Planet Fitness Rises in the Franchise Times Top 200+ Ranks
Dorvin Lively, president and CFO of Planet Fitness.
Continuing its climb, Planet Fitness jumped 12 spots in the Franchise Times Top 200+ ranking to No. 63 following a 26.7 percent increase in systemwide sales in 2016.
It’s a leap President and CFO Dorvin Lively attributes to three factors: brand positioning, franchisees’ growth and attracting members.
“Our brand continues to resonate with the 80 percent of the population that doesn’t have a gym membership,” says Lively, noting that in a recent survey of 1 million members, 40 percent said they’d never joined a gym before. “We really cater to that first-time user.”
Much of the credit for Planet Fitness’ continued growth, though, continues Lively, goes to the system’s multi-unit franchisees, as 90 percent of new gyms opened in 2016 came from existing owners.
“Our franchisees, we have about 190 franchisee groups for 1,300 clubs, they’re all in,” he says. “They’re continuing not only to generate fantastic returns, they’re plowing that money back into new stores.” And those same franchisees have signed on to develop more than 1,000 new locations over the next five years.
Lively, who’s been with Planet Fitness since 2013, also notes the concept’s strong membership numbers, which he says hit 8.9 million in 2016. “What we’re selling is a very welcoming environment,” he adds.
Planet Fitness closed out 2016 with $1.9 billion in sales from its 1,313 units. Find more Top 200+ coverage right here, including links to exclusive CEO interviews.