How much does it cost to start a Planet Fitness?
We provide estimated franchise costs for some countries: - In the United States, the total investment to start the Planet Fitness gym is around $969,600 to $4,242,500. - In Canadian currency, the investment comes around Can$ 1,231,300 to Can$ 5,387,800.
What is the annual fee for Planet Fitness?
Planet Fitness has an annual fee of $39, which is effectively equal to your 4 months’ monthly fee (if you get the basic membership) of $10. So, if you are strictly on a budget, then the annual fee may feel a bit too much. But at the same time, you can hardly get a gym membership for as low as $10 except at Planet Fitness.
How much does Planet Fitness pay their employees?
How much do Planet Fitness employees get paid? The typical Planet Fitness Crew Member salary is $13 per hour. Crew Member salaries at Planet Fitness can range from $9 – $15 per hour. Do you get free membership if you work at Planet Fitness? There are numerous benefits provided by Planet Fitness to their employees.
How much does Planet Fitness make an hour?
Planet Fitness employees earn $25,000 annually on average, or $12 per hour, which is 90% lower than the national salary average of $66,000 per year. According to our data, the highest paying job at Planet Fitness is a Sales and Marketing Representative at $101,000 annually while the lowest paying job at Planet Fitness is a Membership Sales Agent at $16,000 annually.
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How much do fitness franchise owners make?
According to Investopedia, most franchise owners take home around $50,000 per year, but about 7% of franchise owners earn more than $250,000 per year. You have to be aware of some fees and additional costs because these will quickly cut into your profit margins.
How much money do you need to open a Planet Fitness franchise?
Planet Fitness's franchise fee is $10,000 for a 10-year renewable agreement, though the total investment ranges from $700,000 to $3.8 Million. Franchisees must also pay a 5% ongoing royalty fee on all sales to Planet Fitness. To open a gym, a franchisee must have of $3 million with $1,500,000 in liquid assets.
Is owning a Planet Fitness profitable?
Planet Fitness is a profitable business for the franchisor, with retained earnings of $210 million in 2021. Compared to $145 million in 2020, they saw an increase of 44% from 2020 to 2021. This is a good indication of high growth as a company overall.
How does a Planet Fitness owner make money?
Strong business model As franchisor, Planet Fitness primarily generates revenue through membership royalties, fees, and branded equipment sales. Image source: Planet Fitness.
What is the most profitable franchise?
Top 14 Most Profitable FranchisesMcDonald's. Units in operation: 39,360. ... Dunkin Donuts. Units in operation: 12,800. ... Taco Bell. Units in operation 12,800. ... Subway Franchise. Offers Financing: Yes. ... Anytime Fitness Franchise. Units in operation: 4,904. ... Sonic. Royalty: 2.5% - 5.0% ... Planet Fitness. Royalty 7.0% ... Orangetheory Fitness.More items...
What is the cost of McDonald's franchise?
The Franchise fee of McDonald's goes for around 30 lakhs INR; however, this fee is also attached with a 4 % monthly royalty fee as service fees to the brand. The actual investment amount differs, a business owner needs to keep a rough estimate of around 6 to 14 Crores.
Is Planet Fitness losing customers?
Not only did we gain 1.7 million new members in 2021, but existing members reengaged with Planet Fitness. We nearly returned to pre-pandemic usage levels, achieving a 90 percent-index to 2019 usage, with existing members visiting us more frequently than in the past.
Is opening a gym a good investment?
If you're going to invest your hard-earned money, you might as well secure it in a gym franchise. Later on, when you are financially stable, you can have the freedom to start your own business or continue expanding your franchise as it will most likely be a success. The bottom line is, gym franchises are profitable.
Do gyms make a lot of money?
A well-run gym with a good mix of members can generate a lot of revenue. For example, a gym with 1,000 members paying $50 per month could generate $50,000 per month in revenue. If the gym has expenses of $20,000 per month, then it would have a profit of $30,000 per month.
Why is Planet Fitness so successful?
"Planet Fitness is exceptionally competitive because of its national footprint and growing awareness of its different approach to the market aimed at non-gymgoers," Cowen & Co.
How do I start my own gym business?
A Concise Guide To Opening A Gym In 2022Find Your Niche! ... Get Training And Become Accredited. ... Find Out About Gym Licenses And Permits. ... Become Versed In Post-COVID Best Practices. ... Secure Financing For Your Venture. ... Find A Good Location. ... Invest In Quality Equipment. ... Interview And Hire Staff.More items...
How do cheap gyms make money?
How To Make Money With A Gym. There are three primary ways that gyms make money: from membership fees, from selling classes and personal training packages, and from selling extra goods and services.
How much is the owner of Planet Fitness worth?
Mr. Rondeau owns over 20,000 units of Planet Fitness Inc stock worth over $4,152,600 and over the last 6 years he sold PLNT stock worth over $243,446,345. In addition, he makes $4,436,830 as Chief Executive Officer and Director at Planet Fitness Inc.
How do I start my own gym business?
A Concise Guide To Opening A Gym In 2022Find Your Niche! ... Get Training And Become Accredited. ... Find Out About Gym Licenses And Permits. ... Become Versed In Post-COVID Best Practices. ... Secure Financing For Your Venture. ... Find A Good Location. ... Invest In Quality Equipment. ... Interview And Hire Staff.More items...
Who is the owner of Planet Fitness?
Chris Rondeau Chief Executive Officer Mr. Rondeau joined Planet Fitness in 1993, working the front desk at the very first location in Dover, NH, one year after the original founders, Michael and Marc Grondahl, started the Company in 1992. Today the brand has over 2,000 locations system-wide.
How does Planet Fitness stay in business?
Over 95% of its stores are owned and operated by franchisees. "Today, with our size and scale, we are a marketing machine that happens to be in the gym business," he said. "We're a franchise business and the franchisees are required to spend 7% of their membership dues on marketing locally.
Background
When the COVID-19 pandemic hit, health came the forefront of everyone's minds. Data shows that those who were most impacted by this pandemic had comorbidities, such as obesity and diabetes. A way to get in better shape is going to the gym. This is where the Planet Fitness franchise comes in.
Support and Training Offered By Planet Fitness
In terms of support and training, the company offers two weeks of training at its headquarters. Additionally, the company also offers ongoing assistance in the form of advertising, a phone line, safety procedures, meetings, newsletters, and a grand opening event.
How much does it cost to start a Planet Fitness business?
The total investment necessary to begin operation of a single Planet Fitness business ranges from $968,100 to $3,072,000 if you finance your equipment.
When did Planet Fitness start franchising?
After a few years of growth, Planet Fitness started franchising in 2003 with the first franchised gym opened in Florida. Planet Fitness’ growth continued over the next decade and in 2013, TSG Consumer Partners, LLC became an equity partner in the Planet Fitness franchise. At that time, Michael Grondahl stepped down as CEO and Chris Rondeau took his place and has held the position since.
How long is the pre-sale marketing period for Planet Fitness?
The pre-sale/grand opening marketing period typically begins no less than 45 days immediately before the date that you intend to commence regular operations at your Planet Fitness location, and it may be as long as 180 days after you commence regular operations (“Pre-Sale/Grand Opening Marketing Period”).
How many square feet does a planet fitness business need?
Typically, you will need to lease a building of approximately 15,000 to 25,000 square feet and pay the cost of site work and/or leasehold improvements.
What happens if Planet Fitness fails to execute its pre-sale marketing plan?
If you fail to execute the Pre-Sale/Grand Opening Marketing Plan, Planet Fitness may execute it on your behalf and at your expense.
How much does it cost to down payment on Planet Fitness?
Planet Fitness estimates that your cost to make down payments on non-fitness equipment generally ranges between $32,000 and $182,000, with the total estimated cost to purchase the non-fitness equipment ranging between $318,000 and $606,000.
What equipment do you need for Planet Fitness?
You must acquire the fitness equipment and other non-fitness equipment (such as televisions, tanning beds, trusses, lockers, interior signage, flooring, fans, and the like ) for your location through the approved supplier of Planet Fitness.
What is a Planet Fitness franchise?
Franchise Description: Planet Fitness Franchising LLC is the franchisor. Planet Fitness businesses are fitness training facilities offering exercise machines and free weights, fitness training services, tanning services, related services and ancillary goods. The franchisor offers for sale Planet Fitness franchises for new locations and for existing fitness facilities that want to convert to a Planet Fitness. The Planet Fitness franchisee must provide these services on a 24-hour-per-day 7-day-per-week basis unless prohibited by law or authorized by the franchisor in writing.
What is the training for Planet Fitness?
The initial training program consists of both classroom and hands-on training covering all facets of operations, including equipment operation and maintenance, cost control, inventory control and basic techniques of management. The franchisor will administer the initial training to franchisees in two specific phases: owner orientation and pre-sale and operations training. The franchisor may require franchisees’ owners or their employees to attend additional training courses during the term of the Franchise Agreement, whether conducted by the franchisor or a third party vendor it designates. The franchisor expects that the additional training required will not exceed two people attending more than two refresher training sessions of up to five days per calendar year during the term of the Franchise Agreement, but it may require franchisees to attend more training courses or franchise meetings when it reasonably considers them necessary.
How long is a franchise agreement?
Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date franchise es commence operations. A successor franchise may be granted if the franchisee meets the franchisor’s then-current requirements.
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Does franchising offer financing?
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or obligation.