Planet Fitness

#74

At a Glance

Products & Services: Fitness club

Number of Locations: 548

Total Investment: $672.6K - 1.66M

Founded: 1992

Began Franchising: 2003

About Planet Fitness

Planet Fitness got its start in 1992 when Michael Grondahl acquired a struggling gym. He reduced membership prices to compete against better-known brands and focused on serving occasional or first-time gym users. Every Planet Fitness location holds a pizza night for members once a month, as well as a bagel morning, and Tootsie Rolls are available at all times. Each gym also has a "Lunk Alarm" to discourage behaviors such as grunting and dropping weights.

Franchise Units

Year	U.S.	Canadian	International	Company Owned
2012	514	0	0	34
2011	416	0	0	18
2010	336	0	0	17
2009	267	0	0	11

Where Seeking Franchisees: Franchisor is seeking new franchise units throughout the U.S. and Canada.

Startup Costs, Ongoing Fees and Financing

Total Investment: $672,600 - $1,658,000
Franchise Fee: $10,000
Ongoing Royalty Fee: 5%
Term of Franchise Agreement: 10 years, renewable

Financial Requirements

Net Worth: $1,300,000
Liquid Cash Available: $400,000

Operations

40% of all franchisees own more than one unit. Absentee ownership of franchise is NOT allowed. (70% of current franchisees are owner/operators).

Financing Type	In-House	Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: Available at headquarters: 2 weeks. At franchisee's location: as needed.

Ongoing Support: Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives, Lease Negotiation

Marketing Support: Co-op advertising, Ad slicks, Regional advertising,