How to Finance a Planet Fitness Franchise: Fees and SBA Rules
By Chris Cornella
A Planet Fitness franchise loan finances a big-box club built around cardio machines, strength equipment, locker rooms and a low monthly membership price. Because each club combines a large lease or owned building, a substantial build-out, a franchisor-specified equipment package and a pre-opening period before dues revenue arrives, the financing structure can shape the club’s cash flow for years.
This guide covers costs, fees, ownership paths, SBA and conventional financing, and what lenders look for. US Professional Funding is not affiliated with, sponsored by or endorsed by Planet Fitness; the name is used only to describe the business. Figures cited here come from the franchisor’s and its parent company’s own materials and can change, and the franchisor’s disclosure document is the controlling source. Loan programs, terms and eligibility vary by lender and borrower, every loan is subject to approval, and nothing here is legal, tax or investment advice.
Planet Fitness Franchise Loan at a Glance
The figures below come from Planet Fitness, Inc.’s annual report for fiscal 2025 and from the franchisor’s own franchising website. Always confirm them against the current Franchise Disclosure Document, or FDD, before relying on them.
- System size: 2,896 clubs as of December 31, 2025, of which 2,604 were franchisee-owned and 292 were corporate-owned
- Members: approximately 20.8 million at the end of 2025
- Typical club size: about 20,000 square feet
- Royalty: 7% under the current franchise agreement, based on monthly membership dues and annual fees
- National advertising fund: approximately 2% of monthly dues and annual fees, which franchisees voted to raise to 3% for 2026
- Local advertising: a required spend tied to monthly dues, set at 7% and reduced to 6% for 2026
- Franchise agreement term: 12 years under the current agreement
- Equipment replacement: generally every five to nine years, depending on club volume, with a refurbish and remodel in year 12
- Candidate requirements (U.S.): a minimum net worth of $10 million, including $5 million in non-borrowed liquid assets, measured across all partners
- SBA Franchise Directory: listed as “Planet Fitness,” code S1323, with a note about lease provisions explained below
The initial franchise fee and estimated initial investment are disclosed in Items 5 and 7 of the current FDD, and a lender will expect your budget to tie back to them.
What Is Planet Fitness?
Planet Fitness began in Dover, New Hampshire, in 1992, according to the company. Its parent, Planet Fitness, Inc., is headquartered in Hampton, New Hampshire, and is a publicly traded company. The franchisor’s own timeline notes that the first franchised club opened in Altamonte Springs, Florida, and the system now operates in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain.
The concept pairs high volume with low prices. Planet Fitness, Inc. reports that its standard Classic Card membership starts at $15 per month for new members, while the PF Black Card, which adds access to every club in the system plus amenities, costs $24.99 per month for new members. The company calls its clubs the Judgement Free Zone, a positioning aimed at first-time and casual gym users.
The company reports that about 87% of membership payments are collected by ACH direct debit and that the standard annual fee is $49. The franchisor describes the clubs as simple to run, with typically 13 to 18 employees per club.
For lenders, recurring draft billing and an established system make cash flow easier to forecast, while the large occupancy commitment, scheduled equipment replacement and membership ramp-up add risk. The company also reports that about 98% of its franchise clubs are owned by groups with at least three clubs, and lenders will compare any applicant against that profile.
Planet Fitness Franchise Costs
The authoritative breakdown is the Item 7 table in the current FDD, which estimates the total initial investment for a new club with a low and high range for each category. Review it with a franchise attorney and accountant before building a loan request.
Initial franchise fee and development fees
The initial franchise fee is disclosed in Item 5. Because the system grows largely through area development agreements, check how fees work for clubs opened under a development schedule and when each payment is due. Lenders want to see which fees are paid before closing and which come from loan proceeds.
Real estate, lease and build-out
The company reports that each franchisee is responsible for selecting a site, that the site must be approved by Planet Fitness, and that franchisees either own their club location or lease it directly from a third party. The company notes that the cost to build a new club includes general contractor costs, equipment and leasehold improvements, and can vary significantly.
Build-out is usually the most variable line: HVAC, locker room plumbing, electrical service and code upgrades can swing costs widely, while a landlord improvement allowance can reduce what you finance.
Fitness equipment
According to the company’s annual report, franchisees are required to purchase fitness equipment from Planet Fitness, which specifies the pieces and quantities of cardio and strength-training equipment. Lenders will want that package documented in a quote or invoice.
Opening costs and working capital
Owners also fund pre-sale marketing, hiring, training, technology, insurance and deposits before opening. Item 7 includes an additional funds line for an initial period of operation, which lenders tend to treat as a minimum because a large club needs time to build its member base.
Total investment
Expect the Item 7 table to cover categories such as these, each with its own low and high range:
- Initial franchise fee
- Real estate and lease-related costs, including rent and security deposits during the pre-opening period
- Leasehold improvements and construction, including architect and engineering fees
- Fitness equipment purchased through the franchisor
- Furniture, fixtures, amenities and signage
- Computer systems, software and security equipment
- Pre-opening and grand opening marketing
- Training-related travel and expenses
- Insurance, licenses and permits
- Additional funds for the initial period of operation
Confirm the ranges add up to the stated total, then add a contingency for construction overruns and opening delays.
Ongoing Fees and How They Affect Your Loan
Lenders underwrite cash flow after the franchise system’s fees, so ongoing fees directly reduce how much debt a club can support.
Royalty. The company reports a 7% royalty under its current franchise agreement, based on gross monthly membership dues and annual fees. Its average royalty rate across the system was 6.7% in 2025, because some older agreements carry lower rates; existing franchisees may renew at the current royalty rate. On a resale, confirm what the royalty will be after transfer.
National advertising fund. Franchisees and corporate clubs contribute approximately 2% of monthly dues and annual fees to the national advertising fund. Franchisees voted to raise that contribution to 3% for 2026, a reminder that contributions can change.
Local advertising. Owners must also spend a required amount on local marketing, set at 7% of monthly dues and reduced to 6% for 2026. Lenders treat this as an operating cost, not a discretionary one.
Equipment replacement and remodels. Franchisees generally must replace the fitness equipment in their clubs every five to nine years, depending on club volume, and must refurbish and remodel their clubs in year 12. A sound loan does not stretch equipment debt past the next re-equip, and projections should reserve for both.
Other fees. Item 6 lists the full schedule, including transfer, renewal and other fees. Read it line by line.
A lender typically starts with projected or historical dues revenue, subtracts franchise fees, rent, payroll and other operating costs, and measures what remains against proposed debt payments. Underestimating fees or the equipment cycle overstates repayment capacity.
Franchisor Requirements for New Owners
Planet Fitness sets high financial thresholds. According to the franchisor’s website, domestic club ownership requires a minimum net worth of $10 million, including $5 million in non-borrowed liquid assets, measured cumulatively across all partners. The franchisor says fitness industry experience is not required.
The parent company’s annual report adds that it generally evaluates prior franchising or multi-unit experience, a history of managing profit and loss operations, financial history, and available capital and financing.
The process starts with an online application, after which a team member contacts qualified candidates. Franchisor approval and loan approval often depend on each other, so run them on parallel timelines.
Ways to Own a Planet Fitness
Developing a new club. A new club requires an approved site, a lease or property purchase, construction, the equipment package and pre-opening costs. With no operating history, lenders lean on the borrower’s experience, liquidity and projections. Our page on fitness center start-up financing covers how new-build projects are typically structured.
Buying an existing club. Purchasing an operating club gives a lender real membership, billing and financial history to review. The franchisor must approve the buyer, the transfer may trigger fees, updated agreement terms or facility upgrades, and the landlord typically must consent to the lease assignment. See our fitness center acquisition financing page for how purchase loans work.
Multi-unit and area development. The company reports that substantially all of its new clubs in 2025 were opened by existing franchisees. Area development agreements set a schedule for opening a specified number of clubs. Each club requires its own franchise agreement, and financing usually happens club by club as the schedule progresses.
Financing Options for a Planet Fitness Franchise
Many projects combine more than one source of capital, depending on the ownership path, real estate and the borrower’s liquidity.
SBA 7(a) loans
SBA 7(a) loans can fund leasehold improvements, equipment, franchise fees, working capital and business acquisitions, and in some cases real estate, in a single loan. Longer terms than some conventional options can help payments fit a club’s ramp-up. Eligibility depends on the borrower, the project, use of proceeds, program rules and lender approval.
SBA 504 loans
When an owner buys or builds the building that will house the club, an SBA 504 loan may fit. The 504 structure pairs a bank loan with a loan through a certified development company and a borrower contribution, and is designed for owner-occupied real estate and long-lived fixed assets.
Conventional term loans
Experienced multi-unit groups with strong balance sheets may use conventional bank financing, particularly for portfolios that exceed SBA program limits. Terms, covenants and guarantees vary widely, so compare the full structure, not just the rate.
Equipment financing
The equipment package is a large, identifiable cost replaced on a schedule, so it is a natural candidate for separate financing. Treadmills, ellipticals, stair climbers, bikes, selectorized strength machines, plate-loaded equipment, free weights and recovery amenities can be financed with the equipment itself serving as collateral. Our fitness equipment financing and leasing page covers new clubs and re-equips.
Working capital and lines of credit
A new club needs cash for pre-sale marketing, payroll during training and the months before membership covers fixed costs. Established clubs may want a line of credit to smooth slower membership periods, fund repairs or cover the timing of a re-equip. See our page on fitness center working capital and lines of credit.
Seller financing on resales
When buying an existing club, part of the price may sometimes be carried by the seller through a promissory note. A seller note is typically subordinate to the primary loan, and lenders and SBA program rules may limit how seller financing is structured and repaid. Raise it early so the lender can confirm how it fits.
SBA Loans for Planet Fitness Franchisees
Before underwriting the borrower, SBA lenders confirm the brand itself is eligible. The SBA maintains a Franchise Directory listing brands whose franchise documents have been reviewed for SBA lending. Our guide to the SBA Franchise Directory explains how the listing works.
Planet Fitness is listed on the directory under code S1323, “Planet Fitness.” A listing can simplify the lender’s review of the franchise agreement, but it does not approve any borrower or guarantee any loan.
What the directory note means
The Planet Fitness listing carries this note: “When the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Provisions do not apply to the franchise location.” In plain English, the franchise documents include provisions dealing with the lease of the club premises. If the owner owns the building and pledges it as collateral for the SBA loan, those provisions do not apply to that location, because there is no third-party lease. If the club is leased, the lease provisions do apply, and your lender will review how they interact with the lease and the loan.
Program limits
The SBA 7(a) program maximum is currently $5 million, and program rules can change. Program limits generally look at the borrower together with its affiliates, which matters in a system where most clubs are owned by multi-unit groups. A large portfolio may outgrow SBA financing and shift toward conventional credit.
SBA application tips
- Provide the complete FDD, franchise agreement and any development agreement, not excerpts.
- Tie every use of proceeds to an Item 7 category, a contractor bid or the franchisor’s equipment quote.
- Share the lease or letter of intent early, since lease terms affect both the loan term and the directory note.
- Document the source of your equity injection and post-closing liquidity.
Our SBA loan calculator can help with early payment estimates. Results are for planning only and do not represent an offer or approval.
How Lenders Evaluate a Planet Fitness Deal
Personal credit and financial history
Lenders review credit reports, tax returns and a personal financial statement for each guarantor, and past defaults or tax issues require explanation.
Net worth and liquidity
Beyond the franchisor’s thresholds, lenders look at the cash you will contribute and the reserves left after closing. Meeting the minimum but ending with thin liquidity can weaken a request.
Industry and management experience
Lenders value multi-unit management, profit and loss responsibility and experience supervising hourly staff. A partner or general manager with that background can strengthen a request.
Business plan and projections
Projections should document assumptions for the pace of membership growth during pre-sale and the first year, the mix of Classic Card and PF Black Card members, annual fee revenue, cancellations, rent escalations, payroll for a lean staff, utilities for a large box, and every franchise fee. They should also include reserves for equipment replacement and the year 12 remodel.
The FDD and franchise agreement
Lenders read the FDD for fees, term, renewal, transfer and default provisions, any franchisor financing in Item 10, and whether the document includes financial performance representations in Item 19. Whatever Item 19 contains, a lender will still rely on your own projections and, for resales, the club’s actual results. Our article on how lenders read a franchise disclosure document covers the items that matter most.
Site, lease or real estate
For leased clubs, lenders review the term and renewal options, rent schedule, improvement allowance and assignment provisions; the remaining term should comfortably cover the loan. Owned real estate requires an appraisal and environmental review.
Historical financials on a resale
For an existing club, lenders want several years of tax returns and financial statements, membership and billing reports, and the equipment and remodel schedule. The timing of the next re-equip can matter as much as the price.
Equipment: The Planet Fitness Re-Equip Cycle
At Planet Fitness, the equipment schedule is written into the franchise relationship. Because franchisees must buy equipment from the franchisor in specified quantities and generally replace it every five to nine years based on club volume, equipment financing is a recurring part of owning a club, not a one-time event.
Matching the equipment loan term to the replacement cycle keeps an owner from still paying for retired machines. A resale buyer should know where the club sits in its cycle, since an upcoming re-equip may need fresh capital soon after closing. And the year 12 refurbish and remodel coincides with the end of the current agreement term, so owners planning to renew should budget for both.
The company reports placing equipment in 152 new franchisee-owned clubs in 2025, which shows how central the equipment program is to system growth.
Multi-Unit Growth and Development Agreements
Planet Fitness is built for multi-unit owners. The company reports that franchisees have contractual commitments under signed area development agreements and franchise agreements to open approximately 750 additional clubs. Under a development agreement, the franchisee must meet scheduled opening deadlines, and if it does, Planet Fitness generally agrees not to open or franchise new clubs in that area, with limited exceptions. In 2025, the system opened 181 new clubs, 158 of them franchisee-owned.
A development schedule is a series of capital commitments. Each club needs its own funding, and lenders evaluate the next club in light of the existing ones. Planning financing for the full schedule up front reduces the risk of missing a deadline. Our guide to financing an area development agreement walks through how operators fund a schedule.
Real-World Scenarios
An experienced operator adding a club under an existing development schedule. A group with several open clubs signs a lease for its next location. Its lender reviews the group’s combined results, finances the build-out and working capital through a term loan, and the equipment package through a separate equipment structure timed to the replacement cycle.
An investor buying an existing club from a retiring owner. A buyer who meets the franchisor’s thresholds partners with an experienced general manager to acquire an operating club. The lender reviews membership billing history, the lease assignment and the equipment schedule, and the purchase is financed through an SBA 7(a) loan with a portion carried by the seller on a subordinate note.
An owner buying the building under a club. A franchisee has the chance to purchase the retail building where one of its clubs operates. Because the real estate will secure the loan, the lease provisions in the directory note do not apply to that location, and the owner compares an SBA 504 structure with conventional real estate financing.
Common Mistakes to Avoid
- Building a budget from a summary instead of the full Item 7 table, then discovering missing categories during construction
- Ignoring the equipment replacement cycle and the year 12 remodel when projecting cash flow
- Signing a lease before confirming franchisor site approval, landlord terms and financing timelines
- Meeting the franchisor’s liquidity minimum on paper but leaving too little cash after closing
- Overestimating how quickly membership will build during pre-sale and the first year
- Assuming a resale’s royalty, advertising and remodel obligations will stay the same after transfer
For more, read the fitness center loan mistakes that cost owners the most.
Next Steps to Finance Your Planet Fitness Franchise
Step 1: Confirm you meet the franchisor’s thresholds. Compare your net worth and non-borrowed liquid assets, including those of any partners, with Planet Fitness’s requirements, and decide whether you will develop new clubs, buy existing ones or both.
Step 2: Obtain and review the current FDD. Read Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and an accountant, along with the franchise agreement and any development agreement.
Step 3: Build a complete budget. Tie every line to the Item 7 table, contractor bids, the franchisor’s equipment quote or, for a resale, the purchase agreement. Add working capital and a contingency.
Step 4: Prepare realistic projections. Model membership growth, the card mix, fees, rent and payroll, and include reserves for equipment replacement and remodeling.
Step 5: Talk with a financing specialist early. Before signing a lease or purchase agreement, confirm which structures may fit, how the SBA directory note applies to your site and how much equity you will need.
Step 6: Coordinate franchisor, landlord and lender approvals. Keep site approval, lease negotiation or assignment, transfer approval and loan underwriting on aligned timelines.
Step 7: Close and plan the opening or transition. For a new club, plan construction draws, equipment delivery and pre-sale. For a resale, plan the ownership transition, staff retention and member communication.
Planet Fitness Franchise Loan FAQs
How much does it cost to open a Planet Fitness?
The total estimated initial investment is disclosed in Item 7 of the current FDD, with each category shown as a range. Actual costs depend on the site, the building, local construction costs and landlord contributions.
What is the Planet Fitness franchise fee?
The initial franchise fee and any area development fees are disclosed in Item 5 of the current FDD. Fees for clubs opened under a development agreement can be structured differently from a single-club agreement, so review both documents.
What royalty does Planet Fitness charge?
The company reports a 7% royalty under its current franchise agreement, based on monthly membership dues and annual fees. Franchisees also contribute to the national advertising fund, approximately 2% and raised to 3% for 2026, and must meet a local advertising spending requirement.
How much net worth and liquid capital do I need?
According to the franchisor’s website, domestic club ownership requires a minimum net worth of $10 million, including $5 million in non-borrowed liquid assets, measured across all partners.
Can I get an SBA loan for a Planet Fitness?
Possibly. Planet Fitness is listed on the SBA Franchise Directory under code S1323. Eligibility still depends on the borrower, the project, use of proceeds, program rules and lender approval, and the SBA 7(a) program maximum is currently $5 million.
Can I finance the equipment separately?
Frequently, yes. Because franchisees buy a specified equipment package from the franchisor and replace it on a schedule, owners can often finance equipment separately from build-out and working capital, subject to lender review.
Can a first-time business owner get a Planet Fitness franchise loan?
The franchisor does not require fitness experience, but it weighs multi-unit and operating experience, as do lenders. Partnering with an experienced operator can help.
How do I finance multiple Planet Fitness locations?
Growth in the system typically runs through area development agreements, with each club financed as the schedule progresses. Lenders evaluate the group’s combined results and debt, and larger groups may combine SBA, conventional and equipment financing.
Does Planet Fitness offer financing?
Any financing offered by the franchisor or its affiliates is disclosed in Item 10 of the FDD. Do not assume franchisor financing is available; review Item 10 and plan for third-party financing.
How long is a Planet Fitness franchise agreement?
The company reports that its current franchise agreement has a 12-year term. Renewal conditions and any renewal fee are described in Item 17 of the FDD.
What documents do I need to apply?
Expect tax returns, a personal financial statement, a resume, the FDD and franchise agreement, a lease or letter of intent, bids and the equipment quote, projections and, for a resale, the club’s financials and membership reports.
Does Planet Fitness disclose financial performance?
Any financial performance representations the franchisor makes appear in Item 19 of the current FDD. Review that item with your advisors, and base your loan projections on your own site, lease and assumptions rather than system figures.
Final Thoughts
A Planet Fitness franchise loan finances a large, equipment-intensive club in a system dominated by experienced multi-unit operators. The brand’s SBA directory listing, recurring draft billing and established track record can support a well-prepared request, while its high financial thresholds, equipment replacement cycle and remodel obligations demand careful planning. Owners who build budgets from the full FDD, plan for the re-equip cycle and coordinate franchisor, landlord and lender approvals give themselves the best chance of a smooth closing.
US Professional Funding helps buyers and owners finance franchised fitness clubs, including new development, acquisitions, equipment and working capital. Learn more about our franchise financing and fitness center financing.
