GYMGUYZ Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
GYMGUYZ franchisees defaulted on 60.0% of SBA 7(a) loans between FY2010 and FY2019 — 9 of 15 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Fitness and Recreational Sports Centers industry average of 11.4%.
- 60.0%SBA default rate, small sample9 of 15 loans
- 15loans resolvedapproved FY2010–FY2019
- 11.4%Fitness and Recreational Sports Centers averageall SBA loans in the industry
- 30th lowestindustry rankof 30 Fitness and Recreational Sports Centers brands
| SBA default rate | 60.0% (small sample) |
|---|---|
| Loans approved | 15 |
| Loans charged off | 9 |
| Date range | FY2010–FY2019 |
| Industry | Fitness and Recreational Sports Centers |
| Industry average | 11.4% |
| Total initial investment (FDD Item 7) | $112,100–$194,000 |
| Data source | U.S. SBA 7(a) FOIA loan data |
Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.
9 of 15 GYMGUYZ SBA borrowers failed to repay — too few loans to call a rate; read it as a flag, not a verdict.
What is the GYMGUYZ franchise failure rate on SBA loans?
GYMGUYZ is a Fitness and Recreational Sports Centers franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to GYMGUYZ franchisees: 15 loans approved between fiscal 2010 and 2019, of which 9 were charged off. Loan statuses are as of June 30, 2026, and the cohort has matured, so these are settled outcomes rather than projections.
- SBA 7(a) loans approved FY2010–FY201915
- Charged off9
- Charge-off rate (small sample)60.0%
- Fitness and Recreational Sports Centers franchise benchmark11.4%
- Brand vs industry5.3x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$108,620
- New SBA loans since 202021
- Early charge-offs since 20203
How does GYMGUYZ compare with other Fitness and Recreational Sports Centers franchises?
The table sets GYMGUYZ's charge-off rate beside its Fitness and Recreational Sports Centers peers and the two economy-wide benchmarks. All figures use the same cohort — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026 — and the same denominator of resolved loans, so they are directly comparable. A cell in red is more than twice the industry benchmark.
| Measure | GYMGUYZ | Fitness and Recreational Sports Centers | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 60.0% (small sample) | 11.4% | 10.2% | 8.0% |
| Loans in sample | 15 | — | — | — |
| Defaults | 9 | — | — | — |
| Average loan size | $108,620 | — | — | — |
What would GYMGUYZ's royalty and ad fund cost at your sales level?
From GYMGUYZ's FDD Item 6 (2026): royalty 7% of sales, advertising fund 2%. Royalty and ad fund only · illustration. Other Item 6 fees, fixed or percentage, and local marketing minimums are not included.
| Annual sales | Royalty | Ad fund | Royalty + ad fund |
|---|---|---|---|
| $250,000 | $17,500 | $5,000 | $22,500 |
| $500,000 | $35,000 | $10,000 | $45,000 |
| $1,000,000 | $70,000 | $20,000 | $90,000 |
| $2,000,000 | $140,000 | $40,000 | $180,000 |
What has GYMGUYZ SBA lending looked like since 2020?
Since 2020, GYMGUYZ franchisees have taken 21 new SBA 7(a) loans. 3 have already charged off. Early defaults on loans under six years old are worth noting. Most SBA failures take longer to develop.
Loans approved since 2020, by fiscal year — counts only: 3 have charged off to date and most are still outstanding, so no rate is drawn.
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
Show the numbers behind this chart
| Fiscal year | Loans | Charged off | Rate |
|---|---|---|---|
| FY2011 | 1 | 1 | 100.0% |
| FY2015 | 2 | 0 | 0.0% |
| FY2016 | 1 | 1 | 100.0% |
| FY2017 | 5 | 3 | 60.0% |
| FY2018 | 5 | 3 | 60.0% |
| FY2019 | 1 | 1 | 100.0% |
| FY2020 | 2 | — | outstanding |
| FY2021 | 1 | — | outstanding |
| FY2023 | 7 | — | outstanding |
| FY2024 | 4 | — | outstanding |
| FY2025 | 6 | — | outstanding |
| FY2026 | 1 | — | outstanding |
How to read this
A charge-off means a franchisee borrowed, operated, and failed severely enough that the SBA wrote off the government-guaranteed loan. Unlike franchisor marketing or Item 19 disclosures, this is an observed outcome recorded by a federal agency. One caveat cuts the other way: SBA borrowers are typically less capitalized than all-cash buyers, so these rates can overstate risk for well-funded operators.
How reliable is this number?
GYMGUYZ's figure rests on 15 resolved SBA 7(a) loans approved between fiscal 2010 and 2019. That cohort has matured, so the count is a settled outcome, not a projection. With 15 resolved loans, one default moves the rate by about 6.7 percentage points. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every GYMGUYZ figure is recomputed from the public SBA FOIA file on each rebuild.
Small sample (15 loans). A single default moves this figure substantially.
Is GYMGUYZ in financial trouble? What the SBA data shows
GYMGUYZ's SBA 7(a) default rate was 60.0% for loans approved FY2010–FY2019 (9 of 15 loans charged off) — the highest of 30 Fitness and Recreational Sports Centers brands tracked here. A default rate this far above the Fitness and Recreational Sports Centers average of 11.4% is a signal worth investigating further before investing. With only 15 loans in the sample, one default moves the rate by about 6.7 percentage points, so read it as a flag rather than a verdict.
Frequently asked
- What is GYMGUYZ's franchise failure rate?
- GYMGUYZ franchisees defaulted on 60.0% of SBA 7(a) loans between FY2010 and FY2019 — 9 of 15 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Fitness and Recreational Sports Centers industry average of 11.4%.
- How does GYMGUYZ compare to other Fitness and Recreational Sports Centers franchises?
- GYMGUYZ's 60.0% SBA default rate is higher than the Fitness and Recreational Sports Centers industry average of 11.4%. See every Fitness and Recreational Sports Centers franchise ranked on the Fitness and Recreational Sports Centers industry page. Fitness and Recreational Sports Centers franchises →
- What does 'SBA default rate' mean?
- An SBA default rate is the share of SBA 7(a) loans, approved FY2010–FY2019 and since resolved (paid in full or charged off), that were charged off — written off after the borrower failed to repay. It is not a measure of unit closures.
- How much does a GYMGUYZ franchise cost?
- GYMGUYZ's 2026 FDD puts the total initial investment (Item 7) at $112,100–$194,000, including an initial franchise fee of $69,500 (Item 5). The average SBA 7(a) loan to a GYMGUYZ franchisee in the 2010s cohort was $108,620.
- Who owns GYMGUYZ?
- GYMGUYZ is franchised by GYMGUYZ Franchising LLC, according to the brand's FDD (2026).
Source
Source: U.S. Small Business Administration, 7(a) loan program charge-off data, FY2010–FY2019. Franchise data is matched on the SBA's franchise code / brand name. "Failure rate" here means the share of approved loans (resolved: paid in full or charged off) that were charged off; it is not a measure of unit closures. Last updated September 30, 2026.
Every brand in one table, with percentiles and breakdowns by year, industry and loan size: franchise SBA default rates, all 415 brands.
Cite this page
Franchise Default Rates (2026). GYMGUYZ franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 60.0% (9 of 15 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/gymguyz/ · Data & methodology · Download the dataset (CSV)