Gym, Fitness & Sports Facility Feasibility Studies
Launch your club with confidence. MMCG delivers data‑driven, lender‑ready feasibility studies that de‑risk new gym, fitness and sports facility projects while meeting SBA and USDA requirements.
Why a Feasibility Study Matters
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Quantify Market Demand – Pinpoint the true addressable membership base, spending power and growth trends.
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Benchmark the Competition – Identify white‑space opportunities to differentiate and price effectively.
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Select the Optimal Site – Evaluate visibility, access, parking, and rent scenarios to maximise footfall.
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Specify High‑ROI Equipment – Align capital purchases with current fitness trends and target demographics.
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Design Programs That Sell – Model revenue from personal training, group classes, wellness coaching and youth sports.
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Model Financial Returns – Forecast cash flows, break‑even, ROI and lender covenant compliance.
Core Study Components
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Market & Demographic Analysis - Granular catchment mapping, population growth, income segmentation and health‑lifestyle indices.
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Competitive Landscape - Pricing, amenities, capacity utilisation and customer experience gaps across local gyms, studios and sports complexes.
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Location Assessmen - Traffic counts, drive‑time analytics, lease economics, zoning and utility cost benchmarking
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Equipment & CapEx Plan - Lifecycle cost modelling and vendor comparisons for cardio, strength, functional, aquatics and court configurations.
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Program & Service Mix - Revenue optimisation across memberships, PT, group training, clinics, tournaments, retail and sponsorships.
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Financial Projections - Monthly pro forma, ten years Pro forma, cash‑flow, balance sheet, NPV and sensitivity analyses aligned with SBA/USDA underwriting standards.
Key Performance Indicators We Track
To evaluate the financial performance and long-term sustainability of a gym, fitness center, or sports facility, we track the following key performance indicators:
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Revenue per Member
This metric reflects how much income is generated from each member, capturing both membership fees and ancillary services. It helps assess pricing strategy and cross-selling effectiveness.
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COGS & Gross Margin
Cost of Goods Sold (COGS) and gross margin measure how efficiently the facility delivers services and sells products. A strong gross margin indicates healthy profitability from core operations.
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Operating Expense Ratio
This ratio shows how much of the revenue is consumed by fixed and variable operating costs. Lower ratios suggest stronger cost control and operational efficiency.
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EBITDA & Net Profit
Earnings before interest, taxes, depreciation, and amortization (EBITDA) and net profit reflect the facility’s ability to generate cash and meet debt obligations. These are critical for assessing overall financial health.
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Return on Investment (ROI)
ROI measures the return generated relative to the initial investment. It’s a key metric for evaluating capital efficiency and making go/no-go investment decisions.
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Member Retention Rate
This measures how many members renew over time. High retention is a sign of customer satisfaction and contributes to stable, recurring revenue streams.
By tracking these KPIs, operators and investors can gain actionable insight into performance, profitability, and areas for improvement.
Start With a Complimentary Preliminary Assessment
MMCG Invest LLC offers a no‑cost, high‑level financial snapshot of your proposed gym, fitness center or sports facility. Understand viability before you commit resources.
Ready to move forward?
Call +1 (628) 225-1110 or email info@mmcginvest.com to schedule your preliminary analysis today.
MMCG Invest LLC – Analytical insight. Bankable confidence.
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What is a feasibility study and why is it important?A feasibility study is a comprehensive analysis that evaluates the viability of a proposed project from multiple angles (market, financial, technical, and regulatory). It is an essential step for developers and lenders to determine whether a project makes sense before significant investment is made. By identifying potential challenges and confirming the project’s potential early on, a feasibility study helps stakeholders make informed, data-driven decisions and mitigates the risk of costly mistakes.
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What is the scope of a feasibility study?A typical feasibility study covers several key areas of a project. This scope includes market demand analysis, financial projections, site and technical feasibility, and a review of relevant regulatory or zoning requirements. We ensure that all critical factors are examined so that developers have a complete picture of the project’s viability.
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When should I conduct a feasibility study during a project?For best results, we recommend conducting a feasibility study early in the development process—ideally before major resources are committed and before seeking financing. Developers typically commission a feasibility study once a project concept is defined but prior to finalizing land acquisition or construction plans. This timing ensures that the study’s insights can guide key decisions, helping to avoid costly changes later in the project.
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How long does it take to complete a feasibility study?The timeline for completing a feasibility study depends on the project’s complexity and the depth of analysis required. In general, a comprehensive study may take anywhere from two to four weeks for more complex developments. We work efficiently while maintaining analytical rigor and typically deliver within timelines aligned to our clients’ schedules. For select projects, we also offer expedited delivery—within 3 to 5 business days—for an additional fee. This premium option enables prioritized resource allocation and accelerated turnaround without compromising quality.
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What deliverables will I receive from a feasibility study?Key deliverables typically include: A comprehensive feasibility study report, including an executive summary assessing the project's viability. In-depth market research findings and analysis tailored to the specific asset type and location. Detailed financial projections, including pro forma models (1-Year and 10-Year), discounted cash flow (DCF), internal rate of return (IRR), sensitivity analysis, break-even analysis, and Monte Carlo simulations where applicable—covering operating expenses, revenue forecasts, and expected returns. Debt service analysis, including Debt Service Coverage Ratio (DSCR) calculations. A risk and opportunity matrix with clear, actionable recommendations for next steps. All deliverables are professionally formatted to ensure clarity and usability, enabling developers, lenders, and investors to make informed, confident decisions.
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How do feasibility studies address regulatory requirements?A thorough feasibility study evaluates the regulatory and permitting landscape relevant to the project. This includes analysis of applicable zoning ordinances, building codes, and environmental constraints. We ensure the project concept aligns with local regulatory frameworks and identify potential compliance challenges early—minimizing the risk of delays and enabling informed decision-making.
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Can a feasibility study help secure financing or loans?A professional feasibility study can be key to securing financing, providing lenders and investors with an objective assessment of the project’s viability. Banks and funding institutions often review the study’s market analysis and financial projections as part of their due diligence. Our reports are recognized for their thoroughness and credibility, helping to instill confidence in lenders and their underwriting teams—ultimately streamlining the loan approval process.
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Is a feasibility study worth the investment for developers?A feasibility study is well worth the investment, as it can save significant time and money by uncovering issues and validating a project’s potential before major investments are made. The upfront cost of a study is small compared to the potential losses from pursuing an unviable project. For developers and investors, our rigorous feasibility analysis provides peace of mind and a data-driven basis for proceeding, often preventing costly missteps and improving project outcomes.
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What methodology does MMCG use for feasibility studies?We employ a rigorous, data-driven methodology for every feasibility study. Our team of experienced analysts conducts detailed market research, financial modeling, and site evaluations using industry-leading data sources and best practices. All feasibility studies are prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP), ensuring conformance to recognized appraisal standards. This proven approach ensures our findings are reliable and objective, and it has earned us a strong reputation for accuracy and credibility in feasibility consulting.
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What kind of data are you using?MMCG uses industry-top-tier data from licensed subscriptions to high-quality providers. This includes high-resolution aerial satellite imagery, CoStar and Moody’s CRE databases, detailed demographic profiles, and mobile location‐analysis data to understand consumer behavior. By combining these sources, we deliver precise market insights that drive the rigor of our feasibility study and support robust, data-backed recommendations.
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Who conducts feasibility studies?Feasibility studies at MMCG are conducted by skilled analysts under the leadership of Michal Mohelsky, J.D., a practicing affiliate of the Appraisal Institute. To learn more about our team’s experience and credentials, please visit our Experience page.
Contact Us
Have a particular challenge you're trying to deal with? Let's discuss your project and see what we can do for you.
166 Geary St Ste 1500
San Francisco,
California, 94108
+1 (628) 225-1110