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Planet Fitness will not be at present searching for new franchisees for its ongoing U.S. enlargement, however ambitious entrepreneurs will need to be prepared when the health membership chain that rose to fame because the “judgment-free zone” opens up the books as soon as once more.
More than a decade after it launched in 1992, Planet Fitness was opening its fifth location when it started franchising in 2003. Today, it boasts greater than 2,000 places and 15 million members throughout all 50 states, Canada, Latin America and Australia.
The firm estimates that 80% of the inhabitants of the U.S. and Canada don’t have gymnasium memberships — and Planet Fitness is on a mission to enroll each single one in all them.
If you’re desirous about cashing in as a franchisee as soon as the corporate begins accepting functions once more, you’ll must be able to spend cash to make cash.
Is My Net Worth Buff Enough for Planet Fitness?
Although Planet Fitness will not be at present searching for new franchisees, FranchiseHelp has onerous numbers on the kind of folks that the corporate can be searching for when that adjustments. If you’d wish to have a location of your individual, you could have a internet value of at the least $3 million to be thought-about. At least half of that — $1.5 million — should be liquid capital.
How Much Will I Have To Invest To Get Started?
The preliminary franchise payment for Planet Fitness is $20,000, based on Franchise Direct — numbers that FranchiseHelp backs up — however the start-up prices hardly cease there.
Site choice prices alone will run you between $1,000-$10,000 — chump change, in comparison with the remainder. Then there are leasehold enchancment prices, which might value anyplace between $575,000 and $1.94 million.
Then, after all, there’s the health tools, which is able to set you again anyplace between $43,000 and $953,000, in addition to non-fitness tools, which is able to value between $61,000 and $721,000.
Among the opposite large start-up prices are:
- Presale and grand opening advertising: $40,000-$60,000
- Exterior indicators: $11,000-$36,000
- Computer methods: $6,000-$20,000
- Insurance: $5,000-$25,000
- Real property lease deposits: Up to $87,000
- Professional charges: Up to $25,000
There’s additionally a obscure, however costly class labeled “extra funds — six months.” One of the most costly charges on the menu, it could go as excessive as $598,000.
In complete, a potential Planet Fitness franchisee can count on to spend between $936,600 to $4,558,500 on preliminary funding prices.
What About Ongoing Costs?
Part of the Planet Fitness enterprise mannequin is to maintain a gentle stream of revenue coming in from its franchisees. If you purchase into the model, you’ll have to organize to pay a royalty payment within the type of 7% of your membership’s complete gross month-to-month and annual membership charges. You’ll additionally must pay 18% curiosity. Re-equip prices will run you $431,000 to $953,000 and transform prices can be someplace between $70,000 to $800,000.
Since your location will profit from all these adverts you see for Planet Fitness, you’ll must pay 2% towards the corporate’s nationwide promoting fund and as much as 7% for particular advertising applications.
That’s fairly a bit of change, however the tradeoff is your individual little slice of one of many largest and fastest-growing health manufacturers within the nation and the world.
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