If you love going to the gym, a Planet Fitness franchise business is a perfect fit for you. In fact, you can choose from several roles – franchise ownership with management, or franchise ownership with an owner who’s actively involved in fitness training services.
Planet Fitness offers more than just a gym membership. Planet fitness franchisees pride themselves in offering support to its members, to keep them actively using their Planet Fitness membership benefits.
Basic Facts About Planet Fitness Franchises
Yes, the Planet Fitness franchise includes the typical exercise machines and free weights. But there’s more:
- Fitness training services, such as working with a personal trainer. The personal trainer may be a staff member who is assigned to a group of members.
- Tanning booths and equipment.
- Cardio equipment such as treadmills and stair steppers.
- Annual membership fees payable on a monthly basis and can be paid as an internet membership
- A Planet Fitness Franchisee gets extensive on-the-job and classroom training, in using equipment and with implementing safety procedures. Some training takes place at company headquarters.
- There are currently more than 2,000 Plant Fitness franchises in the US, in 49 states and Washington DC. The company started in New Hampshire.
- The Planet Fitness business franchise began in 2003
- The franchise is strongest in the south, where there are about 700 Planet Fitness franchises. The franchise is expanding into other areas of the country.
- In the fitness industry, Planet Fitness businesses focus on being a “judgement free zone” – by creating a welcoming environment for people with various fitness goals in all stages of their fitness journey. In other words, members of all ages, sexes and fitness levels are treated kindly and in a supportive manner.
Planet Fitness Franchise Cost
It’s relatively expensive to get into this franchise, given the cost of the equipment and gear. It’s expensive to outfit and equip the franchise from an empty building to a working fitness center.
The initial franchise fee is $20,000, but a franchise owner wanna-be needs to have working capital (liquid assets and liquid capital) and minimum net worth of from $200,000 to $700,000. The total investment ranges can be about $1 million, but the initial investment can be as high as $4 million. That depends greatly on the cost of real estate in the area, and also whether the franchisee is doing a remodel of an existing building or building a new facility. Those costs are comparable to similar franchises.
The minimum and maximum fee varies depending on actual costs. Fr example, Planet Fitness franchising may consider new franchisee applications who want to remodel an existing building.
They may even approve alternative suppliers for some of the equipment and gear. Those agreements/arrangements would be spelled out in the franchise agreement.
Planet Fitness Franchise Fees
After the initial franchise fee, the new franchisees will also pay other fees such as administrative costs and ongoing fees including a 7% royalty fee. Of course, if leasing real estate that will also be a monthly fee. You’ll also pay a national advertising fund fee and a local advertising fee.
Are the fees and costs worth it? Well, you’ll get training and ongoing assistance from company headquarters, which will also help you create a grand opening event. Through the brand name, you’ll benefit from the existing national exposure.
Your franchise location will be protected from other allowing other Planet Fitness franchises to locate in your area. You’ll have an exclusive territory as part of the area development agreement. All those things will be spelled out in the franchise disclosure document.
Planet Fitness Franchise Profit
The franchise profit depends on several factors, such as your commercial lease rates, if applicable. Franchise costs also vary by location (which can define your labor costs),utility costs and the cost of other supplies, such as cleaning materials.
Planet Fitness Franchise Owners’ Salary
Your gross monthly take is based on your memberships, which range from $10 to $25 per month for the franchise. After you cover your startup costs, your total gross monthly take could greatly exceed your expectations, depending on how many memberships you sell.
Similar fitness centers franchises cite the same challenge – getting members may be relatively easy, but retaining them can be challenging. Your sale system needs to include regular contact with members to make sure they’re using the facility and being supported by your staff.
In the fitness/gym industry, here’s a staggering statistic – about half of the people who sign up for memberships never go. And those are the people who don’t renew their memberships.
What can you make? The majority of Planet Fitness franchisees make $50,000 a year or more the first year, which is a top number in the franchise industry. That’s after paying customer service reps ($12 hour average), an overnight manager ($14 hourly) and a manager ($40,000 annually).
Planet Fitness Franchisees Requirement
As we’ve stated, you need a strong financial standing to qualify as a franchisee with a franchise agreement. But you’ll need more than that to run a Planet Fitness business:
Net worth of $3 million
Liquid capital of $1.5 million
People skills, public relations experience
Gym experience – familiarity with fitness equipment and gear
Fitness Program skills – able to assist members in developing their goals
Is Opening a Planet Fitness Franchise Worth It?
Planet Fitness franchise opportunities aren’t plentiful, although the company is expanding into new areas with more franchises.
With your franchise you’ll get health, dental and life insurance, as well as a rtirement plan and the ability to earn Planet Fitness stock.
As we asked at the outset, do you love going to the gym? Love working out? Love helping and instructing others as they strive to reach their fitness goals?
Then, it may be time to turn your favorite hobby into your job. If you love what you do, you’ll be successful in the Planet Fitness business.
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