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Fitness 2,298 Units

Planet Fitness Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$1,525,000 – $5,221,500

Franchise Fee

$20,000

Royalty Rate

7.0%

Initial Investment Range

Low: $1,525,000 High: $5,221,500

The total initial investment to open a Planet Fitness franchise ranges from $1,525,000 to $5,221,500, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $20,000.

Midpoint estimate: $3,373,250

Franchise Fee

$20,000

One-time initial fee

The Planet Fitness franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Planet Fitness brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

7.0%

of gross revenue

Ad/Marketing Fund

2.0%

of gross revenue

Total Ongoing Fee Burden: 9.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty 7.0 PCT Based on EFT Dues Draft regardless of amount actually collected. May be calculated on Total Net Membership Revenues with 60 days notice.
Interest 10.0 PCT 10% annualized or highest contract rate permitted by law, whichever is lower. Applied from date payment is due.
Join Fee 20.0 PCT Paid for each new membership to the business, charged once per new membership. Alternative: 5% of total price of prepaid membership.
Administrative Fees N/A VARIABLE Will not exceed 50% of revenue received from commercial partnerships. Variable based on arrangements with commercial partners.
Refresher Training Workshops N/A VARIABLE Based on number of people trained and length of training. For refresher courses or operational training for new managers.
Per Diem Fee N/A VARIABLE Based on number of people trained, length and location of training. Franchisee also responsible for travel, food, and lodging expenses.
Re-Equip Costs N/A VARIABLE Periodic replacement every 5-9 years depending on usage category. Cardio equipment every 5-7 years, other fitness every 7-9 years. 6 months advance notice provided.
Remodel Costs N/A VARIABLE Substantial remodeling required not more often than every 12 years. 6 months advance notice provided. Franchisor may perform and pass through costs if franchisee fails to maintain standards.
Fees to Evaluate and Approve Alternative Suppliers N/A VARIABLE Reasonable costs and expenses capped at $25,000 per evaluation.
Third-party payments N/A VARIABLE Franchisor collects and remits undisputed payments owed to certain third parties. Franchisee reimburses for any overdue payments.
Insurance N/A VARIABLE Due within 5 business days of demand. Only if franchisee fails to obtain required coverage.
Pre-Sale/Grand Opening Marketing Expense N/A VARIABLE Only if franchisee fails to execute Pre-Sale or Grand Opening Marketing Plan and franchisor executes on their behalf.
National Advertising Fund (NAF) Fee 2.0 PCT Currently 2%, not to exceed 3% of EFT Dues Draft. During 2026 only: 2% of EFT Dues Draft plus 1% of total gross monthly membership fees via EFT. Paid via EFT when Royalty is paid.
Local Advertising Funds (LAF) 7.0 PCT Greater of $60,000 or 7% of cumulative Monthly EFT per year. During 2026 only: greater of $50,000 or 6% of cumulative Monthly EFT. Only paid to franchisor if they collect directly or franchisee fails to spend required amounts. Combined LAF and NAF will not exceed 9% of EFT Dues Draft.
Advertising Cooperative Fees N/A VARIABLE Only if franchisee fails to make payment to advertising cooperative. Collected via EFT Dues Draft.
Special Marketing Programs 7.0 PCT Up to 7% of Monthly EFT for a single month. May be spread across months. Credited towards LAF expenditures. Paid to franchisor or third parties.
Auditing and Inspection Costs N/A VARIABLE Only if franchisee fails to provide required reports, audit discloses material noncompliance, or follow-up audit is needed.
Franchise Agreement Transfer Fee 10000.0 FIXED $10,000 plus reasonable out-of-pocket expenses (legal/administrative costs not exceeding $10,000 per club). Exceptions for transfers to existing owners, family members, estate planning entities, or transfers of 5% or smaller interests (only outside costs reimbursed).
Securities Offering Fee N/A VARIABLE Up to $100,000 plus reasonable out-of-pocket expenses (legal/administrative costs not exceeding $100,000). Only for certain securities offerings.
Area Development Agreement Transfer Fee 5000.0 FIXED $5,000 per location plus reasonable out-of-pocket expenses (legal/administrative costs not exceeding $5,000). Same exceptions as Franchise Agreement Transfer Fee apply.
Site Evaluation Fees N/A VARIABLE Reasonable expenses not to exceed $25,000. Reimbursement for travel, lodging, and food costs for site evaluations requested during construction.
Successor Franchise Fee 20000.0 FIXED Only if franchisee wants to renew and franchisor agrees to grant successor franchise. Due concurrently with granting successor franchise.
Indemnification N/A VARIABLE Reimbursement for liability, costs or damages from franchise operations, breaches, ownership disputes, unauthorized mark use, confidential info disclosure, securities offerings, unapproved marketing, debranding, IP infringement, and defamation.
Administrative third-party costs N/A VARIABLE Reasonable expenses not to exceed $5,000. For franchise registration in new jurisdictions or changes to agreements/documents. Reimbursement for filing fees and third-party costs.
Costs and Attorney's Fees N/A VARIABLE Actual costs if franchisor prevails in legal dispute or franchisee fails to participate in mediation. Includes accounting, attorneys', arbitrators' and related fees.
Cure Period Extension Fee (Franchise Agreement) 4.0 PCT Up to 4% of EFT fees. Only if franchisee fails to cure default within cure period and franchisor agrees to extend (no obligation to extend). Paid via EFT on Monthly Membership Billing Day. In addition to all other remedies.
Debrand Deficiency Fee 35000.0 FIXED $35,000 for one or more pieces of strength or amenity equipment plus $35,000 for one or more pieces of cardio equipment. Only if franchisee fails to meet debranding requirements and franchisor cannot repurchase or debrand equipment.
Management Fees 10.0 PCT Costs not to exceed 10% of monthly gross revenue. Only if franchisor must manage business under certain circumstances.
Emergency Purchases N/A VARIABLE Under limited, infrequent emergency circumstances. Franchisor must purchase for all similarly situated businesses and consult franchisee association beforehand.
Software licensing 100.0 FIXED Currently $100 per year. For access to third-party customer relationship management software and applications. Franchisee reimburses portion of franchisor's cost.
Late Development Fee 50000.0 FIXED Only if franchisee fails to open business by date required under Area Development Agreement.

What You Get

Category

Fitness

System Size

2,298 units

Franchise Score

88

out of 100

Planet Fitness operates a value-oriented gym chain offering 24-hour fitness access, cardio equipment, and strength training facilities. The franchise democratizes fitness by providing low-cost memberships and a non-judgmental, welcoming atmosphere to all fitness levels.

Financial Performance (Item 19)

Median Revenue

$2,471,424

per year, per location

Profitability Estimate

Estimated Owner Profit

$-56,843

per year

Profit Margin

-2.3%

of revenue

Estimation method: disclosed+benchmark

Estimated ROI (Simple Payback): -59.3 years

Based on midpoint investment of $3,373,250 and estimated annual owner profit of $-56,843.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.0%

Low risk — below industry average

Net Unit Growth

-2073 units

From 2022 to 2025

Unit Activity History

Year Start Opened Closed Transfers End
2022 2073 +118 2082
2023 2082 +123 2201
2024 2201 +100 -1 2298
2025 +78

Is a Planet Fitness Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Planet Fitness franchise opportunity:

Overall Score

88/100

Strong opportunity

Est. Payback Period

N/A

Risk Level

Low

0.0% annual closure rate

Planet Fitness scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $2,471,424 and a combined fee burden of 9.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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