Planet Fitness franchise costs and Fees

Planet Fitness franchise costs and Fees

Established time: 1992

Franchise time: 2000

Headquarters: Hampton, New Hampshire

The approximate number of apartments: 1860

Franchise description: 

Planet Fitness Franchising LLC is a franchise operator. Planet Fitness is a fitness center that provides fitness equipment and free weights, fitness services, tanning services, ancillary services, and ancillary products. The franchisor is selling the Planet Fitness franchise for use in new locations and existing fitness centers, hoping to convert to Planet Fitness. Planet Fitness affiliates must provide these services 24 hours a day unless prohibited by law or authorized in writing by the franchisor.

Training overview:

Affiliated companies and/or their responsible owners or approved operators, as well as any Planet Fitness business managers who have not previously completed the initial training program, must successfully complete the initial training program. The preliminary training plan includes classroom and practical training, covering all aspects of equipment operation and maintenance, cost control, inventory management, and basic management techniques. The franchisor will conduct preliminary training for the franchisee in two stages: familiarity with the owner and pre-sale and operation training. The franchisor may require the owner of the franchisee or its employees to participate in additional training courses within the term of the franchise agreement, whether provided by the franchisor or a third-party supplier designated by the franchisor. The franchisor expects that during the term of the franchise agreement, the additional training required will not exceed two or more continuing education courses of no more than five days per calendar year, and reasonably believes that they are necessary.

Grant area:

Affiliated companies may face competition from other affiliates, outlets owned by the franchisor, or other distribution channels or competing brands controlled by the franchisor. The franchise agreement grants franchisees the right to own and operate a Planet Fitness business in a specific location. Without the prior written consent of the franchisor and payment of the transfer fee, the franchisee will not be able to operate its PlanetFitness business or relocate its Planet Fitness business to a location other than the approved facility. The franchise agreement does not provide the franchisee with an opportunity, preemptive right, or obtain additional franchise rights or similar rights in any protected area. Unless the rights are obtained under the regional development agreement, the branch will not acquire the exclusive territory.

Obligations and Restrictions:

If the franchisee becomes or becomes a trading company, partnership, limited liability company, or other legal entity at any time, it must appoint a “responsible owner”, which is approved by the franchisor An individual who:

(a) has ownership rights;

(b) has the right to receive all official communications from the franchisor. When signed on behalf of the franchisor, all contracts and commercial documents related to Planet Fitness’s business are legally binding on the franchisor.

(C) A satisfactory franchiser training plan. If the franchisor is not an authorized operator of Planet Fitness’s business, the franchisee (or its responsible owner) must personally manage the franchise as its main occupation. Power and responsibility of management and operation. Affiliated companies can only provide products and services that have been approved in writing by the affiliated company. Affiliated organizations must provide all services and products required by their designated affiliates.

Term of Agreement and Term of Renewal:

The initial term of the franchise is 10 years from the day the franchisee activity starts. If the franchisee meets the requirements of the franchisor at the time, it may provide the franchisor with an assignee.

Financial assistance:

The franchisor does not provide direct or indirect funding. The franchisor does not guarantee the franchisee’s bills, lease agreements, or obligations.

Planet Fitness franchise costs and Fees Table:

Estimated initial investment

Name of Fee                                                                                                                   low                                                                             High
Initial franchise fee                                                                                                               USD 20,000                                                                   USD 20,000
Site selection costs                                                                                                                $ 1,000                                                                             $ 10,000
Construction and Development Plan Review Fee                                                          $ 0                                                                                     $ 4,000
Real Estate Rent Improvements                                                                                        $ 650,000                                                                        $ 1,600,000
Fitness equipment                                                                                                              US $ 27,000                                                                       US $ 878,000
Non-fitness equipment                                                                                                      US $ 32,000                                                                       US $ 606,000
Presales / Grand Open Marketing                                                                                    $ 20,000                                                                            $ 30,000
External Sign                                                                                                                        US $ 11,000                                                                       US $ 41,000
The computer system, cash system, and other accessories                                        US $ 12,000                                                                      US $ 28,000
Insurance                                                                                                                              USD 10,000                                                                       USD 25,000
Security deposit                                                                                                                   $ 0                                                                                         $ 87,000
Other deposits                                                                                                                     $ 0                                                                                          $  46500
Professional Compensation                                                                                              US $ 2,000                                                                          US $ 25,000
The initial cash training cost for the franchisee is                                                        $ 1,500                                                                                 $ 6,500.
License / Pledge                                                                                                                  $ 100                                                                                     $ 5,000
Additional Funds-6 Months                                                                                             $ 181,000                                                                             $ 701,000
Estimated amount *                                                                                                 US $ 968,100                                                               US $ 4,113,500

* Real estate purchase and rental costs are not included.