How to Finance a My Gym Franchise: Kids Fitness Center Costs
By Marc Cornella
A My Gym franchise loan pays for something lenders do not see every day: a padded, equipment-filled play and fitness space where parents bring infants, toddlers and young children for weekly classes, birthday parties and camps. The financing itself is familiar, though. Most owners lease a retail space, build it out, buy the brand’s custom equipment package and keep enough working capital to carry the business while memberships grow.
This article explains what goes into the cost of a My Gym location, how the membership model shapes underwriting, where SBA financing fits and how buyers of new and existing gyms put a loan request together.
US Professional Funding is not affiliated with, sponsored by or endorsed by My Gym; 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, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
My Gym Franchise Loan at a Glance
- Brand history: the My Gym concept dates to 1983 in Southern California, and the franchise opportunity became official in 1994, according to the franchisor.
- System size: My Gym’s 2019 franchise information packet reported more than 630 My Gym locations around the world as of March 2019, with franchises contracted in more than 30 countries. Ask for the current outlet tables in Item 20 of the FDD.
- Who it serves: children from 3 months to 9 years old, according to that 2019 packet, through weekly noncompetitive classes, weekend birthday parties, camps and events.
- Royalty: the 2019 packet described a royalty of 7% of gross sales for the U.S. system. Confirm the current rate and any marketing contribution in Item 6.
- Initial fee and total investment: set out in Items 5 and 7 of the current FDD; we could not verify current figures from the franchisor’s published materials, so request the latest document before building a budget.
- Time to open: the franchisor says a location can be completely operational in 6 to 12 months.
- SBA Franchise Directory: listed as “My Gym Children’s Fitness Center” under code S1156, with no additional directory notes.
What Is My Gym?
My Gym began in 1983, when founders Yacov Sherman, Susi Sherman and Bill Caplin combined their backgrounds in dance, gymnastics and athletics into a single children’s fitness curriculum. The first gyms opened in Southern California. The franchise program became official in 1994, spread across the United States and expanded internationally in 2008, according to the franchisor’s own history.
The concept. My Gym describes weekly, age-appropriate classes built around noncompetitive gymnastics, games, sports, songs, dances and relays. Locations also host birthday parties, camps and events.
The facility. A typical gym is an indoor retail space fitted with custom padded equipment such as trampolines, swings, climbers, slides and a soft ball pit, which the franchisor’s 2019 packet describes as made by and for My Gym.
The revenue model. The franchisor describes the business as membership-based, with parties, camps and events layered on top. For a lender, that means recurring monthly tuition from families plus event revenue that can be lumpier and more seasonal.
Why lenders view My Gym the way they do. Lenders generally like recurring membership revenue and a long-established curriculum, but a children’s activity center depends on local family demographics and first-year enrollment growth. A My Gym franchise loan is usually underwritten on the lease, the ramp-up plan and the owner’s liquidity.
My Gym Franchise Costs
The franchisor’s published pages direct candidates to the FDD for fees and investment details, and we could not confirm current dollar figures from the franchisor’s own materials. The cost categories below are the ones a My Gym budget generally needs to cover; use Item 7 of the current FDD for the actual ranges.
Initial franchise fee. The franchisor’s process page says the franchise fee is paid when the franchise agreement is signed, after final approval. Item 5 states the current amount and any multi-unit or international terms.
Leasehold improvements. Most gyms lease space in a shopping center or similar retail setting. Build-out typically includes flooring, padding, restrooms, lighting, HVAC, a front desk and a party room, plus whatever ceiling support the swing equipment needs. Tenant improvement allowances from the landlord can reduce what has to be financed.
Equipment. The custom My Gym equipment package, freight and installation are a core part of the investment and a natural fit for equipment financing.
Signage, technology and pre-opening costs. Signs, enrollment software, opening supplies, pre-opening advertising and instructor wages during training all belong in the budget, since a children’s gym needs families enrolled at or soon after opening.
Training travel. Travel and lodging for formal training in Southern California are typically the owner’s expense.
Working capital. Rent, payroll and marketing continue while membership builds, so budget a reserve for the early months.
When you receive the FDD, map each Item 7 line item to a funding source: your cash, a term loan, equipment financing or a landlord allowance.
Ongoing Fees and How They Affect Your Loan
Royalty. The franchisor’s 2019 packet described a royalty of 7% of gross sales for the U.S. system. Read Item 6 of the current FDD for today’s rate, how it is calculated and when it is due.
Marketing and technology. Expect a marketing contribution and technology or software fees. Item 6 lists each one, along with transfer, renewal and training fees.
How lenders factor these costs in. A lender subtracts royalty, marketing and technology fees from projected revenue before testing whether the gym can cover rent, payroll and loan payments with room to spare in a slower enrollment month.
Franchisor Requirements for New Owners
My Gym does not publish net worth or liquid capital minimums on its franchising pages. The franchisor’s process page outlines eight steps:
- Research and prepare yourself
- Contact My Gym for more information
- Submit a franchise application
- Hold an open discussion with the franchise team, including financing questions
- Attend Discovery Day and the approval process, which includes a reference check and a credit check
- Receive feedback and complete final approval, then sign the franchise agreement and pay the franchise fee
- Work through the post-deposit phase of site selection, training and preparation
- Open the gym
Because the franchisor runs a credit check, review your own credit reports early, and ask the franchise team for any current financial qualifications in writing.
Ways to Own a My Gym
A new location. Most new owners sign a franchise agreement, secure a site and build out a new gym. Lenders underwrite a start-up on projections, the owner’s resume and liquidity, and the strength of the lease. Our start-up financing for educational centers explains how these requests are structured.
Buying an existing gym. Established gyms with an active membership base sometimes come up for sale. A resale lets a lender review real enrollment, revenue history and lease terms, which usually makes underwriting more straightforward. The franchisor must approve the buyer and the transfer. Read our article on buying a franchise resale before making an offer, and see our educational center acquisition financing options.
Financing Options for a My Gym Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan is often the first option buyers explore. It can cover the franchise fee, leasehold improvements, equipment, opening costs and working capital in one loan, or finance the purchase of an existing gym.
SBA 504 loans. The 504 program is built for owner-occupied real estate and long-lived fixed assets. Most gyms lease their space, so 504 financing usually only fits if an owner buys a building and occupies most of it.
Conventional term loans. Owners with strong credit, liquidity and operating history may choose a conventional business loan, particularly when buying an existing gym with steady membership revenue or adding a location.
Equipment financing. The custom My Gym equipment, mats, swings, sound systems and front-desk technology can often be financed separately from the build-out, preserving cash. Learn more about franchise equipment financing and leasing.
Working capital and lines of credit. A children’s gym has predictable seasonal swings: summer camps and school breaks, holiday party demand and quieter periods when family schedules change. A line of credit can bridge payroll and rent through slower months or fund marketing pushes. See our working capital for educational centers.
Seller financing on resales. A seller may agree to carry part of the purchase price of an existing gym. Any seller note would typically be subordinate to the senior lender, and SBA and conventional programs may limit how it is structured, so raise it early.
SBA Loans for My Gym Franchisees
The SBA Franchise Directory lists brands whose franchise agreements have been reviewed for SBA eligibility. SBA lenders generally require a brand to appear on the directory before they make an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower; it simply clears the franchise relationship so the lender can focus on the buyer and the business.
My Gym’s directory listing. The brand appears as “My Gym Children’s Fitness Center” under code S1156, with no special notes or addenda attached to the listing. In plain English, a qualified buyer can apply for SBA financing on a My Gym without the brand-level restrictions some franchises carry.
Loan size. The SBA 7(a) program maximum is currently $5 million, though program rules can change.
SBA application tips. Bring the current FDD and signed or draft franchise agreement, the lease or letter of intent, a detailed sources-and-uses table, a personal financial statement, tax returns and a resume showing management or child-focused experience. Our article on SBA loans for educational businesses covers sector documentation, and the SBA loan calculator gives rough payment estimates for planning only, not an offer or approval.
How Lenders Evaluate a My Gym Deal
Personal credit and financial history. Lenders review credit reports, personal tax returns and a personal financial statement, and owners typically sign a personal guarantee.
Net worth and liquidity. Lenders look for an equity injection plus reserves left over after closing. A gym that opens with a thin cushion has little room if enrollment builds more slowly than planned.
Industry and management experience. Prior experience managing staff, running a business or working with children helps. My Gym’s training program and ongoing support strengthen a first-time owner’s request, but lenders still want to see the owner’s own leadership and sales skills.
Business plan and projections. Projections should show membership enrollment month by month, average tuition, birthday party volume, camp revenue and instructor payroll. Build in the royalty and marketing fees from Item 6, a realistic ramp-up period and seasonal dips.
The FDD and franchise agreement. Lenders read the franchise term, renewal rights, transfer conditions and territory rules. Our guide to how lenders read a Franchise Disclosure Document explains which items matter most.
Site and lease. Lenders look for a family-friendly site with parking and visibility, and a lease term, including renewals, that at least matches the loan term.
Historical financials for resales. When buying an existing gym, expect to provide several years of profit and loss statements, tax returns and membership reports. Lenders compare them and look closely at enrollment trends and member retention.
Equipment and Facility Build-Out
A My Gym location is equipment-intensive for its size. The 2019 packet describes custom-designed, interlinking, padded equipment, along with features such as overhead swing supports and a dedicated storage room. That has several financing implications.
- Structural work: overhead equipment may require ceiling reinforcement, so confirm landlord approval and engineering before signing a lease.
- Freight and installation: delivery and installation add cost and timing to the build-out schedule.
- Replacement cycles: mats, padding and soft equipment wear out with heavy use, so budget for periodic refreshes.
Multi-Unit Growth and Development Agreements
Owners who build strong enrollment at one gym may look to open a second or third in nearby communities. Growth can come from new locations, from buying gyms from other franchisees or from a development arrangement if the franchisor offers one; Item 5 and Item 12 of the FDD describe any multi-unit terms and territory rights.
Financing additional gyms. Lenders can underwrite the cash flow of the existing gym alongside the new one. The first gym’s performance becomes the strongest evidence for the second. Our article on multi-unit franchise financing explains how lenders size those requests.
Real-World Scenarios
A parent turned owner opening a first gym. A former corporate manager finds a shopping center space near several schools and uses an SBA 7(a) loan for build-out, equipment and working capital. The lender focuses on her liquidity, the lease and a conservative enrollment ramp.
A buyer acquiring an established gym. A buyer purchases a gym with years of membership history from a retiring owner. The lender reviews tax returns and enrollment reports, and the seller agrees to a small subordinate note to bridge the price gap.
An owner adding a second location. An owner with a strong first gym opens a second one in a neighboring suburb. The lender underwrites both gyms’ combined cash flow and asks for a manager plan for the new site.
Common Mistakes to Avoid
- Budgeting from old or third-party figures instead of the current FDD’s Item 7 table
- Signing a lease before confirming the ceiling and structure can support the equipment
- Assuming enrollment will reach capacity in the first few months
- Leaving too little working capital for payroll and marketing during the ramp-up
- Ignoring seasonal swings in camp and party revenue when modeling loan payments
- Overlooking transfer conditions and remaining term when buying an existing gym
For more pitfalls specific to this sector, read the loan mistakes educational business owners make.
Next Steps to Finance Your My Gym Franchise
Step 1: Request the current FDD. Get the latest disclosure document and review Items 5, 6, 7, 10, 12, 17, 19 and 20 with a franchise attorney and accountant.
Step 2: Check your credit and liquidity. Pull your credit reports and assemble a personal financial statement, since both the franchisor and the lender will review them.
Step 3: Talk with a financing specialist early. Learn how a My Gym franchise loan would likely be sized and how much cash you will need before you commit to a territory.
Step 4: Complete the franchisor’s approval process. Attend Discovery Day and complete the reference and credit checks.
Step 5: Find a site and negotiate the lease. Confirm structural requirements, landlord allowances and a lease term that supports the loan.
Step 6: Submit your loan request. Provide projections, a sources-and-uses table, the FDD, franchise agreement and lease.
Step 7: Close, build and open. Coordinate construction, equipment delivery, training and pre-opening marketing so the gym opens with families already enrolled.
My Gym Franchise Loan FAQs
How much does it cost to open a My Gym franchise?
The current total is stated in Item 7 of My Gym’s FDD. The main costs are the initial franchise fee, leasehold improvements, the custom equipment package, signage, technology, pre-opening marketing, training travel and working capital. Request the latest FDD for exact ranges.
What is the My Gym franchise fee?
The franchise fee is paid when the franchise agreement is signed, according to the franchisor. Item 5 of the current FDD states the amount and any multi-unit terms.
What royalty does My Gym charge?
My Gym’s 2019 franchise information packet described a royalty of 7% of gross sales for the U.S. system. Confirm today’s rate and any marketing or technology fees in Item 6.
Can I get an SBA loan for a My Gym franchise?
Yes, if you qualify. My Gym is listed on the SBA Franchise Directory as “My Gym Children’s Fitness Center” under code S1156 with no special notes, so SBA lenders can consider a My Gym franchise loan request on its merits.
How much liquid capital or net worth do I need?
My Gym does not publish minimums on its franchising pages. Ask the franchise team for current requirements, and expect a lender to look for an equity injection plus reserves after closing.
Can I buy an existing My Gym?
Yes, when an owner sells and the franchisor approves the transfer. Lenders can underwrite a resale on its actual enrollment and revenue history.
Do I need experience with children or fitness?
Business and management experience helps most with lenders. My Gym provides formal training, which the 2019 packet describes as a 19-day course, plus pre-opening and post-opening support.
How long does it take to open?
The franchisor says a location can be completely operational in 6 to 12 months. Lease negotiation, permits and build-out timing drive most of that schedule.
Does My Gym offer financing?
Item 10 of the FDD discloses whether the franchisor offers any direct or indirect financing.
What documents do I need for a My Gym franchise loan?
Expect to provide tax returns, a personal financial statement, a resume, the FDD and franchise agreement, the lease or letter of intent and projections. Resale buyers also need the gym’s financial statements.
Does the FDD include financial performance information?
Check Item 19 of the current FDD to see whether My Gym includes financial performance representations. When buying an existing gym, rely on that gym’s actual financial statements.
Final Thoughts
A My Gym location combines a retail lease, a specialized equipment package and a membership-driven revenue model. Buyers who work from the current FDD, choose a site that fits both families and the equipment, and keep enough working capital for the enrollment ramp put themselves in a strong position with lenders, and the brand’s SBA Franchise Directory listing keeps SBA financing on the table.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and educational services financing solutions.
