Planet Fitness Franchise Cost, Revenue & Review 2026
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]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 173 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $1.5M – $5.2M
- 97th pct Health & Fitn…
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 30th pct Health & Fitn…
- Units
- 2,568
- 98th pct Health & Fitn…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness avg · 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.
- RETURNSFigures from the audited standalone financial statements of Planet Fitness Franchising LLC (the franchisor) for the year ended December 31, 2024, stated in thousands and scaled x1000 to whole dollars. Balance sheet reconciles: total assets 151,027 = total liabilities 34,014 + member's equity 117,013 (in thousands). Net worth = total member's equity. Audited by KPMG LLP (Boston, MA, April 7, 2025).
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better). SBA loan charge-off rate of 0.0% across 173 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
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
- Ultimate parent
- Planet Fitness, Inc.
- 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 488% 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%
- percentage · 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% of gross sales |
| 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?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
PLANET FITNESS did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one PLANET FITNESS unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
6%
Below the 30–60% attractive-franchise band
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
Figures from the audited standalone financial statements of Planet Fitness Franchising LLC (the franchisor) for the year ended December 31, 2024, stated in thousands and scaled x1000 to whole dollars. Balance sheet reconciles: total assets 151,027 = total liabilities 34,014 + member's equity 117,013 (in thousands). Net worth = total member's equity. Audited by KPMG LLP (Boston, MA, April 7, 2025).
- Item 19 type
- EFT Revenue tiers (thirds) plus corporate-club net revenue and operations statement
- Sample size
- 2,197 outlets
- vs category median 12 · large
- Range (low → high)
- $283K→$5.3M
- Cohort dispersion (min → max)
- Quartile band
- $1.2M→$2.6M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 173 Health & Fitness brands
Cohort breakdown3 segments · Item 19
Item 19 detail
Figures from the audited standalone financial statements of Planet Fitness Franchising LLC (the franchisor) for the year ended December 31, 2024, stated in thousands and scaled x1000 to whole dollars. Balance sheet reconciles: total assets 151,027 = total liabilities 34,014 + member's equity 117,013 (in thousands). Net worth = total member's equity. Audited by KPMG LLP (Boston, MA, April 7, 2025).
By quartile
| Segment | Sample | Avg |
|---|---|---|
| top quartile | 816 | $2.6M |
| lower middle | 816 | $1.8M |
| bottom quartile | 817 | $1.2M |
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Health & Fitness average).
Disclosure
Item 19 reports EFT Revenue tiers (thirds) plus corporate-club net revenue and operations statement rather than annual gross sales, so unit revenue is not directly comparable.
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 averages
How Planet Fitness Compares
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
- 2
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- 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
3-year detail · Item 20
- Opened (3yr)
- 118
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 206
- Reacquired (3yr)
- 114
- Franchisor bought back
- 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.
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
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 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%
- brand beats franchise avg ↓
- 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.
Premium insight
SBA Lending Report
Deep-dive into Planet Fitness's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 16-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 173 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
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)
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).
Largest disclosed settlement: $8,826,394
Bankruptcy (Item 4)
Disclosed in last 7 years
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
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 | none |
| 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 | 2 |
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
FDD download
PLANET FITNESS · FDD (2025) PDF
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?
PLANET FITNESS does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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?
Based on SBA 7(a) loan data, PLANET FITNESS has a charge-off rate of 0.0% across 173 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
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), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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?
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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.