How to Finance a PickUp USA Fitness Franchise: Basketball Gyms
By Marc Cornella
A PickUp USA Fitness franchise loan funds something most gym loans do not: a facility built around full basketball courts, with the ceiling height, flooring and space that hoops require, plus a weight room, locker rooms and enough cash to carry the club while memberships and youth leagues grow. The courts drive both the appeal and the cost, so the building decision shapes the entire financing plan.
US Professional Funding is not affiliated with, sponsored by or endorsed by PickUp USA Fitness; the name is used only to describe the business. Figures in a franchisor’s disclosure document can change from year to year, 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; review the current disclosure document and franchise agreement with a franchise attorney and an accountant.
PickUp USA Fitness Franchise Loan at a Glance
- Concept: basketball-focused fitness clubs built around organized pickup games with referees for adults, plus a youth basketball development league.
- Facility: basketball courts alongside weight and cardio areas, group and private basketball training, lounges, locker rooms and retail merchandise.
- Franchise status: sells franchises to independent owners, with franchised clubs opened in several states.
- Fees and total investment: set out in Items 5, 6 and 7 of the current Franchise Disclosure Document (FDD). We could not verify current figures from the franchisor’s own materials, so request the latest FDD before building a budget.
- SBA Franchise Directory: listed as PickUp USA under code S1299, with a note about the lease addendum when real estate secures the loan.
- Main financing drivers: a large, high-ceilinged building, court construction, fitness equipment and the membership ramp-up period.
What Is PickUp USA Fitness?
PickUp USA Fitness began in Southern California as a basketball-first gym. Its signature offer is pickup basketball with referees, so members get organized, competitive games around busy schedules instead of waiting for a run at a crowded public court.
The company started with adult-only services and later added youth programming, including a youth basketball development league. Clubs also offer group and private basketball training, weight rooms and cardio equipment, lounges, locker rooms and branded merchandise. Franchised clubs have opened in markets from the West Coast to New England.
How lenders view a basketball gym. Lenders see recurring membership dues and youth league fees as attractive, and the concept stands apart from typical gyms. They also see a big building, expensive courts and a brand with a smaller system than mainstream fitness chains. Our article on SBA loans for gyms and fitness centers covers how lenders approach fitness deals.
PickUp USA Fitness Franchise Costs
We could not confirm current cost figures from the franchisor’s own materials, so this section explains each category and where to find the exact numbers in the FDD.
Initial franchise fee
Item 5 of the FDD lists the initial franchise fee and any multi-unit or development fees. Confirm when it is due, whether any portion is refundable and whether your lender can roll it into the loan.
Building and court construction
Full-size basketball courts need wide, column-free space and high ceilings, which narrows the buildings that work to former big-box stores, warehouses and industrial flex buildings. Build-out can include slab preparation, hardwood or sport flooring, hoops and backstops, court lighting, HVAC for a large volume of air, locker rooms, showers and restrooms, a front desk and a lounge. This is usually the largest piece of the budget.
Fitness equipment and technology
Weight racks, free weights, strength machines, cardio equipment, scoreboards, shot clocks, sound systems, cameras, access control and membership software all fall here. Some owners finance equipment separately from the build-out.
Opening costs and working capital
Pre-opening payroll for referees, coaches and front desk staff, training, grand opening marketing, insurance, deposits and retail inventory come before the first dues draft. Item 7 includes an “additional funds” line for the initial operating period.
What to check in Item 7
- Initial franchise fee
- Rent, deposits and leasehold improvements
- Court flooring, hoops and court equipment
- Fitness equipment, furniture and signage
- Computer systems and software
- Training, grand opening marketing, insurance and permits
- Additional funds for the initial period
Compare each range with contractor and equipment quotes for your actual building. Lenders want a PickUp USA Fitness franchise loan budget that ties out to real bids.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, any marketing fund contribution, technology fees, transfer and renewal fees and other recurring charges. Fees based on gross revenue come off the top before rent, payroll and debt service.
Lenders deduct these fees when they calculate debt service coverage, so leaving them out of projections overstates the loan the club can carry. Refinishing hardwood, replacing worn equipment and refreshing locker rooms are recurring costs as well, and they belong in your long-term budget.
Franchisor Requirements for New Owners
We could not verify the brand’s minimum net worth or liquid capital requirements from the franchisor’s own materials. Ask the franchise team for current requirements, territory availability and any development schedule in writing.
The approval process generally moves from application and financial review to receipt of the FDD, territory selection, the franchise agreement, and then site selection and construction. Start financing conversations before signing a lease.
Ways to Own a PickUp USA Fitness Club
Opening a new club. A new club is underwritten on projections, so lenders focus on the market, the building, the construction budget and your liquidity. Our page on fitness center start-up financing covers how new gyms are funded.
Buying an existing club. A resale gives a lender real membership and league data. The franchisor must approve the transfer, and the landlord usually must consent to assigning the lease. See fitness center acquisition financing.
Owning the building. Some owners buy the building instead of leasing it. That changes the loan structure and triggers the SBA directory note discussed below. Our article on buying vs. leasing a gym building explains the trade-offs.
Financing Options for a PickUp USA Fitness Franchise
SBA 7(a) loans. An SBA 7(a) loan can combine construction, equipment, the franchise fee, opening costs and working capital, and in some cases the building purchase. The 7(a) program maximum is currently $5 million, and program rules can change.
SBA 504 loans. An owner who buys and occupies the building may use an SBA 504 loan for the real estate and major long-lived improvements, pairing it with another source for working capital.
Conventional term loans. Owners with strong liquidity, collateral and gym or business experience may qualify for conventional business loans.
Equipment financing. Strength and cardio equipment, scoreboards, cameras and access control hardware can often be financed or leased through fitness equipment financing and leasing. Your primary lender will count those payments.
Working capital and lines of credit. Memberships build gradually, and youth league registrations can be seasonal. A working capital reserve or line of credit helps cover payroll and rent during ramp-up. See fitness center working capital.
Seller financing on resales. A seller may carry part of the price on an existing club. Seller notes are typically subordinate to the primary loan, and SBA rules may limit them.
SBA Loans for PickUp USA Fitness Franchisees
SBA loans are made by participating lenders, with the SBA guaranteeing part of the loan. For a franchise, the lender confirms that the agreements leave the owner in control of the business, and the SBA Franchise Directory simplifies that review.
The directory listing. The brand appears on the SBA Franchise Directory as PickUp USA under code S1299. A listing simplifies the lender’s eligibility review; it does not approve any borrower or guarantee a loan.
What the directory note means. The listing says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the brand’s Lease Addendum may not be executed. In plain English, the franchisor’s lease addendum is designed for leased locations. If you own the building and pledge it as collateral for an SBA loan, that addendum should not be signed, so the lender’s lien on the property is not affected. Tell your lender early whether you will lease or own, so the franchise documents match the loan structure.
SBA application tips. Have the franchise agreement, a lease letter of intent or purchase contract, contractor bids, a sources and uses statement, financial statements, tax returns and résumés ready.
How Lenders Evaluate a PickUp USA Fitness Deal
Personal credit and financial history. Lenders review each significant owner’s credit, tax returns and debts, and significant owners usually sign personal guarantees.
Net worth and liquidity. Expect questions about the source of your equity and the cash left after opening, since court construction can run over budget.
Experience. Gym, sports facility, coaching or multi-employee management experience helps. A strong general manager or basketball director can strengthen the request.
Business plan and projections. Lenders want realistic assumptions for adult memberships, youth league and training revenue, rentals and retail, along with royalty, rent, utilities and referee and coach payroll.
The FDD and franchise agreement. Lenders review term, renewal, transfer and termination provisions, and want the franchise term to run at least as long as the loan. Review Items 3 and 4 of the FDD as part of your own due diligence.
Site, lease or real estate. Lease term, renewal options, assignment rights and improvement allowances all matter. Our gym lease guide explains what lenders look for.
For resales, historical financials. Lenders review membership trends, cancellations, league enrollment and tax returns.
Courts, Flooring and Equipment
Courts are the heart of a PickUp USA Fitness club and its biggest physical cost. Sport flooring needs a level, moisture-controlled slab, hoops must be anchored safely, and lighting must be even across every court. Hardwood or sport surfaces need periodic refinishing, and heavy use wears down equipment in the weight room. Budget for these cycles from day one rather than funding them from emergencies later.
Multi-Unit Growth and Development Agreements
Owners who want more than one club usually finance them one at a time. Lenders review the first club’s results, global cash flow and remaining liquidity before funding the next. SBA limits apply across all of a borrower’s SBA loans, so larger plans may shift toward conventional financing. Keep club-level financial statements from the start.
Real-World Scenarios
A former coach opening a first club. A longtime youth coach finds a vacant warehouse with tall ceilings and a landlord offering an improvement allowance. An SBA 7(a) loan covers the remaining courts, equipment, fees and working capital.
An owner buying the building. An investor buys a former big-box building and uses a 504 loan for the real estate. Because the property secures the SBA loan, the brand’s lease addendum is not signed, consistent with the directory note.
A buyer taking over a resale. A buyer purchases an existing club after reviewing its membership and league history. The seller carries a subordinate note, and the lender confirms franchisor approval and lease assignment.
Common Mistakes to Avoid
- Signing a lease before confirming the building fits full courts and ceiling height
- Underestimating flooring, HVAC and lighting costs
- Ignoring the SBA directory note when buying the building
- Projecting full memberships on opening day
- Leaving royalty and marketing fees out of projections
- Spending all cash on construction with no working capital reserve
For more, read the fitness center loan mistakes that cost owners the most.
Next Steps to Finance Your PickUp USA Fitness Franchise
Step 1: Get the current FDD. Review Items 5, 6, 7, 10, 17, 19 and 20 with a franchise attorney.
Step 2: Confirm requirements. Ask the franchisor for current net worth, liquidity and territory details in writing.
Step 3: Find and test a building. Have a contractor confirm the court layout, ceiling height and mechanical needs.
Step 4: Decide lease or own. Your choice affects the loan structure and the lease addendum.
Step 5: Build a full budget. Combine bids, FDD estimates and a working capital reserve. Our SBA loan calculator can help with planning estimates.
Step 6: Apply and coordinate closing. Submit a complete package and align closing, lease or purchase, and construction draws.
PickUp USA Fitness Franchise Loan FAQs
How much does it cost to open a PickUp USA Fitness club?
The estimated initial investment is in Item 7 of the current FDD. We could not verify current figures from the franchisor’s own materials. Building size, construction and local rents drive most of the variation.
What is the franchise fee?
Item 5 of the FDD lists the initial franchise fee. Request the current FDD for confirmed figures.
What ongoing fees apply?
Item 6 lists the royalty, marketing contributions and other recurring fees, which lenders include in your projections.
Can I get an SBA-backed PickUp USA Fitness franchise loan?
The brand is listed on the SBA Franchise Directory as PickUp USA under code S1299. Eligibility still depends on the borrower, the project and lender approval, and the lease addendum note applies if real estate secures the loan.
What does the lease addendum note mean?
If the building you own will secure the SBA loan, the brand’s lease addendum should not be signed.
How much liquid capital do I need?
We could not verify the franchisor’s current requirements. Lenders also expect equity plus reserves after opening.
Can I finance the fitness equipment separately?
Often, yes, through equipment loans or leases, though your primary lender counts those payments.
Can I buy an existing club?
Possibly, if an owner is selling. The franchisor must approve the transfer, and the landlord usually must consent.
Does the franchisor offer financing?
Item 10 of the FDD describes any financing the franchisor offers.
How long is the franchise term?
Item 17 of the FDD covers the term, renewal and transfer rules. Lenders want the term to run at least as long as the loan.
Final Thoughts
A PickUp USA Fitness franchise loan finances a basketball facility first and a gym second. Buyers who verify every figure in the current FDD, choose the right building, plan around the SBA directory note and keep reserves for the ramp-up give themselves the best chance of approval.
US Professional Funding helps franchise buyers and owners finance new locations, acquisitions, equipment and working capital. Learn more about our franchise financing and fitness center financing.
