How to Finance a StarCycle Franchise: Candlelit Cycling Studios
By Marc Cornella
A StarCycle franchise loan funds a boutique indoor cycling studio built around a dark, candlelit ride room, a beat-driven class and, at select class times, on-site childcare. That combination shapes the budget: a full room of bikes, a sound system, a heated-room option, a childcare space and enough working capital to build a membership base before the studio carries itself.
US Professional Funding is not affiliated with, sponsored by or endorsed by StarCycle; the name is used only to describe the business. Fees and investment figures come from the franchisor’s Franchise Disclosure Document (FDD) and can change with each edition. Loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice; review the current FDD and franchise agreement with a franchise attorney and an accountant before you sign or borrow.
StarCycle Franchise Loan at a Glance
- Concept: indoor cycling studios offering a 45-minute, beat-driven cardio ride in a candlelit room, with no experience required.
- Class menu: six formats, including a heated ride, a 30-minute express class, strength and sculpt classes that add weights and a beginner class.
- Childcare: on-site childcare at select class times, a feature the brand highlights.
- Footprint: the brand’s website lists studios in 13 cities across California, Minnesota, Oregon, Virginia and Washington.
- Fees and investment: the franchise fee, royalty, marketing fund and investment range appear in Items 5, 6 and 7 of the FDD; we could not verify current figures from the franchisor’s own published pages.
- SBA Franchise Directory: listed as StarCycle under code S2620, with no special note.
What Is StarCycle?
StarCycle was co-founded by Dionne Del Carlo, who serves as its CEO and built the ride to fill a gap in her own fitness routine. The company is based in Lake Oswego, Oregon, and franchises through StarCycle Franchise, LLC.
The studio experience is deliberately simple. The company says it built its ride room without technology so riders can focus on the music and the workout, and classes are lit by candlelight. Riders clip in with cycling shoes, which studios rent or sell, and book through the StarCycle app.
The six class formats are StarHeat, a ride in a room heated to about 80 degrees; StarStrength, which adds resistance and a longer arm section; PowerHour, for riders who want more endurance work; StarXpress, a 30-minute high-intensity class; StarSculpt, which splits time between the bike and off-bike strength work with weights; and StarBasics, a beginner session on setup, form and choreography.
How lenders view a cycling studio. Lenders see boutique studios as membership businesses with predictable monthly revenue once a base is built, but with real ramp-up risk. A single-purpose room full of bikes has limited resale value, so lenders focus on the owner’s liquidity, the pre-sale plan and the lease.
StarCycle Franchise Costs
Item 7 of the FDD sets out the estimated initial investment and its line items. We could not confirm current figures from the franchisor’s own materials, so this section explains each category and how lenders treat it.
Initial franchise fee
Disclosed in Item 5, the fee covers the license, training and opening support. It has no collateral value, so lenders weigh it against the owner’s cash injection.
Leasehold improvements
A cycling studio needs a tiered or open ride room, acoustic treatment, climate control strong enough for a heated format, locker rooms and showers, a lobby and retail area and a separate childcare room. Build-out is often the largest single cost and depends heavily on the condition of the space and any landlord allowance.
Bikes, sound and studio equipment
Expect a full fleet of indoor cycling bikes, a professional sound system, instructor platform and microphone, weights for strength and sculpt formats, shoe racks and rental shoes, laundry equipment and front-desk technology.
Opening costs and working capital
Pre-sale marketing, instructor recruiting and training, insurance and early payroll all come before the studio reaches a stable membership. Item 7 shows how many months of additional funds the franchisor recommends.
Item 7 categories to confirm
- Initial franchise fee
- Leasehold improvements and architectural fees
- Indoor cycling bikes and fitness equipment
- Sound system, lighting and technology
- Childcare room furnishings
- Signage, furniture and fixtures
- Opening retail and shoe inventory
- Pre-sale and grand opening marketing
- Lease deposits, insurance and licenses
- Additional funds for the stated initial period
Ongoing Fees and How They Affect Your Loan
Item 6 lists the royalty, brand or marketing fund, software and app fees, and any transfer or renewal fees. Most are calculated on revenue, so they grow with the studio.
Lenders subtract every recurring fee, rent and instructor payroll from projected revenue before deciding how much debt the studio can carry. Boutique studios also carry fixed costs that do not shrink in slow months, such as rent and utilities for a heated room, so projections should show month-by-month membership growth and seasonal patterns rather than one annual figure.
Franchisor Requirements for New Owners
StarCycle’s minimum net worth, liquid capital and experience requirements were not available to us from its own published materials. The company has sought individual unit franchisees and multi-unit franchisees, so ask which path it expects from you and what capital it requires for each.
Lenders add their own tests: cash for the equity injection, reserves after closing and either fitness, hospitality or management experience or a plan to hire a strong studio manager and lead instructor.
Ways to Own a StarCycle
A new studio. Most new owners open a new location, which lenders underwrite on projections, the owner’s background and the lease. These deals usually fall under fitness studio start-up financing.
Buying an existing studio. Established StarCycle studios sometimes come up for sale. A resale brings a membership base, instructors and financial history that lenders can evaluate. Our article on buying a boutique fitness studio explains what to review, and fitness business acquisition loans cover how these purchases are financed.
Multiple studios. Owners who commit to several studios need financing that follows the opening schedule. See the multi-unit section below.
Financing Options for a StarCycle Franchise
SBA 7(a) loans
An SBA 7(a) loan can bundle the franchise fee, build-out, bikes, sound system and working capital into one loan, which suits a studio whose biggest costs are improvements to leased space.
SBA 504 loans
The 504 program fits owner-occupied real estate and long-lived equipment. Most cycling studios lease retail or flex space, so 504 financing is rarely part of the opening plan.
Conventional term loans
Owners with collateral, strong credit or an existing business may qualify for conventional loans, particularly for a second studio.
Equipment financing
Bikes, sound systems and weights can be financed separately through fitness equipment financing and leasing, keeping more cash available for the build-out.
Working capital and lines of credit
The months between opening and a full membership base are the most cash-hungry. Fitness center working capital or a line of credit can cover instructor payroll, rent and marketing while memberships ramp.
Seller financing on resales
When buying an existing studio, the seller may carry part of the price as a note. Lenders generally require seller notes to be subordinate to the senior loan, and SBA rules may limit their structure.
SBA Loans for StarCycle Franchisees
StarCycle is listed on the SBA Franchise Directory under code S2620. The listing means the franchise documents have been reviewed for SBA eligibility, so lenders can consider SBA-guaranteed loans for StarCycle owners without a separate review of the franchise relationship. The directory shows no special note for the brand. The listing does not approve any borrower.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our article on SBA loans for gyms and studios explains how lenders approach fitness deals, and the SBA loan calculator helps you test payments.
When applying, bring the FDD, the franchise agreement, a personal financial statement, tax returns, a business plan and the proposed lease.
How Lenders Evaluate a StarCycle Deal
Personal credit and financial history
Lenders review credit and existing obligations and generally require personal guarantees from significant owners.
Net worth and liquidity
Expect to show an equity injection and reserves. A studio needs cash to keep paying rent and instructors while memberships grow.
Industry and management experience
Fitness, hospitality, retail or management experience helps. If you are not an instructor yourself, show how you will recruit and keep a strong teaching team.
Business plan and projections
Base projections on local demographics, nearby competition, pre-sale targets, class capacity, the childcare schedule and member retention. Show the effect of heated classes on utilities and the pace at which you add class times.
The FDD and franchise agreement
Lenders read Items 5, 6, 7, 10, 17, 19 and 20. Item 19 shows whether financial performance representations are provided, and Item 20 shows openings and closures. Review Items 3 and 4 with your attorney. Our article on the FDD in franchise financing explains what lenders look for.
The studio lease
The lease is critical. Lenders want a term that covers the loan, reasonable rent and clarity on tenant improvement allowances. Our gym lease guide covers what to negotiate.
Historical financials on a resale
For an existing studio, expect to provide tax returns, profit and loss statements, membership and attendance reports and an equipment list.
The Ride Room and Childcare: Brand-Specific Costs
Two features set a StarCycle budget apart from a basic cycling room. The heated StarHeat format calls for climate control that can hold a warm room evenly, and the candlelit, technology-free design puts the emphasis on sound, lighting and acoustics rather than screens. Get mechanical and sound quotes early.
Childcare at select class times needs a separate, safe room, staffing during those classes and any licensing your state requires. Ask the franchisor how its studios handle childcare and build those costs into projections, since the feature can help attract parents but adds payroll.
Multi-Unit Growth and Development Agreements
Owners with several studios can share marketing, management and instructor pools. Lenders usually want the first studio stable before funding the next, and they will look at combined cash flow and debt. If you sign a development agreement, match its opening schedule to the financing you can realistically secure.
Real-World Scenarios
The instructor turned owner. A longtime cycling instructor opens a studio with an SBA 7(a) loan covering the fee, build-out, bikes and working capital, and leads several classes herself to control payroll.
The parent-focused market. An owner in a suburban area with many young families highlights childcare in the pre-sale campaign. The lender looks closely at the added childcare payroll in projections.
The resale buyer. A buyer acquires an existing StarCycle with an established membership, financing it on historical cash flow and setting aside funds for bike replacement.
Common Mistakes to Avoid
- Underestimating build-out costs for acoustics, climate control and a childcare room.
- Opening with too little working capital for the membership ramp.
- Signing a lease before the franchisor and lender review it.
- Leaving childcare payroll and heated-room utilities out of projections.
- Budgeting without the current FDD’s Item 7.
These errors can weaken a StarCycle franchise loan request. See our article on fitness center loan mistakes for more.
Next Steps to Finance Your StarCycle Franchise
Step 1: Request the FDD. Review Items 3 through 7, 10, 17, 19 and 20 with a franchise attorney.
Step 2: Confirm requirements. Ask about net worth, liquidity and single- versus multi-unit expectations.
Step 3: Find a site. Look for space that can handle a ride room, childcare room and showers.
Step 4: Get quotes. Price build-out, bikes, sound and climate control.
Step 5: Build projections. Model pre-sales, membership growth, payroll and every Item 6 fee.
Step 6: Talk with a financing specialist. Compare SBA 7(a), equipment financing and working capital options, then align closing with the lease and opening date.
StarCycle Franchise Loan FAQs
How much does a StarCycle franchise cost?
The estimated initial investment is disclosed in Item 7 of the FDD. Request the current edition and get local build-out quotes before you set a budget.
What are the StarCycle franchise fee and royalty?
They appear in Items 5 and 6. Lenders deduct the royalty and marketing fund from projected revenue when sizing a loan.
Is StarCycle eligible for SBA loans?
Yes. StarCycle is listed on the SBA Franchise Directory under code S2620, with no special note, so its franchisees can be considered for SBA financing subject to lender approval.
How much liquid capital do I need?
The franchisor’s published pages do not list a figure. Ask the franchise team, and expect lenders to require an equity injection plus reserves.
Can I finance the bikes separately?
Yes. Bikes, sound systems and weights can be financed through equipment financing or leasing.
Can I buy an existing StarCycle studio?
Yes, with franchisor approval. Lenders underwrite resales on historical financials and membership data.
Can a first-time owner get a StarCycle franchise loan?
Yes, if credit, liquidity and the plan are strong. First-time owners should show how they will hire and keep good instructors.
Does StarCycle offer financing?
Any franchisor financing is disclosed in Item 10 of the FDD. Most owners arrange outside loans.
How long is the franchise term?
Term, renewal and transfer terms appear in Item 17. Lenders prefer the remaining term to exceed the loan term.
Final Thoughts
StarCycle combines a candlelit, music-driven ride with a varied class menu and childcare, and owners need to budget for all three. Buyers who get the current FDD, plan for build-out and the membership ramp and use the brand’s SBA listing wisely are well placed to secure a StarCycle franchise loan.
US Professional Funding helps franchise owners finance studio start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and fitness center loans.
