Initial term lengths last 10 years. After a few years of growth, Planet Fitness started franchising in 2003 with the first franchised gym opened in Florida. Anytime Fitness also prides themselves on engendering a supportive environment for members and they prioritize employee wellness. Planet Fitness growth continued over the next decade and in 2013, TSG Consumer Partners, LLC became an equity partner in the Planet Fitness franchise. The more franchises you own, the more earning potential you have as private equity firms become interested in your business instead of individual owner-operators. - In currency of Germany, the investment comes around EUR 805,430 to EUR 3,524,180. On this Wikipedia the language links are at the top of the page across from the article title. [35], The net worth requirement for a Planet Fitness franchise is $3,000,000, while the liquid cash requirement is $1,500,000. She also served as Senior Vice President of Human Resources at Macys Inc., and has held various leadership positions at The May Department Store Company, including corporate and division roles. Sherrill Kaplan joined Planet Fitness in June 2021 as Chief Digital Officer. This influences which products we write about and where and how the product appears on a page. [52], In March 2016, Planet Fitness partnered with STOMP Out Bullying,[53] a national organization dedicated to bullying prevention, and the Boys & Girls Clubs of America to launch the company's national philanthropic initiative to address bullying, The Judgement Free Generation. ", "2017 Top Franchises from Entrepreneur's Franchise 500 List", "Planet Fitness members outraged over March bill amid coronavirus closures", "Planet Fitness CEO says gym visits are holding up against the omicron variant", "Planet Fitness Seeing Minimal Impact So Far From Omicron", "Planet Fitness Franchise (Costs + Fees + FDD)", "Planet Fitness Franchise Costs & Fees, Planet Fitness FDD & Franchise Information | FranchiseDirect.com", "Planet Fitness Franchise Cost & Fees | How To Open | Opportunities And Investment Information", "Planet Fitness Prices & Membership Cost", "17 January Gym Discounts That Are Too Cheap to Pass Up", "Planet Fitness is raising the price of its Black Card membership but still offers a $10 option", "American gym powerhouse chooses Brampton for first suburban Canadian location", "Cheap 'n' cheerful chinups: Canada welcomes Planet Fitness, the $10 gym for those bad at gym", "Planet Fitness Continues International Expansion in Dominican Republic", "Planet Fitness opens first Hawaii location at Ala Moana Center", "10 Million Reasons to Get Pumped About Planet Fitness", "Planet Fitness to Sponsor 'The Biggest Loser', "50 Cent and Joan Rivers Kick It At The Gym [PHOTOS]", "Planet Fitness To Launch New Global Campaign On New Year's Eve", "Planet Fitness sponsors New Year's Eve celebration despite pandemic", "David Gilliland Racing Fielding Fourth Entry for Joey Logano in Bristol Dirt Race", "The Judgement Free Zone: Judgement Free Generation Video Contest", "Planet Fitness Opens In Fremont, Donates $1K To Boys & Girls Club", "Planet Fitness 'Judgment Free Zones' a Model of Inclusion", "Planet Fitness Anti-Bullying Initiative $1M Success", "Planet Fitness debuts fitness room for kids at Boys and Girls Club in Manchester", "Planet Fitness Opens Judgement Free Gym at Pasadena Boys and Girls Club", "Planet Fitness raises $1M for Boys and Girls Clubs of America", "Planet Fitness named national gym sponsor of 'The Biggest Loser', https://en.wikipedia.org/w/index.php?title=Planet_Fitness&oldid=1142494313, Companies based in Rockingham County, New Hampshire, Companies listed on the New York Stock Exchange, Health care companies established in 1992, Medical and health organizations based in New Hampshire, Short description is different from Wikidata, All Wikipedia articles written in American English, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 2 March 2023, at 18:29. Share. was founded in 1992 by Marc and Michael Grondahl in Dover, New Hampshire. This article originally appeared on JustBusiness, a subsidiary of NerdWallet. The graph includes a comparison against the Russell because there is no industry benchmark or line-of-business index for the fitness industry or a peer group that is publicly traded. With that said, a Planet Fitness franchise . The gym utilizes a "lunk alarm", which is a loud siren and rotating light that is used when a gymgoer grunts too loudly or drops weights. - In the United States, the total investment to start the Planet Fitness gym is around $969,600 to $4,242,500. From the start, Planet Fitnesswas an inclusive, non-intimidating gym and in 1997, Planet Fitness officially unveiled its Judgement Free Zone philosophy. Benson, who co-founded the former Cabletron Systems, once the . Before joining NerdWallet, he served as senior editorial manager of QuinStreet's insurance sites and managing editor of Insure.com. Assistant Assigning Editor | Small-business finance, personal finance. [3] The company reports that it has around 2,400 clubs, [4] making it one of the largest fitness club franchises by number of members and locations. This, too, is best evaluated with the help of an accountant or business lawyer, who can help you break down the fine print. LearningRx Franchise Corporation 5085 List Drive, #200 Colorado Springs, CO 80919 Phone: (719) 264-8808 Liz Anderson . ? Bode was also responsible for U.S brand compliance and business development along with leadership positions overseeing training, store development, marketing, and franchising. Their popularity mostly comes down to their unique business model: All Anytime Fitness locations are open 24 hours a day, seven days a week, and members can access any of those 4,000+ locations no matter where they are in the world. One of the best ways to thoroughly research a franchise or business opportunity investment before purchasing one is to get feedback from current and former franchisees involved in the franchise system. According to their website, Pure Barre is the oldest and most established barre studio out there. The prospects for growth and success within the industry and the Orange Theory brand itself, are extensive, and some markets continue to be available as they move forward with growing their presence across the country. 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 gyms front desk. We now have: 2,400+ locations open (and we're just getting started!) Planet Fitness has the franchise fee of up to $20,000, with total initial investment from $969,600. At that time, Michael Grondahl stepped down as CEO and Chris Rondeau took his place and has held the position since. The franchise also requires that candidates have at least $100,000 in combined liquid assets and a total net worth of at least $250,000. Upon your submission of your Construction Development Plans for our approval, Point of Sale Support, Processing and Account Management Services Fees, $149-$199 plus processing and credit card fees based on the number of transactions processed per month or number of eligible accounts enrolled in collections. That said, Orangetheory is designed for people of all fitness levels, since participants can go entirely at their own pace. Therefore, this may include substantial remodeling of your premises as frequently as every 5 years. Crunch isnt quite as widespread as Planet Fitnesscurrently, they have 300+ open locations in 29 states and five countriesbut with plans to open an additional 1,000+ locations, theyre growing quickly. 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. Mr. Fitzgerald holds an MBA in Finance from Indiana University Kelley School of Business and received his Bachelors degree in Finance from the University of Florida. 1 comment. [60], In October 2017, Planet Fitness and its members raised $1 million which it donated to the non-profit Boys and Girls Clubs of America. "I decided I didn't want to deal with that crowd, so that's when I opened the original Planet Fitness club in Sunrise, Florida, in 1993." Orange Theory was ranked 49th in the franchise 500 rankings according to entrepreneur.com. [14] Berks later went on to open the first Youfit Health Club in St. Petersburg, Florida. The Area Development Fee is uniform and non-refundable. Thanks to that near-legendary status in the fitness world, and their loyal customers, Jazzercise has over 8,900 franchises across the country. An individual planet fitness franchise owner can make around $513,00 to $5,554,000 annually. Their website reads, We are not currently accepting new franchisee applications for US expansion.. Owning a UFC Gym means owning a portion of the fastest growing sport in the worlda truly future-proofed business proposition. Prior to that he served as the Chief Operating Officer since 2003. Whether youre a gym rat yourself or youre passionate about helping others achieve their health goals, starting a fitness business can be a dream gig for health-conscious entrepreneurs. Ms. Kaplan has over 20 years of experience, most recently serving as Global Marketing Operations Advisor for Advent International, a global private equity firm. 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. By becoming a franchise owner, you can benefit from a proven business model, existing customer base, and franchisee support system. For those looking to get started with a Planet Fitness franchise, it's important to factor in all of these costs so that you have a clear understanding of the total investment required. If you can name a franchise business, it's probably on our Franchise owners marketing list. Previously, she served as Head of Marketing and Sales for Zipcar, the worlds leading car-sharing network, where she was a key member of the executive leadership team responsible for demand and revenue generation and all marketing functions. [7] They eventually closed that original location, opened a gym called Coastal Fitness and brought on a third partner, current CEO Chris Rondeau. Prior to joining Planet Fitness, Mr. Vartanian was a corporate attorney at Devine Millimet. Before the pandemic, it was growing at a rate of approximately 200 units a year, which is impressive. Planet Fitness (PFIP LLC) is an American franchisor and operator of fitness centers based in Hampton, New Hampshire. [11][12] Berks had been catering to the bodybuilding culture in his Gold's Gym. Edward Hymes joined Planet Fitness in January 2023 as President and Chief Operating Officer. Your experience may vary depending on whether you finance tenant improvements, your location, and other factors. [25][26] The company went public on August 6, 2015. It is important to talk to other franchisees and see what their costs were for leasehold improvements and construction. Ms. Simmons has an MBA in Finance from the University of New Hampshire and holds dual Bachelors degrees in Economics and Sociology from Indiana University. Franchise candidates can expect to pay anywhere between $354k to $1.2m. You may need additional operating capital, or you may need it for a longer period of time. Planet Fitness franchise costs, based on Item 7 of the company's 2022 FDD: Initial Franchise Fee: $20,000 Site Selection Costs: $0 to $10,000 Construction Development Plan Review Fee: $0 to $4,000 Leasehold Improvements: $1,250,000 to $2,163,000 Fitness Equipment: $34,000 to $953,000 Non-Fitness Equipment: $63,000 to $825,000 We believe that this franchise is an option for those that are passionate about fitness and are willing to put in the hours to make the business run smoothly. That said, franchisees are responsible for additional costs, including a monthly continuing franchise fee (CFF) of either 20% of gross revenue or at least $250 per month. Fitness centers have experienced sustained growth since the post-economic crisis in 2009. The Grondahls had acquired a struggling Golds Gym franchise and closed it in 1993. [56][57][58] Planet Fitness has also provided mini "Judgement Free Zone" gyms to Boys & Girls Clubs in Manchester, New Hampshire[59] and Pasadena, California. Crunch isnt quite as widespread as Planet Fitnesscurrently, they have 300+ open locations in 29 states and five countriesbut with plans to open an additional 1,000+ locations, theyre growing quickly. The estimated total investment necessary to begin the operation of an Orange Theory Franchise ranges from $657,542 to $2,105,322. 1,600+ locations open and we're just getting started! Estimated total initial investment: $2,405 to $3,200. Planet Fitness Fitness clubs 2023 Franchise 500 Rank #28 Ranked #7 last year See the Full List Initial investment $1.6M - $4.9M Units as of 2022 2,324 25.0% over 3 years Jump to Franchising. [8][9][7] In 2002, they purchased the rights to the name Planet Fitness from Rick Berks and renamed their franchise. We started our business in 1992 and refined our brand for a decade or so before franchising in 2003. According to their website, Pure Barre is the oldest and most established barre studio out there. It is reported to be the nations fastest growing fitness center franchise. As a franchise owner, youll benefit from a proven business model, brand recognition, existing customer base, vendor network, and robust franchisee support system. Although gym franchises require that the owner has previous management experience, most dont require experience in the. Across 50 states the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia Considering its massive brand recognition, the initial investment required to open a UFC Gym franchise is relatively low. Brand fund contributions (aka advertising fees) are 2% of monthly gross sales, though they may be increased to 3%. - In Philippine currency, the investment comes around Php 47,15 million to Php 206,34 million. Estimated total initial investment: $198,650 to $446,250. Prior to joining Planet Fitness, Ms. Simmons worked in Finance and Business Planning roles for Timberland, PepsiCo, and Fisher Scientific International. They also take a fun, irreverent, quirky, and motivating approach to marketing (ever see the mustache commercial? Now, We Own 22 Locations", "What your new gym doesn't want you to know", "Planet Fitness vs. the lunkheads: Why is a health club trying to alienate people who love to work out? Planet Fitness competes in the Fitness market against big brand companies such as Orange Theory and Golds Gym. Lets get started. To open a gym, a franchisee must have of $3 million with $1,500,000 in liquid assets. Mr. Hymes has over 30 years of experience leading domestic and international retail, franchise, and e-commerce businesses for global companies, most recently serving as the President and Chief Executive Officer of Jiffy Lube International. Point of Sale System, and other Supplies, Your Out-of-Pocket Initial Training Expenses, Operating Cash (Additional Funds Pre-Opening and first six months), $7% of the total gross monthly and annual membership fees payable to you via EFT Dues Draft, Internet Membership and Balance Payment Administration Fee, Set according to our Methods of Operations, presently 55 per membership application or balance payment we process for your franchise location, Fees to Evaluate and Approve Alternative Suppliers, Our reasonable costs and expenses, which currently are expected to range between $1,000 and $5,000, although costs could greatly exceed those amounts depending on the product, Will var under the circumstances: estimated insurance premiums for your first year are $10,000 to $20,000. It was founded in 2001, began franchising in 2008, and currently has over 120 locations in 26 states. The total investment ranges from $728,290 to $3,777,800. Kick off your search with this list of nine of the most promising gym franchises to buy. Based on a midpoint investment of $1,378,500 with estimated profits of $94,820 (10% profit margin) it would take about 15 years to recoup your investment. Plus, the outlook for gym franchises is bright: According to a report by IBISWorld, the health and wellness boom over the past few years has led to a sizable increase in gym membership levels, which continues to grow. Its the easiest way to get honest reviews from franchisees that have already invested in the franchise opportunities youre considering buying. [13] The new model was an effort to provide a fitness hub for everyday people. Crunchs fees are on the lower end of the scale: Royalty fees are 5% of monthly gross sales, and advertising fees are 2% of monthly gross sales. In her role as Division President, Corporate Clubs, Ms. Simmons will be responsible for leading the Company's Corporate Club portfolio including driving overall performance, leading and developing the team, and identifying strategic growth and expansion opportunities of the brand's corporate store fleet, which consists of more than 200 locations across 14 states and Canada. After establishing a strong reputation across the fitness industry, Latham decided to seek a larger challenge and transitioned from the study of physiology to owning a gym that implemented a business model that remains in place across all studios to this day: offering trainer-led group workout sessions, which are broken into intervals of cardiovascular and strength training. Former Gov. 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. Have questions? Brand fund contributions (aka advertising fees) are 2% of monthly gross sales, though they may be increased to 3%. New franchise owners can also expect to participate in a comprehensive training program, as the franchise requires their franchisees to be certified barre instructors. Since their start in 2002, Anytime Fitness has opened over 4,000 locations on all seven continents. All financial products, shopping products and services are presented without warranty. Estimated total initial investment: $1 million to $4.1 million. [43], With the addition of a Planet Fitness outlet in Hawaii in January 2018,[44] Planet Fitness had 1,500 locations with an estimated 10 million members across 50 states, the District of Columbia, the Dominican Republic, Mexico, and Panama[45] and Canada. If a fitness business with a franchise sounds good, heres nine of the most promising options for a gym franchise. Lead Assigning Editor | Small business finances, investing, banking. The $10 per month level includes access to cardio and strength equipment, unlimited group fitness instruction and pizza and bagels once a month; the $24.99 per month ("Black Card") level allows members to bring one guest per day at no charge, access to all Planet Fitness locations, and access to extra amenities, such as tanning booths, massage chairs, red light therapy and water massage beds. Cash Required $1,500,000. If you own and operate multiple Planet Fitness businesses in the same market area and LAF spending for them is combined. Planet Fitness franchise was founded in 1992 by Marc and Michael Grondahl in Dover, New Hampshire. [5] It markets itself as a "Judgement Free Zone" that caters to novice and casual gym users, and has faced both praise and criticism for its atmosphere. [41][42] In October 2015 the company opened their second international location in Santo Domingo, Dominican Republic. Its also a good idea to reach out to at least a few former Planet Fitness franchisees to find out why they left or were terminated from the franchise system. Prior to that, he served as the Director and General Manager of internet startup Kozmo, where he was responsible for new market development and operations. Planet Fitness franchise opportunities are proven by 1,500 clubs successfully operating worldwide. With that in mind, Planet Fitness franchisees will need to pay for that international brand recognitionopening a Planet Fitness franchise may cost over $4 million. When evaluating offers, please review the financial institutions Terms and Conditions. - In Mexican currency, the investment comes around Peso 20,19 million to Peso 88,33 million. Owning a fitness franchise is a fantastic way to enter into the multi-billion dollar fitness industry. There are very few reasons why one might want to open a Planet Fitness franchise. Our franchise contact lists contain contact details for both owners of single franchise units and multi-unit franchise owners, that is, franchisees that own many franchised locations. You have to pay this upfront fee when opening a Planet Fitness franchise. Ad Royalty Fee: $300/mo. Jamie Medeiros joined Planet Fitness in 2000, where she worked at the front desk in the Companys third location before transitioning to the Planet Fitness corporate marketing team. Please renew to keep using our services. In this role, he has overall leadership and accountability of the brands primary revenue producing business segments, including U.S. and international franchise operations and development, equipment sales, and Corporate stores, in addition to both the technology and legal functions. Anytime Fitness also prides themselves on engendering a supportive environment for members and they prioritize employee wellness. Call us direct at (855) 822-0912, Get Contact Details & Mailing List of Planet Fitness Franchisees, The difficult part of this step of the franchise buying due diligence. Mr. Rondeau joined Planet Fitness in 1993, working the front desk at the very first location in Dover, NH, one year after the original founders, Michael and Marc Grondahl, started the Company in 1992. The franchise requires that candidates have access to over $90,000 in liquid capital, and a minimum net worth of $300,000. The estimated total investment necessary to begin the operation of a Planet Fitness Franchise ranges from $1,625,600 $4,921,000. Investing in an Orange Theory franchise is an interesting opportunity, especially for individuals looking to make their way into the Fitness industry. Planet Fitness Franchise Cost The estimated total investment necessary to begin the operation of a Planet Fitness Franchise ranges from $1,625,600 - $4,921,000. Robert Beaupre leads the SMB team at NerdWallet. Rated Excellent on TrustPilot with feedback from 50+ customers. There are some units of Planet fitness franchisees making more than that or some making less than that. The total investment to open a Planet Fitness gym ranges from $728,290 - $3,777,800. [22] In 2010, Men's Health magazine called Planet Fitness "the worst gym in America. Net Worth Requirement: $3,000,000
As a franchisee, youll be required to pay 6% in royalty fees and 2% in marketing fees. Over the last three years, franchises have opened at a rate of 148 units a year. Browse 1000s of reports on 1000s of franchise systems. [28] It ranked in the top 50 of Entrepreneur magazine's Franchise 500 in 2017. Use this opportunity to ask qualitative questions that you wouldnt necessarily have answered through the FDD, or from the franchisors marketing materialslike how happy they are with the initial training and ongoing support they receive, and their opinions about the overall outlook of the business. Franchise fee: one-time $10,000 for a 10-year renewable agreement. That said, franchisees are responsible for additional costs, including a monthly continuing franchise fee (CFF) of either 20% of gross revenue or at least $250 per month. in Pilates. 3- Based on a midpoint investment of $3,273,300 with estimated profits of $831,881 at a 15% profit margin, it would take about 14 years to recoup your investment. Plus, that smaller pool of franchisees means each one receives more personalized support from the company. "[23], In the fall of 2013, TSG Consumer Partners LLC became an equity partner in the Planet Fitness franchise. This investment is much higher than the industry standard of $253,000. The U.S. has the biggest Fitness market in the world, both in terms of revenue and in the number of members enrolled in a fitness facility. Your Royalty payment is currently based on the total gross monthly and annual membership fees for the, You must maintain your equipment according to, Your actual costs may be higher or lower depending on the size of your, You must maintain the franchise premises according to, Franchise Disclosure Document (FDD) Database, Your Lender; Approved Suppliers; Our Affiliate, Paid to various media companies and other third parties to promote the opening of your business, Computer System, Point of Sale System, and other Supplies, Utilities, banks/credit card companies, leased equipment vendors, alarm company, telephone company, Your Out-of-Pocket Initial Training Expenses.
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