How Much It Costs To Own A Planet Fitness Franchise?

When that changes, FranchiseHelp has concrete data on the kinds of employees the business will be seeking for. If you wish to open a location of your own, your net worth must be at least $3 million to be taken into consideration. That means that at least $1.5 million, or half of it, must be liquid money. For Planet Fitness, the initial franchise cost is $20,000. 80 percent of people in the United States and Canada do not currently have a gym membership, and Planet Fitness is working to change that statistic. Here is all the critical information important to know before taking a planet fitness Frenchie

Planet Fitness Net Worth Requirments:

Despite the fact that Planet Fitness is not presently searching for new franchisees, FranchiseHelp has concrete data on the kinds of people the organization will be seeking when this changes. If you wish to open a location of your own, your net worth must be at least $3 million to be taken into consideration. That means that at least $1.5 million, or half of it, must be liquid money.

Initial Investment Requirments To Own A Planet Fitness Franchise:

According to Franchise Direct and supported by FranchiseHelp, the first franchise fee for Planet Fitness is $20,000, but the start-up expenditures don’t end there. You will spend between $1,000 to $10,000 on-site selection expenditures alone, which is little compared to the rest. Then there are the expenses for leasehold improvements, which can run from $575,000 to $1.94 million.

Of course, there is also the cost of the equipment, which can range from $43,000 to $953,000 for fitness equipment and from $61,000 to $721,000 for non-fitness equipment.

Other significant start-up expenses include:

Pre-sale and grand opening advertising costs: $40-$60k$11,000 to $36,000 for exterior signsSystems for computers: $6,001–$20,000Protection: $5,000–$25,000Deposits for real estate leases: up to $87,000Fees for professionals: up to $25,000. Additionally, there is a confusing but costly category called “extra funds — six months. ” It might cost up to $598,000, making it one of the most pricey items on the list. The overall initial investment expenditures for a prospective Planet Fitness franchisee range from $936,600 to $4,558,500.

Perpetual Costs of the Franchies

A key component of Planet Fitness’ business strategy is maintaining a consistent flow of income from its franchisees. If you decide to invest in the brand, be ready to pay a royalty fee equal to 7% of the gross monthly and yearly membership costs for your club. Additionally, you’ll be required to pay 18% interest. Costs for remodeling range from $70,000 to $800,000. Costs for re-equipment range from $431,000 to $953,000.

You’ll have to contribute 2% to the company’s national advertising budget and up to 7% for specific marketing campaigns because your area will profit from all those Planet Fitness advertisements you see. That’s a sizable sum of money, but in exchange, you get a tiny piece of one of the greatest and fastest-expanding fitness companies in the nation and the entire world.

Conclusion: 

The franchise cost for Planet Fitness is $10,000 for a 10-year contract that is renewable, however, the total investment can be anywhere between $700,000 and $3.8 million. Additionally, franchisees are required to give Planet Fitness a continuous royalty charge of 5% of all sales. To run a gym, a franchisee needs $3 million and $1,500,000 in liquid assets. Having a net worth of $800,000 in liquid assets and at least five gyms are required to start a “region,” which must have that many gyms.

Is Planet Fitness a reliable brand?

Yes, Planet Fitness is profitable, as evidenced by the fact that its annual income is increasing. The Electronic Transfer of Funds projected the annual gross to be between $513,00 and $5,554,000 as of 2018. (ETF).

Is having a franchise for a gym profitable?

The revenues from fitness franchises are excellent but not as high as you may imagine. Approximately 7% of franchise owners generate more than $250,000 annually, according to Investopedia, although the majority earn around $50,000 annually.

Is Planet Fitness a wise financial decision?

Operating earnings. Planet Fitness is quite successful. In 2019 and 2020, the corporation makes above $100 million. Income declined in 2020 compared to 2019, most likely as a result of the Covid-19 epidemic, which was particularly hard on the fitness sector.