Planet Fitness Franchise

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, plus a 9.0% national ad-fund contribution on top -- 16.0% combined out of every sales dollar. 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). Growing networks tend to signal healthy unit economics for prospective operators, though it is worth distinguishing organic demand from an aggressive franchise-sales push.