Planet Fitness Franchise Costs $1.5M – $5.1M (+ 2024 Profits)

Planet Fitness, established in 1992, has emerged as one of the largest and most rapidly expanding franchisors and operators of fitness centers in the United States, known for its considerable member and location count. 

With its headquarters situated in Hampton, New Hampshire, the franchise embarked on its franchising journey in 2000, building on a solid foundation of providing high-quality fitness experiences within a welcoming, non-intimidating environment, famously dubbed the Judgement Free Zone®. 

This distinctive approach caters to a broad demographic, including 40% of members who are first-time gym users, setting Planet Fitness apart from its competitors by promoting inclusivity and accessibility in fitness.

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.

Initial Franchise Fee

The Initial Franchise Fee is $20,000, due upon executing the Agreement. This fee is nonrecurring, nonrefundable, and considered fully earned when due.

Royalty Fee

The Royalty Fee is 7% of the EFT Dues Draft, payable per Monthly Membership Accounting Period and Annual Membership Accounting Period via EFT. It’s collected on the Monthly Membership Billing Day and Annual Membership Billing Day, respectively.

Transfer Fees

A Transfer Fee of $10,000 is applicable, except in cases of a transfer of a 5% or smaller ownership interest in the franchise. This fee covers the administrative and legal costs associated with transferring franchise ownership.

Renewal Fees

A Successor Franchise Fee equal to 50% of the then-current Initial Franchise Fee, subject to a maximum of Forty Thousand U.S. Dollars ($40,000), is payable upon granting a successor franchise.

Franchise Pros and Cons

The Pros:

• Quality training: The brand offers its franchisees comprehensive classroom and hands-on training programs. It trains them on equipment operation and maintenance, cost control, inventory control, and the basic techniques of management needed to run a successful gym.
• Marketing and advertising strategy: Planet Fitness employs an aggressive marketing strategy to create awareness and promote local fitness centers. Franchisees can leverage national, regional, and local advertising, digital marketing, and targeted promotional campaigns to reach a wider market segment.
• Third-party financing: The franchisor offers its franchisees third-party financiers for start-up and ongoing costs.
• Exclusive territory protection: The brand offers its franchisees exclusive territory protection. The franchisor does not grant any other franchises or operate related competitive units in the agreed-upon development area.
• Real estate and construction: Planet Fitness provides franchisees with real estate assistance. It assists them in locating a suitable club location, negotiating a lease, and designing and building their clubs. 
• Open membership advantage: Planet Fitness targets the majority of those not registered with franchise gyms or unsure of their fitness level. They also offer low membership fees, which set franchisees apart from the competition and improve income streams.
• Management support: The brand’s top management helps its franchisees with valuable growth strategies to establish and build successful fitness centers. It also offers them ongoing support in form of safety procedures, meetings, newsletters, and a grand opening event.

The Cons:

• No absentee ownership: The franchise does not present a passive ownership opportunity. Franchise owners must be actively involved in the decision-making and day-to-day operations of their businesses.
• Not a part-time business opportunity. The franchise cannot be operated as a side business or as a part-time business. Franchisees must follow the franchisor’s operating hours.

How to open a Planet Fitness franchise

Opening a Planet Fitness franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Planet Fitness franchise.

1. Assess Your Financial Eligibility

• Ensure you meet the minimum financial requirements: $3 million net worth and $1.5 million in liquid assets for prospective owners.
• Understand that the total investment for opening a Planet Fitness gym can range from approximately $728,290 to $3,777,800​​.

2. Complete the Online Application Form

• Visit the Planet Fitness franchise website and fill out the online form to express your interest.
• Provide detailed information about your financial status, background, and business experience.

3. Await Initial Review and Contact

• After submitting the application, wait for the franchising team to review your submission.
• The Planet Fitness franchising team will reach out to discuss your application and potential opportunities if you meet the initial criteria.

4. Participate in Discovery Day and Further Assessments

• If your application progresses, you may be invited to a Discovery Day or a similar event where you can learn more about the franchise.
• Use this opportunity to ask questions, understand the brand, and evaluate if the franchise aligns with your business goals.

5. Review and Sign the Franchise Agreement

• Upon successful evaluation, you will be presented with a Franchise Agreement.
• Review the agreement carefully, preferably with legal assistance, to understand your rights, obligations, and the terms of the franchise partnership.

6. Secure a Location and Obtain Approval

• Find a suitable location for your Planet Fitness gym, adhering to the brand’s site selection criteria and demographic targets.
• Submit the proposed location to the franchisor for approval, ensuring it meets all the brand and market requirements.

7. Complete Required Training Programs

• Attend and successfully complete the franchisor-provided training programs, which cover operations, management, equipment maintenance, and customer service.
• This training is essential for maintaining the brand’s standards and ensuring the success of your franchise​.

Disclaimer

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