Bottom line
- Total investment $1.5M – $5.2M including a $20K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $1.9M/year (median $1.8M). Estimated payback in 5.0 years.
- Rated STRONG with a risk score of 39/100. SBA loan default rate of 0.0% across 149 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one PLANET FITNESS unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 PLANET FITNESS units return on equity?
Equity IRR · 5-yr
24.1%
2.94× MOIC
Year-1 DSCR
3.58×
EBITDA ÷ debt service
Equity required
$24.0M
on $41.5M purchase
Total debt
$17.4M
SBA $5.0M + senior + seller note
Overview
About
Planet Fitness franchisees operate low-cost fitness centers targeting price-sensitive consumers with standardized amenities, group fitness classes, and personal training services. Day-to-day operations involve managing staff, member retention/acquisition, facility maintenance, equipment servicing, and coordinating with the franchisor on marketing and membership fee structures.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Score breakdown · what drove the 39 / 100 rating
- 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
- 04MINORHigh initial investment ($1.5M-$5.2M) with 7% royalty on gross membership fees creates substantial fixed costs before breakeven
- 05MINORFranchise 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
PLANET FITNESS · FDD (2025) PDF