The Financial Breakdown of a Planet Fitness Franchise

Are you an entrepreneur who wants to try luck in the gym business? If so, this information about Planet Fitness franchise cost, fees, potential profit, and owner salary per year can come in handy for evaluating whether an investment in this franchising opportunity is a wise choice.

Key Takeaways:

  • If you want to launch a new Planet Fitness franchise, you can expect an initial investment cost between $1,625,600 and $4,921,000.
  • Franchise applicants must finance 20% of the initial cost from their liquid assets(cash).
  • Every Planet Fitness gym pays from the gross sales revenue 17% for the cost related to the franchisor royalties fees.
  • The average-earning Planet Fitness franchise has a gross sales level of $1,597,862 per year.
  • The owner of the average earning franchise can expect a 15% profit margin which is $240,000 in salary per year.
  • Franchisees must replace cardio equipment every five years and non-cardio equipment every seven years, which can be very costly.

How Much Does The Planet Fitness Franchise Cost

The total investment necessary to start the Planet Fitness franchise ranges between $1,625,600 and $4,921,000. This estimation includes all franchisor fees that the new franchise owner will need to pay before opening day. 

If investors choose to purchase, not lease equipment, in that case, the necessary cost of total investment grows and goes between $2,502,600 and $4,921,000!

As we can see from above, this is a high-cost franchise opportunity, so it will be available only to investors who have high capital at their disposal.

You, as an investor, must be aware that these franchises operate in huge spaces. The franchise owner will need to lease a building of approximately 15,000 to 25,000 square feet, which means the leasehold improvements and purchase of necessary equipment will be very costly.

This franchise can be an ideal investment option for existing fitness training facility owners with equipment at the location that is acceptable by this franchisor’s standards. In that case, this investment can be lower than the above estimation.

Planet Fitness franchise list of initial costs:

  • Initial Fee: $20,000 
  • Site Selection Costs: $1,000 – $10,000
  • Construction Development Plan Review Fee: $0 – $4,000 
  • Leasehold Improvements: $575,000 – $1,941,000
  • Fitness Equipment Initial Package: $43,000 – $953,000
  • Non-Fitness Equipment: $61,000 – $721,000 
  • Pre-Sale/Grand Opening Marketing Expenses: $40,000 – $60,000 
  • Exterior Signs: $11,000 – $36,000 
  • Insurance: $5,000 – $25,000
  • Computer System, Point of Sale System, and other Supplies: $6,000 – $20,000 
  • Real Estate Lease Deposits Expenses: $0 – $87,000
  • Utilities, Banks, Leased Equipment Deposits: $0 – $46,500
  • Accountants, Lawyers, Other Professional Fees: $2,000 – $25,000
  • Initial Training Expenses: $1,500 – $6,500
  • Licenses/Bonds: $100 – $5,000
  • Additional Funds: $171,000 – $598,000 – Working Capital for first six months.
  • ESTIMATED TOTAL INVESTMENT COST: $1,625,600 – $4,558,000

This estimation of the cost necessary to start the Planet Fitness franchise doesn’t include expenses related to the purchasing or leasing franchised location real estate. So investors must, in their calculation, include costs according to the lease expense in their geographic area for this type of facility!

Funding Options for Covering Starting Cost

This company doesn’t offer in-house financing, so investors will need to search for third-party funding sources to cover the initial expense of starting the Planet Fitness franchise.

Also, the franchisor does not permit franchisees to borrow more than 80% of the initial investment cost! If they want to be approved, franchise applicants will need at least 20% of the total investment available in liquid assets(cash).

Planet Fitness Franchise Fees

One-Time Fees

Planet Fitness, as a franchisor, charges a one-time fee of $20,000, and by paying it, the franchisee gets the right to use the Trademarks of this brand.

Also, investors are obligated under a franchise agreement to start spending money in advertising and marketing campaigns immediately after opening their location!

Every new location must run promotional campaigns (Grand Opening Marketing Fee) for $20,000 to $30,000 every 30 days. However, the franchisor has stated in their FDD that this cost will not exceed $120,000, which means the investor will need to pay it only for two to four months after the opening day.

Planet Fitness list of one-time franchise fees:

  • Initial Fee: $20,000
  • Pre-Sale/Grand Opening Marketing Fee: $20,000 to $30,000 per every 30-day period, no more than $120,000
  • Construction Development Plan Review Fee: $4,000 

Ongoing Franchise Royalty Fees

When we combine all Planet Fitness royalties, we come to 16% of the gross revenue that the franchise owner is obligated to redirect to the franchisor bank account!

This franchisor charges 7% of the Royalty Fee, 2% of the National Advertising Fund Fee, and 7% for the Local Advertising Fee from the gross sales revenue that very franchised locations make per month.

  Planet Fitness List of franchise royalties fees:

  • Royalty Fee: 7% of the total gross revenue
  • National Advertising Fund Fee: 2% total gross revenue
  • Local Advertising Fee:  7% of total gross revenue 
  • Internet Membership and Balance Payment Administration Fee: $5 per membership application

Every franchise location must replace working equipment every 5 to 7 years after opening. The re-equip costs between $431,000 and $953,000, and potential franchise owners must be aware and prepared that this expense will occur!

Planet Fitness Franchise Profit/Owners Salary

The Planet Fitness franchises, on average, make $1,597,862 in gross revenue per year with a 15% profit margin. So the owner of the average earning franchise can expect to make a $240,000 salary per year.

As a potential Planet Fitness franchise, you must be aware that this is an average that company-owned locations make yearly. So your results can differ, and success will depend primarily on how good franchised locations are, that is, how many regular customers pay for the membership every month.

How We Calculated a Planet Fitness Franchise Owner’s Salary

We found information about gross sales level ITEM 19 FINANCIAL PERFORMANCE REPRESENTATIONS data inside the franchisor Franchise Disclosure Document.

The FDD has revealed the following for the fiscal year 2021:

  • The bottom-third earning gyms, on average, have made $1,024,453 in gross revenue.
  • The middle-third-earning gyms, on average, have made $1,553,235 in gross revenue.
  • The upper-third gyms, on average, have made $2,215,899 in gross revenue.
  • The average gross sales level for all gyms was $1,597,862.

We calculated the franchise owners’ salary by applying a 15% profit margin on the average gross revenue ($1,597,862) that these gym facilities make annually!

Planet Fitness Franchise Requirements

Planet Fitness is a high-cost franchise, so capital requirements are high. The franchise applicants must have a minimum of $1,500,000 in liquid assets available to qualify to become a franchisee of this company.

Every franchise location must replace cardio equipment every five years and non-cardio equipment every seven years! Also, all fitness equipment must be purchased from the franchisor directly thru their company Planet Fitness Distribution LLC.

Franchisor demand that its franchised location must be open on a 24-hour-per-day 7-day-per-week. So investors must be aware that they must follow this requirement regarding working hours.

How Much is Planet Fitness Franchise Agreement Duration

The Planet Fitness franchise agreement length is ten years from the date when the location opened its door. When it expires location owner will need to pay specific fees before signing a new contract for an additional ten years.

Who Owns Planet Fitness Trademarks

Michael, Marc Grondahl, and current CEO Chris Rondeau are founders, owners, and key people in operating the Planet Fitness franchise system.

Planet Fitness Franchising LLC owns the marks and other intellectual property that this franchise system uses in the United States.

Pla-Fit Canada Franchise, Inc., is offering Planet Fitness franchises for the operation of businesses in Canada under these trademarks. 

Planet Fitness Australia Franchise Pty Ltd is the franchisor for gyms operating in Australia.


Before investing in this high-cost franchise opportunity, you must compare the initial investment cost and potential profit per year!

The Return Of Investment time is a suitable parameter that can show potential investors how much profit, in the long run, can be made by owning this and similar businesses.


Written by:

Stuart MacPherson

Hi, I'm Stuart. I've been running my own small business since 2019 after leaving a successful career in finance. I created FranchiseTheory to share my enthusiasm for franchising and the franchise business model.

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