Planet Fitness FDD Item 19 is the section of the Franchise Disclosure Document that contains financial performance representations: the actual revenue data, membership metrics, and financial benchmarks that allow prospective franchisees to evaluate the earning potential of a Planet Fitness location. Item 19 is optional under the FTC Franchise Rule, and many franchise systems choose not to include it. Planet Fitness does provide Item 19 data, which makes it one of the more transparent franchise systems in this regard. However, transparency does not mean simplicity. At Lopes Law LLC, we spend substantial time helping clients interpret Planet Fitness Item 19 data correctly, because the difference between reading the numbers and understanding what they mean for your specific investment is the difference between a sound decision and a costly mistake.

This guide explains exactly what Planet Fitness discloses in Item 19, how to interpret the financial performance data in the context of the 14% combined fee rate and the $1.6 million to $4.9 million total investment, and what every buyer must analyze before committing capital.

What Is FDD Item 19 and Why Is It Critical for Planet Fitness?

Item 19 of any Franchise Disclosure Document is titled “Financial Performance Representations.” Under the FTC Franchise Rule (16 C.F.R. Part 436), a franchisor is not required to provide Item 19 data, but if it does, the data must have a reasonable basis and be presented in a specific format. Franchisors that do not include Item 19 are prohibited from making any financial performance claims outside the FDD.

For Planet Fitness specifically, Item 19 is critical because the brand’s financial model depends on membership volume at low price points. The $10/month Classic membership and $24.99/month PF Black Card membership mean that revenue is heavily dependent on the number of active members. Item 19 data helps prospective franchisees understand what membership levels and revenue figures existing locations have actually achieved, which is essential for modeling whether your specific location can generate sufficient revenue to cover the 14% fee load, operating expenses, debt service, and produce an acceptable return on the $1.6 million to $4.9 million investment.

Planet Fitness is publicly traded on the NYSE under the ticker PLNT, and its public filings provide some system-wide financial data. However, the FDD Item 19 typically provides more granular, location-level data that is not available in SEC filings. This makes the FDD the single most important financial document for any prospective franchisee.

What Financial Data Does Planet Fitness Item 19 Typically Include?

Planet Fitness Item 19 typically includes several categories of financial performance data. The specific metrics and presentation format may change from year to year, but common disclosures include:

• Average Unit Volume (AUV): The average gross revenue generated by franchise locations during the reporting period. This is the headline number that most prospective franchisees focus on, but it should be treated as a starting point, not a guarantee.
• Median revenue: The middle-point revenue figure. Unlike the average, the median is not skewed by a small number of extremely high-performing or extremely low-performing locations. The median is often a more realistic benchmark for a new franchisee.
• Revenue by quartile: Breakdown of locations by performance quartile, showing the range from top-performing to bottom-performing locations. This reveals the spread of outcomes and helps you understand the probability of achieving various revenue levels.
• Membership metrics: Data on average member counts, which directly drives revenue given the fixed membership pricing.
• Percentage of locations achieving various benchmarks: The FDD may disclose what percentage of locations achieved or exceeded certain revenue thresholds.

How Should You Interpret Planet Fitness Item 19 Revenue Data?

Reading Item 19 correctly requires understanding several factors that affect how the data applies to your specific situation:

Mature Locations vs. New Locations

Item 19 data may include both mature locations (open 5+ years with established membership bases) and newer locations still in the membership growth phase. Mature locations typically generate higher revenue because they have had years to build their member base. A prospective franchisee opening a new location should not expect to match the revenue of a mature location in year one or even year three.

If the Item 19 data does not separate mature and new locations, the averages will be blended, making the system-wide figures potentially misleading for a new franchisee. At Lopes Law LLC, we specifically analyze how the data is segmented and advise clients to focus on the performance of locations that most closely match their planned opening scenario.

Geographic Variation

Planet Fitness locations in densely populated urban markets with limited competition may generate significantly higher revenue than locations in suburban or rural markets. If the Item 19 data does not break down performance by geographic region or market type, the averages may not reflect the reality of your specific market. A location in a saturated market with three other Planet Fitness clubs within a 10-mile radius will likely perform differently than a location in an underserved market.

Revenue Is Not Profit

This is the most critical distinction in Item 19 analysis. Item 19 typically discloses revenue, not profit. Revenue is the total income before any expenses are deducted. To estimate what you will actually earn as an owner, you must subtract every operating cost from the revenue figure. Here is a framework for modeling:

Expense Category	Estimated % of Revenue	At $2M Revenue
Royalty + Advertising	14%	$280,000
Rent	8% – 15%	$160,000 – $300,000
Payroll + Benefits	15% – 22%	$300,000 – $440,000
Utilities	3% – 5%	$60,000 – $100,000
Equipment Reserves	3% – 6%	$60,000 – $120,000
Insurance	1% – 2.5%	$20,000 – $50,000
Technology Fees	0.5% – 1.5%	$10,000 – $30,000
Other Operating	3% – 5%	$60,000 – $100,000
Total Operating Costs	47.5% – 71%	$950,000 – $1,420,000

At $2 million in revenue, the operating margin before debt service could range from approximately $580,000 to $1,050,000. After subtracting debt service on a $2 million to $3.5 million loan (typical SBA loan payments of $200,000 to $400,000 per year), the owner’s cash flow could range from approximately $180,000 to $650,000 per year, depending heavily on the specific rent, payroll, and operating cost assumptions.

These ranges are wide because the actual costs vary significantly by market. The purpose of this framework is not to provide a precise estimate but to demonstrate why Item 19 revenue data alone is insufficient for making an investment decision. You must model the complete cost structure.

Why Is the 14% Fee Rate Critical When Reading Item 19?

The combined 14% royalty and advertising fee is the single largest controllable deduction from revenue for a Planet Fitness franchisee. It is “controllable” in the sense that it is a fixed percentage, but it is not negotiable or avoidable. Every dollar of revenue generates a 14-cent obligation to the franchisor.

When you read Item 19 and see average revenue figures, the first calculation should always be to subtract 14%. If the AUV is $2 million, the after-fee revenue is $1,720,000. All other operating expenses must be covered by that remaining amount. For comparison, a fitness franchise system charging 7% in combined fees would leave $1,860,000 after fees on the same $2 million in revenue, a difference of $140,000 per year.

Over a 10-year franchise term, that fee differential amounts to $1.4 million in additional payments to the franchisor compared to a lower-fee system. This does not mean Planet Fitness is a bad investment. It means the revenue must be proportionally higher to produce the same owner return, and the Item 19 data must be evaluated with the 14% fee rate factored in from the start.

How Does Membership Growth and Retention Affect Item 19 Projections?

Planet Fitness revenue is directly driven by two factors: the number of active members and the mix of Classic ($10/month) versus PF Black Card ($24.99/month) memberships. Item 19 data reflects the membership performance of existing locations, but prospective franchisees must evaluate whether those membership levels are achievable in their specific market.

Key membership considerations include:

• Member acquisition cost: How much does it cost to acquire each new member through local marketing beyond the 7% national advertising contribution? Local marketing costs are borne entirely by the franchisee.
• Retention rates: The gym industry historically experiences high member turnover. Planet Fitness’s low-cost model attracts members who may be more price-sensitive and more likely to cancel during economic downturns or seasonal fluctuations.
• Competition cannibalization: If another Planet Fitness opens within 5 to 8 miles, your membership growth may slow or your existing members may transfer. This risk is heightened in markets approaching saturation.
• PF Black Card conversion: Revenue per member is 2.5 times higher for PF Black Card members ($24.99) versus Classic members ($10). The mix between these tiers significantly affects total revenue. Item 19 may or may not disclose the membership mix at reporting locations.

Research by Patrice & Associates found that approximately 31% of franchise locations across all industries fail within five years. Revenue shortfalls from slower-than-expected membership growth are a primary contributor to franchise financial distress. In the case of Dickey’s Barbecue Pit, where 27 SBA loan defaults were recorded, actual revenue falling below projected levels was a consistent factor. The lesson applies to Planet Fitness: Item 19 shows what others have achieved, but your results will depend on execution, market conditions, and factors outside your control.

If you are evaluating whether a Planet Fitness franchise can deliver adequate returns, or if you are already operating one and struggling with membership growth, a franchise exit audit can help you understand your financial position and options.

What Questions Should You Ask About Planet Fitness Item 19?

When reviewing Planet Fitness FDD Item 19 with your franchise attorney, focus on these specific areas:

• How is the data segmented? Are mature locations separated from new locations? Are results broken down by geography, market size, or club format? If not, the averages may not reflect your planned scenario.
• What percentage of locations meet or exceed the average? If only 40% of locations exceed the average, the majority are underperforming the headline number. The median and lower quartile figures are more useful benchmarks.
• What does the bottom quartile look like? The worst-performing 25% of locations represent the downside scenario. Can your investment survive at the bottom-quartile revenue level after all fees and expenses?
• Are membership counts disclosed? If Item 19 includes membership data, calculate the revenue per member and evaluate whether your target market can support the membership levels needed to hit your revenue targets.
• What time period does the data cover? A single year of data may not reflect trends. If possible, compare Item 19 data across multiple years of FDDs to identify whether system-wide revenue is growing, flat, or declining.
• Does the data include locations that closed during the reporting period? If closed or terminated locations are excluded from Item 19, the data has survivorship bias, meaning it overrepresents successful locations and underrepresents the full range of outcomes.

Why Legal Review of Item 19 Is Essential for a $1.6M to $4.9M Investment

Item 19 is the single most important data source for evaluating the financial viability of a Planet Fitness franchise. But the data requires interpretation. Revenue averages alone do not tell you what you will earn. They must be analyzed in conjunction with the 14% fee structure in Item 6, the sourcing costs in Item 8, the territory provisions in Item 12, and the renewal and termination terms in Item 17.

A franchise attorney can help you build financial models using Item 19 data with conservative assumptions, identify limitations and caveats in the data presentation, compare the financial performance to other fitness franchise systems, evaluate whether the projected return justifies the total investment and the risks involved, and prepare questions for existing franchisees based on the Item 19 disclosures.

At Lopes Law LLC, we review Planet Fitness FDDs and franchise agreements regularly. Our flat-fee FDD validation review is $3,000 and covers all 23 items of the FDD. Item 19 analysis is one of the most important components of that review because it is where the investment thesis is either validated or challenged by actual performance data.

Frequently Asked Questions About Planet Fitness FDD Item 19

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Last updated: March 11, 2026