Financial research concept

Fitness Club Average Royalty Rate

measures royalties collected from franchisees as a percentage of monthly membership dues and annual fees billed to franchisee members.

By Lee BaileyPublished Sep 26, 2026

Research context

See what supports this page, how current it is, and where comparable or historical context is available.

Research date: Sep 26, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context: 17 connected conceptsPart of the reviewed Fitness Club Franchise & Membership Economics; issuer definitions remain distinct where disclosed.
Company examples: 1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.

The realized average is below the current U.S. contract rate
Royalty rate and same-club sales reinforce each other
Do not substitute the headline 7% rate for actual economics
Part of the Fitness Club Franchise & Membership Economics
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Fitness club average royalty rate measures royalties collected from franchisees as a percentage of the monthly membership dues and annual fees they bill to members.

Planet Fitness reported an average royalty rate of 6.7% at December 31, 2025, up from 6.6% a year earlier and 6.4% in 2021.

The realized average is below the current U.S. contract rate

Planet Fitness's current royalty rate for new U.S. franchisees is 7.0%. The system average is lower because the franchise base contains agreements with different historical royalty structures.

At the end of 2025, approximately 63% of clubs paid royalties at the current rate.

That creates a built-in mix effect: the realized average can rise as new clubs open and older franchise agreements renew at newer rate structures.

Royalty rate and same-club sales reinforce each other

A higher realized royalty rate increases the franchisor's take from a given amount of franchisee member billings. At the same time, same-club sales growth and new club development can expand the billing base to which royalties apply.

Planet Fitness reported $314.6 million of royalty revenue in 2025, with growth attributed to same-club sales, newer clubs, and higher royalties on annual fees.

Do not substitute the headline 7% rate for actual economics

A contractual rate for new U.S. clubs is not the same as the realized system average. Canada also has a different current rate for new franchisees.

Use the disclosed average royalty rate when analyzing current franchise economics, then consider contract migration as a separate driver of future royalty intensity.

Primary source: Planet Fitness 2025 Form 10-K.

Part of the Fitness Club Franchise & Membership Economics

Connects fitness-club member scale, pricing and premium mix with same-club demand, franchise royalty economics, owned-versus-franchised footprint growth, equipment monetization, and mature corporate-club unit economics.

Browse the full operating model in Company Analysis →

Where this concept fits

Franchise royalty economics and ownership footprintCurrent relationship
Average royalty rate converts franchisee member billings into franchisor economics, while franchisee-owned and corporate-owned club counts show ownership mix. New openings expand both channels, and segment revenue separates franchise monetization from directly operated club revenue.
Average Royalty RateCurrent conceptCorporate-Owned Club Count Corporate-Owned Club Revenue Franchise Segment Revenue Franchisee-Owned Club Count New Club Openings
Member scale, pricing, premium mix, and same-club demand
Member count and net member growth show the customer base, average dues and premium membership penetration show monetization mix, system-wide sales aggregate member billings, and same-club growth plus the same-club base isolate performance in seasoned locations.
Average Monthly Dues per Member Member Count Net Member Growth Premium Membership Penetration Same-Club Sales Base Count Same-Club Sales Growth System-Wide Sales
Equipment monetization and mature corporate-club unit economics
Equipment segment revenue and new-club equipment placements connect franchise development and refresh cycles to product sales, while mature corporate-club AUV and four-wall Adjusted EBITDA margin show seasoned unit-level revenue and profitability.
Corporate Club Average Unit Volume Corporate Club Four-Wall Adjusted EBITDA Margin Equipment Placement Count Equipment Segment Revenue

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

PLNTOpen operating-model research →17 of 17 reviewed concepts in Fitness Club Franchise & Membership EconomicsFranchise royalty economics and ownership footprint6 of 6 bridge concepts supportedContinue through this bridge:Corporate-Owned Club Count Corporate-Owned Club Revenue Franchise Segment Revenue Franchisee-Owned Club Count New Club Openings

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