Planet Fitness is one of the most popular gym franchises in the world. With over 2,000 locations worldwide, the gym chain has become a household name when it comes to affordable and accessible fitness options. However, many people may not be familiar with the term of Planet Fitness` franchise agreement. This article will go over the basics of what a franchise agreement is and what the specific terms of Planet Fitness` agreement include.

What is a Franchise Agreement?

A franchise agreement is a legal document that outlines the terms and conditions of a franchise relationship between a franchisor and a franchisee. Essentially, it is a contract that gives a franchisee the right to use the franchisor`s brand name, trademark, and business model in exchange for a fee. Franchise agreements typically cover topics such as branding, marketing, training, and support.

Planet Fitness Franchise Agreement

Planet Fitness` franchise agreement is a comprehensive document that covers all aspects of the franchisor-franchisee relationship. Here are some of the key terms of the agreement:

1. Franchise fee: The franchise fee is the initial payment that a franchisee must make to Planet Fitness to become a franchisee. As of 2021, the franchise fee for a Planet Fitness location is $20,000.

2. Royalty fees: In addition to the franchise fee, franchisees are required to pay ongoing royalty fees to Planet Fitness. The royalty fee is 5% of gross sales and is paid monthly.

3. Advertising fee: Franchisees are also required to contribute to a national advertising fund. The advertising fee is 2% of gross sales and is also paid monthly.

4. Site approval: Planet Fitness has strict guidelines when it comes to site selection for new franchise locations. Franchisees must submit proposed site locations to the franchisor for approval.

5. Training: All franchisees must attend an initial training program at Planet Fitness` corporate headquarters in New Hampshire. Additionally, ongoing training and support are provided to franchisees.

6. Branding: Franchisees must adhere to strict branding guidelines set forth by Planet Fitness. This includes using the Planet Fitness logo and color scheme, as well as following specific design guidelines for the gym interior.

Conclusion

Overall, the terms of Planet Fitness` franchise agreement are set up to ensure consistency and quality across all franchise locations. Franchisees are required to adhere to strict guidelines and pay ongoing fees to the franchisor in exchange for the right to use the Planet Fitness brand name and business model. If you are considering opening a Planet Fitness franchise, it is important to review the franchise agreement in detail to fully understand the terms and conditions of the franchise relationship.