Planet Health Franchise Prices, Charges, Revenues, Earnings (2023 Evaluation)

On this unique Franchise Chatter FDD Speak put up, you’ll be taught the next:

Part I – Estimated preliminary funding (franchise prices) for a Planet Health franchise, based mostly on Merchandise 7 of the corporate’s 2023 FDD

Part II – Preliminary franchise charge, royalty charge, and advertising and marketing charge for a Planet Health franchise, based mostly on Objects 5 and 6 of the corporate’s 2023 FDD

Part III – Variety of franchised and company-owned Planet Health shops at first of the 12 months and the tip of the 12 months for 2020, 2021, and 2022, based mostly on Merchandise 20 of the corporate’s 2023 FDD

Part IV – Information updates on the Planet Health franchise alternative

Part V – Presentation and evaluation of Planet Health’ monetary efficiency representations (common revenues and/or earnings), based mostly on Merchandise 19 of the corporate’s 2023 FDD, together with data on the:

• 2022 common, median, excessive, and low annual EFT income for the underside third, center third, and higher third of the franchised Planet Health golf equipment open and working throughout the 12-month interval ended December 31, 2022

• 2022 common, median, excessive, and low annual EFT income for the underside third, center third, and higher third of the corporate-owned Planet Health golf equipment open and working throughout the 12-month interval ended December 31, 2022

• 2022 common, median, excessive, and low annual EFT income for the underside third, center third, and higher third of the franchised and corporate-owned Planet Health golf equipment open and working throughout the 12-month interval ended December 31, 2022

• 2022 common membership gross sales (EFT); different membership gross sales; whole internet income; payroll prices; advertising and marketing bills; royalties; utilities; provides and upkeep; miscellaneous bills; hire; whole working bills; and earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) for the underside third, center third, and higher third of the corporate-owned Planet Health golf equipment open and working throughout the 12-month interval ended December 31, 2022

• 2022 common internet income per sq. foot, common EBITDA per sq. foot, and common variety of sq. toes for the underside third, center third, and higher third of the corporate-owned Planet Health golf equipment open and working throughout the 12-month interval ended December 31, 2022

Part VI – Key ratios, comparables, computations, and analyses for the Planet Health franchise alternative (unique content material for Platinum subscribers)

Part I – Planet Health Franchise Prices

• Preliminary Franchise Charge:  $20,000
• Web site Choice Prices:  $0 to $10,000
• Development Growth Plan Evaluation Charge:  $0 to $4,000
• Leasehold Enhancements:  $1,250,000 to $2,221,000
• Health Gear:  $41,000 to $1,026,000
• Non-Health Gear:  $49,000 to $919,000
• Pre-Sale/Grand Opening Advertising:  $40,000 to $80,000
• Exterior Indicators:  $14,000 to $67,000
• Pc System, Level of Sale System, and Different Provides:  $2,000 to $11,000
• Insurance coverage:  $15,000 to $35,000
• Actual Property Lease Deposits:  $0 to $87,000
• Different Deposits:  $0 to $46,000
• Skilled Charges:  $2,000 to $25,000
• Out-of-Pocket Preliminary Coaching Bills:  $1,500 to $7,500
• Licenses/Bonds:  $100 to $5,000
• Extra Funds for Six Months:  $78,000 to $578,000
• Complete Estimated Planet Health Franchise Prices:  $1,515,000 to $5,141,000

Part II – Planet Health’ Preliminary Franchise Charge, Royalty Charge, and Advertising Charge

• Preliminary Franchise Charge:  $20,000
• Royalty Charge:  7% of the whole gross month-to-month and annual membership charges payable to you by way of EFT Dues Draft
• Nationwide Promoting Fund (“NAF”) Charge:  yearly, 2% of the EFT Dues Draft
• Native Promoting Funds (“LAF”):  better of $60,000 or 7% of whole gross month-to-month membership charges payable to you by way of EFT (“Month-to-month EFT”) in a 12 months
• Promoting Cooperative Charges:  will differ underneath the circumstances
• Particular Advertising Applications:  as much as 7% of Month-to-month EFT for a single month

Part III – Variety of Franchised and Firm-Owned Planet Health Shops

Franchised

2020

• Shops on the Begin of the Yr:  1,838
• Shops on the Finish of the Yr:  1,949
• Internet Change:  +111

2021

• Shops on the Begin of the Yr:  1,949
• Shops on the Finish of the Yr:  2,060
• Internet Change:  +111

2022

• Shops on the Begin of the Yr:  2,060
• Shops on the Finish of the Yr:  2,082
• Internet Change:  +22

Firm-Owned

2020

• Shops on the Begin of the Yr:  96
• Shops on the Finish of the Yr:  101
• Internet Change:  +5

2021

• Shops on the Begin of the Yr:  101
• Shops on the Finish of the Yr:  110
• Internet Change:  +9

2022

• Shops on the Begin of the Yr:  110
• Shops on the Finish of the Yr:  232
• Internet Change:  +122

Part IV – Information Updates on the Planet Health Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Earnings) for the Planet Health Franchise (Merchandise 19, 2023 FDD)

Half 1 – EFT Income

• The next chart reveals Annual EFT Income for Planet Health’ corporate-owned and franchised golf equipment in the US (together with 13 in Puerto Rico) for these golf equipment open and working throughout the 12-month interval ended December 31, 2022.

• The golf equipment have been separated into three teams, or thirds, based mostly on Annual EFT Income (i.e., Backside Third, Center Third, and Higher Third).

• Annual EFT Income is income on recurring month-to-month and annual membership charges which are billed to membership members. This doesn’t embody any pay as you go membership charges, income from retail gross sales or different sources of income, and it excludes returns and taxes.

2022 EFT Income for Franchised Golf equipment Solely

• Quantities are rounded to the closest complete greenback. Quantities symbolize digital funds introduced for draft for the 12 months of 2022.

Backside Third (650 Golf equipment)

• Common Annual EFT Income:  $1,113,025
• Median Annual EFT Income:  $1,145,720
• Excessive Annual EFT Income:  $1,411,479
• Low Annual EFT Income:  $346,046

Center Third (649 Golf equipment)

• Common Annual EFT Income:  $1,670,316
• Median Annual EFT Income:  $1,666,188
• Excessive Annual EFT Income:  $1,938,000
• Low Annual EFT Income:  $1,412,067

Higher Third (649 Golf equipment)

• Common Annual EFT Income:  $2,408,532
• Median Annual EFT Income:  $2,287,444
• Excessive Annual EFT Income:  $5,503,900
• Low Annual EFT Income:  $1,938,019

• For the fiscal 12 months ended December 31, 2022, of the 650 golf equipment within the Backside Third, 359 (or 55%) met or exceeded the whole Common Annual EFT Income within the desk above.

• Of the 649 golf equipment within the Center Third, 317 (or 49%) met or exceeded the whole Common Annual EFT Income within the desk above.

• Of the 649 golf equipment within the Higher Third, 256 (or 39%) met or exceeded the whole Common Annual EFT Income within the desk above.

2022 EFT Income for Company-Owned Golf equipment Solely

• Quantities are rounded to the closest complete greenback. Quantities symbolize digital funds introduced for draft for the 12 months of 2022.

Backside Third (74 Golf equipment)

• Common Annual EFT Income:  $1,226,663
• Median Annual EFT Income:  $1,231,174
• Excessive Annual EFT Income:  $1,538,415
• Low Annual EFT Income:  $697,533

Center Third (74 Golf equipment)

• Common Annual EFT Income:  $1,807,586
• Median Annual EFT Income:  $1,788,420
• Excessive Annual EFT Income:  $2,095,095
• Low Annual EFT Income:  $1,542,662

Higher Third (74 Golf equipment)

• Common Annual EFT Income:  $2,447,718
• Median Annual EFT Income:  $2,324,062
• Excessive Annual EFT Income:  $3,872,474
• Low Annual EFT Income:  $2,095,649

• For the fiscal 12 months ended December 31, 2022, of the 74 golf equipment within the Backside Third, 38 (or 51%) met or exceeded the whole Common Annual EFT Income within the desk above.

• Of the 74 golf equipment within the Center Third, 33 (or 45%) met or exceeded the whole Common Annual EFT Income within the desk above.

• Of the 74 golf equipment within the Higher Third, 25 (or 34%) met or exceeded the whole Common Annual EFT Income within the desk above.

2022 EFT Income for Franchised and Company-Owned Golf equipment

• Quantities are rounded to the closest complete greenback. Quantities symbolize digital funds introduced for draft for the 12 months of 2022.

Backside Third (724 Golf equipment)

• Common Annual EFT Income:  $1,122,810
• Median Annual EFT Income:  $1,152,341
• Excessive Annual EFT Income:  $1,421,808
• Low Annual EFT Income:  $346,046

Center Third (723 Golf equipment)

• Common Annual EFT Income:  $1,684,068
• Median Annual EFT Income:  $1,681,319
• Excessive Annual EFT Income:  $1,948,152
• Low Annual EFT Income:  $1,423,658

Higher Third (723 Golf equipment)

• Common Annual EFT Income:  $2,414,674
• Median Annual EFT Income:  $2,295,867
• Excessive Annual EFT Income:  $5,503,900
• Low Annual EFT Income:  $1,949,065

• For the fiscal 12 months ended December 31, 2022, of the 724 golf equipment within the Backside Third, 398 (or 55%) met or exceeded the whole Common Annual EFT Income within the desk above.

• Of the 723 golf equipment within the Center Third, 356 (or 49%) met or exceeded the whole Common Annual EFT Income within the desk above.

• Of the 723 golf equipment within the Higher Third, 283 (or 39%) met or exceeded the whole Common Annual EFT Income within the desk above.

Half 2 – 2022 Income and Operations Assertion for Company-Owned Golf equipment

• Beneath is a Income and Operations Assertion for corporate-owned Planet Health golf equipment for the fiscal 12 months ended December 31, 2022. Planet Health has segregated these golf equipment by annual internet income into three teams, or thirds, from lowest to highest. The desk gives common and median income, price, and different monetary data of the golf equipment inside every third.

• Aside from sure native advertising and marketing bills that are imputed as described under, these outcomes are derived from Planet Health’ books and information, that are maintained in accordance with U.S. usually accepted accounting ideas.

• Planet Health has not included any franchisee data within the following desk as a result of it doesn’t obtain full expense data from its franchisees. Planet Health excluded the Acquired Golf equipment and the Bought Golf equipment, because it doesn’t have full expense data for these golf equipment throughout the time durations during which they have been franchised golf equipment.

• There have been 104 corporate-owned Planet Health golf equipment owned and operated for the 12-month interval ended December 31, 2022. These constituted all U.S. based mostly corporate-owned Planet Health golf equipment owned and operated throughout the related interval, excluding the Acquired Golf equipment and the Bought Golf equipment.

• Income – The principal income for a Planet Health membership is membership charges. Month-to-month and annual membership charges are normally paid via digital switch of funds (EFT). A health facility may also earn extra income included in “Different Membership Gross sales” above via enrollment charges, pay as you go memberships, beverage gross sales, sale of tanning goggles and lotions, Planet Health attire, and headphones.

• Prices and Bills – The expense data included within the Income and Operations Assertion displays the prices and bills of the company places included within the Assertion, together with royalty and advertising and marketing bills as mentioned under.

• Observe that prices to exchange gear and rework the premises will not be included as bills, however slightly are accounted for as depreciating property.

• Advertising – The advertising and marketing bills listed under mirror the typical of precise quantities these corporate-owned golf equipment contributed to the Nationwide Promoting Fund (NAF) and spent on native promoting. The promoting is primarily carried out via most popular company distributors.

• Royalty – Royalty is 7% of gross EFT income. The quantities within the tables under are the averages of the particular royalties paid by the golf equipment in every third calculated based mostly upon cost of a royalty of seven% of gross EFT income.

• Utilities – Utility prices diverse considerably relying on the scale and site of the membership.

• Provides and Upkeep – The provides and upkeep quantities listed under mirror the typical of precise quantities these corporate-owned golf equipment spent on cleansing provides, membership provides, and repairs and upkeep.

• Miscellaneous – Miscellaneous expense contains price of products bought, POS charges, insurance coverage, billing cost, financial institution and bank card prices, gear rental, workplace expense, gross sales and use tax, and different miscellaneous bills.

• Insurance coverage prices differ on a club-by-club foundation. The insurance coverage prices famous within the assertion under are based mostly on bulk purchase pricing for a number of golf equipment.

• Financial institution and bank card prices will differ based mostly on the banking establishment used and sort of membership membership draft. Drafting membership charges from bank cards will end in increased charges than membership charges drafted from financial institution accounts.

• Gross sales and use tax will differ based mostly on the situation of the membership. Each state may have completely different guidelines making use of to gross sales and use tax.

• Different miscellaneous expense contains pizza, bagels, submitting charges, licenses, permits, presents, journey/meals, postage, on-line be part of expense, {and professional} charges. Many of those prices can differ considerably relying on the situation and the time spent searching for the very best native price on these things.

• Lease – Lease varies considerably relying on the scale and site of the membership.

• EBITDAR and EBITDA – EBITDA (Earnings Earlier than Curiosity, Taxes, Depreciation, and Amortization) doesn’t embody any provision for earnings taxes or non-cash bills resembling depreciation or amortization or any debt service. It additionally doesn’t embody any expense assumption associated to the capital construction of the enterprise entity or any reserve for future capital expenditures.

• The assertion additionally doesn’t issue within the preliminary franchise charge or different preliminary funding bills, together with bills for a lease/buy of kit. Planet Health anticipates that each franchisee will fund their preliminary funding in another way, and it subsequently can not make any assumptions on how you’d account for these things.

• EBITDAR (Earnings Earlier than Curiosity, Taxes, Depreciation, Amortization, and Lease) doesn’t embody hire expense.

Backside Third (Common)

Income

• Membership Gross sales – EFT:  $1,209,602
• Different Membership Gross sales:  $491
• Internet Income:  $1,210,093
• Internet Income $/Sq.Ft.:  $72.16

Working Prices and Bills

• Payroll Associated:  $326,472
• Native Advertising Bills:  $78,990
• Nationwide Promoting Fund:  $19,858
• Different Advertising Bills:  $6,118
• Royalties:  $85,560
• Utilities:  $62,690
• Provides and Upkeep:  $64,376
• Miscellaneous:  $73,104
• Complete Working Prices and Bills, Excluding Lease:  $717,167

EBITDAR:  $492,926

EBITDAR % of Internet Income:  41%

EBITDAR $/Sq.Ft.:  $29.39

• Lease Expense:  $315,705
• Complete Working Prices and Bills:  $1,032,872

EBITDA:  $177,221

EBITDA % of Internet Income:  15%

EBITDA $/Sq.Ft.:  $10.57

Common of Sq.Ft.:  16,770

Center Third (Common)

Income

• Membership Gross sales – EFT:  $1,759,820 (100.5%)
• Different Membership Gross sales:  ($8,099) (-0.5%)
• Internet Income:  $1,751,721 (100.0%)
• Internet Income $/Sq.Ft.:  $89.88

Working Prices and Bills

• Payroll Associated:  $335,212 (19.1%)
• Native Advertising Bills:  $115,652 (6.6%)
• Nationwide Promoting Fund:  $28,862 (1.6%)
• Different Advertising Bills:  $7,054 (0.4%)
• Royalties:  $122,942 (7.0%)
• Utilities:  $67,422 (3.8%)
• Provides and Upkeep:  $74,166 (4.2%)
• Miscellaneous:  $86,843 (5.0%)
• Complete Working Prices and Bills, Excluding Lease:  $838,153 (47.8%)

EBITDAR:  $913,568 (52.2%)

EBITDAR % of Internet Income:  52%

EBITDAR $/Sq.Ft.:  $46.88

• Lease Expense:  $397,336 (22.7%)
• Complete Working Prices and Bills:  $1,235,489 (70.5%)

EBITDA:  $516,232 (29.5%)

EBITDA % of Internet Income:  29%

EBITDA $/Sq.Ft.:  $26.49

Common of Sq.Ft.:  19,489

Higher Third (Common)

Income

• Membership Gross sales – EFT:  $2,468,399
• Different Membership Gross sales:  ($29,528)
• Internet Income:  $2,438,871
• Internet Income $/Sq.Ft.:  $116.85

Working Prices and Bills

• Payroll Associated:  $375,666
• Native Advertising Bills:  $157,241
• Nationwide Promoting Fund:  $40,438
• Different Advertising Bills:  $7,859
• Royalties:  $171,805
• Utilities:  $93,752
• Provides and Upkeep:  $103,953
• Miscellaneous:  $112,181
• Complete Working Prices and Bills, Excluding Lease:  $1,062,897

EBITDAR:  $1,375,974

EBITDAR % of Internet Income:  56%

EBITDAR $/Sq.Ft.:  $65.93

• Lease Expense:  $468,902
• Complete Working Prices and Bills:  $1,531,798

EBITDA:  $907,072

EBITDA % of Internet Income:  37%

EBITDA $/Sq.Ft.:  $43.46

Common of Sq.Ft.:  20,871

Part VI – Planet Health Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️