Planet Fitness Growth Fueled by Existing Franchisees
Planet Fitness CEO Chris Rondeau, a walking advertisement for the benefits of his company's gyms, says 90 percent of new locations are opened by existing franchisees who are very good operators of multiple locations. The company will continue to rely on them, expecting to open about 200 locations a year, including some in Canada as well as in the U.S., he states.
In a 2016 survey of nearly 1 million Planet Fitness members, the company discovered that more than 40 percent of its members had never previously belonged to a health club. That statistic has helped investors to better understand Planet Fitness’ mission of “catering to 80 percent of the population that doesn’t have a health club membership,” he [Rondeau] said. — Anthony Dominic, Club Industry
CEO Chris states that affordability (many members pay only $10 a month) and a non-judgmental atmosphere are what bring people in.
Rondeau is becoming a staple on news networks such as Bloomberg and CNBC, and with good reason. Planet Fitness—now publicly traded—reported third quarter revenue of $87 million, a 26.4 percent increase from the same period last year, with its same-store sales jumping 10 percent. — Dominic, Club Industry