Planet Fitness Q1 2025: Key Contradictions in Pricing, Franchisee Sentiment, and Macroeconomic Impact

Black Card pricing strategy, franchisee engagement and growth model, the impact of click-to-cancel features, macroeconomic impact on business, and franchisee sentiment on development are the key contradictions discussed in Planet Fitness's latest 2025Q1 earnings call.



Membership and Revenue Growth:
- Planet Fitness reported 20.6 million members, an increase of 900,000 from the end of 2024, with system-wide same club sales growth at 6.1%.
- The growth was driven by the strength and durability of their model, effective brand repositioning, and Gen Z leading membership growth.

Black Card Penetration and Pricing:
- Black Card penetration rose to 65%, a nearly 300 basis point increase from the prior year.
- This trend was attributed to a narrow gap in pricing between Classic and Black Card, effective promotions like a first month free offer, and consumer recognition of the Black Card's value.

Member Engagement and Retention:
- Members visited a club an average of 6.7x per month, the highest quarter utilization in five years.
- Increased member engagement was supported by enhanced member experience, particularly with strength equipment, strong brand perception, and a focus on Gen Z engagement.

International Expansion and Franchise Sentiment:
- Planet Fitness opened 19 new clubs globally, with strong ramps in Spain and Australia, indicating international potential.
- Franchisee sentiment was positive, influenced by unit economics improvements and effective communication on tariff impacts.