Planet Fitness FDD Analysis
Top Findings
Item 19 — Strong Revenue Disclosure with High Median Performance
Planet Fitness discloses median club revenues among the highest in the gym franchise sector. Many mature clubs report $1M-$2M+ in annual revenue. The low-price ($10/month) model drives extremely high membership volume, creating revenue stability. Item 19 data supports the economic model when properly capitalized.
Item 7 — Very High Initial Investment
Planet Fitness is capital-intensive: total initial investment ranges from approximately $970,000 to $4.2 million depending on whether you're building new or converting an existing space. This is not a starter franchise. Financing requirements are significant. Many operators need SBA loans or investor capital. The high upfront cost means break-even timelines of 3-5 years are common.
Item 8 — Equipment Purchase Requirements
Franchisees must buy equipment through Planet Fitness's approved suppliers on a mandated replacement cycle. Equipment refresh obligations (typically every 5-7 years) represent a significant ongoing capital expenditure that can run $200,000-$500,000. This must be factored into long-term financial planning beyond the initial investment figure.
Fee Burden Estimate
| Royalty | 7% of gross sales |
| Ad Fund | 9% of gross sales (unusually high) |
| Combined | 16% of gross |
| Est. Annual Fees | $80,000 |
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Risk Grade
2 red flags
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