Planet Fitness, Inc.

What does it do?

Planet Fitness is one of the largest gym chains in the United States, known for its bright purple-and-yellow locations and rock-bottom membership prices — typically around $10 to $25 per month. The idea is simple: make going to the gym feel accessible and non-intimidating for everyday people, not just fitness fanatics. They call it the 'Judgement Free Zone,' and it works — they have over 2,300 locations across the US and several other countries. Most of those gyms aren't actually owned by Planet Fitness directly; they're run by independent business owners called franchisees who pay Planet Fitness to use the brand.

How does it make money?

Planet Fitness made $1.3 billion in revenue last year, up from $1.2 billion the prior year. That money comes from three main buckets: royalty fees paid by franchisees (a cut of their monthly membership revenue), selling and leasing fitness equipment to those same franchisees, and running a smaller number of company-owned gyms directly. The franchise model is the crown jewel — Planet Fitness collects predictable, recurring fees without taking on the full cost and risk of owning every building. Equipment sales also add a meaningful chunk because every time a franchisee opens or upgrades a gym, they buy the machines through Planet Fitness.

Why do investors care?

The growth story here is about white space — there are still hundreds of US towns and cities without a Planet Fitness, plus real international expansion underway in Canada, Australia, and Mexico. Investors are also watching whether Planet Fitness can raise its average membership price without losing the budget-gym appeal that made it famous; they recently introduced higher-tier memberships to try exactly that. For the thesis to work, membership numbers need to keep growing, franchisees need to keep opening new locations, and the brand needs to stay relevant as competitors like Crunch Fitness and EōS Fitness chase the same budget-gym audience.