The franchisor is Planet Fitness Franchising LLC. Planet Fitness is a fitness training center. We offer training with free weights and exercise machines, fitness trainer services, tanning, and other related services, auxiliary goods. The franchisor offers for sale new franchise locations and also existing training centers to be redone to a Planet Fitness. Planet Fitness training facilities must be open daily for 24 hours unless it is prohibited by law or agreed in writing with the franchisor. 

All franchisees or their representatives, as well as their managers, must successfully complete the initial training program if they have not previously completed that program. The initial training program includes hands-on and classroom lessons; the program covers all aspects of operations for new franchisees like basic techniques of management, cost control, equipment operation and maintenance, inventory control.

The initial training has two phases:

1. owner orientation and pre-sale,
2. operations training.

Under terms of the Franchise Agreement, the franchisor may require franchisees or their employees to participate in additional training. Additional training may be provided by the franchisor himself or a third party vendor it chooses. We assume that additional training will not exceed 2 people participating in more than 2 continuing education courses of up to five days per calendar year during the term of the Franchise Agreement. For franchisees, it may be required to participate in more franchise meetings or training courses if it will be reasonably necessary.

Territory Granted: There can be competition between few franchisees, from outlets that the franchisor owns or competing brands and other forms of controlled distribution by the franchisor. The right to own and operate a single Planet Fitness business at a specific location granted to franchisees by the Franchise Agreement.

Franchisees may only operate their business in an approved location and nowhere else, relocation possible if the only franchisor will give written permission and pay the relocation fee. The Franchise Agreement will not grant any protected territory, options, or rights of first refusal or similar rights to acquire additional franchises. Franchisees can receive an exclusive territory if they acquire rights under an Area Development Agreement.

Obligations and Restrictions:  Franchisees must designate an individual as a “responsible owner” if they are or become any form of partnership, LLC, business corporation, or other legal entity.

“Responsible owner” must be approved by franchisor and 

1. has an ownership interest in the franchisee,
2. has the authority to accept all official notices from the franchisor,
3. has the legal right to signing on the franchisee’s behalf, binding the franchisee to all contracts and commercial documents related to the Planet Fitness business,
4. has successfully completed franchisor’s training program.

Franchisees (or their responsible owner) must personally operate business as their primary occupation and cannot delegate their responsibilities and authority without the franchisor’s consent unless they have an operator approved by the franchisor. In the Planet Fitness business, only the products and services approved by the franchisor in writing may be offered. All the products and services required by the franchisor must be offered by franchisees.

Term of Agreement and Renewal: The initial duration of the franchise agreement is 10 years starting from the first day of business operations. The agreement can be renewed if franchisees meet then-current requirements from the franchisor.