Crunch Fitness Taps Securitization Market for $800 Million Franchise-Backed Bond Sale

Crunch Fitness is reportedly preparing to raise approximately $800 million through an asset-backed securities (ABS) bond sale tied to the company’s franchise revenues. Following preliminary talks with investors, the financing package is expected to launch as early as next week.

Led by Guggenheim Securities, the proposed $800 million financing structure includes:

• $650 million in five-year bonds, marketed primarily to institutional investors.
• $100 million in a privately placed note that can be drawn upon at a later date.
• $50 million via a variable funding facility.

The issuance adds Crunch Fitness to a growing list of companies actively utilizing whole-business securitization. Market analysts are looking to competitor Planet Fitness as a benchmark, noting that Planet Fitness’s comparable $825 million whole-business securitized debt facility provides a direct comparison for Crunch’s proposed pricing.

Originally founded in New York in 1989, Crunch Fitness has seen significant growth and private equity interest, being sold to TPG in 2019 before Leonard Green & Partners acquired a majority stake in the company in 2025.

Sources & Further Reading:

• Bloomberg: Crunch Fitness Seeks to Borrow $800 Million From ABS Bond Sale
• Investing.com: Crunch Fitness seeks $800 million from franchise-backed bonds
• Traders Union: Crunch Fitness seeks $800 million in ABS bond sale