Planet Fitness

Planet Fitness operates as a fitness franchisor with a distinctive business model focused on affordable, accessible fitness for casual gym users. The company's "Judgement Free Zone" philosophy creates a welcoming environment for first-time gym users and those intimidated by traditional fitness centers.

The company generates revenue through multiple streams:

• Franchise Fees: Initial fees and ongoing royalties from franchise operators
• Membership Fees: Both corporate-owned and franchise location memberships
• Equipment Sales: Fitness equipment sold to franchisees for gym setup
• Ancillary Revenue: Personal training, tanning, and other services

Planet Fitness maintains a hybrid model with both corporate-owned locations and franchise operations, allowing for controlled expansion while leveraging local market knowledge and investment from franchisees.

Planet Fitness traces its origins to 1992 when Michael and Marc Grondahl opened their first gym in Dover, New Hampshire. After struggling with the traditional gym model, they purchased a gym called Coastal Fitness and brought on Chris Rondeau as a third partner, developing a new approach focused on casual gym users.

In 2002, the Grondahl brothers purchased the rights to the Planet Fitness name from Rick Berks, who had originally established a Planet Fitness gym in 1993 in Sunrise, Florida. This acquisition allowed them to rebrand their existing locations and expand the concept.

The company developed its distinctive "Judgement Free Zone" philosophy, targeting first-time gym users and casual exercisers rather than serious fitness enthusiasts. This approach, combined with affordable membership pricing, proved highly successful and led to rapid expansion through franchising.

Planet Fitness experienced significant growth throughout the 2000s and 2010s, expanding across the United States and eventually internationally. The company completed its initial public offering in 2015, providing capital for accelerated expansion and franchise development.

Today, Planet Fitness operates over 2,700 locations across the United States, Canada, Mexico, Spain, and Australia, making it one of the largest fitness club franchises by number of locations and members.