KBRA Assigns Preliminary Ratings to Crunch Funding, LLC, Series 2026-1 Senior Secured Notes

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to Crunch Funding, LLC (the Issuer), Series 2026-1 (Crunch 2026-1), Class A-1 VFN, Class A-2-I, and Class A-2-II notes, a whole business securitization (WBS). Crunch 2026-1 represents the Issuer’s inaugural securitization in which Crunch, LLC (Crunch Fitness, the Manager, or the Company), a franchisor and operator of fitness clubs, is contributing substantially all of its securitized revenue-generating assets to the Issuer as collateral for the offered notes.

Founded in 1989, Crunch Fitness is a brand franchisor and operator of fitness clubs across the United States, Canada, and other countries. Since 2009, the Company has operated in the High Value Low Price (HVLP) segment of fitness that allows members to access amenities beyond strength and cardio training for scaled price points. Amenities include proprietary fitness classes, Pilates, hot yoga, “Relax and Recover” services, high intensity interval training (HIIT) functional training, cycling, and others. Crunch’s HVLP clubs feature cardio and strength equipment, treadmills, stair climbers, weight racks, specialty fitness studios, recovery rooms and a turf field for differentiating physical activities.

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Methodologies

• ABS: Whole Business Securitization (WBS) ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Information on certain affiliations between directors of KBRA Ratings and rated entities or related third parties can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the US Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. Kroll Bond Rating Agency Japan K.K. is registered as a CRA with the Japan Financial Services Agency. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1018033