How profitable is a planet fitness franchise

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How much do Planet Fitness franchise owners make?

How Much Do Planet Fitness Franchise Owners Make?
FRANCHISED ONLY
BOTTOM THIRD UPPER THIRD
Average Annual EFT Revenue- $1,022,241 $2,210,892
Median Annual EFT Revenue- $1,050,049 $2,098,704
High Annual EFT Revenue- $1,316,182 $4,370,940

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 does Planet Fitness make in profit?

Planet Fitness, Hampton, New Hampshire, reported 2021 revenue of $587 million, compared to $406.6 million in 2020, and fourth quarter 2021 revenue of $183.6 million, compared to $133.8 million in fourth quarter 2020, the company announced on Feb. 24.

How much money do you need to open a 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.

Is it better to start your own gym or franchise?

Higher profits: Franchises typically see higher profits than non-franchise businesses, as there is a loyal customer base and formula for success. While the initial investment to open a gym franchise can be high, you’ll likely turn a profit more quickly.

Is a fitness franchise a good investment?

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.

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.

Can you make a lot of money owning a gym?

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.

Is being a gym owner profitable?

Market research across the USA shows that a gym owner of a medium-sized gym could earn around $150,000 per year. The general setup costs for a medium-sized gym is around $100,000. But your profits for the first financial year could be as little as $50,000.

Is Planet Fitness financially stable?

Of the 500 franchises recognized, Planet Fitness ranked #7 overall and ranked #1 in the fitness category for its outstanding performance in areas including unit growth, financial strength and stability, and brand power.

What month do gyms make the most money?

Gyms are making more money in January, so they’re more likely to have members pay a lower monthly fee leading into the New Year when business is slow and have people commit by January 1.

How is Planet Fitness doing financially?

Adjusted EBITDA(1) increased 86.5% to $224.4 million from $120.4 million in the prior year. 132 new Planet Fitness stores were opened system-wide during the year, bringing system-wide total stores to 2,254 as of .

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).

How do gyms make enough money to stay open?

Gyms make most of their money through recurring membership fees. However, smart owners will implement new revenue streams like personal training, branded merchandise, premium amenities, and more to make owning a gym more profitable.

How much money should I save to open a gym?

Think somewhere between $10,000 for a personal studio to $50,000 for a fully-equipped commercial gym. Be sure to shop around—and keep in mind you can often get a discount if you purchase the equipment in sets as a complete package. Certifications – having a professional, certified staff is a big plus.

What type of gym is the most profitable?

During a November 2020 survey among gym owners in the United States, it was found that 69 percent of CrossFit gyms were profitable.

Share of gyms that are profitable in the United States as of November 2020, by type.
Characteristic Share of gyms
CrossFit Gyms 69%
Boutique/Yoga 58%

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What is the most successful gym franchise?

The Complete List
Rank Franchise Name Number of Units
1 StretchLab 100+ UNITS
2 The Exercise Coach 100+ UNITS
3 Alloy Personal Training LESS THAN 20 UNITS
4 9Round Fitness 100+ UNITS

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What percent of gyms are profitable?

For example, in our 2021 study we found that 85.3 percent of the gyms that spend over $20,000 a month are profitable, while only 65.7 percent of gyms that spend at least $6,503 turn a profit. This data doesn’t imply that prosperous gyms are successful because they spend more than their counterparts.

What is the fastest growing fitness franchise?

AUSTIN, Texas, –(BUSINESS WIRE)–F45 Training Holdings Inc. (“F45” or the “Company”) (NYSE: FXLV) has been recognized as one of 2022’s fastest-growing franchises by Entrepreneur.

What is the cheapest fitness franchise to?

With the below information, you can choose the cheapest gym franchise opportunity for you.
  • 4.1 Jazzercise Inc. Initial franchise fee: $1,250. …
  • 4.2 GymGuyz. Initial franchise fee: $40,000. …
  • 4.3 9Round. Initial franchise fee: $5,000. …
  • 4.4 F45 Training. …
  • 4.5 Anytime Fitness. …
  • 4.6 Burn Boot Camp. …
  • 4.7 Snap Fitness. …
  • 4.8 Club Pilates.

Is opening a gym a good business idea?

Starting a gym business is not only financially rewarding but also offers you a chance to transform the lives of numerous people. You will not only help people tackle their weight loss problem but also improve their health.

What are the cons of Planet Fitness?

Pros and Cons of Planet Fitness
Pros Cons
Inexpensive. Staff isn’t knowledgable.
Clean. The lunk alarm.
No wait for machines. Dress code.
No group classes, only individual workouts.

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Who is Planet Fitness biggest competitor?

Planet Fitness’s top competitors include Drop Fitness, and Naardic Training.

Does Planet Fitness have a high turnover rate?

But those numbers could change quickly because the turnover rate at Planet Fitness is relatively high. Employees at Planet Fitness stay with the company for an average of 2.9 years before leaving. The average employee at Planet Fitness makes $25,232 per year.

What is the toughest thing about being a gym owner?

Revenue is the main concern for gym owners. After all, it is what keeps your business running. Revenue pays your employees, the light bill, heat & air, new equipment, and just about anything you can think of that is important to maintain your gym.

What are the operating costs of a gym?

A good rule of thumb is to budget $3-4 per square foot of space per year of use. So if we are working with 2500 square feet of space that would be amounting to $7500-10,000 per year. Divide this by 12 and you have the amount to budget for utility each month.

What types of businesses are the most profitable?

What’s the Most Profitable Business to Start in 2022?
  1. 22 Profitable Businesses to Start in 2022. …
  2. Ecommerce Business. …
  3. Dropshipping Business. …
  4. Vacation or Home Rental. …
  5. Online Courses. …
  6. Bookkeeping or Accounting Services. …
  7. Graphic Design Business. …
  8. Digital Agency.

Who owns the most Planet Fitness?

Opening its first location in 2003 in Altamonte Springs, Florida, Sunshine Fitness is the very first Planet Fitness franchisee and is now one of the largest operators within the Planet Fitness brand. Started by longtime best friends, Shane McGuiness and Eric Dore, Sunshine Fitness now operates 114 locations.

What company owns Planet Fitness?

Planet Fitness (PFIP LLC) is an American franchisor and operator of fitness centers based in Hampton, New Hampshire.

Planet Fitness.
A Planet Fitness location in Cincinnati, Ohio
Industry Fitness
Founded 1992
Founders Michael Grondahl Marc Grondahl
Headquarters Hampton, New Hampshire, U.S.

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How much debt does Planet Fitness have?

Planet Fitness long term debt for the quarter ending was $1.986B, a 13.74% increase year-over-year. Planet Fitness long term debt for 2021 was $1.74B, a 0.64% decline from 2020.

Compare PLNT With Other Stocks.
Planet Fitness Annual Long Term Debt (Millions of US $)
2018 $1,160
2017 $697
2016 $702
2015 $480

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What is the highest paying job in the fitness industry?

High-paying jobs in fitness
  • Nutritionist.
  • Sports massage therapist.
  • Physical education (P.E.) teacher.
  • Registered dietitian.
  • Fitness manager.
  • Holistic health and fitness program director.
  • Fitness apparel designer.
  • Physical therapist.

How do I get rich in the fitness industry?

10 Ways to Generate Revenue and Grow Your Fitness Business
  1. Create a Digital Fitness Platform. …
  2. Nutrition Planning and Consulting. …
  3. Fitness and Activewear Products. …
  4. Sell Digital and Downloadable Content. …
  5. Run Specialized Sessions. …
  6. Offer Group Training. …
  7. Host Health and Fitness Retreats. …
  8. Become an Affiliate Partner.

How many members does an average gym have?

How many members do most gyms have? The average number of gym members is between 1,000 and 10,000, while boutique gyms (under 4,000 square feet) have 100–500 members. Be that as it may, the gyms usually have 300–500 people on a daily basis due to the facility’s capacity.

Can you negotiate Planet Fitness?

Luckily, gym contracts are absolutely negotiable. “Based on my research of gyms and my own experience negotiating with LA Fitness and Planet Fitness, it’s more than possible to bargain for a lower rate or sign-up bonus with a new gym,” says J.R. Duren, a personal finance journalist at Highya.com.

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.

Who owns Planet Fitness net worth?

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.

Is it hard to get out of Planet Fitness?

We hate to see you go! But if you must, the process is easy. You can fill out a cancellation form at the front desk of your home club, or send a letter (preferably via certified mail) to your club requesting cancellation. Memberships can’t, unfortunately, be cancelled by email or phone.

How long does it take for a gym to be profitable?

Revenue and profit varies by size. However, it’s typical for a gym to generate between $1,000 and $2,000 a month in revenue within the first 6 months. After a year, a successful gym will generate at least $20,000 per month.

Can you shower at Planet Fitness?

Yes, Planet Fitness has showers. While they’re not overly luxurious, every Planet Fitness does indeed have multiple clean showers with privacy curtains you can use after you exercise. However, they do not have shower towels, and the small towels they provide to wipe down machines and your face won’t do the job.

Why do gyms always make it hard to leave?

“Gyms are notoriously hard to quit, because most clubs do not want to allow the member to cancel their contract once they realize the hard work and commitment involved in becoming fit,” New York City attorney David Reischer recently told the Washington Post.

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.

What does the average franchise owner make?

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.

How much does a gym owner earns?

Average Annual Salary (Estimated)

Business Owner salary in The Gym ranges between ₹ 2.2 Lakhs to ₹ 2.8 Lakhs per year.

Is gym ownership profitable?

Market research across the USA shows that a gym owner of a medium-sized gym could earn around $150,000 per year. The general setup costs for a medium-sized gym is around $100,000. But your profits for the first financial year could be as little as $50,000.

Who are the largest Planet Fitness franchisees?

Opening its first location in 2003 in Altamonte Springs, Florida, Sunshine Fitness is the very first Planet Fitness franchisee and is now one of the largest operators within the Planet Fitness brand. Started by longtime best friends, Shane McGuiness and Eric Dore, Sunshine Fitness now operates 114 locations.

What is the most profitable franchise to own in 2022?

Top 14 Most Profitable Franchises
  • McDonald’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.

Can owning a franchise make you rich?

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 franchise makes the most money?

What is the most profitable franchise to own? According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide. As of 2021, they have 7,567 open units.

What is the toughest thing about being a gym owner?

Revenue is the main concern for gym owners. After all, it is what keeps your business running. Revenue pays your employees, the light bill, heat & air, new equipment, and just about anything you can think of that is important to maintain your gym.

Are gym owners successful?

Owning a gym can be an extremely lucrative business, and statistics backs that up. Over 62.5 million gym members go to the gym for 104 days every year. However, as lucrative as it can be, the industry is still very saturated. That means that the competition level is high and you need to invest a lot of work to succeed.

How long does it take for a gym to be profitable?

Revenue and profit varies by size. However, it’s typical for a gym to generate between $1,000 and $2,000 a month in revenue within the first 6 months. After a year, a successful gym will generate at least $20,000 per month.

What type of gym is the most profitable?

During a November 2020 survey among gym owners in the United States, it was found that 69 percent of CrossFit gyms were profitable.

Share of gyms that are profitable in the United States as of November 2020, by type.
Characteristic Share of gyms
CrossFit Gyms 69%
Boutique/Yoga 58%

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What percentage of gym businesses fail?

According to the IHRSA, 81 percent of health and fitness studios fail within their first year. A gym is still a business and must be treated as such if it is to succeed. The surest way to set your new gym up for failure is to open it before you know what you’re doing.

Is opening a gym a good business idea?

Starting a gym business is not only financially rewarding but also offers you a chance to transform the lives of numerous people. You will not only help people tackle their weight loss problem but also improve their health.

Is Planet Fitness financially stable?

Of the 500 franchises recognized, Planet Fitness ranked #7 overall and ranked #1 in the fitness category for its outstanding performance in areas including unit growth, financial strength and stability, and brand power.

How is Planet Fitness doing financially?

Adjusted EBITDA(1) increased 86.5% to $224.4 million from $120.4 million in the prior year. 132 new Planet Fitness stores were opened system-wide during the year, bringing system-wide total stores to 2,254 as of .

What is the fastest growing fitness franchise?

AUSTIN, Texas, –(BUSINESS WIRE)–F45 Training Holdings Inc. (“F45” or the “Company”) (NYSE: FXLV) has been recognized as one of 2022’s fastest-growing franchises by Entrepreneur.

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