Get All Access for $5/mo

How Planet Fitness Muscled Through Temporary Pandemic Closures to Become a Top Franchise The affordable exercise chain managed to keep the doors of every single location open in 2021. In fact, it opened dozens more. That how it landed the #7 spot on our Franchise 500 ranking.

By Blaire Briody

This story appears in the January 2022 issue of Entrepreneur. Subscribe »

Courtesy of Planet Fitness

Started franchising: 2003 Total units: 2,174 Cost to open: $936.6K-$4.6M

The last thing people wanted to do in a pandemic was get their heart rate up in a room of sweaty, panting strangers. Not surprisingly, Planet Fitness took an early hit, temporarily shutting down in all 50 states in March 2020. But the chain kept customers engaged with free live­streamed workouts and didn't lose a single one of its more than 2,000 locations — an impressive feat given that 22% of fitness gyms and ­studios nationwide had ­permanently shuttered by July 2021.

Related: Corporate Social Responsibility: Planet Fitness Takes a Stand Against Bullying

As business opened up again in 2021, gyms faced the challenge of luring members back amid ongoing concerns about Delta and after many had gotten used to the convenience of working out at home or going for a run. But Planet Fitness rose to the occasion again. It emphasized cleanliness in a new ad campaign, and equipped its digital app with ­COVID-19 wellness questions upon check-in and a "crowd meter" that lets members see how busy a facility is before leaving home. By summer, customers were returning at a pace that surprised even executives. "They're not only coming back, but they're coming back fast," says CEO Chris Rondeau.

So are franchisees, with 70 new locations opened in 2021 as of the fall. In fact, 2021 became a banner year: The third quarter brought the brand's highest franchise segment revenue on record, with same-store sales increasing 7.4%. That kind of success helped Planet Fitness land in our Top 10 for its fourth consecutive year, holding the same No. 7 spot it did in 2019 and 2020.

Related: How Planet Fitness Grew in 2020, Even While Its Gyms Were Empty

Today the brand has recouped almost its entire pre-pandemic membership, which was at an all-time high of 15.5 million in March 2020 — and increased investments in its ­subscription-based online video library and app are paying off. The app has even become an effective marketing vehicle: About 40% of users who pay for the "plus" subscription are converting to brick-and-mortar gym memberships. Rondeau has also seen a spike in Gen Z sign-ups and more members motivated by community, which bodes well for the future. "People want to come out again," says Rondeau. "They just have to feel comfortable and safe."

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Growing a Business

5 Effective Strategies to Boost Your Business's Online Presence

Boosting your online presence in 2025 is the key to success for businesses looking to grow. Working on your branding and reputation management is important to drive more sales and improve conversion.

Marketing

He Pitched His First Business at 12 and Sold a Company for 8 Figures When He Was 23. Here's This Gen Z Marketing Expert's Next Big Move.

Griffin Haddrill built a marketing empire working with artists like Justin Bieber and Lil Nas X. Learn how he tapped into Gen Z's digital culture and turned viral campaigns into a business model.

Business News

Apple Is Adding ChatGPT to iPhones This Week. Here's How It Works.

ChatGPT will take over questions that Siri can't answer.

Science & Technology

Use This Framework to Successfully Integrate AI Into Your Business Operations

Here's how to ensure both innovation and compliance when using AI in your organization.

Growing a Business

Why Business Owners Should Streamline Their Operations Now for Success in 2025

As the holiday season and year-end approach, business owners face heightened operational demands, from inventory management to spend control. By streamlining these processes and partnering with flexible suppliers, businesses can maintain efficiency, meet customer needs and focus on growth while navigating this busy period.