan puts you in a strong position.
US Professional Funding helps franchise owners finance gym start-ups, acquisitions, equipment and working capital. Explore our franchise financing and fitness center financing solutions.
