Overview
Planet Fitness is an American based fitness center that labels itself a “judgement free zone”. This fast-growing fitness brand is different from many other gyms, they focus on casual exercise rather than hardcore bodybuilding. They offer well-developed exercise equipment, free weights, training services, tanning services and other essential fitness services to their customers.
Marc and Michael Grondahl founded Planet Fitness in 1992. In the year 1997 they revealed it’s “Judgement free zone” tagline in-order to make casual fitness feel comfortable rather than serious exercise. In 2003 they started franchising from Florida. With more than 2,000 they are not only ruling in America but also operating in Canada, Dominican Republic, Panama, Mexico and Australia. Its home base is located in Hampton, New Hampshire.
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Benefits
This fitness brand has the most welcoming environment for franchisees and offers a better value to its shareholders. They offer friendly support in order to flourish more and more. Their support options include 80 hours of Classroom training, ongoing additional training and absentee ownership. They are best at offering a better customer value proposition, recession-proof business model, recognition and marketing strategy, adaptation and growth and much more.
Better Customer Value Proposition: The best thing about planet fitness franchise is they offer low-cost options to fitness freaks. With more than 15.5 million followers they are trending worldwide.
Recession-proof business model: They are working hard for massive expansion in the USA and in other parts of the world. Their recession proof business model is best for people who are looking interested.
Recognition and marketing strategy: The band offers strong recognition in order to dominate in the industry. Their marketing strategy has been a successful project. They have spent $870 million from 2011 on marketing strategies.
Quickly adapts and Grows: Their module is so flexible which helps in quick adaptation and growth.
Requirements
Here are the requirements that should be kept in view before opening a Planet Fitness Franchise. If you are interested then you need to remain updated regarding its initial Franchise Fee, net worth requirement, cash Requirement, royalty free, agreement procedure and much more.
| Initial franchise fee | $20,000 |
| Liquid assets | $1,500,000 |
| Net Worth Requirement | $3,000,000 |
| Cash Requirement | $1,500,000 |
| Royalty fee | 7% |
| Ad Royalty Fee | 9% |
| Term of Agreement | 10 years |
| Renewable | Yes |
Opportunities
They come up with hundreds of opportunities for new and experienced investors in different locations. They provide high- quality fitness opportunities in the best customer environment. They are targeting places that do not have gym membership. Their opportunities are proven by 1,500 clubs, these clubs are successfully operating worldwide.
Cost
When it comes to costs, Planet Fitness Franchise ranges from $1,625,600 – $4,921,000, including initial investment, one time fees, site selection costs and other costs that are needed to launch the franchise.
| Types of Expenditure | Amount | Payment made to |
| Initial franchise fee | $20,000 | Us |
| Site selection costs | $0 – $10,000 | Us |
| Construction development plan review fee | $0 – $4,000 | Us |
| Leasehold improvements | $1,250,000 – $2,163,000 | Approved suppliers |
| Fitness equipment | $34,000 – $953,000 | Your lender; approved supplies, our Affiliate. |
| Non- fitness equipment | $63,000 – $825,000 | Your lender: approved supplies, our Affiliate. |
| Pre-Sale/ grand opening marketing | $40,000 – $60,000 | Media companies & other third parties to promote opening business. |
| Exterior signs | $14,000 – $39,000 | Approved suppliers or per specifications |
| Computer system, point of sale system, and other supplies. | $5,000 – $20,000 | Approved suppliers or per specifications |
| Insurance | $5,000 – $30,000 | Insurance companies |
| Real Estate lease deposits | $0 – $87,000 | Landlord |
| Other deposits | $0 – $46,500 | Utilities, banks/ credit card companies, leader equipment vendors, alarm company, telephone company |
| Professional fees | $2,000 – $25,000 | Accountants, lawyers , etc |
| Your out-of-pocket initial training Expenses | $1,500 – $6,500 | Airfare, ground transportation, meals, lodging, etc. |
| Licenses/ bonds | $100 – $5,000 | Government agencies and bonding companies |
| Additional Funds -six months | $191,000 – $627,000 | Payroll, debt services ongoing pre-sale/ grand opening marketing, & cash to cover miscellaneous day to day expenses |
| Total | $1,625,600 – $4,921,000 | (Excludes the cost of purchasing or leasing real estate) |
These are the estimated figures experienced during the location opening of Planet Fitness Franchise. Experience varies depending upon a lot of factors like finance tenant improvements, location and other factors.
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Profit
There is a constant increase in earning when it comes to profit of Planet Fitness Franchise. In 2020 its retained earning was $145 millions, in 2021 it touched $210 millions, showing an increase of 44% in earnings. As per its first quarter report 2022,
- Planet Fitness made revenue $186.7 million resulting in an increase of 66.9% in revenue.
- Their system-wide sales have increased from $196 million to $961 million.
- Its Franchise segment revenue also increased by 25%.
- A shift from $38.3 million to $76.2 million can be seen in its corporate-owned stores segment revenue.
- $20.5 million to $30.4 million increase in its equipment segment revenue.
- $12.2 million to $18.4 million shift in its Net Income.
From the above description it’s clear that Planet Fitness Franchise is a profitable business.
Locations
As per January 2023, there are 2,273 Planet Fitness Franchise networks.
- California is on the top of Planet Fitness with 184 locations for every 214,739 people, with about 8% of total locations.
- Texas has taken the second place with 164 locations for every 176,805 people, which is about 7% of total locations.
- Florida with 147 locations for every 146,109 people.
- New York with 134 locations for 145K people.
- Pennsylvania with 122 locations for almost 104K people.
- Ohio with 102 locations for 114K people.
Apart from the United States, they have reached Canada, Dominican Republic, Panama, Mexico, and Australia.
Application
You need to fill an online form to get its Franchise, for further details officials of the company will contact you. But for now you have to wait in-order to apply for Planet Fitness Franchise, because currently their website shows, they are not currently accepting new Franchises applications for the US. Once they will be available you can find its application procedure on its official website https://www.planetfitness.com
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Conclusion
If you are a fitness lover and passionate towards casual fitness all-around, then Planet Fitness Franchise is for you. All you need to do is put in effort and hours in order to run this fitness business. Planet Fitness Franchise is showing a rapid increase growth at a rate of over 100 units, indicating how well it’s doing. From the last three years its franchising units and company-operated stores both have increased. Its 44% increase in its earnings during 2020 to 2021 and its 66.9% in 2022 revenue expansion tells the tale of its high growth as a company overall.
No doubt that Planet Fitness is a successful business in the Fitness Franchise industry and is showing rapid growth at every step without slowing down. Their two Membership levels, classic and black card membership is the best model to make it a big success. Planet Fitness Franchise in the USA can be a turning point in your life, give your 100% and make it worth investing. For more info, reach out to its other owners.
FAQ’s
How much does a planet Fitness Franchise cost?
When it comes to costs, Planet Fitness Franchise ranges from $1,625,600 – $4,921,000.
How much does a Planet Fitness Franchise Owner make?
A Planet Fitness Franchise owner makes approximately $513,00 to $5,554,000 annually.
Is Planet Fitness a Franchise?
Yes, Planet Fitness is a franchise and has been a franchising since 2003.
Are Planet Fitness Franchises Profitable?
It is a profitable business, its 44% increase in earnings during 2020 to 2021 and its 66.9% in 2022 revenue expansion shows it all.
How many Planet Fitness Franchises are there?
There are 2,300+ Planet Fitness Franchises.
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