A30/100FDD 2025
Planet Fitness — Litigation & Risk
Health & Fitness · FDD Items 3, 4 & 5
Elevated Risk
6 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
6
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
30 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
126
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$128.1M
Avg loan size
$1.0M
Participating lenders
40
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
New Hampshire
State whose law governs disputes — relevant if you're not based there
What drove the 30/100 rating
Risk Score Breakdown
- 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 FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.