# Fitness and indoor recreation properties Canonical: https://commercialdebtadvisory.com/property-types/fitness-recreation/ Status: Published Publisher: Jaken Finance Group Version: 0ec54e59ab25548be150b3d53367705affcff1685eb3f6f418be997fee3d80a5 Member revenue, retention, fit-out and occupancy obligations. ## The financing decision Can membership and activity cash flow sustain occupancy, equipment and seasonal expenses? A membership gym, climbing facility, indoor court business and family recreation venue may occupy similar-looking buildings while earning money differently. Identify recurring memberships, visits, classes, events and ancillary sales separately. Analyze an unrelated landlord’s rent stream independently from the operating business. Our preparation questions focus on collection quality and future service obligations; they are not universal lender requirements. ## What changes the analysis ### Active memberships, billed memberships and collected dues differ Bridge opening members to joins, cancellations, freezes and closing members, then reconcile billings with failed payments, refunds and bank receipts. Build separately around booking hours or event capacity for activity-based businesses. Identify the labor and maintenance required to deliver the revenue rather than transferring a gym membership assumption to every indoor recreation concept. ### Advance receipts still carry future service obligations Planet Fitness’s 2025 filing illustrates deferred revenue for membership-related receipts associated with future service periods. That company’s accounting is an example, not a margin benchmark. In the subject cash plan, identify prepaid memberships, deposits, refund obligations and the cost of serving existing customers; a large launch cash balance may not be freely distributable surplus. Sources: plnt-2025 ### Property acquisition and operating runway need separate funding SBA’s 504 overview excludes working capital and inventory from permitted uses. A fixed-asset funding proposal therefore should not be assumed to pay the operating ramp. Independently fund recruitment, marketing and payroll. For related entities, eliminate intercompany rent in combined cash; retain external debt, property expenses and equipment replacement. Confirm actual program fit with the lender and CDC. Sources: sba-504 ## Questions to prepare for a lender ### What portion of revenue renews and collects? Supply membership cohorts or booking utilization, collection failures, freezes, cancellations and channel-specific revenue evidence. ### Which cash receipts relate to services still owed? Reconcile prepaid balances, contract terms, refunds and the remaining cost of delivery, using the subject business’s accounting. Sources: plnt-2025 ### Can the expansion survive a slower membership ramp? Prepare a monthly forecast including staff, marketing, specialized fit-out, equipment debt and operating liquidity separate from property funding. Sources: sba-504 ## Preparation checklist These are preparation suggestions; the lender determines the transaction-specific requirements. - [ ] Membership or booking cohort schedule: Separate joins, departures, freezes, attendance/utilization and paying customers by product. - [ ] Billing-to-cash and deferred-revenue reconciliation: Explain failed payments, prepayments, refunds and remaining service obligations. (Sources: plnt-2025) - [ ] Equipment and specialized fit-out register: Identify ownership, financing, replacement needs and qualified inspection findings. - [ ] Occupancy/use, insurance and operating-condition records: Confirm subject-specific permitted activities and priced responsibilities with qualified advisers; no single national recreation license is assumed. - [ ] Opening budget and property/business debt bridge: Separate eligible funding uses, operating runway, external costs and eliminated related rent. (Sources: sba-504) ## Hypothetical decision ### Hypothetical: presales fund the opening celebration A new indoor club collects annual memberships before its doors open. The promoter treats presales as available equity for the building. Reconcile them to the forthcoming service period, refund exposure, staffing and utilities, then test a slower flow of new monthly members. Retain the cash needed to serve customers already paid up. Preopening collections improve liquidity only to the extent the business can still fund the services and obligations they create. ## Using the existing model The Owner-occupied commercial property workbook is a starting point for supported combined cash and debt, not a membership forecast. It does not model churn, contract refunds, prepaid service delivery, court utilization or activity-specific safety/occupancy requirements. Additional schedule: Add customer cohorts or bookings, deferred-revenue/service-cost reconciliation and monthly ramp-up cash. Existing package: https://commercialdebtadvisory.com/models/owner-occupied/ ## Sources and applicability - plnt-2025: [Planet Fitness: 2025 Form 10-K](https://www.sec.gov/Archives/edgar/data/1637207/000163720726000011/plnt-20251231.htm) — Note 2(f), Deferred revenue; Note 11, Revenue from contracts with customers. Checked 2026-10-21. Provides a company-specific example of membership receipts recognized over service periods. It is not a benchmark for independent gym margins, cancellations or valuation. - sba-504: [SBA: 504 Loans](https://www.sba.gov/Loans/504%20loans/) — How do I use a 504 loan?. Checked 2026-10-21. Supports the distinction between eligible fixed-asset uses and excluded working capital/inventory. This overview does not establish borrower eligibility or replace current program documents and lender/CDC review. AI-assisted preparation; publisher review status is recorded separately. ## Dedicated niche underwriting package Status: published Package version: d5e8e6a9c7fe53d38a4d6cb75d8176b100fec0e8c50e5a8f98430391deea29aa - [Download dedicated Excel model](https://commercialdebtadvisory.com/downloads/niche-packages/fitness-recreation-underwriting-model.xlsx) - [Download lender guide PDF](https://commercialdebtadvisory.com/downloads/niche-packages/fitness-recreation-lender-guide.pdf) The existing model discussion above concerns the core asset workbook. Use this dedicated package's instructions and limitations for its niche calculations. - All numerical values are illustrative; no market facts or lender approval are asserted. - The twelve-month operating model omits taxes on investor returns and future refinancing costs except expressly entered items. - Author verification uses Artifact Tool recalculation, saved-XLSX reimport and separate JS arithmetic; independent application verification is recorded separately. - Legal, licensing, environmental, engineering and lender-specific recognition require actual diligence.