In this article, you will learn what you need to know in order to purchase a Planet Fitness franchise using an SBA 7a loan.
What you need to know about the Planet Fitness franchise:
|Liquid capital required||$1,500,000|
|Net worth required||$3,000,000|
|Investment||$936,600 - $4,558,000|
|Units in operation||2,174|
Two weeks of training are provided by Planet Fitness to its franchisees at the corporate office. The business provides continuing support through advertising, a phone line, safety protocols, meetings, newsletters, and a grand opening celebration.
Franchise Opportunities with Planet Fitness - History
Michael Grondahl purchased a financially struggling gym in New Hampshire in 1992, and by dramatically lowering fees, he was able to turn it around.
Cost of a Planet Fitness franchise, initial investment, and revenue from the franchise
The total investment can be anywhere between $936,000 and $4.6 million. Additionally, franchisees are required to give Planet Fitness a 7% recurring royalty fee on all sales. A franchisee needs around $1,500,000 in liquid assets in order to operate a gym.
Additional Information about Planet Fitness
In order to interact with its patrons, Planet Fitness hosts a Pizza Night on the first Monday of the month, a Bagel Morning on the second Tuesday, and free Tootsie Rolls are always available. Each month, more than a million Tootsie Rolls are distributed.
Since Planet Fitness is a major sponsor of The Biggest Loser, it receives significant national exposure and attracts a clientele of unfit individuals seeking to regain their lives.
Watch this video where we answer a question about financing a Planet Fitness franchise using an SBA 7a loan.
Financing a Planet Fitness Franchise Using an SBA 7a Loan
The biggest challenge in acquiring a franchise is the financing. They can be very expensive. As you can see above, it can take anywhere from a little over $900k to almost $5 million to start up a Planet Fitness gym.
This is why using an SBA 7a loan is probably your best option. You can get SBA 7a financing for up to $5 million. Key eligibility factors are based on what the franchise does to receive its income, its credit history, and where it operates.
You can use the proceeds from your SBA 7a loan for long- and short-term working capital; revolving funds based on the value of existing inventory and receivables; the purchase of equipment, machinery, furniture, fixtures, supplies, or materials; the purchase of real estate, including land and buildings; the construction a new building or renovation an existing building; establishing a new business or assisting in the acquisition, operation, or expansion of an existing business; refinancing existing business debt, under certain conditions.
Your commercial loan advisor will help you find the best SBA lender for your needs.
Not sure which franchise opportunity is the best for you? Book a call today to find out.
The information in this article is provided as a service to the Internet community. SBALoans.blog has compiled the information on this page from multiple sources, using the best information available at the time of publication. If you have any questions, please let us know.
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