That said, as of June 2022, Planet Fitness has paused offering franchises. The Area Development Fee is in addition to the then-current Initial Franchise Fee due for each location at the time the Franchise Agreement for that location is executed. Disclaimer: NerdWallet strives to keep its information accurate and up to date. In 1992, Planet Fitness founders, Michael and Marc Grondahl acquired a struggling Gold's Gym franchise in Dover, New Hampshire. Investing in an Orange Theory franchise is an interesting opportunity, especially for individuals looking to make their way into the Fitness industry. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free. But perhaps most important to this process is interviewing current franchisees. Today the brand has over 2,000 locations system-wide. - In currency of the United Kingdom, the investment comes around 694,900 to 3,040,600. 4 Liberty Ln. Overall, Planet Fitness is making a decent amount of profit, and we also see that the profit chart . $10,000, plus our reasonable out-of-pocket expenses, including external legal and administrative costs we incur in connection with the transfer. Estimated annual transaction costs per location range from $9,000- $72,000, Equal to 50% of our then-current initial franchise fee. [43], With the addition of a Planet Fitness outlet in Hawaii in January 2018,[44] Planet Fitness had 1,500 locations with an estimated 10 million members across 50 states, the District of Columbia, the Dominican Republic, Mexico, and Panama[45] and Canada. The Grondahls changed the gyms name to Planet Fitness in 1994. The more franchises you own, the more earning potential you have as private equity firms become interested in your business instead of individual owner-operators. Both franchising units and company-operated stores have increased. subject to maximum fee of $40,000, Concurrently with our granting a successor franchise to you, Actual costs (approximately $1,200 per visit), Cure Period Extension Fee (Franchise Agreement), Paid monthly via EFT on the day designated as your Monthly Membership Billing Day, as defined in our Franchise Agreement, Grace Period Fee (Area Development Agreement), Paid monthly beginning on the first day of the The Planet Fitness franchise was founded in 1992 and has been franchising since 2003. In fact, in a recent Inc. 5000 list of the 10 fastest growing franchises, four were fitness franchises. Throughout his tenure at Dunkin Brands, Mr. With that said, a Planet Fitness franchise . Bringing Franchise Owners Together to Share and Grow. Brands, he supported the team tasked with transforming and modernizing technology and data systems both domestically for KFC and internationally in Australia for Pizza Hut. If you can name a franchise business, it's probably on our Franchise owners marketing list. Previously, she was an editor at Fundera, where she developed service-driven content on topics such as business lending, software and insurance. [47], In March 2013, Planet Fitness partnered with 50 Cent to sell his energy drink "Street King". Anytime Fitness also prides themselves on engendering a supportive environment for members and they prioritize employee wellness. Comment. https://www.palmbeachpost.com/story/business/2012/05/19/at-youfit-health-clubs-patrons/7332606007/, "Planet Fitness headquarters moving to Hampton", "Planet Fitness Sets New Membership Records", "4 international franchises that landed Down Under in 2019", "The fastest-growing gym in America has $10 memberships and gives out free pizza, bagels, and candy", "Fit for franchising: From first gym in Dover, Planet Fitness building big brand", https://www.franchise-info.ca/franchise_news/2014/01/how-planet-fitness-became-the-leader-in-fitness-franchising.html#.Y-Hc-BZMEWM, "How Planet Fitness Became the Leader in Fitness Franchising - News", "Marc Grondahl of Planet Fitness: How a Lean Business Model Became a Franchise Heavyweight", "YouFit Health Club expanding across South Florida, around nation | The Starting Gate", "No-frills gym offers fitness without flash", "Fast and Serious: FT ranks the smartest-growing brands", "Franchise Players: We Were Planet Fitness's First Franchisees. [34] The royalty fee for a Planet Fitness is 7% of the total gross monthly and annual membership fees. The Judgement Free Zone was started to help first-time gym users feel more comfortable starting their fitness journey. Over the last three years, the company has been expanding. Office Depot, Planet Fitness, Roto Rooter, Starbucks, Taco Bell, Travelers, and United Health Group. * The data above, compiled from the Planet Fitness FDD (Franchise Disclosure Document) 2020, represent the estimated financial range for the initial setting up and first 6 months of operation for a new Planet Fitness gym. We believe everyone should be able to make financial decisions with confidence. The chain has over a thousand locations with over 400 units outside the US. Order now to get instant access to the complete Planet Fitness franchise owners. So if you also find fun to be your major motivating factor, Crunch might be the right gym franchise opportunity for you. Even though the history of barre dates back to 1959, when the discipline was created by former ballerina Lotte Berk, the ballet/Pilates/yoga hybrid saw a huge boom in the 2010s. 3- Based on a midpoint investment of $3,273,300 with estimated profits of $831,881 at a 15% profit margin, it would take about 14 years to recoup your investment. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. To open a gym, a franchisee must have of $3 million with $1,500,000 in liquid assets. ), and that attitude trickles down into their culturethey genuinely want people to have fun while they work out. There are some units of Planet fitness franchisees making more than that or some making less than that. 1),[16] and in its 2016 ranking of franchises, Forbes magazine ranked Planet Fitness No. 8. The franchise also requires that candidates have at least $100,000 in combined liquid assets and a total net worth of at least $250,000. According to Franchise Direct, the initial franchise fee is $20,000, while the area development fee is $10,000. Depending on the location and pre-existing structure that is being purchased, you could see your expenditure being on the lower or higher end of this spectrum. [17] They also dramatically reduced prices to compete against better-known brands. Orangetheory Fitness provides a totally unique (and seriously hard) group workout experience. The most popular workout model from Snap Fitness is known as MYFIT. Pre-qualified offers are not binding. Planet Fitness franchise is one of the largest fitness US chains by a number of members and locations. If you sign an Area Development Agreement, the Initial Franchise Fee for each location opened under the Area Development Agreement will be $20,000 for Franchise Agreements entered into within four years of the effective date of your Area Development Agreement. According to their website, Pure Barre is the oldest and most established barre studio out there. The Area Development Fee is uniform and non-refundable. Mr. Fitzgerald has over 30 years of leadership experience in financial management in the retail industry, most recently serving as Chief Financial Officer and Senior Vice President at Potbelly Sandwich Works. - In Indian currency, the investment comes around Rs 7,14 crores to Rs 31,23 crores. Initial franchise terms are 10 years. Therefore, this may include substantial remodeling of your premises as frequently as every 5 years. in Pilates. Franchise Division including leading the operations, development and construction, vendor management and local marketing execution teams. That said, franchisees are responsible for additional costs, including a monthly continuing franchise fee (CFF) of either 20% of gross revenue or at least $250 per month. Upon your submission of your Construction Development Plans for our approval, Point of Sale Support, Processing and Account Management Services Fees, $149-$199 plus processing and credit card fees based on the number of transactions processed per month or number of eligible accounts enrolled in collections. Owning a. means owning a portion of the fastest growing sport in the worlda truly future-proofed business proposition. If you are thinking about how to open a Planet Fitness franchise, begin with a franchise investment information. Planet Fitness estimates the total costs to re-equip your facility with both cardio equipment and all other exercise equipment will range from $314,000 to $922,000 every 5 to 7 years. Earlier in her career, Ms. Kaplan held several digital and marketing leadership roles at global brands including American Express and Citi, Inc. She serves as an independent member of the Fiesta Restaurant Group Board of Directors, as well as the Massachusetts Innovation & Technology Exchange (MITX). An individual planet fitness franchise owner can make around $513,00 to $5,554,000 annually. "[30] They stated that they were unable to stop the pre-scheduled payments on short notice, but would not charge future monthly dues until they reopen, and would also provide a credit for closed days previously paid for. Compared to $145 million in 2020, they saw an increase of 44% from 2020 to 2021. Planet Fitness's franchise fee is $10,000 for a 10-year renewable agreement, though the total investment ranges from $700,000 to $3.8 Million. Royalty fees are 7% of the total gross monthly and annual membership fees, and advertising fees vary. industry. ? This article originally appeared on JustBusiness, a subsidiary of NerdWallet. As an Orangetheory franchisee, youll be responsible for a monthly royalty fee of 8% of gross sales. "[20] In 2003, Planet Fitness opened its first franchised location in Florida, with Eric Dore and Shane McGuiness. Be advised to match Planet Fitness franchise cost and profit by analyzing low and high fees you need to pay starting a Planet Fitness franchise. He held multiple store operations positions with P&L responsibility progressing from Store Manager to Regional Manager. Estimated total initial investment: $303,000 to $499,850. Please scroll down for a partial list of franchise businesses. Before joining NerdWallet, he served as senior editorial manager of QuinStreet's insurance sites and managing editor of Insure.com. Prior to joining Planet Fitness, Ms. Simmons worked in Finance and Business Planning roles for Timberland, PepsiCo, and Fisher Scientific International. As a franchisee, youll be required to pay 6% in royalty fees and 2% in marketing fees. Please confirm by clicking on the Cancel Subscriptionbutton below. We were opening our 5th store then. After you cover your startup costs, your total gross monthly take could greatly exceed your expectations, depending on how many memberships you sell. We started our business in 1992 and refined our brand for a decade or so before franchising in 2003. As an Orangetheory franchisee, youll be responsible for a monthly royalty fee of 8% of gross sales. This large discrepancy indicates the potential different costs you could face when building your Orange Theory franchise as a franchisee. Liquid Cash Requirement: $1,500,000. Prior to joining Planet Fitness, Mr. With this purchase, which was for an undisclosed amount, United PF's club count has . Jennifer Simmons joined Planet Fitness in 2013 as a business analyst, later joining the executive leadership team as Senior Vice President of Business Strategy and Analytics and in 2022 was named Division President, Corporate Clubs. When evaluating offers, please review the financial institutions Terms and Conditions. Paid by you to advertisers or Planet Fitness if it elects to collect from you. She is based in Santa Monica, California. In this role, he will lead the Companys technology evolution and strategy, focused on delivering technology solutions that will continue to enhance the member experience while optimizing infrastructure, data and operations for flexibility and scale. She has also held editing roles at LearnVest, a personal finance startup, and its parent company, Northwestern Mutual. This is significantly lower than the midpoint investment of $3,273,500. Planet Fitness offers people the opportunity to be a part of the fitness business, but we do not believe this is sustainable. [35], The net worth requirement for a Planet Fitness franchise is $3,000,000, while the liquid cash requirement is $1,500,000. Brand fund contributions (aka advertising fees) are 2% of monthly gross sales, though they may be increased to 3%. Across 50 states the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia An offshoot of the (purportedly) $7 billion UFC brand, UFC Gyms offer MMA-inspired personal and specialized training, traditional and fusion martial arts classes, and youth fitness classes. Estimated total initial investment: $58,870 to $521,437. Point of Sale System, and other Supplies, Your Out-of-Pocket Initial Training Expenses, Operating Cash (Additional Funds Pre-Opening and first six months), $7% of the total gross monthly and annual membership fees payable to you via EFT Dues Draft, Internet Membership and Balance Payment Administration Fee, Set according to our Methods of Operations, presently 55 per membership application or balance payment we process for your franchise location, Fees to Evaluate and Approve Alternative Suppliers, Our reasonable costs and expenses, which currently are expected to range between $1,000 and $5,000, although costs could greatly exceed those amounts depending on the product, Will var under the circumstances: estimated insurance premiums for your first year are $10,000 to $20,000.
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