On June 22, 2015, Planet Fitness officially filed to go public and plans to list on the New York Stock Exchange under “PLNT.”
Planet Fitness is just one of three health and fitness brands that have filed for IPOs in the last couple of months, joining both Fitbit and MINDBODY.
Since 1992, Planet Fitness has served as a somewhat counter narrative to traditional health clubs. In fact, the company has marketed itself as “not a gym,” stressing its “Judgement Free Zone” and stating that it’s a gym that everyone can belong to.
This seems to have resonated with both consumers and franchisees (which make up around 90 percent of its stores). In 2014, the company reported revenues of $279.8 million and 1.2 billion in system-wide sales. As of March 31, 2015, it had more than 7.1 million members and 976 stores in 47 states, Puerto Rico and Canada. In addition, according to the company, its franchisees have committed to open more than 1,000 additional locations.
Planet Fitness’ impending IPO showcases that a low-budget model is not just a fad (this is also showcased by similar operators like Youfit). Instead, it has proved to be a viable model that is marketable to both consumers and investors, one that will continue to foster competition in the health club industry.
The company filed with the SEC to raise up to $100 million to go public, though some market analysts have reported it could raise $500 million.
Stay tuned for the results.
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Rachel Zabonick-Chonko is the editor-in-chief of Club Solutions Magazine. She can be reached at rachel@peakemedia.com.
