Planet Fitness

Planet Fitness, a Planet Fitness Inc franchise, has been franchising since 2003 — 11 years after the concept was founded in 1992 , currently with 2,600 total locations (2,400 franchised, 200 company-owned — a 92% franchise-to-corporate ratio that signals the operator's reliance on independent owners) in the health & fitness sector, headquartered in NH. According to the 2024 FDD, the total initial investment ranges from $970K to $4.2M — a 333% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $20K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 7.0% of gross sales with an additional 9.0% national advertising fund contribution, bringing the combined ongoing cost to 16.0% of every dollar in sales. Critically, Planet Fitness does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $2.0M, meaning the typical unit pays roughly $140K per year in royalty alone. Revenue is not profit — actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Network momentum is currently positive: Planet Fitness added units at a 4.6% net rate year-over-year (150 openings, 30 closures). Sustained positive growth is a signal that the unit-economics are working well enough to attract new operators, though late-stage growth can also reflect aggressive sales push rather than operational health. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.