How to Finance a SPENGA Franchise: Spin, Strength and Yoga
By Marc Cornella
A SPENGA franchise loan funds a boutique studio built around one idea: three workouts in a single class. Each SPENGA session runs 60 minutes, split into 20 minutes of spin, 20 minutes of strength training and 20 minutes of yoga, all led by one instructor. That format shapes the studio a franchisee builds, the equipment it needs and how a lender reads the business plan.
This article covers what to confirm about SPENGA franchise costs, how the brand’s SBA Franchise Directory listing and its two notes affect a loan, which financing options fit a boutique fitness studio and how lenders evaluate a new or existing SPENGA location.
US Professional Funding is not affiliated with, sponsored by or endorsed by SPENGA; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to 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.
SPENGA Franchise Loan at a Glance
- Concept: a 60-minute class combining 20 minutes each of spin, strength training and yoga, led by one instructor.
- Revenue model: monthly memberships, including unlimited and limited-visit plans, plus introductory offers, according to the brand’s studio pages.
- Footprint: studio pages on the brand’s website cover markets in states including Georgia, Arizona, Illinois, Florida, Michigan, Iowa, North Carolina, Ohio and California.
- Franchise fee, royalty and investment: confirm in Items 5, 6 and 7 of the current FDD; we could not verify current figures from the franchisor’s own materials.
- SBA Franchise Directory: listed under code S1606, with a lease document note and a requirement that the facility be open to both men and women.
What Is SPENGA?
SPENGA’s name comes from its format: spin, strength and yoga. The brand describes its class as a 60-minute workout combining the three essential components of fitness into one efficient session. Studio pages describe the spin segment as a high-calorie, low-impact warm-up, the strength segment as instructor-guided with personal modifications, and the yoga segment as a recovery block that closes the class.
How studios earn revenue. SPENGA studios sell monthly memberships at several visit levels, from unlimited plans to plans with a set number of sessions per month, and use introductory offers such as a free first session to bring in new members. That recurring membership base is what lenders focus on.
Footprint. The brand’s press page features studios in places such as Pasadena, the Denver area and Houston, and its corporate site links to a separate franchise site for prospective owners.
How lenders view SPENGA. For a SPENGA franchise loan, lenders focus on pre-sale results, membership retention, the owner’s local marketing plan and the lease.
SPENGA Franchise Costs and Your Loan Request
We could not verify current fee and investment figures from SPENGA’s own materials or a current FDD, so this section explains what to look for. Treat any figure seen elsewhere as unconfirmed until it appears in the FDD.
Initial franchise fee. Item 5 of the FDD lists the initial fee, any multi-unit or development fees and whether discounts apply.
Real estate and build-out. SPENGA studios are typically in leased retail space. A build-out generally needs separate zones for cycling, strength and yoga or room layouts that switch between them, plus a reception area, restrooms and changing facilities. Ask how much of the build-out the franchisor’s design standards specify and whether a landlord improvement allowance is assumed.
Equipment. Expect indoor cycling bikes, strength equipment, yoga mats and props, audio and lighting systems, and front-desk technology.
Opening costs and working capital. Pre-sale marketing, grand-opening campaigns, instructor hiring and training, insurance and deposits come before the first class. Item 7 should also include additional funds for the early months while membership builds.
Total investment. Review the Item 7 table line by line. It typically includes:
- Initial franchise fee
- Leasehold improvements and construction
- Architectural and design fees
- Cycling bikes, strength equipment and yoga supplies
- Audio, lighting, signage and décor
- Computer, point-of-sale and scheduling systems
- Pre-sale and grand-opening marketing
- Training-related travel and expenses
- Lease deposits, insurance, licenses and permits
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Royalty and brand fund. Item 6 lists the royalty and any brand or advertising fund contributions, usually as a percentage of gross sales or a flat monthly amount. Either way, they come off the top before rent, payroll and debt service.
Technology fees. Boutique studios typically pay for scheduling, membership billing and app platforms. Check Item 6 for required systems and their monthly cost.
Refresh and replacement. Spin bikes and strength equipment wear out with daily use, and franchise agreements often require periodic updates. Ask what equipment replacement or studio refresh is expected during the term.
How lenders factor fees in. Lenders build cash flow from projected members times average dues, subtract the royalty, fund fees, rent, instructor payroll and other costs, and then test whether what remains covers loan payments with a cushion.
Franchisor Requirements for New Owners
SPENGA’s minimum net worth and liquid capital requirements were not available from the franchisor’s own materials when we researched this article. Ask the franchise team for the current thresholds, which typically appear in the application process and may be referenced in the FDD.
What lenders also expect. Beyond the franchisor’s thresholds, lenders want a cash injection from personal funds, reserves after closing, solid credit and a plan for who will run the studio day to day. Fitness, sales or management experience helps, especially in membership sales.
The approval process. Expect an inquiry, review of the FDD, discovery conversations, a franchisor approval decision and site selection. Lenders generally want to see franchisor approval and a letter of intent or lease before closing.
Ways to Own a SPENGA
A new studio. A new SPENGA is financed on projections, so the pre-sale plan and the owner’s liquidity matter most. Our overview of financing an emerging franchise explains how lenders treat younger systems, and our fitness center start-up financing page covers launch funding.
Buying an existing studio. An operating studio comes with members, staff and a revenue history that lenders can underwrite. The purchase requires franchisor transfer approval. Read our guide to buying a boutique fitness studio and our article on buying a franchise resale.
Multiple studios. Some owners sign for more than one territory. A development agreement adds a schedule of openings, and each new studio needs its own funding plan.
Financing Options for a SPENGA Franchise Loan
SBA 7(a) loans. Because SPENGA is on the SBA Franchise Directory, an SBA 7(a) loan can fund eligible costs such as leasehold improvements, equipment, the franchise fee and working capital, subject to approval.
SBA 504 loans. The 504 program suits owner-occupied real estate and long-lived fixed assets. Most studios lease, so 504 is uncommon unless an owner buys the building.
Conventional term loans. A conventional business loan may fit an owner with strong financials, especially for an existing studio with a track record.
Equipment financing. Indoor bikes, strength racks, weights and audio systems can be financed separately, preserving cash for marketing and reserves. See fitness equipment financing and leasing.
Working capital and lines of credit. Membership revenue builds over time, and fitness demand can be seasonal. A line of credit can cover pre-sale costs, instructor payroll during ramp-up and seasonal dips. Learn more about fitness center working capital.
Seller financing on resales. When an existing studio is sold, the seller may carry part of the price. A seller note is typically subordinate to the senior loan, and SBA rules and individual lenders may limit how it is structured.
SBA Loans for SPENGA Franchisees
SBA lenders generally need a franchise brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to its franchisees. A listing does not approve any borrower. SPENGA is listed under code S1606, and the listing carries two notes.
Note one: lease documents. The directory says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Collateral Assignment and Assumption of Lease and the Consent and Agreement of Landlord may not be executed. Those documents let a lender or franchisor step into a lease. If the owner instead owns the property and pledges it, they do not apply.
Note two: open to men and women. The directory also requires the lender or certified development company to obtain an affidavit signed by the applicant stating that the business is open to both men and women, and to document that with evidence such as appropriate bath or locker rooms or membership demographics. The SBA provides a template of the affidavit. In practice, plan your build-out with facilities for all members and be ready to provide that evidence with your application.
Program limits. The SBA 7(a) program maximum is currently $5 million, though program rules can change. A single SPENGA studio typically needs far less, sized to documented costs.
Application tips. Bring the FDD, franchise agreement, lease or letter of intent, a personal financial statement, tax returns, a résumé and a membership-based projection. Our article on SBA loans for gyms covers common questions, and the SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer.
How Lenders Evaluate a SPENGA Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. Lenders want the franchisor’s thresholds met and reserves left after the equity injection.
Experience. Fitness, sales or multi-site management experience strengthens the request. If the owner will not run the studio full time, lenders want to know who will.
Business plan and projections. Projections should show pre-sale members, monthly membership growth, the mix of unlimited and limited plans, cancellations, instructor payroll, rent and fees. Lenders often stress-test retention.
The FDD and franchise agreement. Lenders check the term, renewal and transfer provisions, and Item 10 for any franchisor financing. Our article on how lenders read a Franchise Disclosure Document explains which items matter.
Site and lease. Visibility, parking, co-tenants and lease term all matter. Lenders typically want the lease to run at least as long as the loan, including options.
Equipment and Studio Design
A SPENGA studio has to deliver three distinct workouts in one hour, so layout and equipment matter. Owners plan for a fleet of indoor bikes, strength stations with free weights and accessories, a space for yoga, and audio and lighting that change mood between segments. Bikes and strength equipment see heavy use and need maintenance and periodic replacement.
Financing equipment separately can match loan terms to asset life and leave the main SPENGA franchise loan for build-out and working capital.
Multi-Unit Growth and Development Agreements
Owners who want more than one studio may sign a development agreement with an opening schedule. Lenders generally finance the first studio on its own merits and fund later studios once the first shows stable membership. A strong first studio gives the owner operating history to support later loans.
Real-World Scenarios
A fitness instructor becoming an owner. An experienced cycling and yoga instructor partners with a spouse who has business experience. They use an SBA 7(a) loan for build-out, the franchise fee and working capital, and finance bikes separately. The lender focuses on the pre-sale plan and reserves.
A buyer acquiring an existing studio. A buyer purchases an operating SPENGA. The lender reviews membership trends and cancellation rates, and the seller carries a small subordinate note.
An owner opening a second studio. After the first studio stabilizes, the owner signs a lease nearby. The lender weighs the first studio’s results and requires a separate budget for the second opening.
Common Mistakes to Avoid
- Relying on figures from unofficial sources instead of the current FDD
- Underfunding pre-sale marketing and the membership ramp-up
- Overlooking the SBA requirement to show the studio is open to both men and women
- Signing a lease shorter than the loan term
- Ignoring equipment replacement costs for bikes and strength gear
- Projecting membership without accounting for cancellations
For more pitfalls, read the fitness center loan mistakes owners make.
Next Steps to Finance Your SPENGA Franchise
Step 1: Request the FDD. Confirm current fees, royalty, Item 7 investment and owner requirements.
Step 2: Review it with advisors. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Secure a site. Identify a location and negotiate a letter of intent with a lease term that fits your financing.
Step 4: Build your plan. Model pre-sales, membership growth, retention, payroll and fees month by month.
Step 5: Talk with a financing specialist. Compare SBA 7(a), conventional and equipment financing and decide how much working capital to request.
Step 6: Apply and coordinate. Submit your documents, including the open-to-all affidavit and evidence, and align closing with construction.
SPENGA Franchise Loan FAQs
How much does a SPENGA franchise cost?
The total investment is disclosed in Item 7 of the current FDD. We could not verify a current figure from the franchisor’s own materials, so request the FDD for exact ranges.
What is the SPENGA franchise fee?
The fee is listed in Item 5 of the FDD, along with any multi-unit or development fees.
What royalty does SPENGA charge?
Item 6 of the FDD lists the royalty, brand fund and technology fees.
How much liquid capital do I need?
Ask the franchisor for its current net worth and liquidity thresholds. Lenders also want reserves after closing.
Can a SPENGA franchise loan be an SBA loan?
Yes, the brand is on the SBA Franchise Directory under code S1606, subject to lender approval of the borrower.
What does the SBA men-and-women requirement mean?
The lender must obtain an affidavit that the studio is open to both men and women and document it with evidence such as appropriate locker rooms or membership demographics.
Can I finance the spin bikes separately?
Yes. Equipment financing or leasing can cover bikes, strength equipment and audio systems apart from the main loan.
Can I buy an existing SPENGA studio?
Yes, with franchisor transfer approval. Lenders underwrite the studio’s membership and financial history.
Does SPENGA offer financing?
Review Item 10 of the FDD for any franchisor financing.
Can a first-time owner get a SPENGA franchise loan?
Yes, if the franchisor approves the candidate and the borrower meets lender requirements. A strong pre-sale plan and reserves help.
Final Thoughts
SPENGA’s three-in-one class gives owners a clear story to sell, but the loan depends on the numbers behind the membership plan. Confirm costs in the FDD, plan for the SBA’s open-to-all documentation and keep reserves for the ramp-up.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and fitness center financing solutions.
