First-Time Buyer Acquiring a Fitness Studio Franchise
- Commercial Finance Advisor
- Jan 14
- 3 min read
Updated: 5 days ago
A couple identified an opportunity to step into business ownership by opening a new fitness studio under an emerging franchise brand. It would be their first business.
While they hadn’t owned a business before, they weren’t starting from zero. They were working as a fitness trainers within a studio environment. From a personal position, there was also some stability. One spouse is an accountant with consistent income, while working part time as a fitness trainer. They also had saved around a 30% contribution toward the project.
On the surface, the opportunity made sense. From a funding perspective, it required a more careful assessment.
The Complexity
The challenge wasn’t one single issue, but the combination of factors:
No prior business ownership experience
New studio with no trading history
Franchise not recognised on major bank panels
Deposit below what many lenders require for higher-risk scenarios
Individually, these can sometimes be addressed. Together, they would typically fall outside standard bank appetite, particularly for major lenders who tend to require stronger equity in similar situations.
Assessment
Rather than approaching lenders immediately, the first step was to step back and view the deal through a credit lens.
A key part of this was how the buyer’s experience was positioned. While they hadn’t run a business before, they were already operating within a fitness environment. That distinction matters. It allowed the scenario to be framed as a progression into ownership, rather than a completely inexperienced entry.
The broader financial position also played a role:
The spouse’s accountant income provided a buffer for living expenses
The franchise model offered systems, branding, and operational support
The buyer had demonstrated commitment through their deposit
These factors help to mitigate risks and contextualise it in a way lenders can more reasonably assess.
Lenders Approach
At this point, the focus shifted to lender selection.
A traditional major bank pathway was unlikely to be suitable due to:
strict franchise panel requirements
limited appetite for startup scenarios with lower equity
Instead, the scenario aligned more closely with a lender willing to:
assess emerging or non-panel franchise models
take a broader view of borrower profile and mitigants
consider future earning potential alongside current risk factors
This included a lender prepared to review the franchise and form an internal view, rather than relying solely on pre-approved panels.
Outcome
With the scenario aligned to the right lender and presented in the appropriate context, the application was able to proceed through assessment.
What this highlights is that first-time buyers are not always limited by experience or deposit alone.
More often, the outcome comes down to:
which lender is approached
how the deal is positioned
and whether the risks are clearly understood and addressed
In many cases, a scenario doesn’t fail because it’s unworkable, but it fails because it’s assessed through the wrong lens.
All funding remains subject to lender assessment and approval.
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DISCLAIMER: This case study is provided for general information purposes only and is intended to illustrate how funding and ownership scenarios may be assessed and structured. It does not constitute credit advice or financial advice. All scenarios are indicative only and subject to individual circumstances, lender assessment, and approval. Outcomes will vary depending on financial position, business performance, and lender criteria at the time of application. We recommend seeking professional advice tailored to your personal circumstances before making any financial or business decisions. Case study details may be modified to protect privacy and must not be relied upon as a representation of actual client outcome.
