$194

Business Description

We are a Delaware limited liability company formed on June 13, 2018. We do business under our corporate name and under the PLANET FITNESS name. We have been offering franchises for the operation of PLANET FITNESS businesses since August 2018. We have not conducted business in any other line of business or offered franchises in any other line of business. Our principal business address currently is 4 Liberty Lane West, Floor 2, Hampton, NH 03842 and the principal business address of our affiliates and parents is the same, except as otherwise indicated below. Our agents to receive service of process are identified in attached Exhibit “A”. Our affiliate and predecessor, Pla-Fit Franchise, LLC (“Pla-Fit Franchise”), offered franchises for the operation of PLANET FITNESS businesses from February 2003 through July 2018. Pla-Fit Franchise was organized in the state of New Hampshire on January 27, 2003. Its principal business address is 4 Liberty Lane West, Hampton, NH 03842. We acquired all the marks and other intellectual property used in the franchise System in the United States, from our affiliate, PFIP, LLC (“PFIP”). PFIP was organized in New Hampshire on November 30, 2000. Our immediate parent, Planet Fitness Master Issuer LLC (“Master Issuer”), and its immediate parent, Planet Fitness SPV Guarantor LLC (“Guarantor”), were organized in Delaware on June 13, 2018. Our affiliate, Planet Fitness Assetco LLC (“Assetco”), is a Delaware limited liability company organized on June 13, 2018, and owns and operates certain corporate PLANET FITNESS locations in the United States. Throughout this disclosure document, we refer to those PLANET FITNESS locations operated by our affiliate as “company-owned” or “corporate” locations.

Prior Experience

We have been offering franchises for the operation of PLANET FITNESS businesses since August 2018. We have not conducted business in any other line of business or offered franchises in any other line of business.

Business Offered

A PLANET FITNESS franchise offers fitness training facilities, including exercise machines and free weights, fitness training services, tanning services, related services and ancillary related merchandise as we may authorize. The PLANET FITNESS franchisee must provide these services on a 24-hour-per-day 7-day-per-week basis unless prohibited by law or authorized by us in writing. You must offer for sale all services, products, and merchandise we designate under our System, unless prohibited by law or you obtain our prior written approval not to offer certain services, products, or merchandise. Our system consists of our proprietary business methods, designs and arrangements for developing and operating PLANET FITNESS businesses, which include the Marks, building design and layouts, equipment, training, and certain operating and business standards and policies, all of which we may improve, develop or otherwise modify at any time (the “System”). You must sign the form of Nondisclosure & Non-Use Agreement attached to this Disclosure Document as Exhibit “B” before we engage in substantive discussions with you about the franchise opportunity. You will sign our then-current form of franchise agreement (the “Franchise Agreement”) for each PLANET FITNESS franchise you open regardless of whether you are opening a new facility or converting an existing facility. Each Franchise Agreement will grant you the right to own and operate a single PLANET FITNESS franchise to be operated under the service mark PLANET FITNESS®, as well as other trademarks, service marks, trade dress, trade names and commercial symbols owned by us (collectively “Marks”) and in accordance with the System at an agreed-upon location. A copy of our current form of Franchise Agreement is attached to this Disclosure Document as Exhibit “C”. If you are acquiring an existing PLANET FITNESS location, you will also sign our Acquisition Amendment attached to this Disclosure Document as Exhibit “D”. If you are entering into an agreement for a successor term of your existing PLANET FITNESS franchise, you will also sign our Successor Amendment attached to this Disclosure Document as Exhibit “E”. For an existing fitness training facility converting to a PLANET FITNESS franchise, we may negotiate with you to reach mutually acceptable terms of a franchise agreement. You must also sign our Conversion Amendment attached to this Disclosure Document as Exhibit “F”. Typically, the existing fitness training facility will have an established location and may have equipment at the location that we determine to be acceptable to our System standards. In this instance, the initial investment in an existing location may be less than for a new location as the staff may require less training and the costs for any required leasehold improvements or equipment typically will be less due to the already existing location or existing equipment at the location. In some cases, the existing fitness training facility will require significant investment to satisfy our System standards, in which case your initial investment will increase. In some cases, the location of an existing fitness training facility seeking to convert to PLANET FITNESS may never be approved based on certain factors such as parking or other limitations. Except where otherwise noted, the disclosures in this Disclosure Document apply to conversion franchises as well as initial franchises. Our affiliates may sell and we may franchise one or more company-owned PLANET FITNESS locations or purchase a franchised location from a franchisee. In these transactions, our affiliate negotiates with the prospective franchisee to reach mutually acceptable terms of a sale agreement and any lease assignment or sublease of the real estate. If you purchase a company-owned location, you must sign a Franchise Agreement, though the terms may vary from the standards terms of our Franchise Agreement attached to this Disclosure Document. In addition, one of our affiliates may jointly own PLANET FITNESS locations with third parties. If you qualify, we may grant you area development rights according to the form of Area Development Agreement included in this Disclosure Document as Exhibit “G” (“Area Development Agreement”). You and we may enter into an Area Development Agreement for the development of a certain number of PLANET FITNESS facilities in a designated geographic area called the “Development Area.” Under an Area Development Agreement, you must develop one or more PLANET FITNESS facilities in the Development Area within a given period of time, depending on population of the area, its market potential and other factors described in Item 12. You must sign a separate, then-current Franchise Agreement for each PLANET FITNESS facility you open under the Area Development Agreement and will sign the Franchise Agreement for your first PLANET FITNESS facility at or soon after the time you sign the Area Development Agreement. If (1) you or your affiliates are a party to a prior Franchise Agreement or Area Development Agreement with us, and (2) you want to sign a new Franchise Agreement with us (not under an existing Area Development Agreement with us) or a new Area Development Agreement with us, we may require you to sign a general release in the form attached as Exhibit “J”, releasing any claims arising from your prior agreements as a condition of us granting new franchise or development rights to you.

Initial Fees

You will pay a lump-sum nonrefundable Initial Franchise Fee of $20,000 when you sign the Franchise Agreement. The Initial Franchise Fee is fully earned by us when you sign the Franchise Agreement. The Initial Franchise Fee is uniform and non-refundable and is not credited against any other obligation you have to us. All initial fees are the same for both initial and conversion franchises. If you acquire rights under our Area Development program, you will pay an Area Development Fee equal to $10,000 per location to be developed under the Area Development Agreement when you sign the Area Development Agreement. The Area Development Fee is fully earned by us when you sign the Area Development Agreement. The Area Development Fee is uniform and non-refundable and is not credited against any other obligation you have to us. The Area Development Fee is in addition to the then-current Initial Franchise Fee due for each location at the time the Franchise Agreement for that location is signed. If you sign an Area Development Agreement, the Initial Franchise Fee for each location opened under the Area Development Agreement will be $20,000 for Franchise Agreements entered into within three years of the effective date of your Area Development Agreement. After three years the Initial Franchise Fee for each location opened under the Area Development Agreement will be equal to the then-current Initial Franchise Fee being charged to new franchisees. If you are opening a location under your Area Development Agreement, you must sign the Franchise Agreement for that location and pay the Initial Franchise Fee at least 60 days before opening the location. You must commit to opening one or more PLANET FITNESS locations as a condition of acquiring area development rights, either yourself or through one or more entities in which you own 51% or more interest. We may require you to reimburse us for our reasonable expenses, including the costs of travel, lodging and food, incurred in site evaluation for each visit we make at your request. We estimate our reasonable expenses related to site selection will range from $1,000 to $10,000. If we require you to pay these expenses, the amounts are nonrefundable. We encourage you to use our designated architects to prepare all architectural plans and drawings (together with project management plans, the “Construction Development Plans”) for your PLANET FITNESS location. You must submit all Construction Development Plans, including design specifications, to us for our written approval before starting to develop the location. If you do not use our designated architects to prepare all architectural plans and drawings for the location, you must pay us a $4,000 Construction Development Plan review fee at the time that you submit the Construction Development Plans for our approval. The Construction Development Plan review fee is nonrefundable. You currently must purchase fitness equipment from our affiliate PF Equipment before opening your location. If you finance the purchase of that equipment, we estimate the cost of a down payment typically to be 10 - 30% of the total amount financed; the down payment typically ranges between $31,000 and $257,000. We estimate the cost to purchase equipment before opening will range from $312,000 and $857,000. The equipment finance and purchase costs are nonrefundable. Our affiliates may sell and we may franchise a company-owned PLANET FITNESS location. In these transactions, our affiliate will negotiate with the prospective franchisee to reach mutually acceptable terms of a sale agreement and any lease or sublease of the real estate. Depending on the circumstances, the financial and other terms may vary from the standard terms of our Franchise Agreement.

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation.

Franchisee Revenue and Profit

EFT Revenue The following chart shows Average Annual Gross EFT revenue for our corporate and franchised clubs that have been open and operating for at least 12 months as of December 31, 2018. The clubs were segregated into three groups, or thirds, based on annual gross EFT revenue (i.e., Bottom Third, Middle Third, and Upper Third). Gross EFT revenue is revenue on recurring monthly and annual membership fees that are automatically collected from club members. This does not include any prepaid membership fees, revenue from retail sales or other sources of revenue, and it excludes returns. Revenue and Operations Statement At December 31, 2018, there were 66 US based corporate PLANET FITNESS locations owned and operating for at least 12 months. Each of these corporate locations is listed as a “Corporate Location” in Exhibit “I” to the Disclosure Document. These clubs were ranked, by annual net revenue, in order from lowest to highest, then segregated into three groups, or thirds. There are 22 clubs in the Bottom Third, 22 clubs in the Middle Third, and 22 clubs in the Upper Third. The following table provides the revenue and operations statement which represents the average results of the clubs within each third, which are derived from our books and records, which are maintained in accordance with U.S generally accepted accounting principles. General Notes to Item 19: 1. Some locations have earned or sold these amounts. Your individual results may differ. There is no assurance that you’ll earn and/or sell as much. The square footage of a club does not necessarily correlate to revenue results. Certain markets have substantially higher labor costs than others and you are urged to investigate local labor costs before making any assumptions about what your costs will be. Sales, expenses, and operating revenue results depend upon many independently variable factors including the location and visibility of the club, local traffic patterns, the demographic composition and trends of the market area served by the club, the competitive environment, the region and market area in which the club is located, the length of time the club has been in operation, the quality of the management and service at the club, the individual skills of the franchisee and other factors. 2. You have the sole responsibility for developing your own business plan for your proposed club or territory, including capital budgets, pro forma financial statements, sales and expense projections and other elements appropriate to the particular circumstances you anticipate for your club. In developing the business plan, you are cautioned to make necessary allowance for changes in financial results that may occur due to any of the factors listed above, for any and all ranges of general economic conditions that may exist now or in the future, or for any other circumstances that may impact the operation and performance of the business. 3. Other than the preceding financial performance representation, we do not make any financial performance representations. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor’s management by contacting Candace Couture, our Vice President of Business Development at 4 Liberty Lane West, Hampton, NH 03842 and (603) 750-0001, the Federal Trade Commission, and the appropriate state regulatory agencies. 4. We recommend that you make your own independent investigation to determine whether the franchise may be profitable to you. You should use the above information only as a reference in conducting your analysis and preparing your own projected revenue statements and cash flow statements. We suggest strongly that you consult your financial advisor or personal accountant concerning financial projections and federal, state and local income taxes and any other applicable taxes that you may incur in operating a PLANET FITNESS business. Written substantiation of all data presented in this Item 19 will be made available to you on reasonable request.