Planet Fitness is not like the typically gyms that focus around body builders, juice bars, and fancy classes, but it is rather a gym that focuses are making their customers feel safe and secure while staying healthy. And that is why Planet Fitness is one of the most successful fitness franchises in the United States. Planet Fitness was first founded in 1992 by Michael Grondahl, the founder turned a financially unstable gym into a rapidly growing and successful one.[1] However, now in 2011 there are over 400 gyms through out the United States, which proves that the gym franchise is a stable one as the continue to expand and focus of their customers.
Due to their increasing success, if one wanted to buy a single gym it would be extremely expensive. The required capital to invest in the gym would be at least $400,000. Even though the start up cost of Planet Fitness is not expensive as opening a Krispy Kreme, which is “$2 million” (pg 133), the start up cost can be seen as disadvantage to new owners. The $400,000 is the basic start up cost for opening a gym, but the total investment would be between $500,001- $1,000,000. The start up cost can be deceiving, but Planet Fitness’s success in the U.S. makes it desirable. If I wanted to open a gym franchise Planet Fitness would be the one I would pick because it is continuing to open gyms in numerous locations and its impressive revenue. “The annual membership revenue for Planet Fitness is $1.7 Million, while the average in the fitness industry is $1.2 million.[2]
However, the gym might start to face problems with expansion because to me it seems like they are opening too many stores too quickly and they continue to look for more opening. I think to be successful in the business world it is easier to perfect your industry rather than open as many as possible because the store’s quality could decrease especially since there are numerous other fitness franchises in the country like Gold’s Gym, Work Out Work, and Anytime Fitness. The competition between these franchises can be positive; “some have found a competitive edge by focusing on quality. The goal for many companies is zero defects-no mistakes in making the product”(16). If Planet Fitness keeps its positive reputation of being one the best fitness gyms then more and more people will be willing to franchise with them as long as the head of Planet Fitness stays on top of their one weakness, over population of their gyms.
Throughout my search on Google, Franchise Expo, and Planet Fitness I have become aware of the basics involving opening a franchise, but there was not enough information for me to complete the checklist on pg 132. But if I wanted to gain more information regarding the franchise I would be able to submit a form to Planet Fitness and receive more instructions and guidelines for opening a store.
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