How does Planet Fitness make money?

Planet Fitness makes money via its enrollment fees, monthly memberships, annual fees, and retail sales. Here is a closer look at the different ways Planet Fitness makes money:

• Enrollment fees

  Planet Fitness charges enrollment fees when new members of the franchise gym sign up. Sometimes the company offers deals to new customers by slashing some of its enrollment fees, however, this is normally a constant source of revenue generation for Planet Fitness.

• Monthly memberships

  Planet Fitness makes a lot of its money from monthly membership fees. This is one of their more consistent revenue streams. Members of the gym must pay membership fees each month and they offer plans of varying prices. They also offer the chance to pay for a year of membership up front, cutting on the total year membership cost when compared to monthly.

• Annual fees

  This is another form of payment for membership and can cost less than paying the monthly membership fees. Sometimes the company might also add additional fees to the annual fees though if a customer's membership contains a specific plan or perk.

• Retail sales

  Planet Fitness also sells brand-name merchandise and also third-party exercise products within their gyms. Here the company also makes considerable profits. Planet Fitness is one of the most well-known franchise gyms in the United States, so they are able to make a lot of money off their merchandise and other forms of retail sales.