With good reason, the fitness app category has been more popular among smartphone apps. These applications provide a variety of unique features that greatly assist users in reaching their fitness and health goals, in addition to their beauty and ease.
It’s important for those thinking about developing fitness applications to take inspiration from well-known fitness apps. Consider the Planet Fitness App, which is a sensational example of success. Since its founding in 1992, Planet Fittness has converted dramatically, becoming the muscularity center franchisee with the quickest rate of accumulation across North America.
Currently among the top free fitness applications is the Planet Fitness app.
We’ll talk about the Planet Fitness app, its proceeds sources and business strategy in today’s undertaking, along with other topics that could be extremely useful to you if you want to effectuate an app similar to Planet Fitness. Now let’s start with the fundamentals!
Planet Fitness: What is it?
American-based Planet Fittness is a fitness competence operator and franchisor. It was inaugurated to compete with well-known, temperately priced fitness companies like 24 Hour Fitness. The following are some essentials of the company offering fittness club services:
Michael and Marc Grondahl were the founders.
Established in 1992
Headquarters: Hampton, New Hampshire, United States; Net Revenue: $587 million in 2021
1,387 employees as of 2020; 2,353 total members as of September 2022; total number of stores 16.6 million or more
Revenue Breakdown for Planet Fitness
One of the most prosperous businesses in the health and wellness sector, Planet Fitness is expected to generate a whopping $587 million in sales in 2021.
How Do Things Get Done at Planet Fitness?
Planet exercise has a simple business plan that aims to provide exercise to everyone. Generally, unrestricted use of the gym’s equipment-including the cardio and strength training machines-is included with memberships. The gym encourages people of all fitness levels to feel accepted by fostering a welcoming, judgment-free atmosphere.
Planet Fitness caters to those that are on a budget for fittness services. Over 2.3k fitness clubs are owned and run by it throughout North America. PF provides services in Australia in addition to the United States, Canada, the Dominican Republic, Mexico, and Panama.
Fitness Facilities, Fees and Requirements for Franchises
In 2003, Planet Fitness began offering franchises. For a Planet Fittness franchise, you need to have $3 million in net worth and $1.5 million in liquid capital.
$20k is the initial franchise charge; $10k is the area development fee; and 7% of the total gross monthly/annual membership payments is the royalty fee. The number of members surpassed 16 million by March 2022.
A standard Planet Fittness location contains 20,000 square feet of light-filled, tidy space, with professional trainers and PF-branded weight, cardio, and circuit training equipment.
Through the PE@PF program, the trainers at Planet Fitness provide small groups of members complimentary fitness training. For only $10 per month, PF offers this as part of its basic membership. A larger segment of the US and Canadian adult population over 14 is drawn to this value, particularly those who find conventional fitness clubs pricey.
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Aiming for Market Segments That Aren’t Fit
In contrast to other fitness providers, Planet Fitness also emphasizes non-fitness sectors. As per the 2021 annual report, Planet Fittness boasts of about 250 million customers and generated $3.4 billion in revenues throughout its whole system.
This is due to the fact that Planet Fitness provides services for entertainment, leisure, sports, and other non-fitness-related activities, setting it distinct from the traditional health club industry.
The Planet Fitness mobile application
The Planet Fittness exercise tracker app is a great marketing tool rather than just a full-fledged front for fittness services sales and bringing new customers to PF. The following are a few of the main factors contributing to the Planet Fitness app’s enormous success:
An indicator of progress
The 10-part Couch to Gym Program is intended to acquaint beginners with the basics of working out. One of the program’s features is the Crowd Meter, which alerts users when the gym is not fully occupied.
A variety of free fittness routines for yoga, strength training, cardio, and other activities are available at Healthy Heart programs. Trainers have pre-recorded cardio and weightlifting programs.
The fitness app does a great job of keeping users’ exercise records. Members of Planet Fittness may also take use of a broad variety of tools, such as a tracker that notifies users when it’s appropriate to work out at the gym.
Selecting Companies to Collaborate With
When opening new locations, Planet Fitness adheres to the franchise business model. They may now take use of their unique local market knowledge. When assessing a potential franchisee, Planet Fittness looks at:
- Finance and capital that are accessible
- Past financial information
- Experience in overseeing P&L activities
- Prior experience running multiple-unit or franchising enterprises
As we can see, PF adds new retailers only after a rigorous screening procedure. This broadens the fitness service’s reach while assisting in delivering high-quality service to its members.
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The Business Model and Revenue Streams of Planet Fitness
Being one of the top suppliers of fittness services and gyms in North America is made possible by Planet Fitness’s many different income streams.
PF has access to a wide range of income streams, but the majority of them fall into one of these three primary money-generating categories:
- Based on franchises
The services that Planet Fitness offers to its franchisees are included in the franchise segment revenue. It is PF’s main source of income. Revenue from franchises consists of:
- Revenue from franchised shops in commission
- Franchise costs
- Placement income
- Income from royalties
- Earnings from the National Advertising Fund (NAF)
In 2021, Planet Fitness made $587 million in total revenue, of which $290 million, or about half, came from franchise-based income.
- Stores owned by Companies
Planet Fitness not only provides reasonably priced personal training services, but also gives businesses an option to run own fitness facilities so that staff members may get training as well.
These establishments are referred to as corporate-owned stores, and they provide PF with income in the following ways:
- Annual charges
- Fees for enrollment
- Dues per month for membership
- Advance payments
- Sales at retail
More than 29%, or over $171 million, of Planet Fittness’ total revenue in 2021 came from this source of income.
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- Device-oriented
Every five to seven years, PF requires franchisee-owned establishments to update their exercise equipment. The income derived from equipment comprises:
Revenue from equipment for new shops
Revenue from replacing equipment at establishments that are currently open
In 2021, Planet Fittness generated $129 million in sales from their equipment.
In summary
For the last thirty years, Planet Fittness has been a multimillion dollar company. For companies hoping to create, promote, and make money from a health and wellness app simultaneously, the Planet Fittness business model is a blueprint to follow. To continue to fulfill changing digital needs, Raleigh web application development relies on developing individual applications for enterprises with concentrate on scalability.
