Planet Fitness NNN Property Lease: Pros, Cons, and History

Planet Fitness

Interested in selling your Planet Fitness NNN property or Planet Fitness ground lease property and wondering what you can get for it in today’s changing market?

Contact us for a complimentary broker opinion of value for your off-market Planet Fitness NNN property for sale or Planet Fitness ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the clarity needed to make informed decisions regarding the sale of your Planet Fitness NNN property or the inclusion of a Planet Fitness ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Planet Fitness properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Number of locations

As of 2025, Planet Fitness operates 2,500+ clubs across the United States, Puerto Rico, Canada, Mexico, Australia, and several other international markets. It is one of the largest and fastest-growing fitness brands in the world, known for its low-cost, high-volume gym model.

Planet Fitness locations are primarily operated through a franchise system, supported by a strong corporate infrastructure.

Revenue and income

Planet Fitness is a publicly traded company (NYSE: PLNT) and reports detailed financial results.

In 2023, Planet Fitness reported over $1.1 billion in total revenue.
The company generates income primarily from:
- Franchise royalties and fees
- Corporate-owned club operations
- Equipment sales to franchisees
Planet Fitness benefits from high-margin recurring membership revenue, driven by low monthly dues and strong retention.

The brand consistently ranks among the most profitable fitness concepts due to its scalable franchise model and low operating costs.

Future plans

Planet Fitness continues to pursue aggressive and disciplined growth through:

1. Domestic and international expansion

Planet Fitness plans to open hundreds of new clubs annually, with long-term targets exceeding 4,000 global locations. Growth is focused on:

Underserved suburban and secondary markets
International expansion through master franchise agreements

2. Franchise-led development

Most new Planet Fitness locations are developed by experienced multi-unit franchisees, allowing rapid expansion with limited corporate capital investment.

3. Club format optimization

Planet Fitness continues to refine its standardized club design, emphasizing:

Large-format, high-visibility retail locations
Efficient layouts for strength and cardio equipment
Scalable footprints adaptable to different markets

4. Technology and digital engagement

Ongoing investments include:

Mobile app enhancements
Digital workout tracking
Member engagement tools
Streamlined check-in and club access systems

5. Brand and marketing growth

Planet Fitness continues to invest heavily in national advertising, brand awareness, and its “Judgment Free Zone®” positioning to attract first-time and casual gym users.

Corporate vs. franchise

Planet Fitness operates primarily as a franchise-based system.

The majority of clubs are franchise-owned and operated.
A smaller portion of locations are corporate-owned for operational testing and brand development.
Corporate headquarters provides centralized control over branding, marketing, equipment standards, and membership structure.

This model supports rapid scalability and strong unit economics.

Additional information about Planet Fitness properties

Founded in 1992 in Dover, New Hampshire.
Headquarters: Hampton, New Hampshire, USA.
Known for its low-cost membership model, often starting at around $10 per month.
Signature amenities include:
- Cardio and strength equipment
- 30-minute Express Circuit
- Black Card® Spa amenities (massage chairs, tanning, etc.)
Planet Fitness targets high-traffic retail corridors, shopping centers, and freestanding buildings with strong visibility.
The brand serves millions of active members and continues to expand globally.

Planet Fitness History

Planet Fitness was founded in 1992 in Dover, New Hampshire, by Michael and Marc Grondahl. The brand was built around a simple but differentiated concept: affordable, non-intimidating gyms designed for everyday fitness users, branded as the “Judgment Free Zone®,” which helped attract first-time and casual gym members.

In the early 2000s, Planet Fitness adopted a franchise-driven growth model, enabling rapid national expansion. By focusing on low monthly memberships, standardized club layouts, and strong national marketing, the company scaled quickly across suburban and secondary markets throughout the United States.

Today, Planet Fitness operates more than 2,500 locations worldwide and is one of the largest fitness chains globally. As a publicly traded company, Planet Fitness continues to grow through aggressive franchise development, international expansion, and investments in digital engagement and brand marketing, solidifying its position as a leader in the low-cost fitness segment.

Why Invest in Ground Lease and NNN Lease of Planet Fitness?

Investing in Planet Fitness ground lease or triple net (NNN) lease properties offers compelling advantages due to the brand’s scale, low-cost membership model, and strong franchise-driven expansion.

1) Planet Fitness NNN Property Investment: Stable Income

Planet Fitness benefits from a high-volume, low-price membership model with recurring monthly dues, creating predictable cash flow and supporting long-term rent stability for NNN property owners.

2) Planet Fitness NNN Property Investment: Established Tenant

Founded in 1992, Planet Fitness has grown into one of the largest fitness brands globally, operating more than 2,500 locations. As a publicly traded company with a strong national presence, it provides dependable tenancy and reduced vacancy risk.

3) Planet Fitness NNN Property Investment: Low Management Responsibility

Planet Fitness NNN and ground leases are typically structured so the tenant is responsible for taxes, insurance, maintenance, and operating expenses, offering investors a truly passive ownership experience.

4) Planet Fitness NNN Property Investment: Favorable Lease Terms

Planet Fitness locations often feature long-term lease commitments, commonly 15–20 years, with built-in rent escalations. These terms help protect income over time and reduce lease rollover risk.

5) Planet Fitness NNN Property Investment: Real Estate Value

Planet Fitness clubs are usually located in high-traffic retail corridors, power centers, and dense suburban markets. Their consistent daily traffic and adaptable big-box layouts support long-term real estate value and future re-tenanting potential.

Pros and Cons of Planet Fitness Ground Lease and NNN Lease Investment

Pros:

Stable income supported by Planet Fitness’s high-volume, low-cost membership model and recurring monthly dues.
Strong national brand with thousands of locations, reducing vacancy and tenant default risk.
Minimal landlord responsibilities under typical NNN and ground lease structures, as the tenant covers taxes, insurance, and maintenance.
Long-term lease agreements with built-in rent escalations that support predictable income growth.
Locations are commonly situated in high-traffic retail centers and power centers, enhancing long-term real estate value.

Cons:

Lease renewal risk if a franchisee or Planet Fitness elects not to renew at the end of the initial term.
Performance can be influenced by local competition from other value gyms or changing fitness trends.
Limited landlord control due to standard NNN or ground lease structures.
Tenant performance may vary by franchise operator strength, since many Planet Fitness locations are franchised.
Property value and exit cap rates may be affected by broader real estate cycles and interest rate conditions.

Just like any NNN investment, carefully evaluating site demographics, lease structure, franchisee or tenant credit quality, and long-term demand for fitness services is essential when considering a Planet Fitness property.

MarketWatch: Planet Fitness