The upper third of Planet Fitness franchisees made on average $800,000 EBITDA, the middle third $400,000, and the bottom third $90,000. Keep in mind there is a royalty fee of 7% and a brand fund fee of 9%, both on gross sales. The Wolf’s Take The Planet Fitness franchise is one of the most successful fitness franchises on the planet.
Full Answer
How much does it cost to own a Planet Fitness?
When purchasing a Planet Fitness franchise, the fee would be 10,000 dollars for a 10-year renewable agreement, while the total investment ranges from 700,000 to 3.8 million dollars. Aside from this, franchisees must also pay a 5% ongoing royalty fee for all the sales to PlanetFitness.
What is the hourly wage at Planet Fitness?
These charts show the average hourly wage (core compensation), as well as the average total hourly cash compensation for the job for Trainer in companies like Planet Fitness in the United States. The average hourly rate for Trainer in companies like Planet Fitness range from $15 to $29 with the average hourly pay of $21.
How much Planet Fitness pay?
To access the Planet Fitness facilities, You have to pay an annual fee of ~ $40 and usually used in club maintenance, Repairing and upkeep. Planet Fitness Annual fee is $ 39, and the billing date is based on your joining date. Planet Fitness Annual fee is charged around eight weeks after your joining.
What does Planet Fitness pay their employees?
While Planet Fitness employees earn an average yearly salary of $23,928, different roles can command different wages. Some of the job titles with high salaries at Planet Fitness are Team Leader, General Manager, Personal Trainer, and Maintenance Technician.
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How much do franchise owners of Planet Fitness make?
How Much Do Planet Fitness Franchise Owners Make?FRANCHISED ONLYBOTTOM THIRDUPPER THIRDAverage Annual EFT Revenue-$1,022,241$2,210,892Median Annual EFT Revenue-$1,050,049$2,098,704High Annual EFT Revenue-$1,316,182$4,370,9401 more row•Jul 19, 2022
How does a Planet Fitness owner make money?
Franchise segment revenue contributed $290 Mn (50%) to the total revenue of Planet Fitness in 2021. Corporate-owned store segment revenue: Includes monthly membership dues, enrollment fees, annual fees, and prepaid fees paid by members, as well as retail sales.
How much is it to buy 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.
What franchise is the most profitable?
Most Profitable FranchisesAnytime Fitness. Anytime Fitness is a popular gym brand with a low-cost investment and high revenue potential. ... McDonald's. McDonald's franchise program is one of the most established in the fast food industry. ... UPS Store. ... Jersey Mike's Subs. ... Dunkin' ... Sport Clips. ... 7-Eleven. ... Papa John's.
Is Planet Fitness losing customers?
Total membership declined four percent from the first quarter to 14.8 million, a decline that might have been even greater except that overall joins during the period outpaced prior year levels, despite Planet Fitness reducing its local and national advertising, Rondeau said.
Is owning a gym franchise profitable?
Yes, fitness franchises offer great profits but not as much as you might think. 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.
How long does it take to build a Planet Fitness?
22,500SF tenant build-out during the construction of the building shell, built in 7 weeks (versus a typical duration of 12 weeks).
Who owns Planet Fitness franchise?
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 much does Planet Fitness spend on equipment?
Fitness Equipment: $34,000 to $953,000 If you finance it, you are responsible for obtaining financing. If you finance it, Planet Fitness estimates that the cost to make down payments on financed required fitness equipment for a new location generally ranges between $34,000 and $286,000.
Can you get rich owning a franchise?
The bottom line is that while a franchise can make you independently wealthy, it isn't a guarantee. Choosing the right business in the right industry, and going in with preexisting entrepreneurial experience and/or existing wealth can help, but your income-generating potential may still be somewhat limited.
What is the most profitable franchise to own in 2022?
Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•
Do franchise owners make money?
Franchise Business Review found that the average annual pre-tax income of franchise owners in America is $80,000. Only 7% of franchise owners make more than $250,000 annually, and 51% earn less than $50,000. Legally, franchisors cannot give income amounts or forecasts of future income.
How do gyms make their money?
Revenue is the money that comes into the gym from membership fees, class fees, personal training fees, and other revenue streams like apparel or supplements. Expenses are the money that goes out of the gym to pay for rent, utilities, advertising, equipment, and more.
How much is the owner of Planet Fitness worth?
Mr. Rondeau owns over 20,000 units of Planet Fitness Inc stock worth over $3,946,102 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.
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.
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 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.
How much does it cost to buy a Planet Fitness franchise?
When purchasing a Planet Fitness franchise, the fee would be 10,000 dollars for a 10-year renewable agreement, while the total investment ranges from 700,000 to 3.8 million dollars. Aside from this, franchisees must also pay a 5% ongoing royalty fee for all the sales to PlanetFitness.
How to Get a Planet Fitness Franchise?
A good idea is to first get a professional financial advisor . This is not a requirement but would be a big deal since you’ll be dealing with a lot of finances. There is a big chance that you will not understand most of what is said in contracts and you will need someone to break these down for you.
Why Should You Invest in Planet Fitness Franchising?
Here are the following reasons why you should consider investing in the Planet Fitness franchise business.
Are Planet Fitness branches profitable?
Having a business doesn’t automatically make you wealthy. Even though having existing wealth can help, you will need to choose the right business and the right industry to succeed. You will also need some entrepreneurial experience and luck along the way.
Why do people go to Planet Fitness?
One of the reasons why so many people flock to Planet Fitness is that it offers low-cost options to casual gym-goers. It is not exclusive only to gym rats and other fitness enthusiasts. Compared to other fitness clubs, Planet Fitness offers a more welcoming environment for anyone. Most gym amateurs are intimidated by exclusive gyms and would rather not enter the facility. But here in Planet Fitness, everyone is welcome. Today, the brand and all its franchises have a whopping 15.5 million members, erected in more than 2,000 locations. Once the pandemic is over, Planet Fitness can continue this trend. With only $10 per month, anyone can apply for a gym membership and enjoy the equipment and facilities. In a recessionary environment, Planet Fitness will be a go-to choice of many people hoping to lose their weight after being quarantined. Even when the pandemic isn’t over, some of the facilities started to cater to customers in May, and there has been a clear growth in the customers flocking to the gym. What more if the pandemic ends?
Why does Rondeau have faith in Planet Fitness?
Do you wonder why Rondeau has so much faith in Planet Fitness? It’s because the company owns %5 of the locations with franchisees. Thanks to its rock-solid business model, Planet Fitness hasn’t lost any of its quarterly cash burns at 5.6% even though the revenue has become dormant. Rondeau has already thought about insolvency before and acted upon it before it affects his business.
Why is Planet Fitness profitable?
Another reason why Planet Fitness is a profit for the future is because of the brand’s vision and hospitality. They offer a strong and smart brand with broad demographic appeal and corporate support, these are what you want to hear as a franchisee looking to invest. They have a simple message that fitness is for everyone regardless of what body type you have, they say our goal in working out shouldn’t primarily be to live a longer life, instead, it should be to make the most of life.
How much does it cost to franchise Planet Fitness?
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.
How long is Planet Fitness training?
Overview. Planet Fitness offers its franchisees two weeks of training at the company headquarters. The company offers ongoing assistance in the form of advertising, a phone line, safety procedures, meetings, newsletters, and a grand opening event.
Why is the gym considered a judgement free zone?
Labeling itself a “judgment free zone”, the gym has rules to discourage hardcore body builders from frequenting its establishments in order to make casual exercisers feel more comfortable and less intimidated by serious exercisers.
What is a world gym?
World Gym is an iconic, globally-recognized fitness brand in a booming industry. Invest in a World Gym Franchise and profit from a subscription-based revenue model with multiple revenue streams, backed by proven systems and A-to-Z franchisee support.
When did Michael Grondahl buy a gym?
In 1992, Michael Grondahl bought a gym in New Hampshire that was failing financially, and managed to turn it around by drastically cutting prices.
Is Planet Fitness a franchise?
Planet Fitness is listed in the Franchise Directory under the Fitness category.
Does Planet Fitness have Tootsie Rolls?
Planet Fitness reaches out to its customers by having a Pizza Night on the first Monday of each month, a Bagel Morning on the second Tuesday, and complimentary Tootsie Rolls are available constantly. More than one million Tootsie Rolls are given out each month. Planet Fitness is a main sponsor of The Biggest Loser, meaning that the gym gets a lot of national exposure and appeals to a customer base of out of shape people looking to reclaim their lives.
