'Is Planet Fitness a Good Franchise for 2022?'

05:52 Jul 20
'Planet Fitness franchise was founded in 1992 by Marc and Michael Grondahl in Dover, New Hampshire. The Grondahls had acquired a struggling Gold’s Gym franchise and closed it in 1993. They opened a new gym called Coastal Fitness and the Grondahls hired current CEO Chris Rondeau, who was still in college at the time, to run the gym’s front desk. The Grondahls changed the gym’s name to Planet Fitness in 1994.  From the start, Planet Fitness was an inclusive, non-intimidating gym and in 1997, Planet Fitness officially unveiled its “Judgement Free Zone” philosophy. The “Judgement Free Zone” was started to help first-time gym users feel more comfortable starting their fitness journey.  Read here to learn more: https://www.vettedbiz.com/planet-fitness-franchise-costs/  Want to speak with a franchise specialist about Planet Fitness or another franchise? Click here: https://share.hsforms.com/1ZtNM19w4R8WIXyNa_97N7w4e0xw  00:00 Introduction 01:13 Foundation 01:32 Planet Fitness Focus 02:04 Customers 02:16 Current CEO, Chirs Rondeau 02:34 Growth 02:53 Franchise Cost 03:49 Time to Recoup Investment 04:37 Conclusion  #IsPlanetFitnessAGoodFranchiseFor2022 #VettedBiz  After a few years of growth, Planet Fitness started franchising in 2003 with the first franchised gym opened in Florida. Planet Fitness’ growth continued over the next decade and in 2013, TSG Consumer Partners, LLC became an equity partner in the Planet Fitness franchise. At that time, Michael Grondahl stepped down as CEO and Chris Rondeau took his place and has held the position since.  Today, there are Planet Fitness franchise locations around the U.S. as well as Canada and the Dominican Republic.  It costs between $936,600 and $4,558,000 to open a Planet Fitness franchise. The main variables include whether you buy or finance the equipment and leasehold improvements.  These figures are estimates based on Planet Fitness’ and its affiliates’ experience in operating locations. Your experience may vary depending on whether you finance tenant improvements, your location, and other factors. You may need additional operating capital, or you may need it for a longer period of time.  Planet Fitness Royalty Fee: 7% Of the total gross monthly and annual membership fees payable to you via EFT Dues Draft. Due Date: Paid monthly and annually.  Your Royalty payment is currently based on the total gross monthly and annual membership fees for the Planet Fitness business that are due and payable to you each month and annually, as applicable, by or on behalf of your members through authorized EFT withdrawals (the “EFT Dues Draft”), regardless of the amount of membership fees you collect.  Re-Equip Costs: $274,000 to $878,000 You must maintain your equipment according to Planet Fitness brand standards. For example, this includes replacing your cardio equipment every 5 years and replacing your non-cardio equipment every 7 years.  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.  Your actual costs may be higher or lower depending on the size of your Planet Fitness business, the volume, and usage of your members, or changes in the market.  Remodel Costs: $70,000 to $800,000 You must maintain the franchise premises according to Planet Fitness brand standards. Therefore, this may include substantial remodeling of your premises as frequently as every 5 years  With the exception of signage, Planet Fitness will not require substantial remodeling more often than every 5 years during the term of the Franchise Agreement.  Planet Fitness estimates the costs to upgrade and/or remodel your facility will range from $70,000 to $600,000 every 5 years.  Your actual costs may be higher or lower depending on the size and location of your Planet Fitness business.  National Advertising Fund Fee: 2% of the gross monthly and annual membership fees 15.  Local Advertising Fee (“LAF”) Greater of $60,000 or 7% of the total gross monthly membership fees payable to you via EFT in a quarter, and the greater of $5,000 or 3% of the total gross monthly membership fees payable to you via EFT in a month  Due Date: Expended according to Planet Fitness’ Methods of Operations as per your advertising budget.  Paid by you to advertisers or Planet Fitness if it elects to collect from you.  Read here to learn more: https://www.vettedbiz.com/planet-fitness-franchise-costs/  Want to speak with a franchise specialist about Planet Fitness or another franchise? Click here: https://share.hsforms.com/1ZtNM19w4R8WIXyNa_97N7w4e0xw' 

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