If you love going to the gym, a Planet Fitness franchise is perfect for you. In fact, you can choose between several roles – franchise ownership with management, or franchise ownership with an owner actively involved in fitness services.
Planet Fitness offers more than just a gym membership. Planet fitness franchisees are proud to offer support to their members to keep them active in using their Planet Fitness membership benefits.
Basic facts about the Planet Fitness Franchise
Yes, the Planet Fitness range includes typical exercise machines and free weights. But there is more:
- Fitness services, such as working with a personal trainer. The personal trainer can be an employee assigned to a group of members.
- Solarium and equipment.
- Fitness equipment such as treadmills and steps.
- Annual membership fees are paid on a monthly basis and can be paid as an internet membership
- A Planet Fitness franchisee receives extensive on-the-job and classroom training, in the use of equipment and implementation of safety procedures. Some training takes place at the company’s head office.
- There are currently more than 2,000 Plant Fitness franchises in the United States, in 49 states and Washington DC. The company started in New Hampshire.
- The Planet Fitness business franchise started in 2003
- The franchise is strongest in the south, where there are around 700 Planet Fitness franchises. The franchise is being expanded to other areas of the country.
- In the fitness industry, Planet Fitness companies focus on being a “judgment-free zone” – by creating a welcoming environment for people with different fitness goals at all stages of their fitness journey. In other words, members of all ages, genders and fitness levels are treated in a friendly and supportive manner.
Planet Fitness Franchise Cost
It is relatively expensive to get into this franchise, given the cost of gear and equipment. Equipping and outfitting the franchise from an empty building to a functioning training center is expensive.
The initial franchise fee is $20,000, but an aspiring franchise owner must have working capital (liquid assets and liquid capital) and a minimum net worth of from $200,000 to $700,000. The total investment ranges can be around $1 million, but the initial investment could be as high as $4 million. It largely depends on the cost of real estate in the area, and also whether the franchisee is remodeling an existing building or building a new facility. These costs are comparable to similar franchises.
The minimum and maximum fees vary depending on actual costs. For example, Planet Fitness franchises may consider new franchisee applications looking to remodel an existing building.
They may even approve alternative suppliers for some of the equipment and supplies. These agreements/arrangements will be specified in the franchise agreement.
Planet Fitness Franchise Fees
After the initial franchise fee, the new franchisees will also pay other fees such as administrative costs and ongoing fees including a 7% royalty fee. Of course, if leasing property will also be a monthly fee. You also pay a national advertising fund fee and a local advertising fee.
Are the fees and costs worth it? Well, you will receive training and continuous assistance from the company headquarters, which will also help you create a grand opening event. Through the brand name, you will benefit from the existing national exposure.
Your franchise location will be protected from others so that other Planet Fitness franchisees can locate in your area. You will have an exclusive territory as part of the site development agreement. All these things will be specified in the franchise document.
Planet Fitness Franchise Profit
Franchise profits depend on several factors, such as your commercial rental rates, if applicable. Franchise costs also vary by location (which may define your labor costs), utility costs, and the cost of other supplies, such as cleaning materials.
Planet Fitness Franchise Owners Salary
Your gross monthly take is based on your memberships, which range from $10 to $25 per month for the franchise. After you’ve covered your start-up costs, your total gross monthly spend can greatly exceed your expectations, depending on how many memberships you sell.
Similar gym franchises cite the same challenge – it can be relatively easy to get members, but it can be challenging to keep them. Your sales system must include regular contact with members to ensure they are using the facility and receiving support from the staff.
In the gym/fitness industry, here’s a staggering statistic – about half of those who sign up for memberships never go. And there are those who do not renew their memberships.
What can you make? The majority of Planet Fitness franchisees earn $50,000 a year or more in the first year, which is a top number in the franchise industry. That’s after paying customer service representatives ($12 hourly average), a lodging manager ($14 per hour) and a manager ($40,000 annually).
Requirements for Planet Fitness franchisees
As we have said, you need a strong financial position to qualify as a franchisee with a franchise agreement. But you need more than that to run a Planet Fitness business:
Net worth of $3 million
A liquid capital of 1.5 million dollars
People skills, PR experience
Training experience – knowledge of training equipment and equipment
Skills in training program – able to help members develop their goals
Is Opening a Planet Fitness Franchise Worth It?
Planet Fitness franchise opportunities are not many, although the company is expanding into new areas with more franchisees.
With your franchise, you get health, dental and life insurance, as well as a pension plan and the opportunity to earn Planet Fitness shares.
As we asked at the beginning, do you love going to the gym? Do you like working out? Do you enjoy helping and coaching others as they strive to reach their fitness goals?
Then it may be time to turn your favorite hobby into your job. If you love what you do, you will succeed in the Planet Fitness business.
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