With the fitness industry continuing to show potential for entrepreneurs, lenders are staying busy helping business owners open studios are fill gyms with equipment. During the 2026 Fitness Finance & Growth Conference, representatives from several lending institutions shared what they’re looking for from owners and their brands.
In his experience at the commercial financing firm Mitsubishi HC Capital America, Shye Tzadok said no industry is recession proof.
Shye Tzadok, senior business development manager at Mitsubishi HC Capital America, said the growth in the fitness industry has led to several loan signings as franchisees open units.
However, he said there are categories he refers to as ‘recession resistant.’ One of those is fitness, and the industry in recent years has only gained momentum. Tzadok said at Mitsubishi, he’s been seeing more brands come to his attention as franchisees seek loans to open or expand their operation.
His comments were made during a panel at the 2026 Fitness Finance Growth Conference earlier this month in Chicago. In the session, Tzadok, senior business development manager at Mitsubishi, was joined by Live Oak Bank Loan Officer Huntley Munn, Business Finance Depot Chief Operating Officer Marisol Cruz and Dext Capital Sales Representative Carolyn Collins.
In the panel, moderated by Franchise Times Associate Publisher Lucas Wagner, Tzadok said fitness brands can avoid issues that exist in other categories.
“In QSRs, there are a lot of fads and choices, but then beef is up one day or chicken is up one day,” Tzadok said. “You don’t have that in the fitness space. So, I think many of the lenders I’ve spoken to, and us included, we’re looking to get that money out the door for good operators and good franchisors. Are there going to be hiccups? Yeah. But that’s where I’m going to go back on having that good relationship with your lender.”
Huntley Munn, a loan officer at Live Oak Bank, said he closely reviews historical operating trends when owners are looking to acquire additional locations.
Those relationships can also come into play for expanding one’s operation. At Live Oak Bank, Munn said he’s worked regularly with business owners looking to scale with new developments or go the acquisition route. In those cases, historical fiscal information is key for any dollars going forward.
“We want to see revenue trends in the green,” Munn said. “We’re able to get comfortable with trends, even if they’re down, if the overall story is good. What we don’t want is to b lending to a fitness franchise deal that has weak margins and consistently shows that year-over-year. Membership trends are also super important, and we make sure those are consistent year-over-year, too.”
Munn added that lenders who work regularly with those in the fitness industry go in aware of the seasonality, and spikes in the first quarter or downturns in the summer months are expected. The important factor, Munn said, is the maintaining of a good membership base throughout the year.
Carolyn Collins, a sales representative with Dext Capital, said performance of the franchisor is just as critical when considering lending to franchisees.
Collins, who said she’s witnessed tremendous growth in the industry in the last decade, added that lenders look just as hard at the parent company as they do at the unit or franchisee level. She said that’s the case whether it’s larger concepts like Planet Fitness or Crunch Fitness, or emerging brands.
“Part of the underwriting is understanding the brand and what they’re doing to help the franchisee,” Collins said. “When you’re lending to businesses, you’re in the risk business. So, putting an emphasis on where does that help come into play when things go south.”
In her role at Business Finance Depot, Cruz said she regularly works with emerging concepts and new franchisees. Depending on the development the franchisee is after, Cruz said options range from SBA loans to equipment loans, and unsecured conventional financing.
“One of the nice things about our organization is that we can pivot away from SBA if it doesn’t work for those that are going to open multiple locations because of the requirements involved,” Cruz said. “If they’ve already bought the licenses, they can start off with an SBA loan on their first location, build up their membership base and do equipment financing on the second location, and maybe revert back to an SBA loan for their third.”
Business Finance Depot Chief Operating Officer Marisol Cruz said real estate is becoming more complex for fitness entrepreneurs.
Munn said it’s a method he’s worked on as well, as franchisees who may have five fitness centers with a want to expand to six or seven can acquire SBA loans for their buildout.
While the fitness industry continues to be a hot spot for franchise development, though, the issue of real estate has to be considered by new franchisees and owners looking to develop.
“The growth is there and we’re definitely seeing it,” Cruz said. “I think the exposure to fitness as a whole is everywhere. But I also would say one limitation is on the real estate side. So, if you’re looking to get your location open as quickly as possible, starting on the real estate piece earlier on in the process will certainly help us get to that loan closing sooner than later.”
The Fitness Finance & Growth Conference, presented by Franchise Times, ran from May 18-20 at the Loews Hotel in Chicago.
