Planet FitnessFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. SBA 7(a) loans show a 0.0% charge-off rate across 173 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.5M – $5.2M
- 97th pct Health & Fitn…
- Avg gross sales
- $1.9M
- 55th pct Health & Fitn…
- Royalty
- 7.0%
- 28th pct Health & Fitn…
- Units
- 2,568
- 99th pct Health & Fitn…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.6x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Only 0.0% of 173 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 2298 to 2082 over 3 years. Investigate why operators are leaving.
20% cash-on-cash return (based on P&L Bottom Line). Within the 15-30% range most franchise investors consider acceptable.
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), with an estimated 20% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 23/100. SBA loan charge-off rate of 0.0% across 173 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Planet Fitness Franchising LLC
- Parent company
- Planet Fitness, Inc.
- Incorporated in
- DE
- HQ
- 4 Liberty Lane West, Floor 2, Hampton, NH 03842
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $323.7M
- vs $350.1M prior year
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.
- CEO
- Colleen Keating
- Headquarters
- NH
- Founded
- 2000
- FDD year
- 2025
- States available
- 52
FDD Item 7 · 2025 filing · 16 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$547K
29.0% margin
Unlevered ROIC
15%
EBITDA / total invested capital
Payback
6.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.5M – $5.2M
- Below avg, review vs category
- Liquid capital req'd
- $68K – $469K
- Below avg, review vs category
- Franchise fee
- $10K – $60K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 5.0 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $10K |
| Renewal fee | $20K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $1.9M
- Per unit, per year
- Median gross sales
- $1.8M
- Avg p&l bottom line
- $680K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 20.2%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- net_sales
- Sample size
- 252 units
- vs category median 11 · large
- Range (low → high)
- $283K→$5.3M
- Cohort dispersion (min → max)
- Quartile band
- $1.2M→$2.6M
- Bottom 25% → top 25%
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
Financial performance by segment
Item 19 detail
Where the franchisor disclosed sales by quartile, unit age, state, or service line — the actual distribution behind the average.
By quartile
| Segment | Sample | Avg |
|---|---|---|
| top quartile | 816 | $2.6M |
| lower middle | 816 | $1.8M |
| bottom quartile | 817 | $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.
vs Health & Fitness averages
How Planet Fitness Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,568
- Opened
- 100
- Last reporting year
- Closed
- 1
- Non-renewed
- 1
- 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 (yr3)
- +4.4%
- Net unit change last year
- 3-yr CAGR
- +10.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 270
- 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 · 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 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
Vintage analysis
Planet Fitness charge-off rate by loan vintage
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.
Risk analysis
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.
Litigation (Item 3)
Three cases disclosed: (1) Hayes v. Planet Fitness (Massachusetts class action regarding unlawful membership agreement terms under Massachusetts Consumer Protection Law and Health Club Act) - partially decided June 2021 with Court granting summary judgment to Planet Fitness and denying class certification in October 2024; plaintiff appealed. (2) Wyndham Hotel Group v. LuxUrban Hotels (New Jersey breach of franchise agreement) - filed May 2024, counterclaim filed December 2024 against Chip Ohlsson (current CDO) and Michael Moloff alleging fraud/negligent misrepresentation; currently in discovery. (3) Planet Fitness International Franchise v. JEG-United (New Hampshire declaratory judgment and breach of contract regarding Mexico locations) - filed June 2020 with amended complaint June 19, 2020; JEG filed counterclaims June 29, 2020.
Bankruptcy (Item 4)
Disclosed in last 7 years
In re Darrell Chichester Jr., Case No. 18:10-10267, United States District Court, District of New Hampshire. Chapter 7 bankruptcy petition filed 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)
Score breakdown · what drove the 23 / 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
Item 8 · 9 categories disclosed
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 | — |
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 12 years |
|---|---|
| Renewal term | 12 years |
| Allowed renewalsℹ | 1 |
| Territory type | Site-only |
| 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 |
| Right of first refusalℹ | Yes |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | New Hampshire |
| Litigation count | 6 |
View Item 3 litigation summary
Three cases disclosed: (1) Hayes v. Planet Fitness (Massachusetts class action regarding unlawful membership agreement terms under Massachusetts Consumer Protection Law and Health Club Act) - partially decided June 2021 with Court granting summary judgment to Planet Fitness and denying class certification in October 2024; plaintiff appealed. (2) Wyndham Hotel Group v. LuxUrban Hotels (New Jersey breach of franchise agreement) - filed May 2024, counterclaim filed December 2024 against Chip Ohlsson (current CDO) and Michael Moloff alleging fraud/negligent misrepresentation; currently in discovery. (3) Planet Fitness International Franchise v. JEG-United (New Hampshire declaratory judgment and breach of contract regarding Mexico locations) - filed June 2020 with amended complaint June 19, 2020; JEG filed counterclaims June 29, 2020.
Items 10, 11
Training & Operations
- Classroom training
- 74 hrs
- On-the-job training
- 20 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- 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
99 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?
According to Item 19 of the PLANET FITNESS FDD, the average gross sales per unit is $1.9M. The median is $1.8M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 risk score of 23 out of 100, 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.
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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.