Planet Fitness Franchise Cost, Owner Salary & Profit 2024

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 2024.

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.

How Much Does A Planet Fitness Owner Make

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?

How-Much-Does-A-Planet-Fitness-Employee-Earn

Planet Fitness Franchise Key Investments

Cost Or FeesAmount
Franchise fee$20,000
Royalty fee7.0%
Marketing fee9.0%
Investment (mid-point)$3,273,000
Payback period7 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 ExpenditureAmount
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?

How-Much-Does-A-Planet-Fitness-Employee-Earn

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 $445,989.

This is how we have calculated the profit margin:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1564877.00
Rent8.94%(139860.88)
Insurance4.47%(69930.44)
Salaries17.88%(279721.76)
Franchise Royalty Fees4.47%(69930.44)
Utilities1.79%(27972.18)
Cost of Goods Sold (COGS)22.34%(349652.20)
Labor (Variable)11.62%(181819.15)
Total (Expenses)71.50%(1118887.05)
Net Profit28.50%445989.94

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


How Much Does A Planet Fitness Employee Earn?

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 the Planet Fitness franchise, let us look at the table below:

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20191,6171,838+221
20201,8381,949+111
20211,9492,060+111

For the Franchised outlets:

  • In 2019, the growth rate was (221)/1,617×100≈13.6%
  • In 2020, the growth rate was (111)/1,838×100≈6.03%
  • In 2021, the growth rate was (111)/1,949×100≈5.69%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20197496+22
202096101+5
2021101110+9

For the Company-Owned outlets:

  • In 2019, the failure rate was (22)/74×100≈29.72%
  • In 2020, the failure rate was (5)/96×100≈5.20%
  • In 2021, the growth rate was (9)/101×100≈8.91%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20191,6911,934+243
20201,9342,050+116
20212,0502,170+120

For Total outlets:

  • In 2019, the growth rate was (243)/1,691×100≈14.37%
  • In 2020, the growth rate was (116)/1,934×100≈5.99%
  • In 2021, the growth rate was (120)/2,050×100≈5.85%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Planet Fitness grew from 2019 to 2021, showing a growth rate between 13.6% and 5.69%.

The company-owned outlets also increased, showing a growth rate between 29.72% and 8.91% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Planet Fitness franchise has expanded in the years 2019-2021, showing a total growth rate between 14.37% and 5.85%.


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 PERCENTAGE28.5%
AVERAGE PROFIT PER YEAR$445,989
AVERAGE PAYBACK PERIOD7.5 Years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR

= 3273000/445989 = 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 $445,989 .

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?

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. But otherwise it is a good investment, this franchise is also counted under 10 best gym franchises to own.

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.

Who founded Planet Fitness?

Marc Grondahl and Michael Grondahl are the founders of Planet Fitness. They acquired the struggling Gold Gym franchise and purchased the rights to the name PLanet Fitness in 2002.

Where is Planet Fitness headquartered?

Planet Fitness is an American franchisor that has its headquarters in Hampton, New Hampshire.

How many locations does Planet Fitness have?

Planet Fitness has been reported to have 2400 clubs, which makes it one of the largest fitness club franchises by both the number of members and locations.

Leave a Comment