Planet Fitness Franchise Cost, Revenue & Review 2026
- Investment
- $1.5M – $5.2M
- Disclosed sales
- $1.9M
- gross sales, not profit
- SBA charge-off
- Limited · 173 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Planet Fitness is a high-value, low-cost gym franchise targeting first-time and casual exercisers with its no-intimidation Judgement Free Zone. Franchisees operate large clubs driven by high-volume, low-priced memberships.
FranchiseVerdict summary · 2026
A PLANET FITNESS franchise requires a total initial investment of $1.5M – $5.2M, including a $20K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.9M[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $1.5M – $5.2M
- 97th pct Health & Fitn…
- Avg gross sales
- $1.9M
- 34th pct Health & Fitn…
- Royalty
- 7.0%
- 37th pct Health & Fitn…
- Units
- 2,568
- 98th pct Health & Fitn…
- SBA charge-off
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.5M – $5.2M including a $20K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.9M/year.
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better).
- GROWTHPositive: net +97 franchised outlets in the latest year (100 opened, 3 closed); 84 signed but not yet open (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Planet Fitness Franchising LLC
- Parent company
- Planet Fitness Holdings, LLC
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Planet Fitness, Inc.
- FDD Item 1, page 9 of the 2025 FDD
- Predecessor
- Pla-Fit Franchise, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Colleen Keating
- Incorporated in
- DE
- HQ
- 4 Liberty Lane West, Floor 2, Hampton, NH 03842
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $350.1M
- vs $323.7M prior year
Overview
About
- CEO
- Colleen Keating
- Headquarters
- NH
- Founded
- 2003
- FDD year
- 2025
- States available
- 52
Can you afford it, and what does the money buy?
Entry cost runs 760% above the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $0 | $20K | |
| Site Selection Costsnot refundable | $0 | $10K | |
| Construction Development Plan Review Feenot refundable | $0 | $4K | |
| Leasehold Improvements | $1.3M | $2.1M | |
| Fitness Equipment | $36K | $1.1M | |
| Non-Fitness Equipment | $76K | $1.1M | |
| Pre-Sale/Grand Opening Marketing | $40K | $132K | |
| Exterior Signs | $13K | $37K | |
| Computer System, Point of Sale System, and other Supplies | $5K | $13K | |
| Insurance | $20K | $40K | |
| Real Estate Lease Deposits | $0 | $87K | |
| Other Deposits | $0 | $46K | |
| Professional Fees | $5K | $25K | |
| Out-of-Pocket Initial Training Expenses | $2K | $8K | |
| Licenses/Bonds | $10K | $25K | |
| Additional Funds - three months | $68K | $469K | |
| Total initial investment | $1.5M | $5.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.5M – $5.2M
- Bottom third — review vs category
- Liquid capital req'd
- $68K – $469K
- Bottom third — review vs category
- Franchise fee
- $20K – $20K
- Top 40% of category vs category
- Royalty
- 7.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% |
| Technology fee | $100 |
| Training fee | $8K |
| Transfer fee | $10K |
| Renewal fee | $20K |
| Inventory (initial) | $5K – $13K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 293% above the health & fitness norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for PLANET FITNESS until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$3.6M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one PLANET FITNESS unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $1.9M
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 2,197 outlets
- vs category median 11 · large
- Range (low → high)
- $283K→$5.3MCited, not corroborated — printed on page 84 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $1.2M→$2.6M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 173 Health & Fitness brands
Cohort breakdown3 segments · Item 19
Item 19 detail
The Item 19 metric is Annual EFT Revenue - revenue on recurring monthly and annual membership fees billed to club members. The filing states it does not include paid-in-full memberships, revenue from retail sales, or other sources of revenue, so this figure is a membership-billings measure and sits below a club's total gross sales. It is the count-weighted mean of the filing's own franchised-only thirds (733 / 732 / 732 clubs at $1,205,580 / $1,803,265 / $2,613,753), taken from the table headed '2024 EFT Revenue for Franchised Clubs Only' - the corporate and combined tables on the same page are excluded.
By quartile
| Segment | Sample (outlets) | Avg |
|---|---|---|
| top quartile | 816 outlets | $2.6M |
| lower middle | 816 outlets | $1.8M |
| bottom quartile | 817 outlets | $1.2M |
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.9M/year in gross sales. Revenue-to-investment ratio: 0.6x.
Fee burden
Total ongoing fee load of 9.0% (near the Health & Fitness median).
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 10.4% CAGR over 3 years across 2,568 units — operators are staying and new ones are joining.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Health & Fitness medians
How Planet Fitness Compares
Category median of published Health & Fitness brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,568
- Opened
- 100
- Last reporting year
- Closed
- 3
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.1%
- Company-owned
- 270
- Corporate units in the system
- % franchised
- 90%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (3-yr)
- +10.4%
- Net unit change over 3 years
- 3-yr CAGR
- +10.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 0
- Transferred
- 270
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 84
- 0.03 per open outlet · Item 20 Table 5
- Projected new
- 78
- Franchisor's next-year forecast
- Transfer rate
- 10.5%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
- Termination rate
- 0.0%
- Franchisor-initiated terminations
- Ceased ops
- 0.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 51 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
2,588 current owners across 59 states.
- CA 206
- TX 198
- FL 169
- NY 145
- PA 137
- OH 110
- IL 102
- GA 95
- MI 95
- NC 89
- MA 88
- NJ 81
- +47 more states
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 173
- Loan volume
- $180.4M
- Median loan
- $998K
- 50th percentile
- Charge-off rate
- Limited · 173 loans
- Limited SBA coverage: 173 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 173 loans
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 42
- Defaults
- 0
- Typical loan rate
- 5.7%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- n=7,965 loans
- Jobs supported
- 2,580
- 2.0 per loan
- Lender concentration
- 13%
- top lender's share
Borrower mix: 80% went to startups / new businesses, 20% to established operators
Franchise vs independent — in fitness and recreational sports centers, franchised businesses charge off at 15.8% vs 18.2% for independents — franchising is associated with 13% lower SBA default risk in this category.
Vintage analysis
Planet Fitness charge-off rate by loan vintage
Top lenders financing Planet Fitness franchisees
Showing 3 of 42 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Planet Fitness from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 5.66%
- Lender concentration
- 13.5%
- Job velocity
- 2.0 per $100K
- NAICS benchmark
- 12.5%
- NAICS 713940
- Jobs supported
- 2,580
Top SBA lendersTop lender holds 13% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 17 | $28.0M | 0.0% |
| 2 | TD Bank, National Association | 12 | $9.8M | 0.0% |
| 3 | U.S. Bank, National Association | 12 | $15.0M | 0.0% |
| 4 | Bangor Savings Bank | 8 | $2.0M | 0.0% |
| 5 | Brookline Bank, a Division of Beacon Bank and Trust | 8 | $4.5M | 0.0% |
| 6 | JPMorgan Chase Bank, National Association | 6 | $5.8M | 0.0% |
| 7 | Credit Union One | 5 | $4.6M | 0.0% |
| 8 | Columbia Bank | 4 | $878K | 0.0% |
| 9 | KeyBank National Association | 4 | $3.6M | 0.0% |
| 10 | Needham Bank | 4 | $5.6M | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 12 | 0 | 0.0% |
| MAMassachusetts | 10 | 0 | 0.0% |
| MIMichigan | 10 | 0 | 0.0% |
| MEMaine | 9 | 0 | 0.0% |
| NHNew Hampshire | 9 | 0 | 0.0% |
| INIndiana | 8 | 0 | 0.0% |
| NJNew Jersey | 8 | 0 | 0.0% |
| COColorado | 6 | 0 | 0.0% |
| FLFlorida | 6 | 0 | 0.0% |
| OHOhio | 6 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Planet Fitness presents moderate-to-cautionary risk due to unprotected territory, active litigation, modest growth, and high capital requirements, though the strong average unit economics ($679K net income) partially offset these concerns.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Case 1: Hayes v. Planet Fitness (class action alleging unlawful membership agreement terms; granted summary judgment for Planet Fitness, plaintiff appealing). Case 2: LuxUrban counterclaim against Planet Fitness chief development officer alleging misrepresentation in hotel franchise context (currently in discovery).
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
Darrell Chichester, Vice President Senior Associate General Counsel of Pla-Fit Franchise, filed Chapter 7 personal bankruptcy on March 2, 2018; discharge entered July 3, 2018.
Audited financials (Item 21)
Yes · KPMG LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 75 / 100 verdict
- 01MINORUnprotected territory creates direct competition risk and member cannibalization within the same market
- 02HIGHActive litigation regarding membership agreements and advertising practices suggests potential regulatory/compliance vulnerabilities that could affect franchisees
- 03MINORModest unit growth of 4.4% YoY is below franchise system average, indicating market saturation or reduced franchisee profitability
- 04MINORFranchise agreement term of 12 years is shorter than industry standard, creating renewal risk and lack of long-term security
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail6 matters · Item 3
Litigation cases
The franchisor
Pending (1)
Jonathan Hayes and Katherine Hayes, et al. v. Planet Fitness Center Salem Trust; Planet Fitness Asset Co, LLC; Planet Fitness Franchising, LLC; Planet Fitness Holdings, LLC; and Planet Fitness, Inc.
pendingThird-party plaintiff · filed 2020-02-25 · Superior Court, Essex County, Massachusetts · Civil Action No. 2077-CV-00235B
“Civil Action No. 2077-CV-00235B, Superior Court, Essex County, Massachusetts. On February 25, 2020, Planet Fitness member Katherine Hayes and her husband Jonathan Hayes filed a putative class action alleging the membership agreement Hayes signed contains unlawful terms in the form of a release of claims.”Page 16 of the 2025 FDD, Item 3
Outcome:“On October 7, 2024, the Court issued a decision granting the Planet Fitness parties’ motion for summary judgment and denying the plaintiff’s motion for class certification. Plaintiff has filed an appeal of the decision.” (page 17)
Parent, affiliates and predecessor
Concluded (4)
Planet Fitness International Franchise v. JEG-United, LLC and Ray Miolla
settledBrought against a franchisee · Planet Fitness International Franchise, LLC ('International Franchise') · filed 2020-06-10 · United States District Court, District of New Hampshire · Civil Action No. 1:20-cv-00693
“Civil Action No. 1:20-cv-00693, United States District Court, District of New Hampshire. On June 10, 2020, our affiliate International Franchise commenced an action against JEG-United, LLC (“JEG”) to require JEG to satisfy its obligations to sell its Planet Fitness locations in Mexico to International Franchise pursuant to a letter agreement entered into by the parties in March 2019”Page 17 of the 2025 FDD, Item 3
Outcome:“This matter was settled before trial. Under the settlement terms, our affiliate agreed to repurchase the Planet Fitness franchises operated by JEG in Mexico, and JEG granted a release of all claims.” (page 18)
Scenic Investments Colorado Fitness, LLC v. Pla-Fit Franchise, LLC
settledBrought by a franchisee · Pla-Fit Franchise, LLC · filed 2017-05-04 · American Arbitration Association · 01-17-0002-6156
“Scenic Investments Colorado Fitness, LLC v. Pla-Fit Franchise, LLC: American Arbitration Association, Case No. 01-17-0002-6156. On May 4, 2017, Scenic Investments Colorado Fitness, LLC (“Scenic”) filed a Demand for Arbitration of claims arising out of the termination of their Area Development Agreement with Pla-Fit Franchise.”Page 18 of the 2025 FDD, Item 3
Outcome:“This matter was settled on August 10, 2018. Under the settlement terms, we repurchased four franchises operated by Scenic, and Scenic granted a release of all claims.”
Conway v. Planet Fitness Holdings, LLC et al.
judgmentThird-party plaintiff · Planet Fitness Holdings, LLC and Pla-Fit Franchise, LLC (collectively 'Planet Fitness'), plus certain former owners and officers · filed 2013-05-10 · Superior Court, Essex County, Massachusetts · Civil Action No. 2013-756
“Conway v. Planet Fitness Holdings, LLC et al., Civil Action No. 2013-756, Superior Court, Essex County, Massachusetts. On May 10, 2013, the former CFO of Pla-Fit Franchise, Jayne Conway (“Conway”), filed a civil complaint for an unspecified sum against Pla- Fit Franchise and Holdings (collectively, “Planet Fitness”)”Page 18 of the 2025 FDD, Item 3
Outcome:“In her Complaint, Conway alleged that Defendants withheld information, and/or made misrepresentations to her, about the status and value of her ownership interests in Planet Fitness in the course of negotiating and finalizing her separation and settlement agreement with Planet Fitness.”
In re: Planet Fitness Holdings, LLC, Pla-Fit Franchise, LLC, and Planet Fitness NAF, LLC
settledGovernment or regulatory action · Pla-Fit Franchise, LLC, with Planet Fitness Holdings, LLC and Planet Fitness NAF, LLC · New York Office of the Attorney General · Assurance No. 15-182
“In re: Planet Fitness Holdings, LLC, Pla-Fit Franchise, LLC, and Planet Fitness NAF, LLC, Assurance No. 15-182. In the spring of 2013, the New York Office of the Attorney General (OAG) alleged that certain references to “free” or “unlimited” in Planet Fitness advertising constituted a deceptive practice under New York law”Page 18 of the 2025 FDD, Item 3
Outcome:“In a November 17, 2015 settlement agreement between the OAG and Pla-Fit Franchise and the named affiliates, it was agreed that Pla-Fit Franchise would no longer approve marketing materials for locations in New York State that referred to tanning services as “free” or “unlimited,””
Officers and directors (individuals, not the company)
Pending (1)
Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc., Baymont Franchise Systems, Inc. v. Luxurban Hotels Inc., Luxurban Re Holdings LLC, Corphousing RSL LLC, Brian Ferdinand.
pendingThird-party plaintiff · Chip Ohlsson (currently the franchisor's Chief Development Officer; sued as Wyndham's chief development officer) · filed 2024 · Superior Court, Morris County, New Jersey · MRS-L-000977-24
“Wyndham Hotel Group, LLC, TMH Worldwide, LLC, Travelodge Hotels, Inc., Baymont Franchise Systems, Inc. v. Luxurban Hotels Inc., Luxurban Re Holdings LLC, Corphousing RSL LLC, Brian Ferdinand., MRS-L-000977-24, Superior Court, Morris County, New Jersey.”Page 17 of the 2025 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 12 years |
|---|---|
| Renewal term | 12 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 0 days |
| Termination groundsℹ | 4 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Arbitration location | Portsmouth, NH |
| Jury trial waiver | No |
| Governing law | NH |
| Litigation count | 6 |
View Item 3 litigation summary
Case 1: Hayes v. Planet Fitness (class action alleging unlawful membership agreement terms; granted summary judgment for Planet Fitness, plaintiff appealing). Case 2: LuxUrban counterclaim against Planet Fitness chief development officer alleging misrepresentation in hotel franchise context (currently in discovery).
Suppliers & sourcing9 categories · Item 8
Supplier requirements
| Category | Approval | Kickback |
|---|---|---|
| Proprietary Equipmentfranchisor-owned | Required | — |
| Real estate / leasing (Gym site/location) | Required | — |
| Architect | Required | — |
| Construction and decorating materials, fixtures, furniture, equipment, and signs | Required | — |
| General contractor and construction project manager | Required | — |
| Insurance | Required | 5.0% |
| Products and Services (retail products, accessories, vending items) | Required | — |
| Site location specialist | Required | — |
| Technology / software (Management System and Designated Software) | Required | — |
Items 10, 11
Training & Operations
- Classroom training
- 74 hrs
- On-the-job training
- 20 hrs
- Training location
- Franchisor headquarters in Hampton, New Hampshire and a Planet Fitness business selected by franchisor
- Ongoing training
- Required
- Time to open
- 11 mo
- From signing to launch
- Site selection
- Franchisee selects site subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Point of Sale System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Point of Sale System
Item 20 · call current owners
Franchisee Contacts
2,590 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a PLANET FITNESS franchise?
The total investment to open a PLANET FITNESS franchise ranges from $1.5M – $5.2M, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do PLANET FITNESS franchise owners earn?
According to Item 19 of the PLANET FITNESS FDD, the average gross sales per unit is $1.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns PLANET FITNESS?
PLANET FITNESS is franchised by Planet Fitness Franchising LLC. Its parent company is Planet Fitness Holdings, LLC. The ultimate parent named in the FDD is Planet Fitness, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the PLANET FITNESS FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the PLANET FITNESS FDD and qualifies whose outlets they describe.
What is PLANET FITNESS's franchise failure rate?
SBA 7(a) loan charge-off data is not available for PLANET FITNESS (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many PLANET FITNESS franchise locations are there?
As of their most recent FDD filing, PLANET FITNESS has 2,568 total units in the United States, including 2,298 franchised units and 270 company-owned units. 100 new units were opened in the latest reporting year.
Is PLANET FITNESS a good franchise to buy?
FranchiseVerdict rates PLANET FITNESS as a A-grade franchise with a verdict score of 75 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent PLANET FITNESS, you can request corrections or provide updated information.
Other Health & Fitness franchises
Compare similar franchise opportunities in the Health & Fitness category
Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.