Planet Fitness (PFIP LLC) is an American franchisor and operator of fitness centers based in Hampton, New Hampshire. The company reports that it has 1,500 clubs, making it one of the largest fitness club franchises by number of members and locations. There are locations across the United States as well as in other countries such as Canada, Puerto Rico, Dominican Republic, Panama, and Mexico. It markets itself as a "Judgement Free Zone" that caters to novice and casual gym users and is reported to be the nation’s fastest growing fitness center franchise.
In February 2016, the franchise was added to the Franchise Times' "Fast and Serious" list of top franchises (#1), and in its 2016 ranking of franchises, Forbes magazine ranked Planet Fitness #4. It ranked in the top 50 of Entrepreneur magazine's Franchise 500 in 2017.
Planet Fitness has the franchise fee of up to $42,500, with total initial investment from $969,600.
Initial investments: $969,600 - $4,242,500
Net-worth Requirement: $300,000
Liquid Cash Requirement: $100,000
|Name of Fee||Low||High|
|Initial Franchise Fee||$20,000||$20,000|
|Site Selection Cost||$1,000||$3,000|
|Construction Development Plan Review Fee||$0||$4,000|
|Pre-Sale/Grand Opening Marketing||$20,000||$30,000|
|Computer System. Point of Sale System, and other Supplies||$11,500||$18,000|
|Real Estate Lease Deposits||$0,000||$50,000|
|Your Out-of-Pocket Initial Training Expenses||$1,500||$6,500|
|Operating Cash (Additional Funds Pre-Opening and first six months)||$85,000||$700,000|
|Total Estimated Initial Investment||$969,600||$4,242,500|
Initial Franchise Fee: $21,000 - $42,500
Ongoing Royalty Fee: $449 - $549/mo.
Ad Royalty Fee: $300/mo.
You will pay a lump-sum nonrefundable Initial Franchise Fee in the amount of $20,000 when you sign the Franchise Agreement. The Initial Franchise Fee is uniform and non-refundable. All initial fees are the same for both initial and conversion franchises.
If you acquire rights under our Area Development program, you will pay an Area Development Fee equal to $10,000 per location to be developed under the Area Development Agreement when you sign the Area Development Agreement. The Area Development Fee is uniform and non-refundable. The Area Development Fee is in addition to the then-current Initial Franchise Fee due for each location at the time the Franchise Agreement for that location is executed.
If you sign an Area Development Agreement, the Initial Franchise Fee for each location opened under the Area Development Agreement will be $20,000 for Franchise Agreements entered into within four years of the effective date of your Area Development Agreement. After four years the Initial Franchise Fee for each location opened under the Area Development Agreement will be equal to then-current Initial Franchise Fee being charged to new franchisees. You must commit to opening a one or more PLANET FITNESS locations as a condition of acquiring area development rights, either yourself or through one or more entities in which you own 51% or more interest.
Classroom Training: 80 hours
Additional Training: Ongoing training
Absentee Ownership Allowed
Planet Fitness regions of the presence: https://www.planetfitness.com/gyms
Planet Fitness Franchise Info: www.planetfitness.com/franchising/become-a-franchisee
Planet Fitness Reviews: www.consumeraffairs.com/planet-fitness
Planet Fitness website: www.planetfitness.com
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Other fees for Planet Fitness Franchise
|Type of Fee||Amount||Due Date|
|Royalty||$7% of the total gross monthly and annual membership fees payable to you via EFT Dues Draft||Paid monthly and annually|
|Interest||Will vary under the circumstances||When underlying obligation is paid|
|Internet Membership and Balance Payment Administration Fee||Set according to our Methods of Operations, presently 55 per membership application or balance payment we process for your franchise location||Paid monthly|
|Refresher Training Workshops||$500 to $1,500|
Will vary under the circumstances.
|As we and you agree|
|Per Diem Fee||$100 to $1,000|
Will vary under the circumstances.
|As we and you agree|
|Re-Equip Costs||$314,000 to $922,000||As incurred|
|Remodel Costs||$70,000 to $600,000||As incurred|
|Fees to Evaluate and Approve Alternative Suppliers||Our reasonable costs and expenses, which currently are expected to range between $1,000 and $5,000, although costs could greatly exceed those amounts depending on the product||Upon receipt of our bill|
|Insurance||Will varу under the circumstances: estimated insurance premiums for your first year are $10,000 to $20,000||As incurred|
|National Advertising Fund Fee||2% of the total gross monthly EFT Dues Draft.||Via EFT when the Royalty is paid|
|Local Advertising Fee ("LAF")||Greater of $15,000 or 7% of the total gross quarterly EFT Dues Draft||Expended quarterly according to our Methods of Operations as per your advertising budget|
|Special Marketing Programs||Varies, maximum of 9% total gross monthly EFT Dues Draft||Upon demand|
|Auditing Costs||Our actual costs, which may range from $3,000 to $15,000||After inspection or audit|
|Franchise Agreement Transfer Fee||$10,000, plus our reasonable out-of-pocket expenses, including external legal and administrative costs we incur in connection with the transfer.||Prior to or concurrently with transfer|
|Area Development Agreement Transfer Fee||You must pay a supplemental fee of $5,000, per location remaining to be developed, plus our reasonable out-of-pocket expenses, including external legal and administrative costs we incur in connection with the transfer.||Prior to or concurrently with transfer|
|Relocation Fee||$5,000||Prior to relocation|
|Construction Development Plan Review Fee||$4,000||Upon your submission of your Construction Development Plans for our approval|
|Point of Sale Support, Processing and Account Management Services Fees||$149-$199 plus processing and credit card fees based on the number of transactions processed per month or number of eligible accounts enrolled in collections. Estimated annual transaction costs per location range from $9,000- $72,000||Monthly|
|Point of Sale Training Fee||$800 per person, per day||As incurred|
|Successor Franchise Fee||Equal to 50% of our then-current initial franchise fee. subject to maximum fee of $40,000||Concurrently with our granting a successor franchise to you|
|Indemnification||Will vary under circumstances||As incurred|
|Costs and Attorney’s Fees||Actual costs||Reimbursement of our actual costs|
|Inspection & Compliance Reimbursement||Actual costs (approximately $1,200 per visit)||Upon demand|
|Cure Period Extension Fee (Franchise Agreement)||2% of the total gross EFT Dues Draft||Paid monthly via EFT on the day designated as your Monthly Membership Billing Day, as defined in our Franchise Agreement|
|Grace Period Fee (Area Development Agreement)||$2,500||Paid monthly beginning on the first day of the Paid Grace Period|