Planet Fitness Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$1,515,000

-

$5,141,000

LOCATIONS

2243

Tanya

Updated

April 11, 2024

Is

Planet Fitness

a franchise?

Yes,
Planet Fitness
currently
accepts
franchise
applications

Headquartered in Hampton, New Hampshire, Planet Fitness is a leading American operator of fitness centers.

Planet Fitness was founded in 1992 by Michael and Marc Grondahl, who later partnered with Chris Rondeau, the current CEO. Its first location was in Dover, New Hampshire.

Its franchisees operate fitness training facilities offering exercise machines and free weights, fitness training services, and other related services.

Planet Fitness began franchising in 2003, and currently, it enjoys instrumental presence with more than 2,400 fitness clubs in all 50 US states, the District of Columbia, Canada, Puerto Rico, the Dominican Republic, and Australia.

How many

Planet Fitness

franchises

are there?

In 2022, there were
2243
outlets in
the United
States, of which
2010
are franchises, and
233
are corporate-owned.

What are the

Planet Fitness

franchise

fees?

Advertising fee

9.00%

Initial Franchise Fee

The Initial Franchise Fee for a Planet Fitness franchise varies. It is part of the total investment necessary to begin operation, which ranges from $1,515,000 to $3,783,000 if you finance your equipment.

This includes $61,000 to $342,000 that must be paid to the franchisor or its affiliate. If you choose to purchase your equipment, the total investment necessary ranges from $2,331,000 to $5,141,000, including $434,000 to $1,060,000 that must be paid to the franchisor or its affiliate.

Royalty Fee

The Royalty Fee is 7% of the total gross monthly and annual membership fees payable to you via EFT Dues Draft. This fee is paid monthly and annually.

Marketing Fee

The Marketing Fee is not explicitly stated in the provided excerpts. However, it is mentioned that franchisees are required to spend on marketing expenses. For instance, in the fiscal year ended December 31, 2022, the required marketing expenses for corporate clubs ranged from $69,503 to $147,828 depending on the club's performance tier.

Additional Fees

  • Area Development Fee: If you sign an Area Development Agreement, you must develop one or more Planet Fitness facilities and will pay an Area Development Fee of $10,000 per planned location (Page 1).
  • Successor Franchise Fee: If you want to renew your franchise and Planet Fitness agrees to grant a successor franchise, you pay a successor franchise fee equal to fifty percent (50%) of the initial franchise fee, not exceeding $40,000.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Planet Fitness

franchise?

It costs between
$1,515,000
and
$5,141,000
to start a
Planet Fitness
franchise.
Type of Expenditure Amount
Initial Franchise Fee $20,000
Site Selection Costs $0 to $10,000
Construction Development Plan Review Fee $0 to $4,000
Leasehold Improvements $1,250,000 to $2,221,000
Fitness Equipment $41,000 to $1,026,000
Non-Fitness Equipment $49,000 to $919,000
Pre-Sale/Grand Opening Marketing $40,000 to $80,000
Exterior Signs $14,000 to $67,000
Computer System, Point of Sale System, and other Supplies $2,000 to $11,000
Insurance $15,000 to $35,000
Real Estate Lease Deposits $0 to $87,000
Other Deposits $0 to $46,000
Professional Fees $2,000 to $25,000
Out-of-Pocket Initial Training Expenses $1,500 to $7,500
Licenses/Bonds $100 to $5,000
Additional Funds - six months $78,000 to $578,000
Total $1,515,000 to $5,141,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Planet Fitness

provide

training

to its

franchisees?

Yes,
Planet Fitness
provides
training

Owner Orientation

  • Duration: 14 hours of classroom training.
  • Content: This phase includes an introduction to the Planet Fitness philosophy and vision, the Planet Fitness story, and ongoing operations.
  • Location: Franchisor headquarters in New Hampshire and a Planet Fitness business selected by the franchisor.

Pre-Sale and Operations Training

  • Duration: 20 hours of classroom training and 20 hours of on-the-job training.
  • Content: This phase focuses on day-to-day operations, pre-sale, and grand opening procedures.
  • Location: Franchisor headquarters in New Hampshire and a Planet Fitness business selected by the franchisor.

Additional Workshops

  • Duration: 40 hours of classroom training.
  • Content: Workshops on staffing and management.
  • Location: Franchisor headquarters in New Hampshire and a Planet Fitness business selected by the franchisor.

Regional Manager Workshops

  • Duration: 16 hours of classroom training.
  • Location: Franchisor headquarters in New Hampshire and a Planet Fitness business selected by the franchisor.

Planet Fitness University eLearning Platform

  • Duration: 8 hours.
  • Content: Mandatory registration for all Responsible Owners, Approved Operators, and managers.
  • Location: E-Learning courses offered remotely at no cost to the franchisee.

Point of Sale (POS) System Training

  • Duration: 1 day of on-site training.
  • Fees: Approximately $800 per day, per person.
  • Content: Training provided by the designated POS vendor for personnel on the POS System.

Does

Planet Fitness

provides

territory

protection?

Planet Fitness Franchise does not offer territory protection.

Can a

Planet Fitness

franchise

be run as

a passive

investment?

Franchisees are expected to be actively involved in the management and operation of their Planet Fitness franchise, making it unsuitable as a purely passive investment.

Related Posts