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Running a CrossFit Facility Tips and guidance on how to open and operate a CrossFit gym.

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Old 03-15-2011, 07:43 AM   #1
Yahya Kohgadai
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leasing a location w/bad credit.

I'm not sure if this matters but for now I'm trying to open a one-on-one, studio instead of an affiliate (for now anyway).

I want to find a place but my credit is horrific due to unpaid student loans and other stuff. However, right now I'm working out of a co-op facility w/other trainers and I pay them $1500/month. I've been paying them, on time, for the last 5 months.

If there was a listing for a location that was say, $800/month. Would the fact that I've been paying almost double the amount outweigh my low credit score?
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Old 03-15-2011, 08:36 AM   #2
Krista Fudge
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Re: leasing a location w/bad credit.

Unfortunately, probably not. =(

Companies usually look for 2-3 years of payments history.
Also, that's only a small portion of whats needed. In addition to payment history, they'll look at credit scores, debt-to-income ratio, assets, income, etc.

What about renting space from another studio ($1500/mo seems outrageous). Maybe try a Karate or MMA studio?
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Old 03-15-2011, 08:50 AM   #3
Yahya Kohgadai
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Re: leasing a location w/bad credit.

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Originally Posted by Krista Debrick View Post
Unfortunately, probably not. =(

Companies usually look for 2-3 years of payments history.
Also, that's only a small portion of whats needed. In addition to payment history, they'll look at credit scores, debt-to-income ratio, assets, income, etc
hmm, well my aunt has leased a clothing store for the past 10 years with good credit. Would I be able to have the lease under her name while the business license is under my name?
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What about renting space from another studio ($1500/mo seems outrageous). Maybe try a Karate or MMA studio?
Actually the place I'm at is a pretty good deal since it's a flat rate no matter how many sessions I train. The only reason I was looking elsewhere was because I wanted my own dedicated location since people will take you more seriously as opposed to just some rinky dinky trainer working out of a gym.
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Old 03-15-2011, 01:36 PM   #4
Brendan McNamar
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Re: leasing a location w/bad credit.

$1,500 seems like a lot to me as well.

One question is equipment. If you don't own any and are getting use of equipment for $1,500 then maybe. If you do own your own equipment then find someplace cheaper.

Try Craigslist and look for space owned by individuals. If it is sitting empty they are not taking much risk letting you move in on a month to month basis. Here in Phoenix there are lots of spaces where a business occupies 75% of a building and the other 25% is available for cheap.

Bad credit will block you from dealing with big companies and banks but not so much from individual owners. You may have to offer two months rent as security deposit or something.

On a final note get started on repairing your credit. If you do build a successful business your bad credit will limit your options. Contact everyone you owe and see what you need to do to get current. Good credit opens many doors.
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Old 03-21-2011, 10:50 AM   #5
Blair Robert Lowe
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Re: leasing a location w/bad credit.

Ever think about running these private sessions out of an affiliate by leasing time/space from them? I know of a few affiliates that do this.

I approached one and they wanted me to have a CF L1 but honestly the details are between you and them. I don't know the legalities.
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Old 03-21-2011, 12:10 PM   #6
Chris Walls
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Re: leasing a location w/bad credit.

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Originally Posted by Blair Robert Lowe View Post
Ever think about running these private sessions out of an affiliate by leasing time/space from them? I know of a few affiliates that do this.

I approached one and they wanted me to have a CF L1 but honestly the details are between you and them. I don't know the legalities.
I don't know how many of them, but some boxes that it how it works. As a sub you pay them a percentage of your training fees, use their space and equipment, but you manage your own clients.
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Old 03-21-2011, 07:11 PM   #7
Yahya Kohgadai
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Re: leasing a location w/bad credit.

Quote:
Originally Posted by Blair Robert Lowe View Post
Ever think about running these private sessions out of an affiliate by leasing time/space from them? I know of a few affiliates that do this.

I approached one and they wanted me to have a CF L1 but honestly the details are between you and them. I don't know the legalities.
They will but it's kinda the same thing that I'm doing now; running my business out of someone else's gym. I want my own spac. e
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