Buyer Guide
Planet Fitness Franchise Cost: $680K Profit, 0% Defaults
Planet Fitness discloses $1.89M avg revenue and $680K net income with a 0% SBA default rate. Full investment breakdown and ROI math from the 2025 FDD.
Planet Fitness is one of the few franchise systems where the FDD gives you enough data to actually build a P&L. The 2025 FDD discloses average gross sales of $1,885,635 and average net income of $679,782. Those are not estimates. Those are Item 19 disclosures backed by audited franchise data. Let's run the numbers.
The investment: $1.5M to $5.2M
Planet Fitness is not cheap. The total initial investment runs $1,525,000 to $5,221,500, with a franchise fee of $10,000 to $60,000. 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.
| Cost Category | Low | High |
|---|---|---|
| Franchise fee | $10,000 | $60,000 |
| Equipment (gym & cardio) | $112,500 | $2,164,000 |
| Leasehold improvements | $800,000 | $2,000,000 |
| Signage & branding | $50,000 | $200,000 |
| Technology & POS | $15,000 | $50,000 |
| Working capital | $68,000 | $469,000 |
| Total estimated investment | $1,525,000 | $5,221,500 |
The equipment line is the wild card. Outfitting a full-size Planet Fitness with cardio machines, strength equipment, massage chairs, and the HydroMassage beds can cost over $2M alone. This is not a sign-and-go franchise. It is a major capital project.
Running the math: what you actually earn
Planet Fitness is unusually transparent about franchisee economics. Using the 2025 FDD disclosures, here is a simplified owner P&L:
| Line Item | Amount | % of Revenue |
|---|---|---|
| Average gross revenue (membership fees) | $1,885,635 | 100% |
| Royalty (7% of gross membership fees) | ($131,995) | 7.0% |
| Advertising fund (2%) | ($37,713) | 2.0% |
| Operating expenses (rent, labor, utilities, maintenance) | ($1,036,145) | 54.9% |
| Average net income (disclosed) | $679,782 | 36.1% |
A 36% net margin is remarkable for any franchise. At a midpoint investment of roughly $3.4M, the cash-on-cash return is about 20.2%, with an estimated payback period of 5 years. Not as fast as Crumbl's 1.5-year payback but on a much larger, more proven, and more defensible investment.
The median gross sales of $1,815,044 track closely to the average, which means the distribution is not wildly skewed by a few outlier locations. That consistency is reassuring. When the median and average are close, it means most locations are performing near the average, not that a few superstars are dragging up a mediocre system.
The recurring revenue model
What makes Planet Fitness structurally different from QSR franchises: the revenue is subscription-based. Members pay $10/month (Classic) or $24.99/month (PF Black Card) 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 (it is not worth canceling a $10/month membership), 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.
126 SBA loans, zero defaults
Planet Fitness has 126 SBA 7(a) loans on file with a 0.0% charge-off rate. Zero defaults across $128M in total loan volume. The average loan of roughly $1M reflects the capital-intensive nature of the build-out.
For the Health & Fitness category, where the average SBA default rate is 5.2%, Planet Fitness's 0.0% rate is exceptional. The broader gym/fitness franchise category includes many brands with double-digit default rates. Planet Fitness is the clear outlier on the positive side. See our failure rate by industry analysis for category context.
2,568 locations and moderate growth
The system has 2,568 total locations (2,298 franchised + 270 company-owned), growing at 4.4% year-over-year. That growth rate is modest relative to Wingstop or Crumbl but healthy for a system of this size. Planet Fitness added 97 net units over three years with 100 openings and only 1 closure in the most recent year.
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 franchise term is 12 years, shorter than the 15-20 years typical in QSR. On a $3.4M investment, 12 years to recoup and profit is tight, though the 5-year payback provides adequate cushion. The 12-year term with 12-year renewals means you need to negotiate renewal terms carefully.
The bottom line
Planet Fitness is one of the best franchise investments in the fitness category and one of the stronger ones across all categories. The $679K average net income on $1.89M revenue represents a 36% margin that few franchise systems can match. The 0.0% SBA default rate across 126 loans validates the model's financial viability.
The barriers are the $1.5M to $5.2M capital requirement, the 7% 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 supports the investment.
Explore the full data on our Planet Fitness profile or compare against other fitness brands on the fitness screener.
Related franchise research
Continue your research with our Anytime Fitness franchise analysis, Orangetheory franchise breakdown, and best non-food franchises ranking.
Research Planet Fitness further
- 📄 Download the Planet Fitness FDD summary — $5 per brand
- 📞 Get Planet Fitness's verified franchisee contacts — $49 per brand. Call real owners before you sign.
- 📊 Category profitability report — $99. See how Planet Fitness ranks against every competitor.
Frequently Asked Questions
- How much does a Planet Fitness franchise cost?
- A Planet Fitness franchise costs $1,525,000 to $5,221,500 in total investment, per the 2025 FDD. The franchise fee is $10,000 to $60,000. Equipment costs ($112K-$2.16M) and leasehold improvements ($800K-$2M) drive the wide range. Most new builds fall in the $3M to $4M range.
- How much does a Planet Fitness franchise make?
- Planet Fitness discloses average gross sales of $1,885,635 and average net income of $679,782 per location in its 2025 FDD. That represents a 36% net margin. The median gross sales of $1,815,044 track close to the average, indicating consistent performance across the system.
- Can you open a Planet Fitness with an SBA loan?
- Yes. Planet Fitness has a 0% SBA default rate, which makes it one of the most lender-friendly franchise brands. However, the $3.4M midpoint investment means SBA loans typically cover only a portion of the capital requirement. Most operators combine SBA lending with conventional financing.
- What is Planet Fitness's territory protection policy?
- Planet Fitness provides limited territory protection. While you receive site approval from the franchisor, the territory is not exclusive in the same sense as some other brands. Given the large-format gym model, natural geographic spacing tends to limit nearby competition.