{"url":"https://newsforagent.com/news/2026-11-12/crunch-fitness-inaugural-securitization-kbra-ratings","markdown_url":"https://newsforagent.com/news/2026-11-12/crunch-fitness-inaugural-securitization-kbra-ratings.md","title":"KBRA Rates Crunch Fitness's First Whole Business Securitization","headline":"KBRA Assigns Preliminary Ratings to Crunch Funding's Inaugural Whole Business Securitization","description":"KBRA assigned preliminary ratings to Crunch Funding's Series 2026-1 senior secured notes, the fitness franchisor's first whole business securitization.","section":"Funding","published_at":"2026-11-12T23:49:18+00:00","modified_at":"2026-11-12T23:49:18+00:00","author":"News Desk","key_takeaways":["KBRA assigned preliminary ratings to Crunch Funding, LLC's Series 2026-1 Class A-1 VFN, Class A-2-I and Class A-2-II senior secured notes.","Crunch Fitness contributed substantially all of its securitized revenue-generating assets to the issuer as collateral.","Bloomberg reported Crunch Fitness is seeking about $800 million from a bond sale backed by franchise revenue, including $650 million of five-year bonds."],"companies":[{"name":"KBRA","is_primary":true,"profile_url":null,"website":"https://www.kbra.com"},{"name":"Crunch Fitness","is_primary":false,"profile_url":"https://akta.pro/company-profiles/00009dn/crunch-fitness","website":"https://www.crunch.com"}],"source":{"publisher":"Business Wire","title":"KBRA Assigns Preliminary Ratings to Crunch Funding, LLC, Series 2026-1 Senior Secured Notes","url":"https://www.businesswire.com/news/home/20261112879475/en/"},"other_sources":[],"tags":["Funding","KBRA","Crunch Fitness"],"body_markdown":"KBRA assigned preliminary ratings to Crunch Funding, LLC's Series 2026-1 Class A-1 VFN, Class A-2-I and Class A-2-II senior secured notes, a whole business securitization, [Business Wire](https://www.businesswire.com/news/home/20261112879475/en/) reported on November 12, 2026. Crunch Funding's Series 2026-1 is the inaugural securitization for [Crunch Fitness](https://akta.pro/company-profiles/00009dn/crunch-fitness), which is contributing substantially all of its securitized revenue-generating assets to the issuer as collateral.\n\n## Crunch Fitness's Inaugural Whole Business Deal\n\nCrunch, LLC, the manager of the transaction and a franchisor and operator of fitness clubs, was founded in 1989 and operates across the United States, Canada and other countries. Since 2009 the company has operated in the High Value Low Price segment of fitness, which gives members access to amenities beyond strength and cardio training at scaled price points, according to the rating agency's announcement.\n\nThe amenities listed for Crunch's HVLP clubs include proprietary fitness classes, Pilates, hot yoga, \"Relax and Recover\" services, high intensity interval training functional training and cycling. The clubs also feature cardio and strength equipment, treadmills, stair climbers, weight racks, specialty fitness studios, recovery rooms and a turf field for differentiating physical activities.\n\nBloomberg reported on November 11, 2026 that Crunch Fitness was seeking about $800 million from a bond sale backed by franchise revenue, with the offering potentially starting the following week. That financing included $650 million of five-year bonds, a $100 million privately placed note and a $50 million variable funding facility.\n\n## KBRA's Recent Structured Finance Ratings\n\nKBRA assigned preliminary ratings on November 10, 2026 to Pizza Hut Issuer LLC's Series 2026-1 whole business securitization notes, the first WBS for Pizza Hut, which will refinance corporate debt and is supported by a network generating about $5.4 billion in systemwide sales from 6,678 locations, FinancialContent Business Page reported. On the same day, the agency assigned preliminary ratings to 101 classes of mortgage-backed notes from PMT Loan Trust 2026-INV11, a prime RMBS sponsored by PennyMac, Business Wire Blog reported.\n\nOn November 12, 2026, KBRA assigned preliminary ratings to four classes of notes issued by Aqua Finance Issuer Trust 2026-C, a securitization backed by marine, recreational vehicle and home improvement contracts, FinancialContent Business Page reported. The agency also assigned preliminary ratings that day to Merit 2026-2, an aviation loan ABS securitization serviced by Merit AirFinance, a subsidiary of Castlelake, and to three classes of notes for Navient Refinance Loan Trust 2026-C, a $682.80 million asset-backed securitization of private education refinance loans, according to the same outlet.\n\n## Crunch's Franchisee Expansion\n\nCrunch franchisees have opened new clubs in recent weeks. Fitness Ventures relocated Crunch North Riverside into a new $5 million, 40,000-square-foot Crunch 3.0 club in Jurupa Valley, Calif., which opened in October 2026, PR Newswire reported on November 6, 2026. On November 2, 2026, PR Newswire reported that Crunch Rayzor Ranch in Denton, Texas, a $12 million, 37,038-square-foot facility operated by franchisee Southwest Fitness Holdings, will debut the Crunch 3.0 design.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}