Are you considering opening a Planet Fitness franchise in the United States? It’s a great business opportunity that allows you to tap into the booming fitness industry while benefiting from a well-established and recognized brand. However, before diving in, it’s important to understand the costs associated with starting a Planet Fitness franchise. In this article, we’ll break down all the possible expenses involved, helping you plan your budget effectively.
Franchise Fee
The first major expense when opening a Planet Fitness franchise is the franchise fee. This fee grants you the right to operate under the Planet Fitness brand and benefit from their proven business model and support. The initial franchise fee for a Planet Fitness franchise is $20,000.
Equipment and Build-out Costs
Next, you’ll need to consider the costs of equipment and building out your gym facility. Planet Fitness is known for its affordable and judgment-free environment, so you won’t need to invest in high-end fitness equipment. However, you’ll still need to purchase the necessary fitness machines, weights, cardio equipment, and other essential items. On average, the equipment costs for a Planet Fitness franchise range between $300,000 and $600,000.
In addition to equipment costs, you’ll also need to budget for the build-out of your gym facility. This entails leasehold improvements, interior design, flooring, signage, and more. The build-out costs can range from $300,000 to $750,000, depending on the size and location of your gym.
Working Capital
Having sufficient working capital is crucial for a successful startup. You’ll need to cover ongoing expenses like rent, utilities, payroll, marketing, and other operational costs until your gym starts generating a steady stream of revenue. It is recommended to have at least six months’ worth of working capital, which can amount to $100,000 or more.
Training and Support
Planet Fitness offers comprehensive training and support programs to help franchisees get up and running smoothly. The costs for these programs are typically included in the initial franchise fee. However, you should consider additional training costs for your management team and staff to ensure they are well-equipped to deliver the Planet Fitness experience.
Royalties and Advertising
Once your Planet Fitness franchise is operational, ongoing expenses in the form of royalties and advertising fees will need to be paid. The royalty fee is typically 5% of your gross monthly sales, while the national advertising fee is 2% of your gross monthly sales. These fees contribute to the continuous growth and development of the Planet Fitness brand.
Summary of Costs
| Expense | Estimated Cost |
| Franchise Fee | $20,000 |
| Equipment | $300,000 – $600,000 |
| Build-out Costs | $300,000 – $750,000 |
| Working Capital | $100,000+ |
| Training and Support | Included in Franchise Fee |
| Royalties | 5% of gross monthly sales |
| Advertising | 2% of gross monthly sales |
In conclusion, the total cost of opening a Planet Fitness franchise can vary depending on various factors such as location, size, and market conditions. However, as a general estimate, you should expect to invest between $700,000 and $1.5 million to get your gym up and running. It’s important to note that these figures are subject to change, and it’s always wise to contact Planet Fitness directly for a personalized budget based on your specific circumstances.
If you’re ready to embark on the journey of owning a Planet Fitness franchise and want to learn more about the costs involved, we encourage you to reach out to Planet Fitness directly. Their experienced team will provide you with detailed information and guidance to help you make an informed decision and start your fitness business successfully.
