Planet Fitness Franchise Costs, Fees & FDD

Year Business Began: 1992

Franchising Since: 2000

Headquarters: Hampton, New Hampshire

Estimated Number of Units: 2,620

Franchise Description: Planet Fitness Franchising LLC is the franchisor. The ultimate parent company is Planet Fitness, Inc. Planet Fitness businesses are fitness training facilities offering exercise machines and free weights, fitness training services, tanning services, related services and ancillary goods. The franchisor offers for sale Planet Fitness franchises for new locations and for existing fitness facilities that want to convert to a Planet Fitness.
Training Overview: Franchisees and/or the responsible owner and approved operator, and all managers for their Planet Fitness business who have not previously completed the initial training program must successfully complete the initial training program. The initial training program consists of both classroom and hands-on training covering all facets of operations, including equipment operation and maintenance, cost control, inventory control and basic techniques of management. The franchisor will administer the initial training to franchisees in two specific phases: (1) owner orientation and (2) pre-sale and operations training. The current training program consists of initial training at the franchisor’s principal place of business (Hampton, New Hampshire) and at an operating unit (typically the franchisor will select a company-owned Planet Fitness business that is located near its headquarters but may conduct all or part of this training remotely). In addition, franchisees must participate in all other activities required to operate the Planet Fitness franchise. The franchisor may require franchisees’ owners or their employees to attend additional operational training courses during the term of the Franchise Agreement, whether conducted by the franchisor or a third party vendor it designates. The franchisor expects that the additional training required will not exceed two people attending more than two refresher training sessions of up to five days per calendar year during the term of the Franchise Agreement, but it may require franchisees to attend more training courses or franchise meetings when it reasonably considers them necessary.

Territory Granted: The Franchise Agreement grants franchisees the right to own and operate a single Planet Fitness business at a specific location. Franchisees may not conduct the business of their Planet Fitness business at any site other than the approved premises, or relocate their Planet Fitness business without the franchisor’s prior written consent and meeting the relocation requirements. The franchisor does not grant franchisees a protected area, designated territory, or any other rights of protection under the Franchise Agreement.

Obligations and Restrictions: If franchisees are, or at any time become, a business corporation, partnership, limited liability company or other legal entity, they must designate a “responsible owner,” who is an individual approved by the franchisor who: (a) has an ownership interest in the franchisee; (b) has the authority to accept all official notices from the franchisor, and when signing on the franchisee’s behalf, legally bind the franchisee with respect to all contracts and commercial documents related to the Planet Fitness business; and (c) has completed the training program to the franchisor’s satisfaction. Unless the franchisor approves an approved operator for the Planet Fitness business, franchisees (or the responsible owner) must personally manage and operate the franchise as their primary occupation and will not, without the franchisor’s prior consent, delegate their (or one of their owner’s) authority and responsibility with respect to management and operation. Franchisees may offer only the products and services the franchisor has approved in writing. Franchisees must offer all services and products that the franchisor designates as required for franchisees.

Term of Agreement and Renewal: The length of the initial franchise term is 12 years from the date franchisee commences operations. However, upon written request, the franchisor may grant up to a one-year extension or up to a two-year reduction of the term to match the expiration of the lease term. A successor franchise may be granted if the franchisee meets the franchisor’s then-current requirements.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$0	$20,000
Site Selection Costs	$0	$10,000
Construction Development Plan Review Fee	$0	$4,000
Leasehold Improvements	$1,250,000	$2,142,000
Fitness Equipment	$36,300	$1,103,000
Non-Fitness Equipment	$76,200	$1,061,000
Pre-Sale/Grand Opening Marketing	$40,000	$132,000
Exterior Signs	$13,000	$37,000
Computer System, Point of Sale System, and Other Supplies	$5,000	$13,000
Insurance	$20,000	$40,000
Real Estate Lease Deposits	$0	$87,000
Other Deposits	$0	$46,000
Professional Fees	$5,000	$25,000
Franchisee’s Out-of-Pocket Initial Training Expenses	$1,500	$7,500
Licenses/Bonds	$10,000	$25,000
Additional Funds – three months	$68,000	$469,000
ESTIMATED TOTAL (excludes the cost of purchasing or leasing real estate)	$1,525,000	$5,221,500

 
Other Fees

Type of Fee	Amount
Royalty	7% of the total gross monthly and annual membership fees payable to the franchisee via EFT dues draft.
Interest	10% (annualized) or the highest contract rate of interest permitted by law, whichever is lower.
Join Fee	20% of the regular monthly membership fee or 5% of the total price of a prepaid membership.
Administrative Fees	Will vary under the circumstances, but will not exceed 50% of the revenue franchisees receive in connection with such partnerships.
Refresher Training Workshops	$500 to $1,500 based on the number of people trained and the length of the training.
Per Diem Fee	$100 to $1,000 based on the number of people trained, and the length and location of the training.
Re-Equip Costs	Currently $363,000 to $1,103,000.
Remodel Costs	Currently $250,000 to $1,200,000 but the total amount will depend upon the amount the franchisor incurs for the remodel.
Fees to Evaluate and Approve Alternative Suppliers	The franchisor’s reasonable costs and expenses, capped at $25,000.
Third-Party Payments	Amount the franchisor pays the third party on the franchisee’s behalf.
Insurance	Amount the franchisor pays to obtain the insurance for the franchisee.
Pre-Sale/Grand Opening Marketing Plan	Will vary under the circumstances, but no more than $120,000.
National Advertising Fund Fee (NAF)	Currently, 2% of monthly membership fees and certain annual membership fees, not to exceed 3% of the EFT dues draft.
Local Advertising Fee (LAF)	Greater of $60,000 or 7% of the total gross monthly membership fees payable to franchisees via EFT in year.
Advertising Cooperative Fees	Amount franchisees fail to pay to their advertising cooperative.
Special Marketing Programs	Up to 7% of monthly EFT for a single month.
Auditing and Inspection Costs	Actual costs the franchisor incurs to audit the franchisee’s business.
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, which will not exceed $10,000 per club transferred.
Securities Offering Fee	Up to $100,000, plus the franchisor’s reasonable out-of-pocket expenses, including external legal and administrative costs it incurs in connection with the offering, which will not exceed $100,000.
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, which will not exceed $5,000.
Site Evaluation Fees	The franchisor’s reasonable expenses, which will not exceed $25,000.
Successor Franchise Fee	$20,000
Indemnification	Will vary under circumstances.
Administrative Third-Party Costs	The franchisor’s reasonable expenses, which will not exceed $5,000.
Costs and Attorney’s Fees	Actual costs. Will vary under circumstances.
Cure Period Extension Fee (Franchise Agreement)	Up to 4% of the gross monthly and annual membership fees payable to franchisees via EFT.
Debrand Deficiency Fee	Currently, $35,000 for one or more pieces of strength or amenity equipment plus $35,000 for one or more pieces of cardio equipment.
Management Fees	The franchisor’s costs, not to exceed 10% of monthly gross revenue of the club.
Emergency Purchases	Cost of items purchased on the franchisee’s behalf.
Software Licensing	Currently $100 per year.

The above information has been compiled from the FDD of Planet Fitness. Year of FDD: 2025.
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