• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Menu
  • Home
  • About
    • About Franchise Chatter
    • Contact
    • Privacy Policy
    • Terms of Service
    • Affiliate Disclosures
  • Subscribers Hub
    • Login
    • New to Franchise Chatter? Start Here
    • America’s Most Lucrative Franchises
    • Franchises Ranked by Average Revenues
    • Franchises Ranked by Average Profits
    • Franchise Winners, Survivors and Losers Last Year
    • FDD Talk
    • Search by Name
  • Top Franchises
  • Franchise Earnings
  • Costs
  • Fees
  • Quiz
  • Search

FDD Talk 2018: Planet Fitness Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Last updated on July 2, 2018 by Franchise Chatter Leave a Comment
in FDD Talk: Fitness Franchises, Fitness Franchises, Franchise Earnings

Planet Fitness Exterior Photo by Urban Partners Group



Learn Which Franchises Can Make You Rich

In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Planet Fitness franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Planet Fitness franchise, based on Item 7 of the company’s 2018 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Planet Fitness franchise, based on Items 5 and 6 of the company’s 2018 FDD
  • Section IV – Number of franchised and company-owned Planet Fitness outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
  • Section V – Presentation and analysis of Planet Fitness’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
  • 2017 average gross EFT revenue for the bottom third, middle third, and upper third of franchised Planet Fitness clubs that have been open and operating for at least 12 months as of December 31, 2017
  • 2017 average gross EFT revenue for the bottom third, middle third, and upper third of corporate Planet Fitness clubs that have been open and operating for at least 12 months as of December 31, 2017
  • 2017 average gross EFT revenue for the bottom third, middle third, and upper third of franchised and corporate Planet Fitness clubs (combined) that have been open and operating for at least 12 months as of December 31, 2017
  • 2017 average membership sales (EFT); other membership sales; total net revenue; payroll costs; marketing expenses; imputed royalties; utilities; supplies and maintenance; miscellaneous expenses; rent; total operating expenses; and earnings before interest, taxes, depreciation, and amortization (EBITDA) for the bottom third, middle third, and upper third of corporate Planet Fitness clubs that have been open and operating for at least 12 months as of December 31, 2017
  • 2017 average net revenue per square foot, average EBITDA per square foot, and average number of square feet for the bottom third, middle third, and upper third of corporate Planet Fitness clubs that have been open and operating for at least 12 months as of December 31, 2017

Section I – Background Information

15 Things You Need to Know About the Planet Fitness Franchise

Appoints New Chief Development Officer

1.  At the beginning of June 2018, Planet Fitness announced the appointment of Ray Miolla as chief development officer. In his new role, Miolla will be responsible for driving strategic initiatives to fuel Planet Fitness’s overall system-wide growth, overseeing market analysis, planning and development, real estate, construction and design, and franchise sales.

America's Most Lucrative Franchises of the Year

2.  Miolla comes to Planet Fitness with more than 20 years of real estate and development experience in domestic and international franchising from global brands like Gap, Burger King, and Jamba Juice.

3.  Most recently, he served as senior vice president, global real estate, store development and franchise services at Gap, Inc. responsible for all brands including Gap, Banana Republic, Old Navy, Athleta, and outlet stores. While at Gap, Inc., Mr. Miolla opened over 150 new stores annually worldwide and grew the franchise business from the ground up to more than 400 locations in over 40 countries.

4.  Chris Rondeau, CEO of Planet Fitness, said, “Ray is a proven leader and brand builder, with a strong track record of delivering exceptional results for global brands that spans over two decades. We are excited to have someone with Ray’s deep development and franchise experience on board, to further enhance our management team and support our continued growth and momentum.”

Set to Open Largest Planet Fitness in the Midwest

5.  At the end of February 2018, Planet Fitness announced plans to open its 14th location in the Greater Cincinnati market. Owned and operated by Planet Fitness Midwest, the $11 million development will be built at the intersection of Marburg Avenue and Vandecar Way in Oakley and has a projected opening date by the end of the year.


🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator


6.  The new project marks Planet Fitness’s continued expansion in the Midwest and is the 30th gym for the brand in the region. At 33,000 sq. feet, the Oakley location will be the largest Planet Fitness in the area and is set to include more than $1 million in equipment featuring 120 pieces of state-of-the-art cardio machines and strength equipment.

7.  The club will also feature PF Black Card amenities (PF Black Card amenities vary by location) such as HydroMassage beds, massage chairs, platinum level tanning beds, a Total Body Enhancement booth, fully equipped locker rooms with luxury rain showers, and more. Additionally, new fitness classes will be taught by a certified trainer through the PE@PF® program – free with any Planet Fitness membership.

8.  Franchisee Mike Hamilton said, “We’re excited to build our largest Planet Fitness location in the Greater Cincinnati market. Oakley is an area we felt was in need of a high-quality, affordable fitness facility. With memberships starting at $10 and amenities such as HydroMassage beds, massage chairs and free fitness training for all members, we’re confident that Planet Fitness will be a desired fitness option for Oakley residents.”

Continues Global Expansion With New Location in Mexico

9.  Over the past few years, Planet Fitness has been opening international locations in Canada, Puerto Rico, the Dominican Republic, and Panama. The brand plans to continue its global expansion and at the beginning of 2018, Planet Fitness announced that it was opening its first club in Mexico in the city of Monterrey. The new location opened in the Santa Catarina area this past spring.

Franchises Ranked by Average Profits

10.  According to Chris Rondeau, CEO of Planet Fitness, “We are excited to announce our entrance into Mexico as we continue to extend our footprint and expand our brand internationally. We continue to see an increasing global enthusiasm for our brand and we look forward to entering this new market and introducing the Santa Catarina community to the Judgement Free Zone.”

Company History

11.  Planet Fitness was started in 1992 by Michael Grondahl and his brother Marc in Dover, New Hampshire. The brothers had acquired a financially struggling gym and offered dramatically reduced membership fees to compete against larger and better-known gym brands. Their idea paid off and the first location was a success.

12.  In 1993, the Grondahls hired Chris Rondeau – who eventually rose to the top of the company and is currently CEO of Planet Fitness – to work the front desk. With Rondeau’s help, the Grondahls recognized that there was a greater opportunity to serve a much larger segment of the population if they changed the gym environment, both in attitude and format.

13.  They came up with a non-intimidating, low-cost model centered around what they call the “Judgement Free Zone.” Since then, Planet Fitness has been known as the gym franchise where everyone is welcome to workout at their own pace without intimidation from seasoned gym patrons.

14.  Planet Fitness opened its first franchised location in 2003 in Florida and it has since become one of the largest gym franchises in the U.S. and Canada.

Entrepreneur’s Franchise 500

15.  Planet Fitness ranked No. 21 on Entrepreneur’s 2018 Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of Planet Fitness franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Planet Fitness’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

  • Outlets at the Start of the Year:  863
  • Outlets at the End of the Year:  1,066
  • Net Change:  +203

2016

  • Outlets at the Start of the Year:  1,066
  • Outlets at the End of the Year:  1,255
  • Net Change:  +189

2017

  • Outlets at the Start of the Year:  1,255
  • Outlets at the End of the Year:  1,456
  • Net Change:  +201

Company-Owned

2015

  • Outlets at the Start of the Year:  55
  • Outlets at the End of the Year:  58
  • Net Change:  +3

2016

  • Outlets at the Start of the Year:  58
  • Outlets at the End of the Year:  58
  • Net Change:  0

2017

  • Outlets at the Start of the Year:  58
  • Outlets at the End of the Year:  62
  • Net Change:  +4

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

Part 1 – EFT Revenue

  • Gross EFT revenue is revenue on recurring monthly and annual membership fees that are collected from club members via EFT. This does not include any prepaid membership fees, revenue from retail sales, or other sources of revenue, excludes returns, and is calculated on a cash basis.
  • EFT is the electronic transfer of funds (including without limitation from a credit card, debit card, or bank account) and payment by check or any other means (including without limitation any other current or future form of pre-authorized payment).
  • The following charts show average annual gross EFT revenue for Planet Fitness’s 56 corporate and 1,229 franchised clubs in the United States and its territories that have been open and operating for at least 12 months as of December 31, 2017.
  • Of the clubs that were open and operating in the United States and its territories at the beginning of January 1, 2017, 6 were excluded because they ceased operations during the year, and 8 Puerto Rico clubs were excluded because they were not in operation all 12 months. All of the clubs that were excluded because they ceased operation had been in operation for more than 12 months.
  • The remaining clubs were segregated into three groups, or thirds, based on annual gross EFT revenue (i.e. bottom third, middle third, and upper third).
  • The earnings claim figures in the following three charts do not reflect the cost of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

Franchised Only

  • In thousands; represents electronic funds presented for draft for the 12 months of calendar year 2017.

Bottom Third (410 Clubs)



To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.

Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.



Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment - See more at: https://www.franchisechatter.com/register/#sthash.le7wKJKM.dpuf

🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator



Franchises Ranked by Average Revenues and Profits



Franchise Winners and Losers Last Year

Tagged as: Planet Fitness

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous post: The 13 Best Children's Fitness Franchises of 2022 (Updated Rankings)

Next post: FDD Talk 2018: Baskin-Robbins Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Primary Sidebar

🚀How to Find, Vet and FUND a Good Franchise (Webinar)

✅ Is Franchising a Path for You? – Apr. 7 (Fri.), 11 a.m. EST

✅ Popular Trends in Franchising – Apr. 11 (Tues.), 4 p.m. EST

✅ Register Now to Get Free Access to Recordings of Both Webinars

Register Now

🤔Buying a Franchise on Your Own Can Be Overwhelming

✅ Get the guidance and support you need every step of the way (including funding 💵) from an experienced franchise broker at no cost to you.

✅ Fill out this form and a specialist from the Franchise Brokers Association will reach out to you.

⭐️Franchise Chatter is reader-supported. We may receive a commission for leads generated from our site.

As seen in:  New York Times, Bloomberg Businessweek, and CNBC

Login

Remember Me
Register | Lost your Password?
Reminder: Your username and password are case-sensitive.

Need help? Email franchisechatterblog@gmail.com

👍”Your website and you have been instrumental in finding this franchise opportunity and I am overwhelmingly grateful.” (David F., subscriber)

🏆 Best Franchises by Industry

Best Franchises by Industry (All Lists)

Best Gym and Fitness Franchises

Best Pizza Franchises

Best Sandwich Franchises

Best Childcare Franchises

Best Ice Cream Franchises

Best Coffee Franchises

Best Hamburger Franchises

Best Salon and Beauty Franchises

Best Chicken Franchises

Best Smoothie and Juice Franchises

Best Maid Service Franchises

Best Mexican Restaurant Franchises

Best Massage Service Franchises

Best Tutoring Franchises

Best Auto Repair Franchises

Best Auto Oil Change Franchises

Best Asian Restaurant Franchises

Best Pet Franchises

Best Commercial Cleaning Franchises

Best Sports Bar Franchises

Best Baked Goods Franchises

Best Moving/Junk Removal Franchises

Best Mailbox Franchises

Best Apparel Retail Franchises

Best Senior Care Franchises

Best Restoration Franchises

Best Tech Franchises

Best Travel Agency Franchises

Best Trampoline Park Franchises

Best Tools Distribution Franchises

Best Property Management Franchises

Best Real Estate Franchises

Best Automotive Wheels and Tires Franchises

Best Weight Loss Franchises

Best Flooring Franchises

Best Eye Care Franchises

Best Physical Therapy Franchises

Best CBD Franchises

Best Tea Franchises

Best Ghost Kitchen Franchises

Best Acai Bowl Franchises

Best Poké Bowl Franchises

Best Donut Franchises

Best Kitchen and Bath Remodeling Franchises

Best Window Coverings Franchises

Best Plumbing Franchises

Best Home Inspection Franchises

Best Garage Franchises

Best Barbershop Franchises

Best Laundromat Franchises

Best Storage Unit Franchises

Best Car Wash Service Franchises

🚀 Daily FDD Talk Posts

Pure Green Franchise

Seniors Helping Seniors Franchise

Best Choice Roofing Franchise

LIME Painting Franchise

milliCare Franchise

One Hour Heating & Air Conditioning Franchise

PatchMaster Franchise

Spray Foam Genie Franchise

Bumble Bee Blinds Franchise

Mr. Sandless Franchise

EverLine Coatings Franchise

Blue Kangaroo Packoutz Franchise

Tommy’s Express Car Wash Franchise

Footprints Floors Franchise

Wendy’s Franchise

Clean Juice Franchise

Nurse Next Door Franchise

Made in the Shade Blinds & More Franchise

Five Star Bath Solutions Franchise

Beef ‘O’ Brady’s Franchise

Costa Vida Fresh Mexican Grill Franchise

Uptown Cheapskate Franchise

Pancheros Mexican Grill Franchise

Squeeze Franchise

Mosquito Squad Franchise

The Exercise Coach Franchise

ProLift Garage Doors Franchise

Heroes Lawn Care Franchise

Burn Boot Camp Franchise

Wing Zone Franchise

DreamMaker Bath & Kitchen Franchise

The Camp Transformation Center Franchise

Brightway Insurance Franchise

Owl Be There Franchise

The Dog Wizard Franchise

Scenthound Franchise

Bin There Dump That Franchise

Gotcha Covered Franchise

Phenix Salon Suites Franchise

AKT Franchise

Kitchen Solvers Franchise

FASTSIGNS Franchise

Zoom Drain Franchise

Pool Scouts Franchise

Ace Hardware Franchise

Signarama Franchise

Jovie Franchise

i9 Sports Franchise

UFC Gym Franchise

Sola Salons Franchise

N-Hance Wood Refinishing Franchise

Franchise Chatter © 2023