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- 2022 Franchise 500 Rank
#7 Ranked #8 last year
- Initial investment
$937K - $4.6M
- Units as of 2021
2,174 35.2% over 3 years
Here’s what you need to know if you’re interested in opening a Planet Fitness franchise.
Most people want their workout experience to be in a judgment-free zone.
Being the largest franchise chain in the U.S. by the number of locations and membership, Planet Fitness has more than 2,000 operating locations worldwide. More than 1,900 of those franchises are located in the United States. Planet Fitness offers fitness training services and facilities, with opportunities available for new locations. They provide a high-quality experience in a welcoming environment. Brothers Marc and Michael Grondahl founded this fitness establishment in 1992.
In 2003, the duo turned their budding business into franchise gyms that offer competitive pricing, an all-inclusive environment, and a streamlined business model.
As a Planet Fitness franchisee, you'll offer casual gym-goers fitness training services, free weights, and exercise machines. You are likely to be part of an upward trending franchise, and even with a small staff size and no fitness background, you can open a new location or convert an existing gym into your own Planet Fitness franchise business.
Why You May Want to Start a Planet Fitness Franchise
Some of the most popular franchises in the United States are gyms. You can start a Planet Fitness franchise that provides 24-hour service in a space that's open to all. Franchisees may be able to target around 80 percent of their community that's not already registered to franchise gyms or that are starting their fitness journey.
Under CEO Chris Rondeau, Planet Fitness offers a nationally recognizable brand, training, and ongoing support. They instruct their franchisees on all the operation's aspects, including a pre-sale marketing plan. Your gym will likely be outfitted with startup inventory.
Planet Fitness may offer an opportunity for casual exercisers and new or occasional gym-goers to experience a safe space where they feel less intimidated under the glare of hardcore bodybuilders. Planet Fitness may also offer low gym membership fees that suit those unsure of their availability or commitment to the franchise gyms.
What Might Make a Planet Fitness Franchise a Good Choice?
To be part of the Planet Fitness team, you should make sure you’re financially ready for an initial investment made up of a franchise fee and other startup costs. It is also important to remember that ongoing fees including advertising, royalty, and renewal fees will be present. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
Don't worry about knowing the ins and outs of running a fitness center at the beginning of your journey with Planet Fitness. The franchisor is known to offer hours of training coupled with ongoing support.
How to Open a Planet Fitness Franchise
If you want to get started with Planet Fitness, don't wait. If your net worth and available liquid capital match the brand’s requirements, you may qualify to open a Planet Fitness franchise, and you can get started with an initial investment. Franchisees should analyze their locations to make sure the market is right in that area.
As you speak to existing franchisees during the process, you can ask questions directed to the Planet Fitness team to learn about their experiences. This could be a chance to stretch your limits and open a gym that everyone can feel comfortable in.
About Planet Fitness
- Franchising Since
- 2003 (19 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees worldwide.
- # of Units
- 2,174 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Planet Fitness franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $936,600 - $4,558,000
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Planet Fitness has relationships with third-party sources which offer financing to cover the following: startup costs, equipment
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 20 hours
- Classroom Training
- 74 hours
- Additional Training
- At certified training club
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Planet Fitness landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Planet Fitness ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Planet Fitness.
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