How to Finance a Lyft 24 Franchise: Strength Gym Costs
By Chris Cornella
A Lyft 24 franchise loan funds a gym built around a single idea: strength training and recovery, with no traditional cardio machines. That focus shapes the equipment package, the floor plan and the way a lender reads the business plan, so it pays to understand the brand’s numbers before you approach a lender.
Below we cover the franchisor’s published costs and requirements, the brand’s SBA Franchise Directory listing and how lenders size a Lyft 24 franchise loan for a young fitness brand.
US Professional Funding is not affiliated with, sponsored by or endorsed by Lyft 24; the name is used only to describe the business. Figures from the franchisor’s disclosure document and franchise materials 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, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Lyft 24 Franchise Loan at a Glance
- Concept: a members-only strength and recovery gym open 24/7, marketed with the tagline “Hell No Cardio!”
- Initial franchise fee: $50,000 per territory, according to the franchisor’s brand introduction.
- Estimated initial investment: $369,000 to $1,942,000, the Item 7 range the franchisor’s brand introduction cites from its 2023 FDD.
- Liquidity: a minimum of $150,000 in liquid funds.
- Net worth: $600,000 for a single unit.
- Facility size: 6,000 to 8,000 square feet.
- Royalty and marketing fees: not published on the franchisor’s pages; see Item 6 of the current FDD.
- SBA Franchise Directory: listed as Lyft 24 under code S8593, with three notes explained below.
What Is Lyft 24?
Lyft 24 (styled Lyft24 by the company) is a strength-focused gym brand. Its own website describes 24-hour access to strength training equipment, a new customized program each month and guided workouts aimed at building muscle and reducing body fat, all without traditional cardio equipment. The company has gyms in markets such as Westminster, Colorado, and Casa Grande, Arizona.
The club format. The franchisor’s brand introduction describes a mid-to-high-end membership model inside a 6,000 to 8,000 square foot space. The layout includes a strength and weight room with resistance and functional equipment, a turf area for functional training, and a recovery area with an ice bath, infrared sauna, compression therapy and red light therapy. It also calls for an organic juice and smoothie bar, reception, lockers, changing rooms and individual bathrooms.
How members pay. Revenue comes from monthly auto-renewing memberships with three core levels, plus add-ons such as credit packs for recovery modalities, single-use sessions, group classes, small-group sessions and one-on-one personal training.
Why lenders look closely. Lyft 24 is a young, emerging system, so a lender cannot lean on a long track record. The borrower’s experience, liquidity and pre-sale plan carry more weight. Our article on financing an emerging franchise brand explains how lenders approach newer systems.
Lyft 24 Franchise Costs
Initial franchise fee. The franchisor’s brand introduction lists the franchise fee at $50,000 per territory. Confirm the current fee and any promotional offer in Item 5 of the FDD you receive.
Real estate and build-out. The franchisor’s opening process includes lease negotiation, and it flags build-out, landlord contribution and the difference between a conversion of an existing space and a grey shell as key cost variables. A former gym or retail box with usable restrooms and HVAC can cost far less to finish than raw space, which is a major reason the investment range is so wide.
Equipment. Strength and weight room equipment, resistance and functional training gear, turf, and the recovery suite (ice bath, infrared sauna, compression and red light units) make up the core package. The franchisor notes that owners can purchase or lease equipment and can use national vendor pricing.
Opening costs and working capital. The brand introduction lists initial inventory and additional funds for the first 12 months among the items to budget.
Total investment. The franchisor’s brand introduction cites an Item 7 range of $369,000 to $1,942,000 from its 2023 FDD and directs candidates to the FDD for the detail. The categories it highlights are:
- Initial franchise fee
- Build-out, net of any landlord contribution
- Conversion versus grey shell construction
- Initial inventory and equipment
- Additional funds for the first 12 months
Because these figures come from an earlier disclosure document, request the current FDD and use its Item 7 table, line by line, when you build your loan request. Our guide to fitness center start-up financing shows how a lender sizes a new gym project.
Ongoing Fees and How They Affect Your Loan
The franchisor’s public pages do not list the royalty, marketing contribution or technology fees, so you will need Item 6 of the current FDD. Whatever those fees are, lenders treat them as fixed costs of the business and subtract them before measuring how much cash is left to cover loan payments.
Rent. A 6,000 to 8,000 square foot lease is usually the largest fixed cost after payroll. Lenders compare rent to projected membership revenue and want a lease term that at least matches the loan term.
Staffing. The franchisor recommends an owner-operator or general manager, front desk staff and a wellness coach on the floor. Overnight hours can run lean, but staffed-hour payroll still has to fit the model.
Franchisor Requirements for New Owners
- Liquidity: a minimum of $150,000, per the franchisor’s franchise site and brand introduction.
- Net worth: $600,000 for a single unit, per the brand introduction.
- Involvement: owners can run the club themselves or hire a general manager.
The approval process. The franchisor lists the path as initial contact, application review, Discovery Day, franchise approval, site and lease negotiation, training and grand opening. Its support includes site selection help, a protected territory, marketing support, a club design guide, operating procedures, multi-day franchise training and a pre-opening account liaison.
Ways to Own a Lyft 24
A new club. Most owners will open a new location in a protected territory. Lenders underwrite these deals on projections, the owner’s experience and the cash injection, since there is no operating history.
Converting an existing gym. The franchisor’s own cost notes contrast conversions with grey shell builds. Reusing walls, flooring, locker rooms or equipment in a former gym can lower the loan amount; lenders will want an itemized plan of what stays.
Buying an existing location. As the system grows, resales may appear. A buyer can base the loan on actual membership counts, churn and financial statements, subject to the franchisor’s transfer approval. Read our overview of fitness center acquisition financing for how purchase loans are structured.
Financing Options for a Lyft 24 Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can fund the franchise fee, build-out, equipment and working capital in one package, subject to lender approval and the directory notes below.
SBA 504 loans. If you buy the building rather than lease it, an SBA 504 loan can finance owner-occupied real estate and long-lived equipment. Read the first directory note before choosing this path.
Conventional term loans. Borrowers with strong liquidity and collateral may prefer a conventional business loan, which avoids SBA paperwork but usually asks for more equity and a stronger balance sheet.
Equipment financing. Strength equipment, turf and the recovery suite can be financed or leased separately, which can preserve cash for build-out. See our gym equipment financing and leasing options.
Working capital and lines of credit. Membership revenue ramps up over time while rent, payroll and utilities start right away. A working capital loan or line of credit can bridge the gap and fund pre-sale marketing. Explore fitness center working capital.
Seller financing on resales. When buying an existing club, a seller may carry part of the price. A seller note is typically subordinate to the senior loan, and some loan programs limit how it can be structured.
SBA Loans for Lyft 24 Franchisees
SBA lenders generally require a franchise brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to one of its franchisees. Lyft 24 is listed under code S8593, which tells a lender the franchise documents have been reviewed. A listing does not approve any borrower.
What the three directory notes mean.
- Lease Rider and real estate: when the real estate where the gym operates will secure the SBA-guaranteed loan, the brand’s Lease Rider may not be executed. In plain terms, the lease addendum the franchisor normally uses does not apply when the borrower owns the property and pledges it.
- Lien position: the lender must make sure it obtains the correct lien position on all collateral as SBA rules require. Expect careful review of any equipment leases or other liens.
- Area representatives: an applicant operating under the brand’s Area Representative Agreement is ineligible for SBA assistance. If you plan to recruit and support other franchisees in a region, that business must be financed outside SBA programs.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our article on SBA loans for gyms covers documentation and eligibility in more depth, and the SBA loan calculator can help with early payment estimates, which are for planning only.
How Lenders Evaluate a Lyft 24 Deal
Personal credit and financial history. Lenders review credit reports, tax returns and a personal financial statement, and require personal guarantees from owners.
Net worth and liquidity. The franchisor’s $150,000 liquidity and $600,000 net worth thresholds are the starting point. Lenders also want to see reserves left over after the equity injection.
Industry and management experience. Fitness, coaching, sales or multi-site management experience helps. If you plan to hire a general manager, show who that person is.
Business plan and projections. Model memberships by tier, add-on recovery and training revenue, pre-sale results, monthly cancellations and a realistic ramp to break-even. Show how a strength-only club will compete in your market.
The FDD and franchise agreement. Lenders read Items 5, 6, 7, 12 and 17 closely, including term, renewal and transfer rules. Ask whether the current FDD includes an Item 19 financial performance representation. Our article on how lenders read the FDD explains what matters.
Site and lease. Expect review of the lease term, renewal options, landlord contribution and any use restrictions for a 24-hour operation.
Equipment and Recovery Amenities
Lyft 24 swaps treadmill rows for more strength stations and a recovery zone. Strength equipment is durable and can serve as collateral, while infrared saunas, ice baths and red light panels need electrical, plumbing and ventilation work that belongs in the build-out budget. Get contractor pricing for that infrastructure before you set the loan amount.
Multi-Unit Growth
The franchise fee is quoted per territory, so a second club means a second fee and build-out. Once your first club has stable membership, a lender can underwrite a second Lyft 24 franchise loan using its cash flow. Keep in mind the directory note: owners who take on the Area Representative role cannot use SBA financing for that arrangement.
Real-World Scenarios
A first-time owner in a grey shell. A former fitness sales manager signs for a territory and leases raw space. The lender funds the build-out and equipment through SBA 7(a), the owner contributes cash and keeps a working capital reserve for the ramp-up period.
A gym owner converting to the brand. An independent strength gym owner joins Lyft 24 and reuses much of the existing space. Financing covers the franchise fee, the recovery suite and rebranding, keeping the loan smaller than a new build.
Common Mistakes to Avoid
- Relying on older Item 7 figures instead of the current FDD
- Budgeting for recovery equipment without the plumbing and electrical work it needs
- Signing a lease before lender pre-approval
- Underestimating the ramp-up period for a new membership base
- Planning an area representative role and expecting SBA financing for it
- Leaving too little working capital after the equity injection
For more pitfalls, read the loan mistakes gym owners make most often.
Next Steps to Finance Your Lyft 24 Franchise
Step 1: Confirm you meet the requirements. Check your liquidity, net worth and credit against the franchisor’s criteria.
Step 2: Request and review the current FDD. Study Items 5, 6, 7, 12, 17 and 19 with a franchise attorney and accountant.
Step 3: Talk with a financing specialist. Do this before you commit to a site.
Step 4: Choose a site. Compare conversion spaces with grey shells and get build-out quotes.
Step 5: Build your projections. Model membership tiers, add-ons, ramp-up and fixed costs.
Step 6: Apply and close. Submit the loan package, coordinate lease signing with loan approval and fund your reserves.
Lyft 24 Franchise Loan FAQs
How much does it cost to open a Lyft 24?
The franchisor’s brand introduction cites an estimated initial investment of $369,000 to $1,942,000 from its 2023 FDD. Check the current FDD for updated figures.
What is the Lyft 24 franchise fee?
The brand introduction lists $50,000 per territory.
How much liquid capital do I need?
The franchisor asks for a minimum of $150,000 in liquid funds and a net worth of $600,000 for a single unit.
What royalty does Lyft 24 charge?
The franchisor’s public pages do not state the royalty. Item 6 of the current FDD lists it along with other ongoing fees.
Is Lyft 24 eligible for SBA loans?
Yes. The brand is on the SBA Franchise Directory under code S8593, subject to the directory notes and lender approval.
Can I use an SBA loan as an area representative?
No. The directory notes state that an applicant operating under the Area Representative Agreement is ineligible for SBA assistance.
Can I finance gym equipment separately?
Yes. Strength and recovery equipment can be financed or leased separately, and the franchisor notes that owners can purchase or lease equipment.
How big is a Lyft 24 gym?
The franchisor describes facilities of 6,000 to 8,000 square feet.
Can a first-time owner get a Lyft 24 franchise loan?
Yes, if the franchisor approves you and you meet lender standards. Experience, liquidity and a realistic ramp-up plan help.
Does Lyft 24 offer financing?
Review Item 10 of the current FDD for any franchisor financing. Most owners arrange their own loans.
Does the FDD include financial performance information?
Check Item 19 of the current FDD to see whether it includes financial performance representations.
Final Thoughts
A Lyft 24 franchise loan has to cover a strength-only floor plus a recovery suite, which means more infrastructure than a typical equipment list suggests. Owners who start from the current FDD, match their lease to their loan timeline and keep a healthy reserve for the membership ramp give themselves the best chance at a smooth opening.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise business financing and fitness center financing solutions.
