Planet Fitness Stock

Planet Fitness, Inc. (Planet Fitness) franchises and operates fitness centers.

The company’s bright, clean stores are typically 20,000 square feet, with a large selection of high-quality, purple and yellow Planet Fitness-branded cardio, circuit- and weight-training equipment and friendly staff trainers who offer unlimited free fitness instruction to all its members in small groups through its PE@PF program.

The company has stores in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia. As of December 31, 2022, the company had approximately 17.0 million members.

The company provides its members with high-quality, Planet Fitness-branded fitness equipment from leading suppliers. In order to maintain a consistent experience across its store base, the company stipulates specific pieces and quantities of cardio and strength-training equipment and works with franchisees to review and approve layouts and placement. The majority of the company’s existing franchise operators are multi-unit operators.

The company’s stores are generally located in free-standing retail buildings or neighborhood shopping centers, and the company considers locations in both high- and low-density markets.

The company regularly communicates and collaborates with the Independent Franchise Counsel (IFC) and sends a weekly email communication to all franchisees with timely information related to operations, marketing, financing and equipment.

The company supports its franchisees both at a national and local level. The company has partnered with Boys & Girls Clubs of America.

Growth Strategies

The company’s strategies are to continue to grow its store base across a broad range of domestic and international markets; drive revenue growth and system-wide same store sales (such as attracting new members to existing Planet Fitness stores and increasing mix of PF Black Card memberships by enhancing value and member experience); increase brand investment to drive awareness and growth; continue to expand royalties from increases in average royalty rate and new franchisees; and grow sales from fitness equipment and related services.

Intellectual property

The company owns many registered trademarks and service marks in the U.S. and in other countries, including ‘Planet Fitness,’ ‘Judgement Free Zone,’ ‘PE@PF,’ ‘Lunk Alarm,’ ‘Black Card,’ ‘PF Black Card,’ ‘No Gymtimidation,’ ‘You Belong,’ ‘The Judgement Free Generation,’ ‘PF+’ and various other trademarks and trade dress.

Government Regulation

The company and its franchisees are subject to various federal, international, state, provincial and local laws and regulations affecting its business.

The company is subject to the FTC Franchise Rule, as amended (the ‘Rule’), promulgated by the FTC that regulates the offer and sale of franchises in the U.S. and its territories (including Puerto Rico) and requires the company to provide to all prospective franchisees certain mandatory disclosures in a franchise disclosure document (FDD), unless otherwise exempt from the Rule. In addition, the company is subject to state franchise registration and disclosure laws in approximately 14 states and various business opportunity laws that regulate the offer and sale of franchises and require the company, unless otherwise exempt from the applicable law, to register its franchise offering in those states prior to its making any offer or sale of a franchise in those states and to provide a FDD to prospective franchisees in accordance with such laws.

The company and its franchisees are also subject to the U.S. Fair Labor Standards Act of 1938, as amended, similar state laws in certain jurisdictions, and various other U.S. and international laws governing such matters as minimum-wage requirements, overtime and other working conditions.

The company and its franchisees primarily accept payments for its memberships through EFTs from members’ bank accounts, and therefore, the company and its franchisees are subject to federal, state and international laws legislation and certification requirements, including the Electronic Funds Transfer Act.

Additionally, the collection, maintenance, use, disclosure and disposal of personally identifiable data by the company’s, or its franchisees’, businesses are regulated at the federal, state and international levels, as well as by certain financial industry groups, such as the Payment Card Industry, Security Standards Council, the National Automated Clearing House Association (NACHA), and the Canadian Payments Association.

History

Planet Fitness, Inc. was founded in 1992. The company was incorporated in Delaware in 2015.