If you love going to the gym, a Planet Fitness franchise business is for you. In fact, you can choose from several roles – franchise ownership with managers, or franchise ownership with an owner who is actively involved in fitness training services.
Planet Fitness offers more than just a gym membership. Planet Fitness employees take pride in providing support to its members, keeping them active while using their Planet Fitness membership benefits.
Basic Facts About Planet Fitness Franchises
Yes, the Planet Fitness franchise includes standard gym equipment and free weights. But there is more:
- Fitness training services, such as working with a personal trainer. A personal trainer can be an employee assigned to a group of members.
- Tanning booths and machinery.
- Cardio machines such as treadmills and steppers.
- Annual membership fees are paid monthly and can be paid as an online membership
- A Planet Fitness Franchisee receives extensive training on the job and in the classroom, in using the equipment and implementing safety procedures. Some training takes place at the company’s headquarters.
- There are currently over 2,000 Plant Fitness franchises in the US, in 49 states and Washington DC. The company started in New Hampshire.
- The Planet Fitness business started in 2003
- Franchising is strongest in the south, where there are approximately 700 Planet Fitness franchises. The franchise is also expanding in other parts of the country.
- In the fitness industry, Planet Fitness businesses focus on being a “judgment-free environment” – by creating a welcoming environment for people with various fitness goals at all stages of their fitness journey. In other words, members of all ages, genders and fitness levels are treated with kindness and support.
Planet Fitness Franchise Fees
It is very expensive to enter this franchise, considering the cost of equipment and gear. It is expensive to outfit and equip a franchise from an empty building to a functioning practice facility.
The initial franchise fee is $20,000, but the wanna-be franchise owner needs to have working capital (liquid assets and cash) and a minimum net worth of $200,000 to $700,000. The total investment range can be around $1 million, but the initial investment can reach $4 million. That largely depends on the cost of real estate in the area, and whether the payee is renovating an existing building or building a new facility. Those costs are comparable to similar franchises.
The minimum and maximum fees vary depending on the actual cost. For example, Planet Fitness franchising may consider new franchisee applications that want to renovate an existing facility.
They may endorse other suppliers for some equipment and gear. Such agreements/plans will be defined in the franchise agreement.
Planet Fitness Franchise Fees
After the initial franchise fee, new franchise owners will also pay other fees such as administrative fees and ongoing fees including a 7% fee. Of course, if you rent the property that will also be a monthly income. You will also pay a national advertising fund fee and a local advertising fee.
Are the costs and expenses worth it? Well, you will receive ongoing training and support from the company headquarters, which will help you create a grand opening event. With a brand name, you will benefit from existing national exposure.
Your franchise location will be protected from others allowing other Planet Fitness franchises to be located in your area. You will have a special place as part of the local development agreement. All of those things will be specified in the franchise disclosure document.
Planet Fitness Franchise Profit
Franchise profits depend on several factors, such as your commercial lease rates, if any. Franchise costs also vary by location (which can define your operating costs), utility costs and the cost of other supplies, such as cleaning supplies.
Planet Fitness Franchise Owners Salary
Your monthly deductible is based on your membership, which ranges from $10 to $25 per month per franchise. After paying your start-up costs, the total amount of money you take in each month may be more than you expected, depending on how many memberships you sell.
Similar gyms mean the same challenge – getting members may be easy, but keeping them can be a challenge. Your marketing system needs to include regular communication with members to make sure they are using the site and supported by your staff.
In the fitness/exercise industry, here’s an amazing statistic – almost half of the people who sign up for a membership never go. And those people who don’t renew their membership.
What can you do? Most Planet Fitness franchisees make $50,000 a year or more in the first year, which is the highest number in the franchise industry. That’s after paying customer service representatives ($12 an hour), an overnight supervisor ($14 an hour) and a manager ($40,000 a year).
A requirement for Planet Fitness Franchisees
As we have said, you need a strong financial standing to qualify as a franchisee with a franchise agreement. But you’ll need more than that to run a Planet Fitness business:
A total of $3 million
$1.5 million in cash
People skills, social relations experience
Gym experience – familiarity with fitness equipment and gear
Fitness Program Skills – able to assist members in achieving their goals
Is Opening a Planet Fitness Franchise Worth It?
Franchise opportunities for Planet Fitness are limited, although the company is expanding into new areas with many franchises.
With your franchise you will receive health, dental and life insurance, as well as a retirement plan and the ability to earn Planet Fitness stock.
As we asked earlier, do you like going to the gym? Do you like to exercise? Do you love helping and teaching others as they strive to reach their fitness goals?
Then, it might be time to turn your hobby into your career. If you love what you do, you will succeed in the Planet Fitness business.
Photo: Depositphotos
