Planet Fitness is one of the most recognizable gym brands in the United States, with over 2,400 locations serving more than 18 million members. Its low-cost, judgment-free model has made it a dominant force in the fitness industry and a compelling franchise opportunity for entrepreneurs who want to tap into the booming health and wellness market. But opening a Planet Fitness location requires significant capital, and understanding your financing options is essential before you sign a franchise agreement.
This guide covers everything you need to know about Planet Fitness franchise costs, financing options, and how to secure the funding you need to open and grow your gym. Whether you are a first-time franchise owner or an experienced multi-unit operator, Crestmont Capital can help you navigate the financing process and find the right loan for your situation.
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Planet Fitness was founded in 1992 in Dover, New Hampshire, by Michael and Marc Grondahl. The brand began franchising in 2003 and has since grown into one of the largest gym chains in the world by membership count. Its core value proposition is offering affordable, no-frills gym access at a price point most people can afford, typically around $10 per month for a basic membership.
The "Judgment Free Zone" concept has resonated strongly with casual gym-goers and first-time fitness enthusiasts who may feel intimidated by traditional gyms. This positioning has allowed Planet Fitness to capture a massive segment of the U.S. population that was previously underserved by high-cost fitness centers.
As a franchise system, Planet Fitness operates under a proven model with strong brand recognition, national advertising support, and a dedicated operations team. Franchisees benefit from the brand's scale, purchasing power, and ongoing training. According to the SBA's franchise guidance, well-known franchise brands can improve your chances of loan approval due to their proven track records.
The fitness industry itself continues to grow. The U.S. Census Bureau tracks growth in service-sector businesses including gyms, and fitness clubs have shown consistent expansion as Americans increasingly prioritize preventive health. Planet Fitness sits at the intersection of affordability and accessibility, two factors that have driven its remarkable growth trajectory.
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Apply Now ->Before you can secure financing, you need a clear picture of what it costs to open a Planet Fitness. The total investment varies depending on location, market conditions, and whether you are building a new facility or converting an existing space. Here is a detailed breakdown of the primary cost categories.
The initial franchise fee for a Planet Fitness location is typically $20,000. This fee grants you the right to operate under the Planet Fitness brand and system in your designated territory. In some cases, multi-unit development agreements may offer reduced per-unit fees for operators who commit to opening multiple locations.
Planet Fitness locations typically occupy between 15,000 and 25,000 square feet of retail or commercial space. The cost to lease or purchase this space is one of the largest variables in your total investment. Leasehold improvements, construction, and build-out costs can range from $1.2 million to $4.2 million or more depending on the condition of the space and local labor costs.
Most Planet Fitness franchisees opt for leased space rather than purchasing real estate outright, which reduces upfront capital requirements. However, some operators choose to purchase the property as a long-term investment, which requires additional financing beyond the business itself.
Gym equipment is one of the most significant costs for any fitness franchise. A standard Planet Fitness location requires cardio machines, strength training equipment, free weights, locker room fixtures, and front desk technology. Equipment packages for a single location typically range from $400,000 to $1.5 million depending on the size of the facility and the specific equipment mix.
This is one area where equipment financing can be especially valuable. Rather than paying cash for gym equipment, many franchisees use equipment financing to spread the cost over time, preserving working capital for operations and marketing during the critical early months.
Planet Fitness discloses estimated total investment figures in its Franchise Disclosure Document (FDD). The estimated total initial investment typically ranges from approximately $1.1 million to $5.1 million. This wide range reflects differences in market, real estate conditions, and facility configuration.
These numbers illustrate why most Planet Fitness franchisees rely on business financing rather than funding the entire project with personal capital. Understanding the full cost picture is the first step toward building a solid financing strategy.
There is no single financing solution that works for every franchisee. Most Planet Fitness operators use a combination of funding sources to cover the full cost of opening their location. Here is an overview of the primary financing options available.
A traditional term loan provides a lump sum of capital that you repay over a fixed period with interest. These loans are well-suited for large, one-time investments like franchise build-outs. Traditional term loans typically offer longer repayment terms and competitive interest rates for qualified borrowers.
Term loans for franchise investments often range from $500,000 to $5 million with repayment terms of 5 to 25 years. The longer the term, the lower your monthly payment, which can help manage cash flow during the ramp-up phase when your gym is still building its membership base.
The SBA 7(a) loan program is one of the most popular financing tools for franchise owners. Because the SBA guarantees a portion of the loan, lenders can offer more favorable terms than conventional loans, including lower down payments and longer repayment periods.
SBA 7(a) loans can fund up to $5 million and are commonly used for franchise acquisitions, working capital, and business real estate. Repayment terms can extend up to 10 years for business purposes and up to 25 years for real estate-secured loans.
If you plan to purchase the real estate for your Planet Fitness location rather than leasing, an SBA 504 loan may be a better fit. The 504 program is specifically designed for major fixed-asset purchases including commercial real estate and large equipment. The structure typically involves a bank covering 50% of the project cost, a Certified Development Company covering 40%, and the borrower contributing 10%.
SBA 504 loans can be ideal for Planet Fitness operators who want to own their building long-term and benefit from real estate appreciation while also operating a successful gym business.
Given the substantial equipment costs associated with opening a Planet Fitness, dedicated equipment financing is a natural fit. Equipment loans are secured by the equipment itself, which often makes approval easier and interest rates more competitive.
With equipment financing, you can fund gym equipment, tanning beds, massage chairs, and even front desk technology. Many lenders offer 100% financing with no down payment required for well-qualified borrowers, allowing you to preserve your cash for operations.
A business line of credit gives you flexible, revolving access to capital that you can draw on as needed. Unlike a term loan, you only pay interest on what you borrow, making it an efficient tool for managing cash flow fluctuations.
For Planet Fitness franchisees, a business line of credit can be invaluable during the pre-opening phase and early operations, when expenses are high and revenue is still building. It can also serve as a safety net for unexpected costs or opportunities to accelerate growth.
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Apply Now ->SBA loans are frequently the preferred financing vehicle for Planet Fitness franchise owners, particularly for the large upfront investment required to open a new location. Understanding how SBA lending works can help you determine whether this route is right for your situation.
SBA loans are made by approved private lenders, such as banks and credit unions, but are partially guaranteed by the Small Business Administration. This guarantee reduces the lender's risk and enables them to offer financing to small business owners who might not qualify for conventional loans.
For franchise businesses, lenders typically look for the franchise brand to appear on the SBA Franchise Registry. Planet Fitness is a well-established brand with a long track record, which generally makes it easier to obtain SBA financing compared to newer or less proven franchise concepts.
Key features of SBA 7(a) loans for Planet Fitness franchisees include:
To maximize your chances of SBA loan approval for a Planet Fitness franchise, focus on the following:
Working with a lender who specializes in franchise financing, like Crestmont Capital, can streamline the SBA application process and improve your approval odds. Learn more about SBA loan options through Crestmont Capital.
A Planet Fitness gym requires an extensive array of equipment. From cardio machines and free weights to locker room fixtures and front desk kiosks, the equipment investment can easily exceed $1 million for a full-size location. Equipment financing allows you to spread this cost over time without tying up all your capital.
Equipment financing is a type of secured loan where the equipment itself serves as collateral. Because the lender has a tangible asset backing the loan, underwriting criteria are generally less stringent than for unsecured loans. This means faster approvals, better rates, and higher approval rates for borrowers who might not qualify for large unsecured loans.
For gym equipment, lenders typically offer:
Planet Fitness equipment financing can cover virtually all the physical assets required to open your gym, including:
Explore equipment financing options at Crestmont Capital to see what you may qualify for.
Some Planet Fitness franchisees choose to lease equipment rather than purchase it. Equipment leasing can reduce upfront costs and keep your monthly payments lower, but you will not own the equipment at the end of the lease term. An equipment loan, by contrast, allows you to build equity in your assets and potentially sell them in the future.
For most franchise operators, equipment loans tend to be the better long-term choice because gym equipment depreciates slowly and holds its value reasonably well. An experienced franchise financing specialist can help you model both options and determine which approach is most cost-effective for your specific situation.
Even the best-financed franchise can run into cash flow challenges, especially in the first 12 to 18 months of operations. During this period, you are simultaneously managing high fixed costs (rent, payroll, utilities) while building your membership base. Having access to working capital is critical for navigating this phase successfully.
Planet Fitness operates on a membership model, which means revenue is relatively predictable once you reach a stable membership count. But getting there takes time. During the pre-opening phase and the first several months of operations, you will need capital to cover:
Unsecured working capital loans provide fast access to capital without requiring collateral. For Planet Fitness franchisees who have already invested heavily in their facility, unsecured loans offer flexibility to access additional funds without pledging more assets.
These loans typically range from $25,000 to $500,000 with terms of 6 months to 5 years. Approval is based primarily on business revenue and credit profile rather than collateral, making them accessible for operators who have already deployed most of their assets in the franchise build-out.
A revolving business line of credit is one of the most flexible tools in a franchise owner's financial toolkit. You can draw funds when you need them and repay them as your revenue comes in, paying interest only on the outstanding balance.
Common uses for a business line of credit at a Planet Fitness franchise include:
Planet Fitness has historically seen strong membership growth in the first quarter of each year (New Year's resolution season). A business line of credit can help you staff up and market aggressively during this period, then repay the balance as memberships accumulate.
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Apply Now ->Before you apply for a Planet Fitness franchise loan, it helps to understand what lenders are looking for. Meeting these criteria before you apply will improve your chances of approval and help you secure the best possible terms.
Most lenders require a personal credit score of at least 650 for SBA loans, though scores of 700 or higher will give you access to better rates and terms. If your credit score needs improvement, focus on paying down existing debt, disputing any errors on your credit report, and avoiding new credit inquiries in the months before you apply.
Lenders want to see that you have the financial resources to weather early-stage challenges. For a Planet Fitness franchise, most lenders expect borrowers to have a net worth of at least $500,000 and liquid assets (cash, stocks, retirement accounts) of at least $200,000 to $300,000. The SBA's own requirements for certain loan programs include similar liquidity thresholds.
While you don't need to have owned a gym previously, lenders value relevant business management or entrepreneurial experience. If you have operated other businesses, managed large teams, or have a background in hospitality, retail, or fitness, highlight this in your loan application. Planet Fitness also provides franchisee training, which can help offset any experience gaps in your background.
A well-prepared business plan is essential for any franchise loan application. Your plan should include a market analysis of your target location, competitive landscape review, detailed build-out and equipment budget, revenue projections based on comparable Planet Fitness locations, break-even analysis, and a three to five year financial model.
Lenders who specialize in franchise financing will typically want to review the Planet Fitness Franchise Disclosure Document (FDD). This document, provided by Planet Fitness corporate, contains detailed financial information about the franchise system, including Item 19 financial performance representations. A strong Item 19 showing average unit revenues makes the lending decision easier for the bank.
According to Forbes, having all your financial documents organized and ready before approaching lenders can significantly speed up the approval process and demonstrate professionalism to underwriters.
Planet Fitness Franchise Financing Overview
$1.1M - $5.1M
Total Investment Range
$20,000
Initial Franchise Fee
2,400+
U.S. Locations
18M+
Active Members
Up to $5M
SBA 7(a) Loan Max
10-20%
Typical Down Payment
Many successful Planet Fitness franchisees do not stop at one location. Multi-unit ownership is common in the system, and some operators run 10 or more locations across a regional territory. If your goal is to build a multi-unit Planet Fitness operation, your financing strategy needs to evolve accordingly.
Once your first Planet Fitness location is profitable and generating consistent cash flow, you can leverage that track record to finance additional locations. Lenders look favorably on existing Planet Fitness operators who want to expand because you have demonstrated the ability to run the business successfully.
Options for multi-unit expansion financing include:
Planet Fitness offers area development agreements that give franchisees the exclusive right to open multiple locations within a defined territory. These agreements typically require you to open a specific number of locations on a set timeline. Before signing a development agreement, work with your lender to ensure you have a financing plan in place for the full development schedule, not just the first location.
This is where working with a sophisticated franchise lender like Crestmont Capital becomes especially valuable. Our team can help you model your capital needs across a multi-year development plan and structure financing to support your growth. Explore our small business financing solutions to see the full range of options available.
Other franchise operators have found similar success with structured financing approaches. For example, read how the Tropical Smoothie Cafe franchise financing model works for multi-unit operators seeking to grow their portfolio.
Not all lenders are created equal when it comes to franchise financing. Choosing a lender with franchise expertise can make a significant difference in how smoothly your loan process goes and how favorable your final terms are.
When evaluating lenders for your Planet Fitness franchise loan, consider the following factors:
Crestmont Capital is rated the #1 business lender in the United States and specializes in franchise financing. Our team has helped hundreds of franchise owners across a wide range of brands secure the capital they need to open, operate, and grow their businesses.
We offer a comprehensive suite of franchise financing solutions including SBA loans, equipment financing, business lines of credit, traditional term loans, and unsecured working capital loans. Our streamlined application process and dedicated franchise financing specialists make us the preferred lender for operators who want a seamless, professional experience.
According to CNBC, working with a specialist lender who understands your industry can significantly improve loan terms and speed up the approval process for small business owners.
Your Path to Planet Fitness Franchise Financing
Request the Planet Fitness FDD
Contact Planet Fitness corporate to begin the franchisee qualification process and receive the Franchise Disclosure Document. Review it carefully with a franchise attorney.
Build Your Business Plan
Develop a comprehensive business plan with market research, site analysis, financial projections, and a detailed budget. This will be central to your loan application.
Review Your Personal Financials
Pull your credit reports, calculate your net worth, and identify your liquid assets. Having this information ready speeds up the lender's underwriting process.
Apply for Financing with Crestmont Capital
Contact our franchise financing team to discuss your project, get pre-qualified, and receive a customized financing proposal for your Planet Fitness location.
Close Your Loan and Open Your Gym
Once your financing is in place, complete your Planet Fitness build-out, hire your team, and open your doors. Your lender should remain a long-term partner as you grow your franchise.
The total estimated investment to open a Planet Fitness franchise ranges from approximately $1.1 million to $5.1 million, depending on the size of the facility, location, and local construction costs. This includes the $20,000 franchise fee, leasehold improvements, equipment, technology, and working capital reserve.
Yes. Planet Fitness is a well-established franchise brand and SBA loans are commonly used to finance new locations. The SBA 7(a) loan program can fund up to $5 million for franchise acquisitions, construction, equipment, and working capital. SBA 504 loans are also available for franchisees who plan to purchase commercial real estate.
Most lenders require a minimum personal credit score of 650 for SBA franchise loans. However, a score of 700 or higher will give you access to more competitive interest rates and better loan terms. If your score is below 650, focus on improving it before applying for a franchise loan.
Most lenders expect Planet Fitness franchisee applicants to have at least $200,000 to $300,000 in liquid assets in addition to the equity injection required for the loan. Planet Fitness corporate also has net worth and liquid capital requirements for franchise applicants, which are disclosed in the FDD.
The initial franchise fee for a Planet Fitness location is $20,000. This grants the franchisee the right to operate under the Planet Fitness brand and system. Multi-unit development agreements may include different fee structures for operators committing to open multiple locations.
Yes. Equipment financing is commonly used alongside SBA loans or construction loans to fund the gym equipment separately. Because equipment loans are secured by the equipment itself, they often have more favorable terms and are easier to qualify for than large unsecured loans. You can finance cardio machines, strength equipment, locker room fixtures, and even technology systems through equipment financing.
Loan approval timelines vary depending on the type of financing. SBA loans typically take 30 to 90 days from application to funding. Equipment loans can often be approved and funded in 5 to 15 business days. Working capital loans from specialty lenders like Crestmont Capital can sometimes be approved within 24 to 72 hours.
Planet Fitness charges franchisees a royalty fee of 7% of monthly membership revenue plus a national advertising fund contribution. These are ongoing costs that your financial model must account for when projecting profitability and loan repayment capacity.
Yes. A business line of credit is well-suited for pre-opening expenses such as marketing, staff training, utility deposits, insurance premiums, and initial supplies. Because you only pay interest on what you draw, it is a cost-effective way to cover variable pre-opening costs without taking out a large term loan for smaller amounts.
Planet Fitness does not offer direct in-house financing to franchisees. However, the brand does have relationships with preferred lenders who are familiar with the franchise system. Franchisees are free to work with any approved SBA lender or specialty franchise financing firm, such as Crestmont Capital.
Planet Fitness franchise profitability varies based on location, membership count, and operating efficiency. Item 19 of the Planet Fitness FDD provides financial performance representations for existing locations. Well-run locations have demonstrated strong revenue potential, with mature locations generating annual revenues in the range of $1 million to $3 million or more. However, profitability depends heavily on your specific market and cost structure.
Typical documents required for a Planet Fitness franchise loan include three years of personal tax returns, a personal financial statement, a business plan with financial projections, the Planet Fitness Franchise Disclosure Document, a signed franchise agreement (or letter of intent), a site lease or purchase agreement, and a detailed construction and equipment budget.
Yes, first-time business owners can qualify for Planet Fitness franchise financing, but you may need to demonstrate stronger financial credentials to offset the lack of operating history. This typically means a higher credit score, more liquid assets, and a well-prepared business plan. Working with a lender who specializes in franchise financing can help first-time owners navigate the process.
Multi-unit Planet Fitness operators typically finance additional locations using a combination of SBA loans, term loans, and business lines of credit. Once your first location has a track record of positive cash flow, lenders are generally more willing to finance expansion. Some lenders offer portfolio financing programs specifically designed for multi-unit franchise operators.
You can apply for a Planet Fitness franchise loan through Crestmont Capital, the #1 rated business lender in the U.S. We offer SBA loans, equipment financing, business lines of credit, and term loans specifically designed for franchise owners. Visit our apply page to get started: Apply Now.
Disclaimer: The information provided in this article is for general educational purposes only and is not financial, legal, or tax advice. Funding terms, qualifications, and product availability may vary and are subject to change without notice. Crestmont Capital does not guarantee approval, rates, or specific outcomes. For personalized information about your business funding options, contact our team directly.