For years, Planet Fitness, Inc looked like one of the cleanest growth stories in fitness—low prices, rapid expansion, and a model built to scale.
That story may be getting tougher.
According to a note from TSOH Investment Research, the company may have already pulled many of the levers that drove its outsized growth.
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Planet Fitness built its edge on a high-value, low-price model, with memberships starting at $15 per month and premium tiers still well below industry averages. That positioning helped drive scale—ending FY25 with about 20.8 million members, growing roughly 11% annually over the past decade.
But most of that growth came from new store openings, not higher usage per location—a key detail as expansion matures.
Behind the scenes, the company leaned on its franchise model.
Royalty rates increased from 5% to around 7%, helping drive higher revenue per store. But that strategy may have limits. The TSOH note flags growing pressure on franchisees, suggesting the model needs to stay balanced to sustain growth.
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At the same time, several tailwinds are fading:
Less room to raise prices
Rising competition in low-cost gyms
Slower growth versus earlier targets
Management had outlined mid-teens EBITDA growth, but recent guidance points closer to ~10%, signaling a step down.
Planet Fitness isn’t losing relevance. It still dominates its niche.
But the shift is clear: the easy wins may be in the past.
What comes next will depend less on momentum—and more on execution.
Photo via Shutterstock
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