Planet Fitness rode its $10 franchise model through COVID while rivals went bankrupt

When COVID-19 forced gyms to close in 2020, the fitness industry was hit hard. Several big chains struggled under their costs, and both Gold's Gym and 24 Hour Fitness filed for bankruptcy.

Planet Fitness, with its $10-per-month model and mostly franchise-owned locations, was in a stronger financial position. CEO Chris Rondeau said about 1,450 of its roughly 2,000 clubs were open by late July 2020 as restrictions eased.

The company argued that gyms were 'part of the solution' to the pandemic and pointed to the low cost of membership — about $10 a month versus far higher fitness spending — as a reason customers would return.

Its franchise structure meant the corporate parent was not carrying the same debt burden as its rivals, letting it survive and expand while competitors were forced into bankruptcy and closures.

Planet Fitness reopened 1,450 of about 2,000 gyms by late July 2020 and kept growing, while rivals 24 Hour Fitness and Gold's Gym filed for bankruptcy.

The $10 monthly membership was cheap enough to keep and return to.

Most locations were franchise-owned, so the parent carried less debt.

Planet Fitness had a strong financial position before the pandemic.

Rivals Gold's Gym and 24 Hour Fitness were debt-heavy and went bankrupt.

A low-price, franchise-heavy model can be more resilient in a shutdown than high-cost corporate-owned gyms — the crisis that kills rivals can become a market-share gift.

Planet Fitness came out of the pandemic stronger relative to peers, growing its club count toward about 2,400 and maintaining its low-price formula while 24 Hour Fitness and Gold's Gym shrank after bankruptcy. The crisis consolidated the market around Planet Fitness's model.