Buying a franchise is no small endeavor.
If you are an entrepreneur looking to invest in the fitness industry you only have two options.
Option one would be to create your own gym brand from scratch and be a small business until you can expand.
Or, option two, you can buy an already established gym franchise.
Both of these options call for a generous amount of money to get things up and running. Is it worth the investment?
The total investment to begin the operation of a Planet Fitness franchise is anywhere between $1,625,600 and $4,921,000, with equipment financing being a factor in the total cost.
If you choose option two, you may be wondering what gym franchise to buy into.
There are many different types of gym franchises to choose from:
- CYCLEBAR is a franchise that focuses on cycling classes.
- UFC Fitness specializes in kickboxing and boxing classes as a way of getting into shape.
- Planet Fitness is a gym with free weights and standing machines so that members can come and go and create their own workouts.
Deciding what kind of franchise to buy is depending on the buyer’s interests. For this article, we will discuss how much it is to buy a Planet Fitness franchise and break down the investment fees.
What is Planet Fitness?
Planet Fitness is a well-established gym franchise that was founded in 1992 in Hampton, New Hampshire.
The franchise has over 2000 clubs in the United States and is arguably one of the largest fitness franchise clubs in locations and memberships. Planet Fitness is one of many gyms that provide a high-quality fitness experience at an affordable cost.
To become a member at this gym, the price can be as low as just $10 a month.
Planet Fitness has a lot to offer for a gym and has some of the best studio space out there. The classic membership gives you access to their home fitness club, which has free weights, standing machines, and workout mats to perform your workouts when you see fit. The premium membership package includes all of the above, as well as the use of the tanning beds, massage chairs, hydromassage machines, 50% off drinks and some merchandise, and the ability to bring in a guest like your personal trainer or a gym friend.
Those who frequent Planet Fitness are typically fitness gurus who have created their workout plans and schedules. Considering the Planet Fitness franchise does not offer classes, you are in charge of your own workouts at the gym. With the low cost customer value proposition, minimal staffing and a no frills strong basic, core workout experience, this is a classic example of an Operational Excellence Customer Value Proposition, similar to superstars such as McDonalds and JPMorgan Chase & Co.
However, if you don’t want that kind of responsibility, Planet Fitness offers personal training opportunities with support staff. As you can see, Planet Fitness is an expansive gym with lots of revenue opportunities should you invest in this franchise.
The Pros of Buying a Planet Fitness Franchise
Owning a planet fitness gets you a lot of support considering it’s a well-established franchise. For starters, if you invest in Planet Fitness, you get to use the company name, trademark taglines, and any designs associated with the brand. This automatically gets you brand recognition, which leads to more people walking through your door at no cost at all. Fitness enthusiasts are constantly looking for brands and branches of franchises they recognize in their neighborhood.
Another benefit of owning a Planet Fitness Franchise is the support network that comes with it. When you join a franchise, you automatically get financial, marketing, and training support. Since Planet Fitness has thousands of locations across the country, there will be plenty of locations and people to get in touch with that will help you thrive there. Consulting with other Planet Fitness franchise owners about their success will help you in your new journey.
Not only will you get immense support and brand recognition, but as a Planet Fitness franchise owner, you will also get set up with a proven-successful business model. This benefit is a crucial one, as it strongly relates to your profitability as an owner. You will get access to blueprints, training tactics, guidelines, and procedures that Planet Fitness has honed throughout its history. Access to this kind of knowledge removes the trial and error phase of opening a new business and puts you right at the forefront of success.
How Much is it to Buy a Planet Fitness Franchise?
Now you know the main benefits of investing in the Planet Fitness franchise, but how much does it cost to get started on it all? The total investment to begin the operation of a Planet Fitness franchise is anywhere between $1,625,600 and $3,677,000 if you finance and provide your own equipment. A part of that amount includes $54,000 to $320,000 you must initially pay to the franchisor or the affiliate. If you don’t want to finance your equipment, that total price increases to anywhere between $2,502,600 to $4,921,000. This includes the initial payment to the franchisor or the affiliate as well.
Aside from the initial payments to the franchisor or affiliate to get started, there are other important fees you have to cover before opening a Planet Fitness to the public. You must cover administrative fees like internet, technology, and POS system costs. On top of this, you need to pay for insurance, grand opening marketing, advertising, and staff salaries. These are just some of the basic, yet, very important expenses you will be required to cover when buying a Planet Fitness. Overall, these expenses add up to anywhere from $1,625,600 to $4,921,000 depending on location, equipment, and other factors specific to your gym.
Should You Buy a Planet Fitness Franchise?
If you have the means, and if Planet Fitness has an available territory available for you, investing in Planet Fitness can prove to be a great avenue as an entrepreneur. For information about the possibilities you are encouraged to reach out to their franchise development team and ask a lot of questions!
Key Sources:
- https://www.planetfitness.com/gym-memberships
- Planet Fitness FDD 2021 PDF