In recent years, the fitness industry had experienced rapid growth when people started to invest in their health and fitness. More and more people see the effects of a sedentary lifestyle. The most inactive people before have become gym rats and fitness enthusiasts, thanks to the endless fitness centers in the market. According to the U.S. Bureau of Labor Statistics, job opportunities in the personal training industry will most likely increase by 24% from 2010 to 2020. Read on and find out if the Planet Fitness franchise business is worth the investment from a business point of view. It can help you come up with a sound decision on what to do with your hard-earned money.
Planet Fitness is one of the largest U.S. fitness chains in the industry. It’s impossible not to recognize the brand as they dominate the field with their exceptional training, advanced equipment, and thousands of franchises not just in the United States but worldwide.
If you are an aspiring entrepreneur, investing in the Planet Fitness Franchise business can be intimidating. The fitness industry can be harsh if you go to war unprepared. Hence, you need to know first whether the Planet Fitness Franchise is a good investment or not. If fitness is your passion, running a related business is a dream come true.
Why Should You Invest in Planet Fitness Franchising?
Here are the following reasons why you should consider investing in the Planet Fitness franchise business.
Planet Fitness Franchise Business is a Good Post-COVID Investment.
Do you know that there are tons of Planet Fitness opportunities in a post-COVID world? It’s because the company offers a better value to its shareholders. Even if the sales are shrinking due to the lockdown, the company is expected to rebound this 2021. While there are far better services for catering social distancing, COVID-19 is not bound to last forever. There are over a hundred candidates for a vaccine, and many experts believe that by 2021, this would be all over. This means more businesses will start to recover, including the Planet Fitness Franchise business. People will flock into gym centers after being quarantined for almost a year. Offering gym services for the first time in several months sounds like a good revenue maker. The estimated revenue growth of Planet Fitness is 66%, making it a good post-COVID investment.
Planet Fitness Offers Better Customer Value Proposition.
One of the reasons why so many people flock to Planet Fitness is that it offers low-cost options to casual gym-goers. It is not exclusive only to gym rats and other fitness enthusiasts. Compared to other fitness clubs, Planet Fitness offers a more welcoming environment for anyone. Most gym amateurs are intimidated by exclusive gyms and would rather not enter the facility. But here in Planet Fitness, everyone is welcome. Today, the brand and all its franchises have a whopping 15.5 million members, erected in more than 2,000 locations. Once the pandemic is over, Planet Fitness can continue this trend. With only $10 per month, anyone can apply for a gym membership and enjoy the equipment and facilities. In a recessionary environment, Planet Fitness will be a go-to choice of many people hoping to lose their weight after being quarantined. Even when the pandemic isn’t over, some of the facilities started to cater to customers in May, and there has been a clear growth in the customers flocking to the gym. What more if the pandemic ends?
Planet Fitness Offers a Recession-Proof Business Model.
The CEO of Planet Fitness, Chris Rondeau, made it clear that the company is planning a massive expansion and provide Planet Fitness opportunities to aspiring entrepreneurs in the USA and other parts of the world as soon as the pandemic is over. Rondeau believes that bankruptcies provide once-in-a-lifetime real estate opportunities that can help him expand Planet Fitness. He also claimed that he spent $4 million of his personal money on Planet Fitness stock to remain afloat once the establishments started shutting down due to the pandemic.
Do you wonder why Rondeau has so much faith in Planet Fitness? It’s because the company owns %5 of the locations with franchisees. Thanks to its rock-solid business model, Planet Fitness hasn’t lost any of its quarterly cash burns at 5.6% even though the revenue has become dormant. Rondeau has already thought about insolvency before and acted upon it before it affects his business.
Planet Fitness Offers Stronger Brand Recognition and Marketing Strategy.
It is not a surprise anymore that Planet Fitness dominates the industry. When someone says fitness or gym, Planet Fitness enters the mind quickly. Thanks to its national exposure and massive footprint, the company has enjoyed a stable base of loyal clients over the years. Every dollar that was spent on marketing has been a successful project. Moreover, Planet Fitness tends to prioritize their marketing. Since 2011, approximately $870 million has been spent on local and national marketing campaigns. Albeit the marketing costs were higher than the total revenue in 2019, Rondeau believes that it can help boost its company and earn twice the amount they have invested for exposure.
Planet Fitness Quickly Adapts and Grow.
Contrary to the common misconception, Planet Fitness does not lie dormant during the pandemic. In fact, the business has invented the phrase “Social Fitnessing,” as most of its facilities reopened with caution. The company invested in ensuring the safety of its clients and members while they return to the gyms. For their frenzied clients who would rather stay at home, they can still work out and watch the trainer-led workout streams on Facebook for free. Returning members appreciated the cleanliness and having the gym to themselves while working out from home enjoy the safety and online exercise options offered by Planet Fitness.
The company president, Dorvin Lively, also said that there is no other direction that Planet Fitness is heading to but moving forward. He expressed their desire to take advantage of the pandemic’s impact on the real estate industry by expanding Planet Fitness to up to 4,000 locations in the United States.
Besides their well-planned expansion, Planet Fitness is also planning to launch the Black Card. This premium membership allows members to access any Planet Fitness location, so they can work out wherever they go. They can also bring a guest with their black card, access the massage and tanning beds, and, best of all, big discounts on the beverages. The black card costs $22.99 per month, which is considerably lower and more affordable than the standard $71 monthly gym memberships of most establishments. These are just some of the plans and visions of Planet Fitness that proves the brand is serious about growing and adapting to the different situations of the economy. When you become a franchisee of Planet Fitness, you can enjoy the same benefits and expand your own branch as well.
How much does a Planet Fitness Franchise Cost?
The costs and ongoing fees are important Planet Fitness franchise information to consider. With over 2,000 clubs in the U.S. and other parts of the world, Planet Fitness franchising is appealing to aspiring entrepreneurs and businessmen. Now that you know the endless Planet Fitness opportunities you can enjoy by being a franchisee let’s talk about the cost. Planet Fitness franchise costs should be considered carefully before making a sound decision. Here’s an overview of the Planet Fitness franchise fees you have to pay before opening your own location.
Initial Investment
$969,600 to $4,242,500
Net-Worth Requirement
$300,000
Liquid Cash Requirement
$100,000
Other Planet Fitness franchise fees that you need to pay to include the following:
- Initial Planet Fitness franchise fees
- Site Selection Cost
- Construction Development Plan Review Fee
- Leasehold Improvements
- Fitness Equipment
- Non-Fitness Equipment
- Pre-Sale/Grand Opening Marketing
- Exterior Signs
- Computer System and Other Supplies
- Insurance
- Real Estate Lease Deposits
- Other Deposits
- Professional Fees
- Initial Training Expenses
- Licenses
- Operating Cash
For the ongoing fees, take a look at the overview below:
Planet Fitness Initial Franchise Fees
$21,000 to $42,500
OngoingOngoing Royalty Fee
$449 to 549 per month
Ad Royalty Fee
$300 per month
How to Get a Planet Fitness Franchise?
Once you’ ’ve decided in your mind that you want to invest in Planet Fitness, you should know how to get the franchise in the first place. A good idea is to first get a professional financial advisor. This is not a requirement but would be a big deal since you’ll be dealing with a lot of finances. There is a big chance that you will not understand most of what is said in contracts and you will need someone to break these down for you.
You will have to know facts and figures such as liquid capital, net worth, and franchise fees. After this, you will then have to check the units on the operation and if this may affect your franchise in the future. When purchasing a Planet Fitness franchise, the fee would be 10,000 dollars for a 10-year renewable agreement, while the total investment ranges from 700,000 to 3.8 million dollars. Aside from this, franchisees must also pay a 5% ongoing royalty fee for all the sales to PlanetFitness.
When opening a gym that would be liquidated to you, the franchisee must have 3 million with 1.5 million dollars in liquid assets. When opening an “area” you will need a net worth of 2 million with 800,000 dollars in liquid assets. An “area” is said to consist of at least 5 gyms, this means this fee will already garner 5 gym branches at your disposal.
Once the financing is finished, your next goal would have to be buying or renting a location. The location is vital as you would want somewhere that has a lot of people, preferably in the city or near a lot of offices. The fallback is, it is usually more expensive to put up a branch in well-known locations. You will need to use your money wisely and know where to spend it, if you think you can make do with your gyms in the suburbs then let it be. Last is to get training and support, research about Planet Fitness, and know exactly what you’re getting into.
Hire an attorney if you must as you may deal with legal troubles along the way. Planet Fitness also offers its franchises two weeks of training at the company headquarters. The company will help assist you in concerns such as advertising, safety procedures, and many more. If you feel, you don’t have enough money on hand; some options can be a bank and SBA loan.
Only do this if you believe you will make a profit from your franchise, this is because you would not want to be in debt for a lot of money without proper assurance. If your franchise flops, you will still need to worry about paying them off as that is how a loan works. You do not want to wait years to pay off your debt in the bank, that means you will hardly make an investment and this whole process wouldn’t be worth it.
Is it Worth it to Franchise Planet Fitness?
Considering all the Planet Fitness franchise costs, opportunities, and other information, you need to determine if it is the right investment for you. Gym rats, fitness enthusiasts, and gym-goers are the best entrepreneurs that Planet Fitness is looking for. Someone passionate about getting fit and helping other people change their lives is a worthy Planet Fitness owner.
Given the Planet Fitness franchise information, the advantages, and its original owners’ visions, it is worthy of investing in Planet Fitness franchising. It can provide a stable revenue source in the long run. However, the only downgrade is Planet Fitness costs. It cannot be denied that only a few can afford it. It is expensive and risky. Planet Fitness is exclusive only to franchisees who have higher net worths and good money to get started.
Are Planet Fitness branches profitable?
Having a business doesn’t automatically make you wealthy. Even though having existing wealth can help, you will need to choose the right business and the right industry to succeed. You will also need some entrepreneurial experience and luck along the way.
The simple answer to Planet Fitness being profitable is yes they are, their revenue continues to go up every year. As of 2018, the revenue range is 513,00 to 5,554,000 dollars; this was the annual gross calculated by the Electronic Transfer of Funds (ETF). They gain profits out of things such as monthly membership, merchandise, and membership cards.
Going back to the payment schemes, it may seem like a lot is going on but Planet Fitness finds ways to make it flexible for you. For example, there is one rule in which if you are not to comply in buying equipment by a specific time, Planet Fitness will buy them for you and you will have the option to get a bank loan.
Another reason why Planet Fitness is a profit for the future is because of the brand’s vision and hospitality. They offer a strong and smart brand with broad demographic appeal and corporate support, these are what you want to hear as a franchisee looking to invest. They have a simple message that fitness is for everyone regardless of what body type you have, they say our goal in working out shouldn’t primarily be to live a longer life, instead, it should be to make the most of life.
The creators were 2 brothers who wanted to create a judgment-free gym experience aimed towards both beginners and fitness buffs, they believe we are all here for the same goal anyway. Planet Fitness is unique in its low pricing and unorthodox system. It is considered unorthodox because they do not offer group classes that a lot of people love, instead they’d like to focus on each one individually. With their trained professionals, they offer specific workouts for each person to do. They believe group classes may cause injury as some are not as fit as others, they think personalized classes would be more beneficial in helping you achieve your fitness goals.
Fitness has become a part of our life and will continue to do so, the number of members has constantly increased every year and Planet Fitness has over 10 million members now. Having that many members leads to an estimate of almost 30 million dollars that you will have royalty to if you choose to invest.
You will need a lot of cash on hand but Planet Fitness is willing to adjust as to what possible issues arise, buying one franchise equals 5 gyms that you have full responsibility for. You will have full control over the location, staff, and equipment. Do yourself a favor and invest in this business opportunity before it’s too late, the prices may eventually get higher in the future.
Special Strong Franchise
Considering the Planet Fitness franchise information, it’s safe to say that it’s not affordable. Struggling small business owners can barely afford the Planet Fitness franchise costs. So, what are the other best-rated gym franchising aside from Planet Fitness opportunities?
Let’s take a look at one of the leading adaptive gym franchise in the industry, the Special Strong franchise. In this affordable gym franchise, you can make a difference in your client’s life by putting up a gym to cater to the special needs population.
Starting a franchise with Special Strong is easy and affordable. Compared to Planet Fitness USA, the costs are lower. Best of all, Special Strong allows you to keep up to 90% of your earnings. What does it mean? It means you can save faster and grow financially without draining your bank with the expensive Planet Fitness USA and its costs.
How Much Does it Cost to Franchise Special Strong?
The costs of franchising a gym are always a concern, especially to first-time franchisees. Fortunately, in Special Strong, you don’t need to have a higher net worth of millions to start your own brand. In fact, with just $37,850 to $53,300, you can have your own territory and open up Special Strong.
The startup costs are significantly lower compared to Planet Fitness USA, which ranges up to $500,000. Best of all, you don’t need a brick-and-mortar gym with a Special Strong franchise. The brand believes that everyone should have a chance to create a difference and change with Special Strong.
As you may notice in the Planet Fitness franchise information above, there are risks in opening a gym, especially in these trying times. But, rest assured that with Special Strong, you will always have an opportunity to earn money. Now, more than ever, the special needs population needs to be healthy. They are vulnerable to diseases and viruses. Hence, more and more special needs clients show up in adaptive fitness gyms, hoping to be trained and lead healthier lives.
Working in Special Strong is a fulfilling job. Adaptive fitness trainers are bound to make a difference in the special needs community and change their clients’ lives. Here, you will witness a lot of breakthroughs and success stories. You can help guide your special needs clients to overcome their fears and be as healthy as they can be. There is nothing more fulfilling than work that aims to make a difference in the community and not just centered in a money-making venture. With Special Strong, you can make a difference while generating a stable stream of income.
Final Thoughts
Planet Fitness USA and Special Strong have their own set of advantages and disadvantages. If you want to start small and dedicate your life to helping the special needs population, choose Special Strong. But if you have the money and are determined to leave a remarkable history in the fitness industry, Planet Fitness is for you. Whichever you choose between the two franchises, one thing is clear: the fitness industry continues to improve, and there are no signs of downfall shortly. Hence, deciding to invest in this industry is a reward in itself.