Planet Fitness, the biggest brand in the fitness industry, must have popped into your head if you are looking to invest in a fitness franchise.
It is one of the fastest-growing franchise opportunities and is also counted under the 50 best franchises to own in 2023.
So how much does a Planet Fitness owner make? How much initial investment is required to open this franchise? Is Planet Fitness even profitable? What is the Franchise Owner’s Salary?
Do not worry! In this guide, we have answered all the questions that you may have about this planet fitness franchise.
About Planet Fitness
Planet Fitness is an American Fitness center that was founded in 1992 in Dover, NH., and has a comprehensive network of 2400+ locations across the world with approximately 17 million members.
Planet Fitness started franchising in the year 2003 and opened the first franchise location in Florida, and now there are Planet Fitness franchises around the globe, including the US, Canada, Panama, Mexico, Australia, and the Dominican Republic, among others.
Unfortunately, Planet Fitness is not accepting franchise applications at the moment. However, if they decide to do it in the future, then below we have shared the details that would come in handy for you to decide if the Planet Fitness franchise is worth it or not.
((https://www.planetfitness.com/franchising/become-a-franchisee))
Is Planet Fitness A Franchise?
Yes, Planet Fitness is a franchise. It is one of the largest and most popular fitness franchise chains in the world. Planet Fitness operates on a franchise model, allowing entrepreneurs and business owners to open and operate their own Planet Fitness gyms under the Planet Fitness brand.
Interested In Planet Fitness Franchise?
Planet Fitness Franchise Key Investments
| Franchise fee | $20,000 |
| Royalty fee | 7.0% |
| Marketing fee | 9.0% |
| Investment (mid-point) | $3,273,000 |
| Payback period | 7 years |
| Minimum net worth | $3,000,000 |
| Minimum liquid capital | $1,500,000 |
How Much Does Planet Fitness Franchise Cost?
To open a Planet Fitness franchise, the estimated investment amount is around $3,273,000. This includes a franchise fee of $20,000, royalty fees of 7.0%, and marketing fees of 9.0%. The payback period is typically 7 years, and potential franchisees are required to have a minimum net worth of $3,000,000 and a minimum liquid capital of $1,500,000.
Planet Fitness Estimated Initial Investment Breakdown
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $20,000 |
| Fitness Equipment | $34,000 – $953,000 |
| Site Selection Costs | $0 – $10,000 |
| Construction Development Plan Review Fee | $0 – $4,000 |
| Leasehold Improvements | $1,250,000 – $2,163,000 |
| Non-Fitness Equipment | $63,000 – $825,000 |
| Exterior Signs | $14,000 – $39,000 |
| Pre-Sale/Grand Opening Marketing | $40,000 – $60,000 |
| Real Estate Lease Deposits | $0 – $87,000 |
| Computer System, Point of Sale System, and other Supplies | $5,000 – $20,000 |
| Insurance | $5,000 – $30,000 |
| Other Deposits | $0 – $46,500 |
| Your Out-of-Pocket Initial Training Expenses | $1,500 – $6,500 |
| Professional Fees | $2,000 – $25,000 |
| Licenses/Bonds | $100 – $5,000 |
| Additional Funds – six months | $191,000 – $627,000 |
| Total | $1,625,600 – $4,921,000 |
How Much Does A Planet Fitness Owner Make?
The revenue of a Planet Fitness franchise owner may vary depending on their operating expenses, location, advertisement expenses, staff members, etc.
However, as per the performance of 1,953 Planet Fitness franchises in 2021, a Planet Fitness franchise owner makes an average annual revenue of $1,564,877 a year which is also the Revenue Per Store.
Also, during that period, out of the 1,953 franchise locations, the bottom third made $1,050,000, whereas the upper third made $2,099,000.
Interested In Planet Fitness Franchise?
Average Revenue, Profit Margin, Franchise Owner Salary & Actual Profit
As mentioned earlier, the Planet Fitness franchise makes average annual revenue of $1,564,87.
As a Planet Fitness franchise owner, you can expect to earn a profitable salary and generate franchise profit. With a healthy profit margin of 28.5%, the average annual profit for a Planet Fitness franchise is estimated to be around $447,433.
This is how we have calculated the profit margin:
| Profit and loss | Amount | % revenue |
|---|---|---|
| Revenue | $1,568,147 | 100.0% |
| Marketing | $139,000 | 8.9% |
| Payroll/staff | $318,614 | 20.3% |
| Royalties | $112,000 | 7.1% |
| Supplies and maintenance | $67,200 | 4.3% |
| Utilities | $57,500 | 3.7% |
| Other Opex | $75,700 | 4.8% |
| EBITDAR | $798,133 | 50.9% |
| Rent | $350,700 | 22.4% |
| EBITDA | $447,433 | 28.5% |
How Much Does A Planet Fitness Employee Earn?
The pay for Planet Fitness employees varies greatly based on their job titles and department.
However, as per ZipRecruiter, Planet Fitness employees’ average hourly pay in 2023 ranges from $14.82 to $23.75 per hour.
So an employee of Planet Fitness with the job title of Shift Leader can earn an average of $30,821 a year, while someone with the title of Wellness Manager can earn an average of $49,407 a year.
The PayScale of Planet Fitness is a bit low as compared to other centers, but they give many different benefits to their employees, like paid holidays, life insurance, sick leave, flex time, and so on.
Pros & Cons Of Planet Fitness Franchise
Pros Of Planet Fitness Franchise
- Highly profitable.
- Provides training and support.
- Offers territory protection.
- Offers third-party financing.
- Global presence.
- Recognized brand.
Cons Of Planet Fitness Franchise
- Requires more space.
- Internal and external competition.
- High marketing & royalty fees.
Planet Fitness Franchise Failure Rate
To determine what is the failure rate of Planet Fitness franchise, let us look at the table below:
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised Outlets | 2019 | 1,617 | 1,838 | +221 |
| 2020 | 1,838 | 1,949 | +111 | |
| 2021 | 1,949 | 2,060 | +111 | |
| Company-Owned | 2019 | 74 | 96 | +22 |
| 2020 | 96 | 101 | +5 | |
| 2021 | 101 | 110 | +9 | |
| Total Outlets | 2019 | 1,691 | 1,934 | +243 |
| 2020 | 1,934 | 2,050 | +116 | |
| 2021 | 2,050 | 2,170 | +120 |
As we can see from the table above, before the Pandemic, the Planet Fitness franchise was growing at the rate of 200 units a year, and even after the pandemic, it grew at the rate of 100 units a year, which is quite impressive.
And over the last three years, not even a single Planet Fitness outlet closed. All these key figures tell us that Planet Fitness’s failure rate is very low, and this fitness franchise is growing rapidly.
Planet Fitness Franchise Payback Period
To find out Planet Fitness payback period, let us do some calculations:
| AVERAGE INVESTMENT | $3,273,000 |
| AVERAGE REVENUE PER OWNER | $1,564,877 |
| AVERAGE PROFIT PERCENTAGE | 28.5% |
| AVERAGE PROFIT PER YEAR | $447,433 |
| AVERAGE PAYBACK PERIOD | 7.5 Years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 3273000/447433 = 7.3 = 7.5 Years based on median
The average investment for a Planet Fitness is $3,273,000.
With an average profit percentage of 28.5%, the average profit per year is $447,433 .
This means that the average payback period for a Planet Fitness is 7.5 years, and the total investment of $3,273,000 would be recovered within this period.
Facts About Planet Fitness
- Planet Fitness has over 1600 gyms and more facilities than any other gym in the world.
- Planet Fitness is growing at a rapid speed, and no other fitness center or gym comes close to them.
- If you have a membership card from Planet Fitness, then you can use their facility no matter where you are in the world.
- Planet Fitness centers are climate controlled and are always very clean.
- You can bring a guest with you every day at Planet Fitness.
((https://moneyinc.com/planet-fitness/))
What Is Planet Fitness Best Known For?
Planet Fitness is one of the fastest-growing fitness centers that offer a wide variety of equipment and amenities in a squeaky-clean environment.
Planet Fitness is not just another gym and has a slightly different arrangement for its customers. This fitness center is known for its camping “Judgment Fee Zone,” which promises to offer a comfortable and judgment-free space for people irrespective of their fitness level.
They are also known for offering low-cost and affordable membership plans starting at $10 a month, giving you access to Planet Fitness in all their locations worldwide.
Apart from this, what sets Planet Fitness apart from its competitors is that you can bring a guest with you to the gym every single day.
Is Planet Fitness Franchise Profitable?
Yes, Planet Fitness Franchise is very profitable, with franchise owners making revenue between $1,050,000 a year – $2,099,000 a year, with the average being $1,564,877 a year.
Having said that, it is also important for you to note that Planet Fitness is one of the most expensive franchises that we have come across. You can expect to make a hefty investment of anywhere between $1,625,600 – $4,921,000.
So if you have the ability to put in this kind of money, then Planet Fitness is a profitable opportunity worth investing in.
Planet Fitness Franchise Earning Potential
According to Club Industry, at the end of 2022, Planet Fitness had 17 million members, which shows an increase of 1.8 million over the last year. And even the revenue of Planet Fitness has increased by 60% over the last year.
With the increase in demand and customers comes the opportunity to earn more revenue and profit.
Because Planet Fitness is one of the fastest-growing fitness centers in the world, it is safe to assume that its profit-earning potential is also very high.
Wrap Up
After reviewing the details of Planet Fitness, this is what we think:
Planet Fitness is a very expensive franchise and requires 3 times more investment as compared to other fitness brands such as Anytime Fitness, Club Pilates, etc.
However, it is one of the fastest-growing fitness brands and has a high profit-earning potential as well.
So is Planet Fitness franchise worth investing in? Well, for this, we have to look at its payback period, and the payback period for Planet Fitness franchise is 7.5 years on average which is a lot.
So in terms of profit and low failure rate, Planet Fitness seems like a good investment. However, the payback period is something that you would have to consider.
Please note: Planet Fitness is not accepting franchise applications at the moment, but when it does, we hope this guide helps.
Frequently Asked Questions
How much royalty and marketing fees does Planet Fitness charge?
The industry average for royalty and marketing fees is 4-5%; however, Planet Fitness charges a very high royalty fee of 7.0% and marketing fees of 9.0%.
Does Planet Fitness offer financing?
Planet Fitness does not offer direct financing to interested individuals. However, it does offer third-party financing.
What is the franchise fee of Planet Fitness?
Planet Fitness charges a franchise fee of $20,000.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.