Do you want to start a gym business by buying Planet Fitness franchise? If YES, here is how much it cost to open a Planet Fitness franchise and their requirement.
Planet Fitness franchise is one of the largest fitness US chains by the number of members and locations. They boast of having 1,800+ locations open all across the 50 states and in Canada, Latin America, and Australia with more than 14 million members. They provide affordable, high-quality fitness experience in a welcoming environment.
If you are thinking about opening a Planet Fitness franchise, begin with a franchise investment information. Be advised to match Planet Fitness franchise cost and profit by analyzing the low and high fees you need to pay. Mind you that the franchise requirements could be different depending on the format and scope of the business.
Planet Fitness Franchising LLC is the franchisor. Planet Fitness businesses are fitness training facilities offering exercise machines and free weights, fitness training services, tanning services, related services and ancillary goods. The Planet Fitness franchisee must provide these services on a 24 hour a day basis unless prohibited by law or authorized by the franchisor in writing.
The franchisor offers for sale Planet Fitness franchises for new locations and for existing fitness facilities that want to convert to Planet Fitness.
How Much It Cost to Open a Planet Fitness Franchise
Estimated Initial Investment
- Initial Franchise Fee: $20,000 – $20,000
- Site Selection Costs: $1,000 – $10,000
- Construction Development Plan Review Fee: $0 – $4,000
- Leasehold Improvements: $680,000 – $1,694,000
- Fitness Equipment: $31,000 – $857,000
- Non-Fitness Equipment: $32,000 – $606,000
- Pre-sale Marketing / Grand Opening Marketing: $20,000 – $30,000
- Exterior Signs: $11,000 – $41,000
- Computer System, Point of Sale System, and other Supplies: $12,000 – $25,000
- Insurance: $10,000 – $20,000
- Real Estate Lease Deposits: $0 – $87,000
- Other Deposits: $0 – $46,500
- Professional Fees: $2,000 – $25,000
- Franchisee’s Out-of-Pocket Initial Training Expenses: $1,500 – $6,500
- Licenses/Bonds: $100 – $5,000
- Additional Funds – six months: $264,000 – $701,000
- ESTIMATED TOTAL: $1,084,600 – $4,178,500
Aside from the fees listed above, below are a list of other fees required;
- Royalty: 7% of the total gross monthly and annual membership fees payable to the franchisee via EFT Dues Draft
- Interest: 18% (annualized) or the highest contract rate of interest permitted by law, whichever is lower.
- Internet Membership and Balance Payment Administration Fee: Set according to the franchisor’s Methods of Operation, presently $5 per membership application
- Administrative Fees: Will vary under the circumstances.
- Refresher Training Workshops: $500 to $1,500. Will vary under the circumstances.
- Per Diem Fee: $100 to $1,000. Will vary under the circumstances.
- Re-Equip Costs: $312,000 to $857,000
- Remodel Costs: $70,000 to $600,000
- Fees to Evaluate and Approve Alternative Suppliers : The franchisor’s reasonable costs and expenses, which currently are expected to range between $1,500 and $5,000, although costs could greatly exceed those amounts depending on the product.
- Vendor Payments: Will vary under the circumstances.
- Insurance: Will vary under the circumstances.
- National Advertising Fund Fee: 2% of the total gross monthly EFT Dues Draft.
- Local Advertising Fee: Greater of $15,000 per month or 7% of the total gross monthly EFT Dues Draft.
- Advertising Cooperative Fees: Will vary under the circumstances.
- Special Marketing Programs: Varies, maximum of 9% total gross monthly EFT Dues Draft.
- Auditing Costs: The franchisor’s actual costs, which may range from $3,000 to $15,000.
- Franchise Agreement Transfer Fee: $10,000, plus the franchisor’s reasonable out-of-pocket expenses, including external legal and administrative costs it incurs in connection with the transfer.
- Securities Offering Fee: $100,000, plus the franchisor’s reasonable out-of-pocket expenses, including external legal and administrative costs it incurs in connection with the offering.
- Area Development Agreement Transfer Fee: $5,000, per location remaining to be developed, plus the franchisor’s reasonable external legal and administrative costs it incurs in connection with the transfer.
- Relocation Fee: $5,000
- Construction Development Plan Review Fee: $4,000
- Successor Franchise Fee: Equal to 50% of then-current initial franchise fee, subject to maximum fee of $40,000.
- Indemnification: Will vary under the circumstances.
- Administrative Third-Party Costs: Will vary under circumstances.
- Costs and Attorney’s Fees: Actual costs. Will vary under circumstances.
- Inspection & Compliance Reimbursement: Actual costs.
- Cure Period Extension Fee (Franchise Agreement): 2% of the total gross EFT Dues Draft.
- Grace Period Fee (Area Development Agreement): $2,500
Please note that you will pay a lump-sum nonrefundable Initial Franchise Fee in the amount of $20,000 when you sign the Franchise Agreement. The Initial Franchise Fee is uniform and non-refundable.
If you acquire rights under their Area Development program, you will pay an Area Development Fee equal to $10,000 per location to be developed under the Area Development Agreement when you sign the Area Development Agreement. The Area Development Fee is uniform and non-refundable. 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.
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.
After four years, the Initial Franchise Fee for each location opened under the Area Development Agreement will be equal to then-current Initial Franchise Fee being charged to new franchisees. You must commit to opening one or more Planet Fitness locations as a condition of acquiring area development rights, either yourself or through one or more entities in which you own 51% or more interest.
Steps on How to Get Planet Fitness Franchise
Although Planet Fitness Franchise is not currently accepting new franchisee applications for US expansion, if you are an experienced multi-unit operator and would like to go ahead to fill their application form, they will be happy to contact you if/when an opportunity presents itself in the future. If you are cool with the requirements and finance involved in acquiring this franchise, then you would need to follow these steps;
- Fill the application at the website. You will need to include your name, address, city and state. You will need a phone number and email address. Then choose the amount of capital you have to invest.
- Wait for the email that confirms that your application was received and is being reviewed. This email will tell you if you will be approved for the location. It will also go into more specifics regarding the financing. You will be asked to schedule a time for an associate to call you and talk more.
- Ensure to have your financial papers ready when you have your phone conversation. This is when you will find out if you have enough money to open the store or if you will need financing. If you need help with financing, you can apply for an SBA prequalified loan through the website even before the call.
- Please note that you will pay a lump-sum nonrefundable Initial Franchise Fee in the amount of $20,000 when you sign the Franchise Agreement. All initial fees are the same for both initial and conversion franchises.
- You will then be mandated to attend a workshop at the headquarters before opening your franchise.
- How Do I Change the Name of My LLC? (Steps and Requirements) - March 1, 2021
- How Do Junkyards Make Money? (Smart Ways They Profit) - March 1, 2021
- How to Start Your Own Alcohol Brand (Vodka or Spirit) - February 25, 2021