Planet Fitness Franchise Cost

Planet Fitness is one of the few franchise systems where the FDD gives you a solid top line to work from. Its FDD discloses average gross sales of $1,873,895 in Item 19. That is gross sales, not profit, but it is a filed disclosure rather than an estimate. Let's run the numbers.

The investment: $1.5M – $5.2M

Planet Fitness is not cheap. The total initial investment runs $1,525,000 to $5,221,500, with a franchise fee of $20,000. The enormous range reflects the difference between converting an existing gym space and building a new 25,000-square-foot facility from the ground up. Selected Item 7 lines (leasehold improvements, signage and technology make up the rest):

The equipment line is the wild card. Outfitting a full-size Planet Fitness with cardio machines, strength equipment, massage chairs, and the HydroMassage beds runs up to $1.1M on the filing's equipment line alone. This is not a sign-and-go franchise. It is a major capital project.

Running the math: what comes off the top line

Using the FDD disclosures, here is what comes off the average top line before rent, labor, utilities and maintenance:

What is left after those fees still has to cover the operating costs of a large-format gym, and the filing we hold gives no average net income, so ask existing franchisees what their margins look like before you model a payback period.

The recurring revenue model

What makes Planet Fitness structurally different from QSR franchises: the revenue is subscription-based. Members pay a low monthly fee (Classic) or a higher PF Black Card fee on autopay. That creates predictable, recurring revenue with extremely low marginal cost per member.

The business model works because Planet Fitness intentionally oversubscribes its facilities. A location with 8,000 members might have capacity for 300 people at a time. Most members do not come regularly, which is by design. The low price point reduces attrition (a low-priced membership is rarely worth the trouble of canceling), and the non-intimidating positioning attracts casual gym-goers who may never actually visit.

This model has been criticized as cynical, but from a franchise economics perspective, it is brilliant. Low churn + low marginal cost + high fixed-cost leverage = strong unit economics.

173 SBA loans, 0 defaults

Planet Fitness has 173 SBA 7(a) loans on file with a charge-off rate of N/A (0 defaults). The average loan of $1,042,801 reflects the capital-intensive nature of the build-out.

The average SBA charge-off rate for the Health & Fitness category is 12.3%; this site publishes a brand's own rate only when its loan record is representative enough to compare. See our failure rate by industry analysis for category context.

2,568 locations, +10.4% net unit growth

The system has 2,568 total locations, with a net unit change of +10.4%. That is healthy for a system of this size. In the most recent year Planet Fitness opened 100 locations and closed 3.

The near-zero closure rate is striking. In a category where gym closures are common, Planet Fitness locations almost never shut down. That durability reflects the strength of the recurring revenue model.

Watch out for: no territory protection

Planet Fitness uses site-specific territory (you get the location, not an area). The FDD states that the franchisor can open or authorize additional locations near yours. Given the 2,568-location base, market overlap exists in many metro areas.

Also worth noting: the initial franchise term is 12 years, with 12-year renewals. On a $1.5M – $5.2M investment, that term is the window to recoup the capital before renewal, so negotiate renewal terms carefully.

The bottom line

Planet Fitness has one of the strongest data profiles in the fitness category. Average gross sales of $1.9M (gross sales, not profit) come from a recurring membership model that few franchise systems can match. The N/A SBA charge-off rate across173 loans validates the model's financial viability.

The barriers are the $1.5M – $5.2M capital requirement, the 7.0% royalty on gross membership fees, and the lack of territory protection. This is a franchise for well-capitalized operators, not first-time buyers scraping together funding. If you can clear the capital hurdle, the data is favorable; verify it with existing franchisees.

Explore the full data on our Planet Fitness profile or compare against other fitness brands on the fitness screener.

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