Planet Fitness FDD Item 6 is the section of the Franchise Disclosure Document that lists every ongoing fee a franchisee will pay after the initial $20,000 franchise fee. For prospective Planet Fitness franchisees, this is where one of the most important financial realities of the system becomes clear: the combined 7% royalty and 7% national advertising fund contribution totals 14% of gross sales paid directly to the franchisor. That is one of the highest combined rates in the entire fitness franchise industry. At Lopes Law LLC, we review Planet Fitness FDDs for prospective franchisees regularly, and the fee structure in Item 6 is consistently the section that generates the most questions and the most concern.

This guide breaks down exactly what Planet Fitness discloses in Item 6, explains why the total ongoing fee burden deserves careful financial modeling before you commit capital, and identifies the specific line items every buyer needs to understand before signing a franchise agreement with a total investment that can range from $1.6 million to $4.9 million.

What Is FDD Item 6 and Why Does It Matter for Planet Fitness?

Item 6 of any Franchise Disclosure Document is titled “Other Fees.” It is required by the FTC Franchise Rule (16 C.F.R. Part 436) and must disclose every recurring fee, contribution, or payment obligation the franchisee will owe during the term of the franchise agreement. Item 5 covers the initial fees. Item 6 covers everything that comes after.

For Planet Fitness specifically, Item 6 matters because the brand operates on a low-cost, high-volume membership model. The standard membership is $10 per month, which means each location needs thousands of active members to generate meaningful revenue. When 14% of that revenue goes directly to the franchisor in royalties and advertising before you cover rent, payroll, equipment, utilities, and insurance, the margin pressure is substantial. Planet Fitness is publicly traded on the NYSE under the ticker PLNT, and the company’s revenue model is heavily dependent on franchisee fee payments, which means the fee structure is unlikely to decrease.

Understanding every line item in Item 6 is not optional. It is the difference between a well-modeled investment decision and discovering, after you have committed $1.6 million to $4.9 million, that your margins are thinner than projected.

What Fees Does Planet Fitness FDD Item 6 Disclose?

Planet Fitness Item 6 contains one of the most detailed fee schedules in the fitness franchise industry. Here is a breakdown of the major categories disclosed:

Each of these line items deserves separate analysis. Let us walk through the most consequential ones.

The Royalty Fee: 7% of Gross Sales

The royalty fee is 7% of gross sales, calculated on total membership revenue. For a Planet Fitness location generating $2 million in annual gross revenue, this equals $140,000 per year paid directly to Planet Fitness. This fee is calculated on gross sales, not net profit. Whether your club earns a 20% margin or loses money in a given month, the royalty is owed on every dollar collected.

The 7% royalty is higher than several competing fitness franchise systems. Anytime Fitness, for example, charges approximately 5% in royalty fees. The higher royalty rate at Planet Fitness is partially offset by the brand’s strong national recognition, but it places additional pressure on unit-level economics, especially in markets where membership growth has slowed or where competition from other budget gym chains has intensified.

The National Advertising Fund: Another 7% of Gross Sales

The national advertising fund contribution is a separate 7% of gross sales. This is not combined with the royalty. It is a distinct fee that funds Planet Fitness’s national marketing campaigns, including the well-known “Judgement Free Zone” branding, national television commercials, digital marketing, and brand awareness initiatives.

For a $2 million location, this is another $140,000 per year. Combined with the 7% royalty, the franchisee is sending $280,000 annually to the franchisor before covering a single operating expense. The advertising fund has historically been a point of tension in franchise systems, because franchisees contribute the funds but have limited control over how they are spent. Planet Fitness manages the national advertising fund centrally, and the allocation decisions are made at the corporate level.

Why Is the 14% Combined Fee Rate a Critical Financial Factor?

The 14% combined fee rate matters because of how Planet Fitness generates revenue. Unlike a restaurant franchise where the average check can be $10 to $15 per visit with multiple visits per week, Planet Fitness depends on monthly membership dues that average $10 to $25 per member per month. To generate $2 million in annual revenue, a location typically needs 8,000 to 12,000 active members, depending on the mix of Classic ($10/month) and PF Black Card ($24.99/month) memberships.

When 14% of that revenue goes directly to the franchisor, the remaining 86% must cover rent (typically $150,000 to $400,000 per year for 15,000 to 20,000 square feet of commercial space), payroll, utilities, equipment maintenance, insurance, property taxes, and all other operating expenses. The margin available to the franchisee after all expenses is directly compressed by the 14% fee load.

This is particularly important to understand in light of broader franchise industry data. Research by Patrice & Associates found that approximately 31% of franchise locations across all industries fail within the first five years. High ongoing fee structures do not cause failure on their own, but they reduce the margin of safety that protects franchisees during slow membership growth periods, seasonal dips, or unexpected capital expenditure needs. Similarly, the SBA loan default data for Dickey’s Barbecue Pit showed 27 loan defaults in a franchise system where ongoing fee obligations contributed to operator financial distress. The lesson is consistent: the higher the fee load, the less room for error.

What Equipment and Technology Costs Are Hidden in Item 6?

Planet Fitness requires franchisees to purchase gym equipment from designated vendors and to maintain and replace that equipment on a schedule determined by the franchisor. The initial equipment package can cost $400,000 to $800,000, and Planet Fitness mandates equipment replacement cycles, typically every 5 to 7 years, that require the franchisee to reinvest hundreds of thousands of dollars in new equipment.

Technology fees cover the club management software platform, billing and payment processing systems, member check-in technology, and any digital tools the franchisor requires. These systems are not optional. The franchisee must use the Planet Fitness designated technology stack, and the fees associated with these platforms are ongoing.

The equipment and technology obligations create a secondary layer of costs that many prospective franchisees underestimate. A franchisee who opens a club for $3.5 million and then faces a $600,000 equipment replacement mandate in year six has effectively increased the total investment by 17% without any corresponding increase in the territory or membership capacity. At Lopes Law LLC, we flag these lifecycle costs in every FDD validation review because they materially affect the return-on-investment calculation.

Insurance Requirements

Planet Fitness requires franchisees to maintain comprehensive insurance coverage, including general liability, property insurance, workers’ compensation, and potentially additional coverages such as professional liability or cyber liability. The required minimums are disclosed in the FDD and in the franchise agreement. Insurance costs vary significantly by state, by location size, and by the club’s claims history, but typically run $20,000 to $50,000 or more per year.

Failure to maintain the required insurance coverage can constitute a default under the franchise agreement. This is not a negotiable term. For franchisees operating in states with high workers’ compensation rates or in urban markets with elevated liability exposure, insurance costs can be meaningfully higher than the national average.

How Do Item 6 Fees Add Up for a Typical Planet Fitness Location?

To illustrate the real financial impact of Item 6 fees, let us look at a hypothetical Planet Fitness location generating $2 million in annual gross revenue. This figure provides a realistic basis for modeling total fee obligations at a mature club with strong membership numbers.

That is approximately 18.6% to 23.7% of gross sales going to franchisor-related fees and required reserves before the franchisee pays for rent, payroll, utilities, maintenance, or any other operating expense. When you factor in rent (typically 8% to 15% of gross sales for large commercial gym spaces) and labor costs, the margins available to the owner become significantly tighter than many first-time franchisees expect.

If you are concerned about the total cost structure in a Planet Fitness franchise or any franchise system, a franchise exit audit can help you understand your options and obligations before making a final decision.

How Does Planet Fitness Item 6 Compare to Other Fitness Franchises?

Planet Fitness’s fee structure is distinctive in the fitness franchise industry primarily because of the 14% combined rate. Here is how it compares to major competitors:

The trade-off for Planet Fitness’s higher fee rate is significant national brand recognition. The “Judgement Free Zone” marketing has created one of the most recognized fitness brands in North America, and the company’s 2,400+ locations provide substantial market presence. However, the financial trade-off must be evaluated on a per-location basis. Strong brand recognition does not automatically translate to superior unit economics when the fee load is double that of competing systems.

What Should Prospective Planet Fitness Franchisees Look for in Item 6?

When reviewing Planet Fitness FDD Item 6, focus on these specific areas:

• The combined 14% fee calculation: Model this as a fixed deduction from gross revenue at multiple revenue scenarios. Understand what your club needs to generate to cover this fee plus all operating expenses and still produce an acceptable return on your $1.6M to $4.9M investment.
• Equipment replacement schedule: Determine when the next equipment cycle falls, what the estimated cost range is, and how that capital expenditure affects your cash flow in the years it occurs.
• Technology fee escalation: Check whether technology fees are fixed or subject to increase as Planet Fitness rolls out new platforms. Ask current operators what their technology costs have been over the past three years.
• Advertising fund transparency: Understand what reporting, if any, Planet Fitness provides on how the 7% advertising fund is spent. Evaluate whether the national marketing directly benefits your specific market.
• Transfer fee terms: If you plan to eventually sell the franchise, understand what fees are triggered by the transfer and what conditions Planet Fitness imposes on the buyer.
• Audit provisions: Understand the circumstances under which Planet Fitness can audit your books and what happens if an audit reveals discrepancies. The cost of the audit can fall on the franchisee if underreporting is found.
• Late payment penalties: Understand the consequences of late royalty or advertising fund payments, including interest charges and potential default triggers.

Why Legal Review of Item 6 Is Not Optional for a $1.6M to $4.9M Investment

The fees disclosed in Planet Fitness Item 6 represent contractual obligations that will continue for the full 10-year term of the franchise agreement. With a total investment ranging from $1.6 million to $4.9 million, the financial stakes are substantial. Signing the franchise agreement without fully understanding the cumulative impact of the 14% combined fee rate, plus equipment obligations, technology fees, and insurance requirements, is the financial equivalent of committing to a multi-million dollar investment without reading the operating cost projections.

A franchise attorney can help you model the total fee burden against realistic revenue projections, identify fees that may increase over the term, evaluate the equipment replacement obligation relative to your expected return on investment, and compare the total cost structure against other fitness franchise opportunities you may be considering.

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, with particular attention to the fee structure in Item 6 and the financial performance data in Item 19. For a franchise investment of this magnitude, the legal review is a fraction of the capital at risk.

Frequently Asked Questions About Planet Fitness FDD Item 6

Reach out, we are friendly. Call now for a free consultation at (267) 777-9117 or schedule your free 20-minute consultation online.

Last updated: March 11, 2026