Planet Fitness has been termed an almost oversaturated franchise in the fitness sector: famous for being the cheap gym and for its embraceable ambience for all people. So if you’re considering entering into a franchise of Planet Fitness in 2025, here’s what to expect in terms of investment and returns on investment.
Read now: What is the Food Stamps number to check balance? Complete list of numbers by state
Start-up costs: $1.5 million-$5.1 million.
Starting a franchise under the elite name of Planet Fitness is very much a discipline in itself. The entire investment range to open an estimated franchise lies appreciably between $1,515,000 and $5,141,000, depending on location, size of the facility, and many other factors. The start-up budget itself covers the activities involved in construction, setting up gym equipment, and marketing costs. Here is a brief discussion of key expense components:
- Franchise Fees: $20,000
- Leasehold Improvements: $1,250,000 – $2,221,000
- Fitness Equipment: $41,000-$1,026,000
- Non-Fitness Equipment: $49,000-$919,000
- Marketing & Signage: Up to combined $147,000
- Initial Training, Licenses, and Insurance: Up to $47,500
- The Expense Range Total: $78,000-$578,000
The high fluctuation in prices is in proportion to those real-estate expenses such as city fielding permits versus whether the space is new construction or renovation.
Running fees-from royalties and marketing contributions
The other fees that franchises pay perpetually for Planet Fitness are:
– Royalty Fee= 7% of gross sales.
– NAF fee=2% of Gross sales. This is the National Advertising Fund (NAF) fee.
– 1%-2% for Local Advertising depending on local marketing initiatives.
These fees go toward the maintenance costs of the very strong national branding, and support franchise members through shared resources and advertising.
Financial requirements: Net worth and liquid assets
It is worth noting that if you are going to start any location of Planet Fitness, you have to prove that you are showing really solid financial status because a potential franchisee must attain:
- Minimum Net Worth: $3 million
- Liquid Assets: at least $1.5 million.
This is designed to help indicate to franchise owners that they have the resources to take them through all the initial phases along with the business ongoing business processes without boring the cost.
Revenue potential: $1.7 million annually
According to FDD documents prepared through franchise, average annual revenue having planet fitness locations operated was around $1.7 million above that average of similar gym franchises concerning about $1.17 million.
It could mean around $254,850 as EBITDA yearly if the franchise were to operate at a profit margin of 15 percent.
Is planet fitness a good investment in 2025?
Well, with more than 2400 locations worldwide, 95% owned by a franchisee, Planet Fitness knows how to do business. Is their model perfect, sounds sweet and affordable instead of high-number membership masses? Coupled with a first gym experience, this will lure people to be members.
Regarding how great the startup costs would balance against returns, though, one should be concerned. An established name and a solid support system matters, but so will location, management, and local competition.
Final thoughts
Opening a Planet Fitness franchise in 2025 would likely require a considerable amount of more investment but could yield steady returns in a nurturing industry for the qualified investor. As always, consult your financial and legal advisors before diving in.
Read now: What should I do if my EBT card is lost or Steps to take immediately when your EBT card goes missing
