Financial research concept

Fitness Club Franchise Segment Revenue

measures revenue earned from franchising activities such as royalties, franchise fees, advertising-fund revenue, placement revenue, and related fees.

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.

Royalty revenue is the largest operating driver
Franchise revenue is much smaller than franchisee member billings
Equipment sales belong elsewhere
Part of the Fitness Club Franchise & Membership Economics
See It in Company Research
Continue Research

Fitness club franchise segment revenue measures the revenue Planet Fitness earns from supporting and monetizing its franchisee-owned club system.

The segment includes royalties, National Advertising Fund revenue, franchise and development fees, transfer fees, equipment placement revenue, membership join fees, and related franchise activity.

Planet Fitness reported $468.0 million of Franchise segment revenue in 2025, up 10.6% from $423.2 million in 2024.

Royalty revenue is the largest operating driver

Planet Fitness reported $314.6 million of royalty revenue in 2025.

The $28.4 million increase in royalty revenue was attributed to three distinct drivers: $16.7 million from franchise same-club sales growth, $7.1 million from newer clubs not yet in the same-club base, and $4.6 million from higher royalties on annual fees.

That bridge shows how mature-club demand, footprint expansion, and fee structure all feed franchise economics.

Franchise revenue is much smaller than franchisee member billings

Franchisee-owned clubs generated billions of dollars of member billings included in system-wide sales, but Planet Fitness does not record those franchisee billings as company revenue.

Instead, it recognizes its royalty and fee streams.

Equipment sales belong elsewhere

Most tangible equipment sales to franchisees are reported in the Equipment segment rather than Franchise segment revenue.

Keeping the segments separate prevents a large replacement-equipment year from being mistaken for stronger franchise royalty economics.

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 Rate Corporate-Owned Club Count Corporate-Owned Club RevenueFranchise Segment RevenueCurrent conceptFranchisee-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:Average Royalty Rate Corporate-Owned Club Count Corporate-Owned Club Revenue Franchisee-Owned Club Count New Club Openings

Continue Research

Continue from the concept into the Grizzly Bulls research surface that best matches the next question. These links are research continuations, not recommendations or required steps.

Compare stocks

Compare franchise monetization

Compare royalty, fee, advertising-fund, and placement revenue without confusing franchisee billings with company revenue.

Continue research

Explore more topics in the Financial Research Encyclopedia.