PLANET FITNESS, INC., 10-K filed on 3/1/2023
Annual Report
v3.22.4
Cover Page - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2022
Feb. 24, 2023
Jun. 30, 2022
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2022    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-37534    
Entity Registrant Name PLANET FITNESS, INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 38-3942097    
Entity Address, Address Line One 4 Liberty Lane West    
Entity Address, City or Town Hampton    
Entity Address, State or Province NH    
Entity Address, Postal Zip Code 03842    
City Area Code 603    
Local Phone Number 750-0001    
Title of 12(b) Security Class A common stock, $0.0001 Par Value    
Trading Symbol PLNT    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 5.7
Documents Incorporated by Reference Portions of the Definitive Proxy Statement for the registrant’s 2022 Annual Meeting of Stockholders to be held May 1, 2023, are incorporated by reference into Part III, Items 10-14 of this Annual Report on Form 10-K.    
Amendment Flag false    
Document Fiscal Year Focus 2022    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001637207    
Class A common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   84,857,051  
Class B common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   4,586,140  
v3.22.4
Audit Information
12 Months Ended
Dec. 31, 2022
Audit Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Boston, Massachusetts
Auditor Firm ID 185
v3.22.4
Consolidated balance sheets - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 409,840 $ 545,909
Restricted cash 62,659 58,032
Accounts receivable, net of allowances for uncollectible amounts of $0 and $0 as of December 31, 2022 and 2021, respectively 46,242 27,257
Inventory 5,266 1,155
Prepaid expenses 11,078 12,869
Other receivables 14,975 13,519
Income tax receivable 5,471 3,673
Total current assets 555,531 662,414
Property and equipment, net of accumulated depreciation of $227,869 and $152,296, as of December 31, 2022 and 2021, respectively 348,820 173,687
Investments, net of allowance for expected credit losses of $14,957 and $17,462 as of December 31, 2022 and 2021, respectively 25,122 18,760
Right-of-use assets, net 346,937 190,330
Intangible assets, net 417,067 200,937
Goodwill 702,690 228,569
Deferred income taxes 454,565 539,264
Other assets, net 3,857 2,022
Total assets 2,854,589 2,015,983
Current liabilities:    
Current maturities of long-term debt 20,750 17,500
Accounts payable 20,578 27,892
Accrued expenses 66,993 51,714
Equipment deposits 8,443 6,036
Deferred revenue, current 53,759 28,351
Payable pursuant to tax benefit arrangements, current 31,940 20,302
Other current liabilities 42,067 24,815
Total current liabilities 244,530 176,610
Long-term debt, net of current maturities 1,978,131 1,665,273
Borrowings under Variable Funding Notes 0 75,000
Lease liabilities, net of current portion 341,843 197,682
Deferred revenue, net of current portion 33,152 33,428
Deferred tax liabilities 1,471 0
Payable pursuant to tax benefit arrangements, net of current portion 462,525 507,805
Other liabilities 4,498 3,030
Total noncurrent liabilities 2,821,620 2,482,218
Commitments and contingencies (Note 18)
Stockholders’ equity (deficit):    
Accumulated other comprehensive income (448) 12
Additional paid in capital 505,144 63,428
Accumulated deficit (703,717) (708,804)
Total stockholders’ deficit attributable to Planet Fitness, Inc. (199,012) (645,355)
Non-controlling interests (12,549) 2,510
Total stockholders’ deficit (211,561) (642,845)
Total liabilities and stockholders’ deficit 2,854,589 2,015,983
Class A common stock    
Stockholders’ equity (deficit):    
Common stock, value 8 8
Class B common stock    
Stockholders’ equity (deficit):    
Common stock, value $ 1 $ 1
v3.22.4
Consolidated balance sheets (Parenthetical) - USD ($)
shares in Thousands, $ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Current assets:    
Accounts receivable, allowance for bad debts $ 0 $ 0
Accumulated depreciation 227,869 152,296
Allowance for expected credit loss $ 14,957 $ 17,462
Class A common stock    
Stockholders’ equity (deficit):    
Common stock, par value (in usd per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 300,000 300,000
Common stock, shares issued (in shares) 83,430 83,804
Common stock, shares outstanding (in shares) 83,430 83,804
Class B common stock    
Stockholders’ equity (deficit):    
Common stock, par value (in usd per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 100,000 100,000
Common stock, shares issued (in shares) 6,146 3,056
Common stock, shares outstanding (in shares) 6,146 3,056
v3.22.4
Consolidated statements of operations - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Revenue:      
Total revenue $ 936,772 $ 587,023 $ 406,618
Operating costs and expenses:      
Cost of revenue 177,200 100,993 70,955
Store operations 219,422 110,716 87,797
Selling, general and administrative 114,853 94,540 68,585
National advertising fund expense 66,116 59,442 61,255
Depreciation and amortization 124,022 62,800 53,832
Other losses, net 5,081 15,137 4,434
Total operating costs and expenses 706,694 443,628 346,858
Income from operations 230,078 143,395 59,760
Other income (expense), net:      
Interest income 5,005 878 2,937
Interest expense (88,628) (81,211) (82,117)
Other income (expense), net 14,983 (11,102) 4,903
Total other expense, net (68,640) (91,435) (74,277)
Income (expense) before income taxes 161,438 51,960 (14,517)
Equity losses of unconsolidated entities, net of tax (467) (179) 0
Provision for income taxes 50,515 5,659 687
Net income (loss) 110,456 46,122 (15,204)
Less net income (loss) attributable to non-controlling interests 11,054 3,348 (213)
Net income (loss) attributable to Planet Fitness, Inc. $ 99,402 $ 42,774 $ (14,991)
Class A common stock      
Net income (loss) per share of Class A common stock:      
Basic (in usd per share) $ 1.18 $ 0.51 $ (0.19)
Diluted (in usd per share) $ 1.18 $ 0.51 $ (0.19)
Weighted-average shares of Class A common stock outstanding:      
Basic (in shares) 84,136,819 83,295,580 80,303,277
Diluted (in shares) 84,544,098 83,894,149 80,303,277
Franchise      
Revenue:      
Total revenue $ 329,634 $ 290,710 $ 206,156
Franchise | Franchise      
Revenue:      
Total revenue 271,559 238,349 162,855
Franchise | National advertising fund revenue      
Revenue:      
Total revenue 58,075 52,361 43,301
Corporate-owned stores      
Revenue:      
Total revenue 379,393 167,219 117,142
Equipment      
Revenue:      
Total revenue $ 227,745 $ 129,094 $ 83,320
v3.22.4
Consolidated statements of comprehensive income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net income (loss) including non-controlling interests $ 110,456 $ 46,122 $ (15,204)
Other comprehensive income (loss), net:      
Foreign currency translation adjustments (460) (15) (276)
Total other comprehensive income (loss), net (460) (15) (276)
Total comprehensive income (loss) including non-controlling interests 109,996 46,107 (15,480)
Less: total comprehensive income (loss) attributable to non-controlling interests 11,054 3,348 (213)
Total comprehensive income (loss) attributable to Planet Fitness, Inc. $ 98,942 $ 42,759 $ (15,267)
v3.22.4
Consolidated statements of cash flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash flows from operating activities:      
Net income (loss) $ 110,456 $ 46,122 $ (15,204)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 124,022 62,800 53,832
Amortization of deferred financing costs 5,514 6,346 6,411
Write-off of deferred financing costs 1,583 0 0
Equity (earnings) losses of unconsolidated entities, net of tax 467 179 0
Dividends accrued on investment (1,876) (1,401) 0
Deferred tax expense 48,618 1,528 7,213
Loss (gain) on re-measurement of tax benefit arrangement (13,831) 11,737 (5,949)
Gain on sale of corporate-owned stores (1,324) 0 0
Credit (gain) loss expense on held-to-maturity investment (2,505) 17,462 0
Other 262 13 (618)
Loss on reacquired franchise rights 1,160 0 0
Equity-based compensation 8,068 8,805 4,777
Changes in operating assets and liabilities, net of acquisitions:      
Accounts receivable (19,177) (10,804) 23,611
Inventory (4,112) (681) 404
Other assets and other current assets (5,152) 8,259 (2,676)
Accounts payable and accrued expenses (14,721) 30,928 (10,938)
Other liabilities and other current liabilities 8,636 (3,063) 4,384
Income taxes (1,672) 2,202 (4,461)
Payments pursuant to tax benefit arrangements (19,253) (445) (26,621)
Equipment deposits 2,457 5,235 (2,212)
Deferred revenue 9,404 2,349 (2,842)
Leases 3,183 1,718 2,027
Net cash provided by operating activities 240,207 189,289 31,138
Cash flows from investing activities:      
Additions to property and equipment (100,057) (54,074) (52,560)
Acquisitions of franchisees (424,940) (1,888) 0
Proceeds from sale of property and equipment 60 46 282
Proceeds from sale of corporate-owned stores 20,820 0 0
Investments (2,449) (35,000) 0
Net cash used in investing activities (506,566) (90,916) (52,278)
Cash flows from financing activities:      
Proceeds from issuance of long-term debt 900,000 0 75,000
Proceeds from issuance of Variable Funding Notes 75,000 0 0
Proceeds from issuance of Class A common stock 925 8,186 2,571
Principal payments on capital lease obligations (268) (182) (165)
Repayment of long-term debt and variable funding notes (724,813) (17,500) (17,500)
Payment of deferred financing and other debt-related costs (16,176) 0 0
Dividend equivalent paid to members of Pla-Fit Holdings 0 0 (234)
Distributions to members of Pla-Fit Holdings (4,628) (750) (1,822)
Net cash provided by (used in) financing activities 135,725 (10,246) 57,850
Effects of exchange rate changes on cash and cash equivalents (808) 14 295
Net increase in cash, cash equivalents and restricted cash (131,442) 88,141 37,005
Cash, cash equivalents and restricted cash, beginning of period 603,941 515,800 478,795
Cash, cash equivalents and restricted cash, end of period 472,499 603,941 515,800
Supplemental cash flow information:      
Net cash paid (refund received) for income taxes 3,625 1,848 (2,157)
Cash paid for interest 80,961 74,869 75,629
Non-cash investing activities:      
Non-cash additions to property and equipment 13,936 5,659 1,172
Fair value of common stock issued as consideration for acquisition 393,730 0 0
Class A common stock      
Cash flows from financing activities:      
Repurchase and retirement of Class A common stock $ (94,315) $ 0 $ 0
v3.22.4
Consolidated statement of changes in equity - USD ($)
shares in Thousands, $ in Thousands
Total
Class A common stock
Class B common stock
Common Stock
Class A common stock
Common Stock
Class B common stock
Accumulated other comprehensive income (loss)
Additional paid-in capital
Accumulated deficit
Non-controlling interests
Beginning balance (in shares) at Dec. 31, 2019       78,525 8,562        
Beginning balance at Dec. 31, 2019 $ (707,754)     $ 8 $ 1 $ 303 $ 29,820 $ (736,587) $ (1,299)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income (loss) (15,204)             (14,991) (213)
Equity-based compensation expense 4,777           4,777    
Exchanges of Class B common stock and other adjustments (in shares)       4,840 (4,840)        
Exchanges of Class B common stock and other adjustments 0           (1,526)   1,526
Repurchase and retirement of Class A common stock (in shares)       (667)          
Repurchase and retirement of Class A common stock 0           (2,879) 0 2,879
Tax benefit arrangement liability and deferred taxes arising from secondary offerings and other exchanges 12,779           12,779    
Exercise of stock options, vesting of restricted share units and ESPP share purchase (in shares)       123          
Exercise of stock options, vesting of restricted share units and ESPP share purchase 2,702           2,702    
Distributions paid to members of Pla-Fit Holdings (1,822)               (1,822)
Non-cash adjustments to VIEs (875)               (875)
Other comprehensive loss (276)         (276)      
Ending balance (in shares) at Dec. 31, 2020       82,821 3,722        
Ending balance at Dec. 31, 2020 (705,673)     $ 8 $ 1 27 45,673 (751,578) 196
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income (loss) 46,122             42,774 3,348
Equity-based compensation expense 8,805           8,805    
Exchanges of Class B common stock and other adjustments (in shares)       623 (623)        
Exchanges of Class B common stock and other adjustments 0           (608)   608
Repurchase and retirement of Class A common stock (in shares)         (43)        
Tax benefit arrangement liability and deferred taxes arising from secondary offerings and other exchanges 1,454           1,454    
Exercise of stock options, vesting of restricted share units and ESPP share purchase (in shares)       360          
Exercise of stock options, vesting of restricted share units and ESPP share purchase 8,104           8,104    
Distributions paid to members of Pla-Fit Holdings (750)               (750)
Non-cash adjustments to VIEs (892)               (892)
Other comprehensive loss (15)         (15)      
Ending balance (in shares) at Dec. 31, 2021   83,804 3,056 83,804 3,056        
Ending balance at Dec. 31, 2021 (642,845)     $ 8 $ 1 12 63,428 (708,804) 2,510
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income (loss) 110,456             99,402 11,054
Equity-based compensation expense 8,068           8,068    
Exchanges of Class B common stock and other adjustments (in shares)       548 (548)        
Exchanges of Class B common stock and other adjustments 0           22,533   (22,533)
Repurchase and retirement of Class A common stock (in shares)       (1,529)          
Repurchase and retirement of Class A common stock (94,315)           6,426 (94,315) (6,426)
Tax benefit arrangement liability and deferred taxes arising from secondary offerings and other exchanges 18,326           18,326    
Exercise of stock options, vesting of restricted share units and ESPP share purchase (in shares)       90          
Exercise of stock options, vesting of restricted share units and ESPP share purchase 1,039           1,039    
Issuance of common stock for acquisition (in shares)       517 3,638        
Issuance of common stock for acquisition 393,730           385,324   8,406
Distributions paid to members of Pla-Fit Holdings (4,628)               (4,628)
Non-cash adjustments to VIEs (932)               (932)
Other comprehensive loss (460)         (460)      
Ending balance (in shares) at Dec. 31, 2022   83,430 6,146 83,430 6,146        
Ending balance at Dec. 31, 2022 $ (211,561)     $ 8 $ 1 $ (448) $ 505,144 $ (703,717) $ (12,549)
v3.22.4
Business organization
12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Business organization Business organization
Planet Fitness, Inc. (the “Company”), through its subsidiaries, is a franchisor and operator of fitness centers, with approximately 17.0 million members and 2,410 owned and franchised locations (referred to as stores) in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia as of December 31, 2022.
The Company serves as the reporting entity for its various subsidiaries that operate three distinct lines of business:
Licensing and selling franchises under the Planet Fitness trade name;
Owning and operating fitness centers under the Planet Fitness trade name; and
Selling fitness-related equipment to franchisee-owned stores.
In 2012 investment funds affiliated with TSG Consumer Partners, LLC (“TSG”), purchased interests in Pla-Fit Holdings.
The Company was formed as a Delaware corporation on March 16, 2015 for the purpose of facilitating an initial public offering (the “IPO”) and related transactions in order to carry on the business of Pla-Fit Holdings, LLC and its subsidiaries (“Pla-Fit Holdings”). As of August 5, 2015, in connection with the recapitalization transactions, the Company became the sole managing member and holder of 100% of the voting power of Pla-Fit Holdings. Pla-Fit Holdings owns 100% of Planet Intermediate, LLC which has no operations but is the 100% owner of Planet Fitness Holdings, LLC, a franchisor and operator of fitness centers. With respect to the Company, Pla-Fit Holdings and Planet Intermediate, LLC, each entity owns nothing other than the respective entity below it in the corporate structure and each entity has no other material operations.
The Company is a holding company whose principal asset is a controlling equity interest in the membership units (“Holdings Units”) in Pla-Fit Holdings. As the sole managing member of Pla-Fit Holdings, the Company operates and controls all of the business and affairs of Pla-Fit Holdings, and through Pla-Fit Holdings, conducts its business. As a result, the Company consolidates Pla-Fit Holdings’ financial results and reports a non-controlling interest related to the portion of Holdings Units not owned by the Company.
As of December 31, 2022, the Company held 100% of the voting interest, and approximately 93.1% of the economic interest in Pla-Fit Holdings and the owners of Holdings Units other than the Company (the “Continuing LLC Owners”) held the remaining 6.9% economic interest in Pla-Fit Holdings. As future exchanges of Holdings Units occur, the economic interest in Pla-Fit Holdings held by Planet Fitness, Inc. will increase.
v3.22.4
Summary of significant accounting policies
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Summary of significant accounting policies Summary of significant accounting policies
(a) Basis of presentation and consolidation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All significant intercompany balances and transactions have been eliminated in consolidation.
As discussed in Note 1, Planet Fitness, Inc. consolidates Pla-Fit Holdings. The Company also consolidates entities in which it has a controlling financial interest, the usual condition of which is ownership of a majority voting interest. The Company also considers for consolidation certain interests where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary of a VIE is considered to possess the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the rights to receive benefits from the VIE that are significant to it. The principal entities in which the Company possesses a variable interest include franchise entities and certain other entities. The Company is not deemed to be the primary beneficiary for Planet Fitness franchise entities. Therefore, these entities are not consolidated.
The results of the Company have been consolidated with Matthew Michael Realty LLC (“MMR”), PF Melville LLC (“PF Melville”), and Planet Fitness NAF, LLC (the “NAF”) based on the determination that the Company is the primary beneficiary with respect to these VIEs. MMR and PF Melville are real estate holding companies that derive a majority of their financial support from the Company through lease agreements for corporate stores. See Note 3 for further information related to the Company’s VIEs. The NAF is an advertising fund, which on behalf of the Company collects 2% annually of gross monthly membership fees from franchisees, in accordance with the provisions of the franchise agreements, and uses the amounts
received to increase sales and further enhance the public reputation of the Planet Fitness brand. See Note 4 for further information related to the NAF.
(b) Use of estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the consolidated financial statements include revenue recognition, valuation of equity-based compensation awards, valuation of assets and liabilities acquired in business combinations, the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets, allowance for expected credit losses, the present value of lease liabilities, income taxes, including deferred tax assets and liabilities, and the liability for the Company’s tax benefit arrangements.
(c) Concentrations
Cash and cash equivalents are financial instruments, which potentially subject the Company to a concentration of credit risk. The Company invests its excess cash in several major financial institutions, which are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. The Company maintains balances in excess of these limits, but does not believe that such deposits with its banks are subject to any unusual risk.
The credit risk associated with trade receivables is mitigated due to the large number of customers, generally franchisees, and their broad dispersion over many different geographic areas. The Company does not have any concentrations greater than 10% with respect to revenues.
The Company purchases equipment, both for corporate-owned stores and for sales to franchisee-owned stores from various equipment vendors. For the year ended December 31, 2022, purchases from two equipment vendors comprised 71% and 22%, respectively, of total equipment purchases. For the year ended December 31, 2021 purchases from two equipment vendors comprised 70% and 28%, respectively, of total equipment purchases. For the year ended December 31, 2020 purchases from two equipment vendors comprised 48% and 40%, respectively, of total equipment purchases.
The Company, including the NAF, uses various vendors for advertising services. For the year ended December 31, 2022, purchases from one vendor comprised 77% of total advertising purchases. For the year ended December 31, 2021 purchases from one vendor comprised 41% of total advertising purchases, and for the year ended December 31, 2020 purchases from one vendor comprised 71% of total advertising purchases (see Note 4 for further discussion of the NAF).
(d) Cash, cash equivalents and restricted cash
The Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents.
In accordance with the Company’s securitized financing facility, certain cash accounts have been established in the name of Citibank, N.A. (the “Trustee”). The Company holds restricted cash which primarily represents cash collections held by the Trustee, which includes interest, principal, and commitment fee reserves. As of December 31, 2022, the Company had restricted cash held by the Trustee of $46,651. Restricted cash has been combined with cash and cash equivalents when reconciling the beginning and end of period balances in the consolidated statements of cash flows. In addition, the Company has restricted cash of $16,008 related to a legal matter.
(e) Revenue from contracts with customers
The Company’s revenues are comprised of franchise revenue, equipment revenue, and corporate-owned stores revenue.
Franchise revenue
Franchise revenues consist primarily of royalties, NAF contributions, initial and successor franchise fees and upfront fees from area development agreements (“ADAs”), transfer fees, equipment placement revenue, commission income, online join fees, and other fees. 
The Company’s primary performance obligation under the franchise license is granting certain rights to use the Company’s intellectual property, and all other services the Company provides under the ADA and franchise agreement are highly interrelated, not distinct within the contract, and therefore accounted for under ASC 606 - Revenue Recognition as a single
performance obligation, which is satisfied by granting certain rights to use intellectual property over the term of each franchise agreement.
Royalties and franchisee contributions to national advertising funds, are calculated as a percentage of franchise monthly dues and annual fees over the term of the franchise agreement. Under the franchise agreements, advertising contributions paid by franchisees must be spent on advertising, marketing and related activities. Initial and successor franchise fees are payable by the franchisee upon signing a new franchise agreement or successor franchise agreement, and transfer fees are paid to the Company when one franchisee transfers a franchise agreement to a different franchisee. Franchise royalties, as well as NAF contributions, represent sales-based royalties that are related entirely to the performance obligation under the franchise agreement and are recognized as franchise sales occur.
Initial and successor franchise fees, as well as transfer fees, are recognized as revenue on a straight-line basis over the term of the respective franchise agreement. ADAs generally consist of an obligation to grant geographic exclusive area development rights. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for exclusive development rights are deferred and apportioned to each franchise agreement signed by the franchisee. The pro-rata amount apportioned to each franchise agreement is accounted for identically to the initial franchise fee.
The Company is generally responsible for assembly and placement of equipment it sells to U.S., Canada, and Mexico based franchisee-owned stores. Placement revenue is recognized upon completion and acceptance of the services at the franchise location.
The Company recognizes commission income from certain of its franchisees’ use of certain preferred vendor arrangements. Commissions are recognized when amounts have been earned and collectability from the vendor is reasonably assured.
Online member join fees are paid to the Company by franchisees for processing new membership transactions when a new member signs up for a membership to a franchisee-owned store through the Company’s website. These fees are recognized as revenue as each transaction occurs.
Billing transaction fees are paid to the Company by certain of its franchisees for the processing of franchisee membership dues and annual fees through the Company’s third-party hosted point-of-sale system and are recognized as revenue as they are earned.
Equipment revenue
The Company sells and delivers equipment purchased from third-party equipment manufacturers to U.S., Canada, and Mexico based franchisee-owned stores. Revenue is recognized upon transfer of control of ordered items, generally upon delivery to the customer, which is when the customer obtains physical possession of the goods, legal title is transferred, the customer has all risks and rewards of ownership and an obligation to pay for the goods is created. Franchisees are charged for all freight costs incurred for the delivery of equipment. Freight revenue is recorded within equipment revenue and freight costs are recorded within cost of revenue. In most instances, the Company recognizes equipment revenue on a gross basis as management has determined the Company to be the principal in these transactions. Management determined the Company to be the principal in the transaction because the Company controls the equipment prior to delivery to the final customer as evidenced by its pricing discretion over the goods, inventory transfer of title and risk of loss while the inventory is in transit, and having the primary responsibility to fulfill the customer order and direct the third-party vendor.
Corporate-owned stores revenue
The following revenues are generated from stores owned and operated by the Company.
Membership dues revenue
Customers are offered multiple membership choices varying in length. Membership dues are earned and recognized over the membership term on a straight-line basis.
Enrollment fee revenue
Enrollment fees are charged to new members at the commencement of their membership. The Company recognizes enrollment fees ratably over the estimated duration of the membership life, which is generally two years.
Annual membership fee revenue
Annual membership fees are annual fees charged to members in addition to and in order to maintain low monthly membership dues. The Company recognizes annual membership fees ratably over the 12-month membership period or as long as there is a service obligation to the member.
Retail sales
The Company sells Planet Fitness branded apparel, food, beverages, and other accessories. The revenue for these items is recognized at the point of sale.
Sales tax
All revenue amounts are recorded net of applicable sales tax.
(f) Deferred revenue
Franchise deferred revenue results from initial and successor franchise fees and ADA fees paid by franchisees, as well as transfer fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement. Deferred revenue is also recognized in the Corporate-owned stores segment for cash received from members for enrollment fees, membership dues and annual fees for the portion not yet earned based on the membership period. Equipment deposits made at the time of ordering equipment are also deferred until the revenue recognition criteria are met.
(g) Cost of revenue
Cost of revenue consists primarily of direct costs associated with equipment sales (including freight costs) and the cost of retail merchandise sold in corporate-owned stores. Costs related to retail merchandise sales were immaterial in all periods presented. Rebates from equipment vendors where the Company has recognized the related equipment revenue and costs are recorded as a reduction to the cost of revenue.
(h) Store operations
Store operations consists of the direct costs related to operating corporate-owned stores, including store management and staff, rent expense, utilities, supplies, maintenance, and local and national advertising.
(i) Selling, general and administrative
Selling, general and administrative expenses consist of costs associated with administrative, corporate-owned and franchisee support functions related to the existing business as well as growth and development activities. These costs primarily consist of payroll, IT related, marketing, legal and accounting expenses. These expenses include costs related to placement services of $6,069, $4,358, and $3,341, for the years ended December 31, 2022, 2021 and 2020, respectively.
(j) Accounts receivable
Accounts receivable is primarily comprised of amounts owed to the Company resulting from equipment, placement, and commission revenue. The Company evaluates its accounts receivable on an ongoing basis and may establish an allowance for uncollectible amounts based on collections and current credit conditions. Accounts are written off as uncollectible when it is determined that further collection efforts will be unsuccessful. Historically, the Company has not had a significant amount of write-offs.
(k) Inventory
The Company has inventory at period ends when the Company has title and risk of loss in advance of sale to its franchisees.
(l) Leases and asset retirement obligations
The Company leases space to operate corporate-owned stores, equipment, office, and warehouse space. The Company currently leases the corporate headquarters, corporate-owned store headquarters and all but one of the corporate-owned stores. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company accounts for fixed lease and non-lease components together as a single, combined lease component. Variable lease costs, which may include common area maintenance, insurance, and taxes are not included in the lease liability and are expensed in the period incurred.
Corporate-owned store leases generally have original lease terms of ten years, and typically include one or more renewal options, with renewal option terms that can generally extend the lease term from three to ten years or more. The exercise of lease renewal options is at the Company’s sole discretion. The Company includes options to renew in the expected term when
they are reasonably certain to be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term.
At the inception of each lease, the Company determines its appropriate classification as an operating or financing lease. The majority of the Company’s leases are operating leases. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid, reduced by expected reimbursements from landlords. Operating lease right of use (“ROU”) assets represent the right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments, initial direct costs and lease incentives. To determine the present value of lease payments not yet paid, the Company estimates incremental secured borrowing rates corresponding to the maturities of the leases based upon interpolated rates using the Company’s Notes.
The Company has an immaterial amount of non-real estate leases that are accounted for as finance leases under ASC 842 - Leases.
Leases typically contain rent escalations over the lease term. The Company recognizes expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements reduce the ROU asset related to the lease. These tenant incentives are amortized as reduction of rent expense over the lease term.
Lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Asset retirement obligations
In accordance with ASC Topic 410, Asset Retirement and Environmental Obligations, the Company establishes assets and liabilities for the present value of estimated future costs to return certain leased facilities to their original condition. Such assets are depreciated on a straight-line basis over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated restoration costs.
(m) Property and equipment
Property and equipment is recorded at cost, or fair value when acquired as part of a business combination, and depreciated using the straight-line method over its related estimated useful life. Leasehold improvements are amortized over the shorter of the expected lease term or the estimated useful life of the related asset. Upon sale or retirement, the asset cost and related accumulated depreciation are removed from the respective accounts, and any related gain or loss is reflected in the consolidated statements of operations. Ordinary maintenance and repair costs are expensed as incurred. The estimated useful lives of the Company’s property and equipment by class of asset are as follows:
 Years
Buildings and building improvements
20–40
Information technology and systems
3-5
Furniture and fixtures5
Leasehold improvementsUseful life or term of lease
whichever is shorter
Fitness equipment
5–7
Vehicles5

(n) Advertising expenses
The Company expenses advertising costs as incurred. Advertising expenses for corporate-owned stores are included within store operations and totaled $31,462, $15,667, and $10,252 for the years ended December 31, 2022, 2021 and 2020, respectively. In addition to NAF expenses, advertising related to the franchise segment is included within selling, general and administrative expenses and totaled $3,103, $7,144, and $5,408 for the years ended December 31, 2022, 2021 and 2020, respectively. See Note 4 for discussion of the national advertising fund.
(o) Goodwill, long-lived assets, and other intangible assets
Goodwill and other intangible assets that arise from acquisitions are recorded in accordance with ASC Topic 805 - Business Combinations and ASC Topic 350, Intangibles—Goodwill and Other. In accordance with this guidance, specifically identified intangible assets must be recorded as a separate asset from goodwill if either of the following two criteria is met: (1) the intangible asset acquired arises from contractual or other legal rights; or (2) the intangible asset is separable. Intangibles are typically trade and brand names, customer relationships, and reacquired franchise rights. Transactions are evaluated to determine whether any gain or loss on reacquired franchise rights, based on their fair value, should be recognized separately from identified intangibles. Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination.
Goodwill and indefinite-lived intangible assets are not amortized, but are reviewed annually for impairment or more frequently if impairment indicators arise. Separable intangible assets that are not deemed to have an indefinite life are amortized over their estimated useful lives on either a straight-line or accelerated basis as deemed appropriate, and are reviewed for impairment when events or circumstances suggest that the assets may not be recoverable.
The Company performs its annual test for impairment of goodwill and indefinite lived intangible assets on December 1 of each year. During 2022, the Company moved its assessment date from December 31 to December 1 in order to better align with the Company’s annual planning cycle. The annual goodwill test begins with a qualitative assessment, where qualitative factors and their impact on critical inputs are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the Company determines that a reporting unit has an indication of impairment based on the qualitative assessment, it is required to perform a quantitative assessment. During the periods presented, the Company did not need to proceed beyond the qualitative analysis, and no goodwill impairments were recorded.
For indefinite lived intangible assets, the impairment assessment consists of comparing the carrying value of the asset to its estimated fair value. To the extent that the carrying value exceeds the fair value of the asset, an impairment is recorded to reduce the carrying value to its fair value. The Company is also permitted to make a qualitative assessment of whether it is more likely than not an indefinite lived intangible asset’s fair value is less than its carrying value prior to applying the quantitative assessment. If based on the Company’s qualitative assessment it is not more likely than not that the carrying value of the asset is less than its fair value, then a quantitative assessment is not required.
During the periods presented, the Company did not need to proceed beyond the qualitative analysis, and determined that no impairment charges were required.
The Company applies the provisions of ASC Topic 360, Property, Plant and Equipment, which requires that long-lived assets, including amortizable intangible assets, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for impairment, then assets are required to be grouped and evaluated at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the undiscounted future net cash flows expected to be generated by the asset or asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. There were no assets that were impaired during any of the periods presented.
(p) Income taxes
The Company accounts for income taxes using the asset and liability method. Deferred income taxes are recognized for the expected future tax consequences attributable to temporary differences between the carrying amount of the existing tax assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied in the years in which temporary differences are expected to be recovered or settled. The principal items giving rise to temporary differences are the use of accelerated depreciation and certain basis differences resulting from acquisitions and the recapitalization transactions. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.
Planet Fitness, Inc. is the sole managing member of Pla-Fit Holdings, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, Pla-Fit Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Pla-Fit Holdings is passed through to and included in the taxable income or loss of its members, including Planet Fitness, Inc. following the recapitalization transactions, on a pro rata
basis. Planet Fitness, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to the allocable share of any taxable income of Pla-Fit Holdings. The Company is also subject to taxes in certain foreign jurisdictions.
The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs (see Note 17).
(q) Tax benefit arrangements
The Company’s acquisition of Holdings Units in connection with the IPO and certain future and past exchanges of Holdings Units for shares of the Company’s Class A common stock (or cash at the option of the Company) are expected to produce and have produced favorable tax attributes. In connection with the IPO, the Company entered into two tax receivable agreements. Under the first of those agreements, the Company generally is required to pay to certain existing and previous equity owners of Pla-Fit Holdings, LLC who are unaffiliated with TSG (the “TRA Holders”) 85% of the applicable tax savings, if any, in U.S. federal and state income tax that the Company is deemed to realize as a result of certain tax attributes of their Holdings Units sold to the Company (or exchanged in a taxable sale) and that are created as a result of (i) the sales of their Holdings Units for shares of Class A common stock and (ii) tax benefits attributable to payments made under the tax receivable agreement (including imputed interest). Under the second tax receivable agreement, the Company generally is required to pay to TSG AIV II-A L.P and TSG PF Co-Investors A L.P. (the “Direct TSG Investors”) 85% of the amount of tax savings, if any, that the Company is deemed to realize as a result of the tax attributes of the Holdings Units held in respect of the Direct TSG Investors’ interest in the Company, which resulted from the Direct TSG Investors’ purchase of interests in Pla-Fit Holdings in 2012, and certain other tax benefits. Under both agreements, the Company generally retains the benefit of the remaining 15% of the applicable tax savings.
Based on current projections, the Company anticipates having sufficient taxable income to utilize these tax attributes and receive corresponding tax deductions in future periods. Accordingly, as of December 31, 2022 the Company has recorded a liability of $494,465 payable to the TRA Holders under the tax benefit obligations, representing approximately 85% of the calculated expected tax savings based on the original basis adjustments the Company anticipates being able to utilize in future years. Changes in the liability resulting from historical changes under these tax benefit arrangements may occur based on changes in anticipated future taxable income, changes in applicable tax rates or other changes in tax attributes that may occur and impact the expected future tax benefits to be received by the Company. Changes in the projected liability under these tax benefit arrangements are and will be recorded as a component of other income (expense) each period. The projection of future taxable income involves significant judgment. Actual taxable income may differ from estimates, which could significantly impact the liability under the tax benefit arrangements and the Company’s consolidated results of operations. 
(r) Fair value
ASC 820, Fair Value Measurements and Disclosures, establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:
Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
The Company has no balance sheet amounts that are adjusted to fair value at reporting dates. The carrying value and estimated fair value of long-term debt as of December 31, 2022 and 2021 were as follows:
December 31, 2022December 31, 2021
Carrying value
Estimated fair value(1)
Carrying value
Estimated fair value(1)
Long-term debt(1)
$2,025,188 $1,730,634 $1,700,000 $1,725,021 
Variable Funding Notes(1)
$— $— $75,000 $75,000 
(1) The Company’s Variable Funding Notes are a variable rate loan and the fair value of this loan approximates book value based on the borrowing rates currently available for variable rate loans obtained from third-party lending institutions. The estimated fair value of the Company’s fixed rate long-term debt is estimated primarily based on current bid prices for the long-term debt. Judgment is required to develop these estimates. As such, the fair value of long-term debt is classified within Level 2, as defined under U.S. GAAP.
(s) Financial instruments
The carrying values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate fair value because of the short-term nature of these instruments.
(t) Investments
The Company’s investments consist of held-to-maturity investments in debt securities and equity method investments. Held-to-maturity investment securities are financial instruments for which the Company has the intent and ability to hold to maturity. Held-to-maturity securities are reported at amortized cost. The Company reserves for expected credit losses on held-to-maturity debt securities through the allowance for expected credit losses. The allowance for expected credit losses estimate reflects a lifetime loss estimate and is based on historical loss information for assets with similar risk characteristics, adjusted for management’s expectations. Adjustments for management’s expectations may be based on factors such as investee earnings performance, recent financing rounds at reduced valuations, changes in the regulatory, economic or technological environment of an investee or doubt about an investee’s ability to continue as a going concern. An increase or a decrease in the allowance for expected credit losses is recorded through other gain (loss) as a credit loss expense or a reversal thereof. The allowance for expected credit losses is presented as a deduction from the amortized cost. A held-to-maturity investment security is written off when deemed uncollectible.
The Company accounts for investments under the equity method if it holds less than 50% of the voting stock, has the ability to exercise significant influence, and is not a VIE in which the Company is the primary beneficiary. These investments are recorded initially at cost and the carrying amount is adjusted to reflect the Company’s share of earnings or losses of the investee.
(u) Equity-based compensation
The Company has an equity-based compensation plan under which it receives services from employees and directors as consideration for equity instruments of the Company. The compensation expense is determined based on the fair value of the award as of the grant date. Compensation expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are satisfied. For awards with graded vesting, the fair value of each tranche is recognized over its respective vesting period. For awards with performance targets, the Company recognizes compensation expense ratably over the required service period based on its estimate of the number of shares will vest upon achieving the measurement criteria. The Company accounts for forfeitures as they occur by reversing compensation cost for unvested awards when the award is forfeited. See Note 15 for further information.
(v) Business combinations
The Company accounts for business combinations using the purchase method of accounting which results in the assets acquired and liabilities assumed being recorded at fair value.
The valuation methodologies used are based on the nature of the asset or liability. The significant assets and liabilities measured at fair value include property and equipment, intangible assets, and favorable and unfavorable leases. For the 2012 Acquisition, intangible assets consisted of trade and brand names, member relationships, franchisee relationships related to both the franchise and equipment segments, non-compete agreements, order backlog and favorable and unfavorable leases. For other acquisitions, which consist of acquisitions of stores from franchisees, intangible assets generally consist of member relationships, re-acquired franchise rights, and favorable and unfavorable leases.
The Company uses a variety of information sources to determine the estimated fair values of acquired assets and liabilities, including third-party valuation experts. The fair value of trade and brand names is estimated using the relief from royalty method, an income approach to valuation, which includes projecting future system-wide sales and other estimates. Membership relationships and franchisee relationships are valued based on an estimate of future revenues and costs related to the respective contracts over the remaining expected lives. The Company’s valuation includes assumptions related to the projected attrition and renewal rates on those existing franchise and membership arrangements being valued. Re-acquired franchise rights are valued using an excess earnings approach. The valuation of re-acquired franchise rights is determined using a multi-period
excess earnings method under the income approach. For re-acquired franchise rights with terms that are either favorable or unfavorable to the terms included in current franchise agreements, a gain or charge is recorded at the time of the acquisition to the extent of the favorability or unfavorability, respectively. Favorable and unfavorable operating leases are recorded based on differences between contractual rents under the respective lease agreements and prevailing market rents at the lease acquisition date, and are recorded as a component of the ROU asset. Real and personal property asset valuation is determined using the replacement cost approach.
The Company considers its trade and brand name intangible assets to have an indefinite useful life, and, therefore, these assets are not amortized but rather are tested for impairment annually as discussed above. Finite-lived intangible assets, such as re-acquired franchise rights and member relationships are subject to amortization over the assets’ estimated useful lives based on the pattern in which the economic benefits are expected to be received, which may be straight-line or an accelerated method. Favorable and unfavorable operating leases are amortized into rental expense over the lease term of the respective leases using the straight-line method.
(w) Guarantees
The Company, as a guarantor, is required to recognize, at inception of the guaranty, a liability for the fair value of the obligation undertaken in issuing the guarantee. See Note 18 for further discussion of such obligations guaranteed.
(x) Contingencies
The Company records estimated future losses related to contingencies when such amounts are probable and estimable. The Company includes estimated legal fees related to such contingencies as part of the accrual for estimated future losses.
(y) Reclassifications
Certain amounts have been reclassified to conform to current year presentation.
(z) Recent accounting pronouncements
The FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, in December 2019. The guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The Company adopted the new guidance on January 1, 2021, with no material impact on the Company’s consolidated financial statements.
The FASB issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, in October, 2021. The guidance improves the accounting for acquired revenue contracts with customers in a business combination by aligning the acquisition date measurement with ASC 606 - Revenue Recognition. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within that year, with early adoption permitted. The Company early adopted the new guidance on January 1, 2022 and applied it to the Sunshine Acquisition, noting the impact of adoption was not material. See Note 5.
v3.22.4
Variable interest entities
12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable interest entities Variable interest entities
The carrying values of certain VIEs included in the consolidated financial statements as of December 31, 2022 and December 31, 2021 are as follows:
 December 31, 2022December 31, 2021
 AssetsLiabilitiesAssetsLiabilities
PF Melville$2,204 $— $2,363 $— 
MMR$1,884 — $1,991 — 
Total$4,088 $— $4,354 $— 
As discussed in Note 2, the NAF is also a VIE and is included in the Consolidated financial statements. See Note 4 for additional information on the NAF.
National advertising fund
On July 26, 2011, the Company established the NAF for the creation and development of marketing, advertising, and related programs and materials for all Planet Fitness stores located in the United States and Puerto Rico. On behalf of the NAF, the Company collects approximately 2% annually of gross monthly membership billings from franchisees, in accordance with the provisions of the franchise agreements, which is reflected as NAF revenue on the consolidated statements of operations (see Note 2). The Company also contributes 2% annually of monthly membership billings from stores owned by the Company to the NAF, which is reflected in store operations expense in the consolidated statements of operations. The use of amounts received by the NAF is restricted to advertising, product development, public relations, merchandising, and administrative expenses and programs to increase sales and further enhance the public reputation of the Planet Fitness brand. The Company consolidates and reports all assets and liabilities held by the NAF within the consolidated financial statements. Amounts received or receivable by the NAF, which are restricted in their use, are recorded within current assets and current liabilities on the consolidated balance sheets. The Company provides administrative services to the NAF and charges the NAF a fee for providing those services. These services include accounting, information technology, data processing, product development, legal and administrative support, and other operating expenses, which amounted to $2,437, $1,997 and $793 for the years ended December 31, 2022, 2021 and 2020, respectively. Fees paid to the Company by the NAF are reflected as expense in the NAF expense caption on the consolidated statement of operations, and reflected as a corresponding reduction in general and administrative expenses in the consolidated statements of operations.
Assets and liabilities of the NAF, which are restricted in their use, included in the Consolidated Balance Sheets were as follows:
December 31, 2022December 31, 2021
Assets
Cash & cash equivalents$4,938 $15,754 
Other current assets938 388 
Total current assets$5,876 $16,142 
Liabilities
Accounts payable$1,089 $175 
Accrued expenses and other current liabilities3,620 16,240 
Total current liabilities$4,709 $16,415 
v3.22.4
National advertising fund
12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
National advertising fund Variable interest entities
The carrying values of certain VIEs included in the consolidated financial statements as of December 31, 2022 and December 31, 2021 are as follows:
 December 31, 2022December 31, 2021
 AssetsLiabilitiesAssetsLiabilities
PF Melville$2,204 $— $2,363 $— 
MMR$1,884 — $1,991 — 
Total$4,088 $— $4,354 $— 
As discussed in Note 2, the NAF is also a VIE and is included in the Consolidated financial statements. See Note 4 for additional information on the NAF.
National advertising fund
On July 26, 2011, the Company established the NAF for the creation and development of marketing, advertising, and related programs and materials for all Planet Fitness stores located in the United States and Puerto Rico. On behalf of the NAF, the Company collects approximately 2% annually of gross monthly membership billings from franchisees, in accordance with the provisions of the franchise agreements, which is reflected as NAF revenue on the consolidated statements of operations (see Note 2). The Company also contributes 2% annually of monthly membership billings from stores owned by the Company to the NAF, which is reflected in store operations expense in the consolidated statements of operations. The use of amounts received by the NAF is restricted to advertising, product development, public relations, merchandising, and administrative expenses and programs to increase sales and further enhance the public reputation of the Planet Fitness brand. The Company consolidates and reports all assets and liabilities held by the NAF within the consolidated financial statements. Amounts received or receivable by the NAF, which are restricted in their use, are recorded within current assets and current liabilities on the consolidated balance sheets. The Company provides administrative services to the NAF and charges the NAF a fee for providing those services. These services include accounting, information technology, data processing, product development, legal and administrative support, and other operating expenses, which amounted to $2,437, $1,997 and $793 for the years ended December 31, 2022, 2021 and 2020, respectively. Fees paid to the Company by the NAF are reflected as expense in the NAF expense caption on the consolidated statement of operations, and reflected as a corresponding reduction in general and administrative expenses in the consolidated statements of operations.
Assets and liabilities of the NAF, which are restricted in their use, included in the Consolidated Balance Sheets were as follows:
December 31, 2022December 31, 2021
Assets
Cash & cash equivalents$4,938 $15,754 
Other current assets938 388 
Total current assets$5,876 $16,142 
Liabilities
Accounts payable$1,089 $175 
Accrued expenses and other current liabilities3,620 16,240 
Total current liabilities$4,709 $16,415 
v3.22.4
Acquisition
12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Acquisition Acquisition
Sunshine Fitness Acquisition
On February 10, 2022, the Company and Pla-Fit Holdings (together with the Company, the “Buyers”), acquired 100% of the equity interests (“Sunshine Acquisition”) of Sunshine Fitness Growth Holdings, LLC, a Delaware limited liability company and Planet Fitness franchisee (“Sunshine Fitness”). The Company acquired 114 stores in Alabama, Florida, Georgia, North Carolina, and South Carolina from Sunshine Fitness. The purchase price of the acquisition was $824,587 consisting of $430,857 in cash consideration, and $393,730 of equity consideration, including 517,348 shares of Class A Common Stock, par value $0.0001, of the Company and 3,637,678 membership units of Pla-Fit Holdings, LLC, together with shares of Class B Common Stock, par value $0.0001, of the Company, valued based on the closing trading price of the Company’s Class A common stock on the acquisition date. As a result of the transaction, the Company incurred a loss on unfavorable reacquired franchise rights of $1,160, which has been reflected in other (gains) losses, net in the consolidated statement of operations. The loss reduced the net purchase price to $823,427. In connection with the acquisition, the Company recorded a gain of $2,059 related to the settlement of preexisting contracts with Sunshine Fitness within other (gains) losses, net on the consolidated statement of operations. The acquired stores are included in the corporate-owned stores segment.
The allocation of the estimated purchase consideration was as follows:
Amount
Cash and cash equivalents$5,917 
Other current assets757 
Property and equipment153,092 
Right of use assets162,827 
Other long-term assets1,830 
Intangible assets259,430 
Goodwill488,544 
Deferred income taxes, net(54,737)
Deferred revenue(16,973)
Other current liabilities(13,720)
Lease liabilities(162,327)
Other long-term liabilities(1,213)
$823,427 
The fair values assigned to tangible and intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions, which include Level 3 unobservable inputs, and are determined using generally accepted valuation techniques. The excess of purchase consideration over the fair value of other assets acquired and liabilities assumed was recorded as goodwill. The resulting goodwill is primarily attributable to increased expansion for market opportunities, the expansion of store membership and synergies from the integration of the stores into the broader corporate-owned store portfolio. Approximately $175,600 of the goodwill recorded is expected to be amortizable and deductible for tax purposes, the majority of which is deductible over 15 years.
The following table sets forth the components of identifiable intangible assets acquired in the Sunshine Acquisition and their estimated useful lives as of the date of the acquisition:
Fair valueUseful life
Reacquired franchise rights (1)
233,070 11.3
Customer relationships (2)
24,920 8.0
Reacquired area development rights (3)
1,440 5.0
Total intangible assets subject to amortization259,430 
(1) Reacquired franchise rights represent the fair value of the reacquired franchise agreements using the income approach, specifically, the multi-period excess earnings method.
(2) Customer relationships represent the fair value of the existing contractual customer relationships using the income approach, specifically, the multi-period excess earnings method.
(3) Reacquired area development rights represent the fair value of the undeveloped area development agreement rights using the cost approach.
The fair value of the identified intangible assets subject to amortization will be amortized over the assets’ preliminary estimated useful lives based on the pattern in which the economic benefits are expected to be received.
Revenues and income before taxes of Sunshine Fitness included in the Company’s consolidated statement of operations from the acquisition date of February 10, 2022 to December 31, 2022 are as follows:
Year Ended December 31, 2022
Total revenues$180,841 
Income before taxes$17,478 

The following pro forma financial information summarizes the combined results of operations for the Company and Sunshine Fitness, as though the companies were combined as of the beginning of 2021. The unaudited pro forma financial information was as follows:
Year Ended December 31,
20222021
Total revenues957,222 731,606 
Income before taxes161,284 41,041 
Net income110,340 37,911 
v3.22.4
Sale of corporate-owned stores
12 Months Ended
Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Sale of corporate-owned stores Sale of corporate-owned storesOn August 31, 2022, the Company sold 6 corporate-owned stores located in Colorado to a franchisee for $20,820. The net value of assets derecognized in connection with the sale amounted to $19,496, which included goodwill of $14,423, intangible assets of $2,629, and net tangible assets of $2,444, which resulted in a gain on sale of corporate-owned stores of $1,324.
v3.22.4
Property and equipment
12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Property and equipment Property and equipment
Property and equipment as of December 31, 2022 and 2021 consists of the following: 
 December 31, 2022December 31, 2021
Land$1,341 $1,341 
Equipment140,160 66,369 
Leasehold improvements272,360 146,810 
Buildings and improvements8,589 8,589 
Furniture & fixtures59,015 29,409 
Information technology and systems assets78,330 62,803 
Other2,920 2,463 
Construction in progress13,974 8,199 
 $576,689 $325,983 
Accumulated depreciation(227,869)(152,296)
Total$348,820 $173,687 
The Company recorded depreciation expense of $83,310, $46,123, and $36,943 for the years ended December 31, 2022, 2021 and 2020, respectively.
v3.22.4
Investments
12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Investments - Debt securities
As of December 31, 2022, the Company’s debt security investment consists of redeemable preferred shares that are accounted for as a held-to-maturity investment. The Company’s investment is measured at amortized cost within investments in the consolidated balance sheets. The Company reviews its held-to-maturity securities for expected credit losses under ASC Topic 326, Credit Impairment, on an ongoing basis.
During the year ended December 31, 2022, the Company’s review of the investee’s operations and financial position indicated that an adjustment to its allowance for expected credit losses was necessary. The Company utilized a probability-of-default (“PD”) and loss-given-default (“LGD”) methodology to calculate the allowance for expected credit losses. The Company derived its estimate using historical lifetime loss information for assets with similar risk characteristics, adjusted for management’s expectations. Adjustments for management’s expectations were based on the investee’s recent financial results, current financial position, and forward-looking financial forecasts. Based upon its analysis during the years ended December 31, 2022 and December 31, 2021, the Company recorded a gain on the adjustment of its allowance for credit losses of $2,505 and expense of $17,462, respectively, within other (income) expense on the consolidated statements of operations.
The amortized cost, including accrued dividends, of the Company’s held-to-maturity debt security investments was $28,277 and $26,401 and the allowance for expected credit losses was $14,957 and $17,462, as of December 31, 2022 and December 31, 2021, respectively. The amortized cost, net of the allowance for expected credit losses, approximates fair value. During the years ended December 31, 2022 and December 31, 2021, respectively, the Company recognized dividend income of $1,876 and $1,401 within other income (expense) on the consolidated statements of operations.
As of December 31, 2022, the Company’s held-to-maturity investment had a contractual maturity in 2026.
A rollforward of the Company’s allowance for expected credit losses on held-to-maturity investments is as follows:
Year Ended December 31, 2022Year Ended December 31, 2021
Beginning allowance for expected credit losses$17,462 $— 
(Gain) loss on adjustment of allowance for credit losses on held-to-maturity investment(2,505)17,462 
Write-offs, net of recoveries— — 
Ending allowance for expected credit losses$14,957 $17,462 
Equity method investmentsOn April 9, 2021, the Company acquired a 21% ownership in Bravo Fit Holdings Pty Ltd, the Company’s franchisee and store operator in Australia, which is deemed to be a related party, for $10,000. In the fourth quarter of 2022, the Company invested an additional $2,449 in Bravo Fit Holdings Pty Ltd. Following such additional investment, its ownership remained at 21%. For the years ended December 31, 2022 and December 31, 2021, the Company’s proportionate share of the earnings in accordance with the equity method was a loss of $467 and $179, respectively, recorded within equity earnings of unconsolidated entities on the consolidated statement of operations. The adjusted carrying value of the equity method investment was $11,802 and $9,820 as of December 31, 2022 and December 31, 2021, respectively.
v3.22.4
Leases
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases Leases
LeasesClassificationDecember 31, 2022December 31, 2021
Assets
OperatingRight of use asset, net$346,937 $190,330 
FinanceProperty and equipment, net 370 222 
Total lease assets$347,307 $190,552 
Liabilities
Current:
OperatingOther current liabilities$33,233 $22,523 
Noncurrent:
OperatingLease liabilities, net of current portion341,843 197,682 
FinanceOther liabilities380 230 
Total lease liabilities$375,456 $220,435 
Weighted-average remaining lease term (years) - operating leases8.18.7
Weighted-average discount rate - operating leases4.7 %5.0 %

For the years ended December 31, 2022, 2021 and 2020, the components of lease cost were as follows:
December 31, 2022December 31, 2021December 31, 2020
Operating lease cost$56,319 $29,012 $26,255 
Variable lease cost20,327 11,317 10,324 
Total lease cost$76,646 $40,329 $36,579 

The Company’s costs related to short-term leases, those with a duration between one and twelve months, were immaterial.

Supplemental disclosures of cash flow information related to leases were as follows for the years ended December 31, 2022, 2021 and 2020:
December 31, 2022December 31, 2021December 31, 2020
Cash paid, net, for lease liabilities$44,928 $28,126 $24,091 
Operating lease ROU assets obtained in exchange for operating
   lease liabilities, excluding the Sunshine Acquisition
$37,928 $48,651 $33,140 
Sunshine Acquisition operating lease ROU assets
   obtained in exchange for operating lease liabilities
$162,827 $— $— 
As of December 31, 2022, maturities of lease liabilities were as follows:
Amount
2023$49,853 
202460,578 
202560,889 
202659,495 
202754,964 
Thereafter170,818 
Total lease payments$456,597 
Less: imputed interest81,141 
Present value of lease liabilities$375,456 

As of December 31, 2022, operating lease payments exclude approximately $19,017 of legally binding minimum lease payments for leases signed but not yet commenced.
Leases Leases
LeasesClassificationDecember 31, 2022December 31, 2021
Assets
OperatingRight of use asset, net$346,937 $190,330 
FinanceProperty and equipment, net 370 222 
Total lease assets$347,307 $190,552 
Liabilities
Current:
OperatingOther current liabilities$33,233 $22,523 
Noncurrent:
OperatingLease liabilities, net of current portion341,843 197,682 
FinanceOther liabilities380 230 
Total lease liabilities$375,456 $220,435 
Weighted-average remaining lease term (years) - operating leases8.18.7
Weighted-average discount rate - operating leases4.7 %5.0 %

For the years ended December 31, 2022, 2021 and 2020, the components of lease cost were as follows:
December 31, 2022December 31, 2021December 31, 2020
Operating lease cost$56,319 $29,012 $26,255 
Variable lease cost20,327 11,317 10,324 
Total lease cost$76,646 $40,329 $36,579 

The Company’s costs related to short-term leases, those with a duration between one and twelve months, were immaterial.

Supplemental disclosures of cash flow information related to leases were as follows for the years ended December 31, 2022, 2021 and 2020:
December 31, 2022December 31, 2021December 31, 2020
Cash paid, net, for lease liabilities$44,928 $28,126 $24,091 
Operating lease ROU assets obtained in exchange for operating
   lease liabilities, excluding the Sunshine Acquisition
$37,928 $48,651 $33,140 
Sunshine Acquisition operating lease ROU assets
   obtained in exchange for operating lease liabilities
$162,827 $— $— 
As of December 31, 2022, maturities of lease liabilities were as follows:
Amount
2023$49,853 
202460,578 
202560,889 
202659,495 
202754,964 
Thereafter170,818 
Total lease payments$456,597 
Less: imputed interest81,141 
Present value of lease liabilities$375,456 

As of December 31, 2022, operating lease payments exclude approximately $19,017 of legally binding minimum lease payments for leases signed but not yet commenced.
v3.22.4
Goodwill and intangible assets
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and intangible assets Goodwill and intangible assets
A summary of goodwill and intangible assets at December 31, 2022 and 2021 is as follows:
December 31, 2022Weighted
average
amortization
period (years)
Gross
carrying
amount
Accumulated
amortization
Net carrying
Amount
Customer relationships10.6$198,813 (153,243)$45,570 
Reacquired franchise and area development rights10.8268,058 (43,161)224,897 
 $466,871 $(196,404)$270,467 
Indefinite-lived intangible:
Trade and brand namesN/A146,600 — 146,600 
Total intangible assets$613,471 $(196,404)$417,067 
Goodwill$702,690 $— $702,690 
 
December 31, 2021Weighted
average
amortization
period (years)
Gross
carrying
amount
Accumulated
amortization
Net carrying
Amount
Customer relationships11.0$174,033 (137,699)$36,334 
Reacquired franchise rights8.038,158 (20,155)18,003 
 $212,191 $(157,854)$54,337 
Indefinite-lived intangible:
Trade and brand namesN/A146,600 — 146,600 
Total intangible assets$358,791 $(157,854)$200,937 
Goodwill$228,569 $— $228,569 
 
A rollforward of goodwill during the years ended December 31, 2022 and 2021 is as follows:
FranchiseCorporate-owned storesEquipmentTotal
As of December 31, 2020$16,938 $118,217 $92,666 $227,821 
Acquisition of franchisee-owned stores— 748 — 748 
As of December 31, 2021$16,938 $118,965 $92,666 $228,569 
Acquisition of franchisee-owned stores— 488,544 — 488,544 
Sale of corporate-owned stores— (14,423)— (14,423)
As of December 31, 2022$16,938 $593,086 $92,666 $702,690 
The Company determined that no impairment charges were required during any periods presented. Increases to goodwill were due to the acquisition of 114 and 2 franchisee-owned stores in 2022 and 2021, respectively. The sale of 6 corporate-owned stores decreased goodwill in 2022.
Amortization expense related to the intangible assets totaled $40,294, $16,677, and $16,888 for the years ended December 31, 2022, 2021 and 2020, respectively. The anticipated annual amortization expense to be recognized in future years as of December 31, 2022 is as follows:
 Amount
2023$50,307 
202447,601 
202535,476 
202631,024 
202727,119 
Thereafter78,940 
Total$270,467 
v3.22.4
Long-term debt
12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Long-term debt Long-term debt
Long-term debt as of December 31, 2022 and 2021 consists of the following:
 December 31, 2022December 31, 2021
2018-1 Class A-2-I notes$— $556,312 
2018-1 Class A-2-II notes598,438 604,688 
2019-1 Class A-2 notes533,500 539,000 
2022-1 Class A-2-I notes421,812 — 
2022-1 Class A-2-II notes471,437 — 
Borrowings under Variable Funding notes— 75,000 
Total debt, excluding deferred financing costs2,025,187 1,775,000 
Deferred financing costs, net of accumulated amortization(26,306)(17,227)
Total debt1,998,881 1,757,773 
Current portion of long-term debt20,750 17,500 
Long-term debt and borrowings under Variable Funding Notes, net of current portion$1,978,131 $1,740,273 
Future annual principal payments of long-term debt as of December 31, 2022 are as follows:
 Amount
2023$20,750 
202420,750 
2025600,438 
2026419,313 
202710,250 
Thereafter953,686 
Total$2,025,187 
On August 1, 2018, Planet Fitness Master Issuer LLC (the “Master Issuer”), a limited-purpose, bankruptcy remote, wholly-owned indirect subsidiary of Pla-Fit Holdings, LLC, entered into a base indenture and a related supplemental indenture (collectively, the “2018 Indenture”) under which the Master Issuer may issue multiple series of notes. On the same date, the Master Issuer issued Series 2018-1 4.262% Fixed Rate Senior Secured Notes, Class A-2-I (the “2018 Class A-2-I Notes”) with an initial principal amount of $575,000 and Series 2018-1 4.666% Fixed Rate Senior Secured Notes, Class A-2-II (the “2018 Class A-2-II Notes” and, together with the 2018 Class A-2-I Notes, the “2018 Notes”) with an initial principal amount of $625,000. In connection with the issuance of the 2018 Notes, the Master Issuer also entered into a revolving financing facility that allows for the incurrence of up to $75,000 in revolving loans and/or Letters of Credit under the Master Issuer’s Series 2018-1 Variable Funding Senior Notes, Class A-1 (the “2018 Variable Funding Notes”). The Company fully drew down on the 2018 Variable Funding Notes on March 20, 2020. On December 3, 2019, the Master Issuer issued Series 2019-1 3.858% Fixed Rate Senior Secured Notes, Class A-2 (the “2019 Notes” and, together with the 2018 Notes, the “Notes”) with an initial principal amount of $550,000. The 2019 Notes were issued under the 2018 Indenture and a related supplemental indenture dated December 3, 2019 (together, the “2019 Indenture”). On February 10, 2022, the Company completed a prepayment in full of its 2018-1 Class A-2-I Notes and an issuance of Series 2022-1 3.251% Fixed Rate Senior Secured Notes, Class A-2-I with an initial principal amount of $425,000 and Series 2022-1 4.008% Fixed Rate Senior Secured Notes, Class A-2-II with an initial principal amount of $475,000 (the “2022 Notes” and, together with the 2018 Notes and 2019 Notes, the “Notes”), and also entered into a new revolving financing facility that allows for the issuance of up to $75,000 in Variable Funding Notes (“2022 Variable Funding Notes”) and certain Letters of Credit (the issuance of such notes, the “Series 2022-I Issuance”). The 2022 Notes were issued under the 2018 Indenture and a related supplemental indenture dated February 10, 2022 (together, with the 2019 Indenture, the “Indenture”). Together, the Notes, 2018 Variable Funding Notes and 2022 Variable Funding Notes will be referred to as the “Securitized Senior Notes”. On February 10, 2022, the Company borrowed the full amount of the $75,000 2022 Variable Funding Notes and used such proceeds to repay the outstanding principal amount (together with all accrued and unpaid interest thereon) of the 2018 Variable Funding Notes in full. On May 9, 2022, the Company repaid in full its $75,000 of borrowings under the 2022 Variable Funding Notes using cash on hand.
The Notes were issued in securitization transactions pursuant to which most of the Company’s domestic revenue-generating assets, consisting principally of franchise-related agreements, certain corporate-owned store assets, equipment supply agreements and intellectual property and license agreements for the use of intellectual property, were assigned to the Master Issuer and certain other limited-purpose, bankruptcy remote, wholly-owned indirect subsidiaries of the Company that act as guarantors of the Securitized Senior Notes and that have pledged substantially all of their assets to secure the Securitized Senior Notes.
Interest and principal payments on the Notes are payable on a quarterly basis. The requirement to make such quarterly principal payments on the Notes is subject to certain financial conditions set forth in the Indenture. The legal final maturity date of the 2018 Class A-2-II Notes is in September 2048, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2018 Class A-2-II Notes will be repaid in or prior to September 2025. The legal final maturity date of the 2019 Notes is in December 2049, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2019 Notes will be repaid in or prior to December 2029. The legal final maturity date of the 2022 Notes is in February 2052, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2022 Class A-2-I Notes will be repaid in or prior to December 2026 and the 2022 Class A-2-II Notes will be repaid in or prior to December 2031 (together, the “Anticipated Repayment Dates”). If the Master Issuer has not repaid or refinanced the Notes prior to the respective Anticipated Repayment Dates, additional interest will accrue pursuant to the Indenture.
As noted above, the Company borrowed the full $75,000 in 2022 Variable Funding Notes on February 10, 2022, which was repaid in full using cash on hand on May 9, 2022. If outstanding, the 2022 Variable Funding Notes will accrue interest at a variable interest rate based on (i) the prime rate, (ii) overnight federal funds rates, (iii) the secured overnight financing rate for
U.S. Dollars, or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, in each case plus any applicable margin and as specified in the 2022 Variable Funding Notes. There is a commitment fee on the unused portion of the 2022 Variable Funding Notes of 0.5% based on utilization. It is anticipated that the principal and interest on the 2022 Variable Funding Notes, if any, will be repaid in full on or prior to December 2026, subject to two additional one-year extension options. Following the anticipated repayment date (and any extensions thereof), additional interest will accrue on the 2022 Variable Funding Notes equal to 5.0% per year.
In connection with the issuance of the 2018 Notes, 2019 Notes, and 2022 Notes, the Company incurred debt issuance costs of $27,133, $10,577, and $16,193 respectively. The debt issuance costs are being amortized to interest expense through the Anticipated Repayment Dates of the Notes utilizing the effective interest rate method. As a result of the repayment of the 2018 Class A-2-I Notes prior to the Anticipated Repayment Date, the Company recorded a loss on early extinguishment of debt of $1,583 within interest expense on the Consolidated statements of operations, consisting of the write-off of remaining unamortized deferred financing costs related to the issuance of the 2018 Class A-2-I Notes.
The Securitized Senior Notes are subject to covenants and restrictions customary for transactions of this type, including (i) that the Master Issuer maintains specified reserve accounts to be used to make required payments in respect of the Securitized Senior Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the assets pledged as collateral for the Securitized Senior Notes are in stated ways defective or ineffective, (iv) a cap on non-securitized indebtedness of $50,000 (provided that the Company may incur non-securitized indebtedness in excess of such amount, subject to the leverage ratio cap described below, under certain conditions, including if the relevant lenders execute a non-disturbance agreement that acknowledges the bankruptcy-remote status of the Master Issuer and its subsidiaries and of their respective assets), (v) a leverage ratio cap incurrence test on the Company of 7.0x (calculated without regard for any indebtedness subject to the $50,000 cap) and (vi) covenants relating to recordkeeping, access to information and similar matters.
Pursuant to a parent company support agreement, the Company has agreed to cause its subsidiary to perform each of its obligations (including any indemnity obligations) and duties under the Management Agreement and under the contribution agreements entered into in connection with the securitized financing facility, in each case as and when due. To the extent that such subsidiary has not performed any such obligation or duty within the prescribed time frame after such obligation or duty was required to be performed, the Company has agreed to either (i) perform such obligation or duty or (ii) cause such obligations or duties to be performed on the Company’s behalf.
The Securitized Senior Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain stated debt service coverage ratios, certain manager termination events, an event of default, and the failure to repay or refinance the Notes on the applicable scheduled Anticipated Repayment Dates. The Securitized Senior Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal, or other amounts due on or with respect to the Securitized Senior Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments.
In accordance with the Indenture, certain cash accounts have been established with the Indenture trustee (the “Trustee”) for the benefit of the trustee and the noteholders, and are restricted in their use. The Company holds restricted cash which primarily represents cash collections held by the Trustee, interest, principal, and commitment fee reserves held by the Trustee related to the Securitized Senior Notes. As of December 31, 2022, the Company had restricted cash held by the Trustee of $46,651.
v3.22.4
Revenue from contract with customers
12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from contract with customers Revenue from contracts with customers
Contract Liabilities
Contract liabilities consist primarily of deferred revenue resulting from initial and renewal franchise fees and ADA fees paid by franchisees, as well as transfer fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement. Also included are corporate-owned store enrollment fees, annual fees and monthly fees as well as deferred equipment rebates relating to our equipment business. We classify these contract liabilities as deferred revenue in our consolidated balance sheets.
The following table reflects the change in contract liabilities between December 31, 2021 and December 31, 2022:
Contract liabilities
Balance at December 31, 2021
$61,779 
Revenue recognized that was included in the contract liability at the beginning of the year(28,115)
Other gain on settlement of preexisting contracts in connection with the Sunshine Acquisition(2,059)
Deferred revenue acquired in the Sunshine Acquisition16,973 
Increase, excluding amounts recognized as revenue during the period38,333 
Balance at December 31, 2022
$86,911 

The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2022. The Company has elected to exclude short term contracts, sales and usage based royalties and any other variable consideration recognized on an “as invoiced” basis.
Contract liabilities to be recognized in:Amount
2023$53,759 
20245,305 
20253,931 
20263,495 
20273,030 
Thereafter17,391 
Total$86,911 
The summary set forth below represents the balances in deferred revenue as of December 31, 2022 and 2021:
 December 31, 2022December 31, 2021
Prepaid membership fees$14,160 $6,491 
Enrollment fees3,806 1,257 
Equipment discount5,256 3,152 
Annual membership fees26,848 13,591 
Area development and franchise fees36,841 37,288 
Total deferred revenue86,911 61,779 
Long-term portion of deferred revenue33,152 33,428 
Current portion of deferred revenue$53,759 $28,351 
 
Equipment deposits received in advance of delivery as of December 31, 2022 and 2021 were $8,443 and $6,036, respectively and are expected to be recognized as revenue in the next twelve months.
v3.22.4
Related party transactions
12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Related party transactions Related party transactions
Activity with franchisees considered to be related parties is summarized below.
 For the Year Ended December 31,
 202220212020
Franchise revenue$4,074 $3,511 $1,783 
Equipment revenue1,909 1,626 515 
Total revenue from related parties$5,983 $5,137 $2,298 
 
Additionally, the Company had deferred ADA and franchise agreement revenue from related parties of $467 and $292 as of December 31, 2022 and 2021, respectively.
As of December 31, 2022 and 2021, the Company had $80,717 and $84,595, respectively, payable to related parties pursuant to tax benefit arrangements, see Note 17.
The Company provides administrative services to the NAF and typically charges the NAF a fee for providing those services, but temporarily suspended charging these fees in June 2020 through December 31, 2020 as a result of the COVID-19 pandemic. The services provided include accounting, information technology, data processing, product development, legal and administrative support, and other operating expenses, which amounted $2,437, $1,997 and $793 for the years ended December 31, 2022, 2021 and 2020, respectively.
A member of the Company’s board of directors, who is also a franchisee, holds an approximate 10.5% ownership of a company that sells amenity tracking compliance software to Planet Fitness stores to which the Company made payments of approximately $272 and $220, during the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, the software was being utilized at 192 and 110 corporate-owned stores, respectively, and approximately 672 and 653 franchise stores, respectively.
For the years ended December 31, 2022, 2021 and 2020, the Company incurred approximately $378, $173 and $90, respectively, which is included within selling, general and administrative expense on the consolidated statements of operations, for corporate travel to a third-party company which is affiliated with our Chief Executive Officer.
v3.22.4
Stockholders’ equity
12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Stockholders’ equity Stockholders’ equity
Pursuant to the exchange agreement between the Company and the Continuing LLC Owners, the Continuing LLC Owners (or certain permitted transferees thereof) have the right, from time to time and subject to the terms of the exchange agreement, to exchange their Holdings Units, along with a corresponding number of shares of Class B common stock, for shares of Class A common stock (or cash at the option of the Company) on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends, reclassifications and similar transactions. In connection with any exchange of Holdings Units for shares of Class A common stock by a Continuing LLC Owner, the number of Holdings Units held by the Company is correspondingly increased as it acquires the exchanged Holdings Units, and a corresponding number of shares of Class B common stock are canceled.
During the year ended December 31, 2022, the Company issued 517,348 shares of Class A Common Stock, of the Company and 3,637,678 membership units of Pla-Fit Holdings, LLC, together with shares of Class B Common Stock as consideration in conjunction with the Sunshine Acquisition. See Note 5.
Other Exchanges
During the years ended December 31, 2022, 2021 and 2020, respectively, certain Continuing LLC Owners have exercised their exchange right and exchanged 548,175, 622,979 and 4,839,866 Holdings Units, respectively, for 548,175, 622,979 and 4,839,866 newly-issued shares of Class A common stock, respectively. Simultaneously, and in connection with these exchanges, 548,175, 622,979 and 4,839,866 shares of Class B common stock were surrendered by the Continuing LLC Owners that exercised their exchange rights and canceled during the years ended December 31, 2022, 2021 and 2020, respectively. Additionally, in connection with these exchanges, Planet Fitness, Inc. received 548,175, 622,979 and 4,839,866 Holdings Units, during the years ended December 31, 2022, 2021 and 2020 respectively, increasing its total ownership in Pla-Fit Holdings. Future exchanges of Holdings Units by the Continuing LLC Owners will result in a change in ownership and reduce the amount recorded as non-controlling interest and increase additional paid-in capital on our consolidated balance sheets.
As a result of the recapitalization transactions, the IPO, completion of our secondary offerings, and other exchanges and equity activity, as of December 31, 2022:
the public investors collectively owned 83,430,495 shares of our Class A common stock, representing 93.1% of the voting power in the Company and, through the Company, 93.1% of the economic interest in Pla-Fit Holdings; and
the Continuing LLC Owners collectively hold 6,145,722 Holdings Units, representing 6.9% of the economic interest in Pla-Fit Holdings and 6,145,722 shares of our Class B common stock, representing 6.9% of the voting power in the Company;
Share repurchase programs
2019 share repurchase program
On November 5, 2019, the Company’s board of directors approved a share repurchase program of up to $500,000.
On December 4, 2019, the Company entered into a $300,000 accelerated share repurchase agreement (the “2019 ASR Agreement”) with JPMorgan Chase Bank, N.A. (“JPMC”). Pursuant to the terms of the 2019 ASR Agreement, on December 5, 2019, the Company paid JPMC $300,000 upfront in cash and received 3,289,924 shares of the Company’s Class A common stock, which were retired, and the Company elected to record as a reduction to retained earnings of $240,000. Final settlement
of the ASR Agreement occurred on March 2, 2020. At final settlement, JPMC delivered 666,961 additional shares of the Company’s Class A common stock, based on a weighted average cost per share of $75.82 over the term of the 2019 ASR Agreement, which were retired. This was evaluated as an unsettled forward contract indexed to our own stock, with $60,000 classified as a reduction to retained earnings at the original date of payment.
During the year ended December 31, 2022, the Company purchased 1,528,720 shares of Class A common stock for a total cost of $94,315. All purchased shares were retired. Subsequent to these repurchases, there was $105,686 remaining under the 2019 share repurchase program.
2022 share repurchase program
On November 4, 2022, the Company’s board of directors approved a share repurchase program of up to $500,000, which replaces the 2019 share repurchase program. During January 2023, the Company purchased 317,599 shares of Class A common stock for a total cost of $25,005.
The timing of purchases and amount of stock repurchased will be subject to the Company’s discretion and will depend on market and business conditions, the Company’s general working capital needs, stock price, applicable legal requirements and other factors. Our ability to repurchase shares at any particular time is also subject to the terms of the Indenture governing the Securitized Senior Notes. Purchases may be effected through one or more open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or a combination of the foregoing.
Dividends
The Company did not declare or pay any dividends during the years ended December 31, 2022, 2021, or 2020.
Preferred stock
The Company had 50,000,000 preferred stock shares authorized and none issued or outstanding for the years ended December 31, 2022 or 2021.
v3.22.4
Equity-based compensation
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Equity-based compensation Equity-based compensation
2015 Omnibus Incentive Plan
In August 2015, the Company adopted the 2015 Omnibus Incentive Plan (the “2015 Plan”) under which the Company may grant options and other equity-based awards to purchase up to 7,896,800 shares to employees, directors and officers.
Stock Options
Generally, stock options awarded vest annually, on a tranche by tranche basis, over a period of four years with a maximum contractual term of 10 years.
The fair value of stock option awards granted were determined on the grant date using the Black-Scholes valuation model based on the following assumptions:
 Year ended December 31,
 20222021
Expected term (years)(1)
0.25 - 6.25
6.25
Expected volatility(2)
28.0% - 55.5%
48.8% - 49.4%
Risk-free interest rate(3)
0.65% - 4.20%
1.05% - 1.21%
Dividend yield(4)
— %— %
 
(1)Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.
(2)Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.
(3)The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.
(4)Based on an assumed a dividend yield of zero at the time of grant.
A summary of stock option activity for the year ended December 31, 2022: 
 Stock OptionsWeighted average
exercise price
Weighted average remaining contractual term (years)Aggregate intrinsic value
Outstanding at January 1, 2022
832,325 $43.86 
Granted119,364 $77.05 
Exercised(8,063)$23.17 
Forfeited(73,687)$76.39 
Outstanding at December 31, 2022
869,939 $45.85 5.5$28,903 
Vested or expected to vest at December 31, 2022
869,939 $45.85 5.5$28,903 
Exercisable at December 31, 2022
650,955 $35.49 4.7$28,193 

The weighted-average grant date fair value of stock options granted during the year ended December 31, 2022 was $29.31. During the years ended December 31, 2022 and 2021, $2,947 and $3,915, respectively, was recorded to selling, general and administrative expense related to stock options. As of December 31, 2022, total unrecognized compensation expense related to unvested stock options, was $3,045, which is expected to be recognized over a weighted-average period of 1.9 years.
Restricted stock units
Restricted Class A stock units (“RSUs”) granted to members of the Board of Directors vest on the first anniversary of the grant date, provided that the recipient continues to serve on the Board of Directors through the vesting dates. RSUs are also granted to certain employees of the Company and generally vest annually, on a tranche by tranche basis, over a period of four years. RSU awards are valued using the intrinsic value method. 
 Restricted stock unitsWeighted average
fair value
Weighted average remaining contractual term (years)Aggregate intrinsic value
Unvested outstanding at January 1, 2022
138,917 $71.65 
Granted80,472 $82.42 
Vested(65,433)$66.06 
Forfeited(48,592)$84.38 
Unvested outstanding at December 31, 2022
105,364 $77.47 1.8$8,303 
During the years ended December 31, 2022 and 2021, $4,202 and $4,568, respectively, was recorded to selling, general and administrative expense related to RSUs. As of December 31, 2022, total unrecognized compensation expense related to unvested RSUs was $3,162, which is expected to be recognized over a weighted-average period of 1.8 years.
Performance share units
Class A performance share units (“PSUs”) are subject to a set of performance metrics that adjusts the quantity of awards earned from zero up to 200% of the original target quantity depending upon the Company’s results at the end of the three year performance period against the performance metrics. These awards cliff-vest three years from the date of grant, and the Company recognizes compensation expense ratably over the required service period based on its estimate of the number of shares will vest upon achieving the measurement criteria. If there is a change in the estimate of the number of shares that are probable of vesting, the Company will cumulatively adjust compensation expense in the period that the change in estimate is made.
 Performance share unitsWeighted average
fair value
Weighted average remaining contractual term (years)Aggregate intrinsic value
Unvested outstanding at January 1, 2022
— $— 
Granted95,338 $90.21 
Vested— $— 
Forfeited(66,394)$93.52 
Unvested outstanding at December 31, 2022
28,944 $82.61 2.2$2,281 
Expected to vest at December 31, 2022
25,177 $82.61 2.2$1,984 
During the years ended December 31, 2022 and 2021, $540 and $0, respectively, was recorded to selling, general and administrative expense related to the PSUs. As of December 31, 2022, total unrecognized compensation expense related to unvested PSUs was $1,540, which is expected to be recognized over a weighted average period of 2.2 years.
2018 Employee stock purchase plan
The 2018 Employee Stock Purchase Plan (the “ESPP”), as adopted by the Board of Directors in March 2018, allows eligible employees to purchase shares of the Company’s Class A common stock at a discount through payroll deductions of up to 10% of their eligible compensation, subject to any plan limitations. The ESPP provides for six-month offering periods, and at the end of each offering period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s Class A common stock on the first trading day of the offering period or on the last day of the offering period. As of December 31, 2022, a total of 1,000,000 shares of common stock were authorized and available for the issuance of equity awards under the ESPP. During the year ended December 31, 2022, employees purchased 16,375 shares and $377 was recorded to expense related to the ESPP.
v3.22.4
Earnings per share
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Earnings per share Earnings per share
Basic earnings per share of Class A common stock is computed by dividing net income or loss attributable to Planet Fitness, Inc. for the years ended December 31, 2022, 2021, and 2020, by the weighted-average number of shares of Class A common stock outstanding during the same periods. Diluted earnings per share of Class A common stock is computed by dividing net income attributable to Planet Fitness, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.
Shares of the Company’s Class B common stock do not share in the earnings or losses attributable to Planet Fitness, Inc. and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented. Shares of the Company’s Class B common stock are, however, considered potentially dilutive shares of Class A common stock because shares of Class B common stock, together with the related Holdings Units, are exchangeable into shares of Class A common stock on a one-for-one basis.
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:
Basic net income per share:Year Ended December 31, 2022Year Ended December 31, 2021Year Ended December 31, 2020
Numerator
Net income (loss)$110,456 $46,122 $(15,204)
Less: net income (loss) attributable to non-controlling interests11,054 3,348 (213)
Net income (loss) attributable to Planet Fitness, Inc. - basic & diluted$99,402 $42,774 $(14,991)
Denominator
Weighted-average shares of Class A common stock outstanding - basic84,136,819 83,295,580 80,303,277 
Effect of dilutive securities:
Stock options351,200 540,381 — 
Restricted stock units54,864 58,188 — 
Performance stock units1,215 — — 
Weighted-average shares of Class A common stock outstanding - diluted84,544,098 83,894,149 80,303,277 
Earnings (loss) per share of Class A common stock - basic$1.18 $0.51 $(0.19)
Earnings (loss) per share of Class A common stock - diluted$1.18 $0.51 $(0.19)
Potentially dilutive stock options of 528,464 and restricted stock units of 41,223 for the year ended December 31, 2020 were not included in the computation of diluted loss per share because the inclusion thereof would be antidilutive.
Weighted average shares of Class B common stock of 5,867,367, 3,323,399 and 6,292,971 for the years ended December 31, 2022, 2021 and 2020, respectively, were evaluated under the if-converted method for potential dilutive effects and were determined to be anti-dilutive. Weighted-average stock options outstanding of 244,660, 160,833 and 162,740 for the years ended December 31, 2022, 2021 and 2020, respectively, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive. Weighted average restricted stock units outstanding of 11,963, 114 and 548, for the year ended December 31, 2022, 2021 and 2020, respectively, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive. Weighted average performance stock units outstanding of 1,066, 0 and 0, for the year ended December 31, 2022, 2021 and 2020, respectively, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive.
v3.22.4
Income taxes
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
Income (loss) before the provision for income taxes as shown in the accompanying consolidated statements of operations is as follows:
 
 Year Ended December 31,
 202220212020
Domestic$158,345 $52,425 $(13,382)
Foreign3,093 (465)(1,135)
Total income (loss) before the provision for income taxes161,438 51,960 (14,517)
 
The provision (benefit) for income taxes consists of the following:
 Year Ended December 31,
 202220212020
Current:
Federal$— $(314)$(6,938)
State842 4,197 256 
Foreign1,055 248 156 
Total current tax expense (benefit)1,897 4,131 (6,526)
Deferred:
Federal27,401 11,079 2,769 
State21,049 (9,750)4,530 
Foreign168 199 (86)
Total deferred tax expense48,618 1,528 7,213 
Provision for income taxes$50,515 $5,659 $687 

The Company is the sole managing member of Pla-Fit Holdings, which is treated as a partnership for U.S. federal and certain state and local income taxes. As a partnership, Pla-Fit Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Pla-Fit Holdings is passed through to and included in the taxable income or loss of its members, including the Company, on a pro rata basis. Planet Fitness, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to our allocable share of any taxable income of Pla-Fit Holdings. The Company is also subject to taxes in certain foreign jurisdictions.
A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows:
 Year Ended December 31,
 202220212020
U.S. statutory tax rate21.0 %21.0 %21.0 %
State and local taxes, net of federal benefit4.0 %6.6 %5.7 %
State rate change impact on deferred taxes8.6 %(22.7)%(37.4)%
Tax benefit arrangement liability adjustment(1.8)%4.7 %8.6 %
Foreign tax rate differential0.2 %0.7 %(1.0)%
Withholding taxes and other0.3 %0.6 %(0.3)%
Colorado store sale0.9 %— %— %
Change in valuation allowance(0.4)%8.6 %— %
Equity-based compensation(0.2)%(7.4)%— %
Income attributable to non-controlling interests(1.3)%(1.2)%(1.3)%
Effective tax rate31.3 %10.9 %(4.7)%
 
The Company’s effective tax rate was 31.3% for the year ended December 31, 2022, in comparison to the U.S. statutory tax rate in 2022 of 21.0%. The effective tax rate differs from the U.S. statutory rate primarily due to an income tax expense recorded in 2022 resulting from a change in our deferred tax rate, in addition to the fact that we are subject to taxation in various state and local jurisdictions resulting in an increase in our effective tax rate.

The Company’s effective tax rate was 31.3% for the year ended December 31, 2022, compared to 10.9% in the prior year. The increase in the effective income tax rate was primarily due to an income tax expense in 2022 resulting from a change in our deferred tax rate, partially offset by a reduction in state and local taxes.

Deferred income taxes are provided for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the accompanying consolidated balance sheets. These temporary differences result in taxable or deductible amounts in future years. Details of the Company’s deferred tax assets and liabilities are summarized as follows: 
 Year Ended December 31,
 20222021
Deferred tax assets:
Deferred revenue$5,277 $7,518 
Goodwill and intangible assets401,438 487,752 
Net operating loss53,370 47,361 
Lease liabilities91,205 53,625 
Other12,585 11,209 
Deferred tax assets563,875 607,465 
Valuation allowance(4,037)(4,630)
Deferred tax assets, net of valuation allowance$559,838 $602,835 
Deferred tax liabilities:
Prepaid expenses(952)(2,244)
Property and equipment(23,718)(16,433)
Right of use assets(82,074)(44,894)
Total deferred tax liabilities$(106,744)$(63,571)
Total deferred tax assets and liabilities$453,094 $539,264 
Reported as:
Deferred income taxes - non-current assets$454,565 $539,264 
Deferred income taxes - non-current liabilities(1,471)— 
Total deferred tax assets and liabilities$453,094 $539,264 
As of December 31, 2022, we had a net deferred tax asset of $453,094, primarily resulting from tax attributes generated from past exchanges and sales of Holdings Units which will reduce taxable income in future periods. Substantially all of our deferred tax assets are deemed to be more likely than not to be realized. In assessing the need for a valuation allowance, we consider, among other things, our recent history of generating positive income before taxes, projections of future taxable income and ongoing prudent and feasible tax planning strategies. As of December 31, 2022, the Company has continued to provide a valuation allowance of $4,037 against the portion of its deferred tax assets that would generate capital losses for which the Company does not have sufficient positive evidence to support its recoverability.
As of December 31, 2022, the Company had federal net operating loss carryforwards of $210,717, with an indefinite lived carryforward.
A summary of the changes in the Company’s unrecognized tax positions is as follows:
 Year Ended December 31,
 20222021
Balance at beginning of year$420 $420 
Increase related to current year tax positions— — 
Decrease related to prior year tax positions(92)— 
Balance at end of year$328 $420 
As of December 31, 2022 and 2021, the total liability related to uncertain tax positions was $328 and $420, respectively, and is included within other liabilities on our consolidated balance sheets. The table above presents a reconciliation of the beginning and ending balances of the liability for unrecognized tax benefits, excluding interest and penalties, for the years ended December 31, 2022 and 2021.
The Company and its subsidiaries file U.S. federal income tax returns, as well as tax returns in various state and foreign jurisdictions. Generally, the tax years 2019 through 2022 remain open to examination by the tax authorities in these jurisdictions.
Tax benefit arrangements
The Company’s acquisition of Holdings Units in connection with the IPO and certain future and past exchanges of Holdings Units for shares of the Company’s Class A common stock (or cash at the option of the Company) are expected to produce and have produced favorable tax attributes. In connection with the IPO, the Company entered into two tax receivable agreements. Under the first of those agreements, the Company generally is required to pay to the TRA Holders 85% of the applicable tax savings, if any, in U.S. federal and state income tax that the Company is deemed to realize as a result of certain tax attributes of their Holdings Units sold to the Company (or exchanged in a taxable sale) and that are created as a result of (i) the sales of their Holdings Units for shares of Class A common stock and (ii) tax benefits attributable to payments made under the tax receivable agreement (including imputed interest). Under the second tax receivable agreement, the Company generally is required to pay to the Direct TSG Investors 85% of the amount of tax savings, if any, that the Company is deemed to realize as a result of the tax attributes of the Holdings Units held in respect of the Direct TSG Investors’ interest in the Company, which resulted from the Direct TSG Investors’ purchase of interests in Pla-Fit Holdings in 2012, and certain other tax benefits. Under both agreements, the Company generally retains the benefit of the remaining 15% of the applicable tax savings. The Company recorded other income of $13,831, other expense of $11,737 and other income of $5,949 in the years ended December 31, 2022, 2021 and 2020, respectively, reflecting a change in the tax benefit obligation attributable to a change in the expected tax benefits. In each year, the remeasurement was primarily due to various state tax legislation changes enacted in the year and in 2022 was also due to the Sunshine Acquisition which resulted in a change in the amount of income apportioned to various states in future periods and accordingly resulted in a decrease to the tax benefit arrangement liability.
In connection with the exchanges that occurred during 2022 and 2021, 548,175 and 622,979 Holdings Units, respectively, were redeemed by the Continuing LLC Owners for newly-issued shares of Class A common stock, resulting in an increase in the tax basis of the net assets of Pla-Fit Holdings. As a result of the change in Planet Fitness, Inc.’s ownership percentage of Pla-Fit Holdings that occurred in conjunction with the exchanges and issuance of Holdings Units, we recorded an increase to our net deferred tax assets of $2,000 and a decrease to our net deferred tax assets of $468, during the years ended December 31, 2022 and 2021, respectively. As a result of these exchanges and other activity, during the years ended December 31, 2022 and 2021 we also recognized deferred tax assets in the amount of $16,326 and $17,714, respectively, and corresponding tax benefit arrangement liabilities of $0 and $15,034, respectively, representing approximately 85% of the tax benefits due to the TRA Holders for shares exchanged that were subject to tax benefit arrangements. The offset to the entries recorded in connection with exchanges in each year was to stockholders’ equity.
The tax benefit obligation was $494,465 and $528,107 as of December 31, 2022 and 2021, respectively.
Projected future payments under the tax benefit arrangements are as follows:
 Amount
2023$31,940 
202441,153 
202551,713 
202654,038 
202756,761 
Thereafter258,860 
Total$494,465 
v3.22.4
Commitments and contingencies
12 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and contingencies
(a) Legal matters
From time to time, and in the ordinary course of business, the Company is subject to various claims, charges, and litigation, such as employment-related claims and slip and fall cases.
On May 27, 2022, the Company and other defendants, including an officer of the Company who is a related party, received a final judgment after appeal to the joint and several judgment against them in a civil action brought by a former employee. In connection with the 2012 acquisition of Pla-Fit Holdings on November 8, 2012, the sellers are obligated to indemnify the Company related to this specific matter. The Company has incurred legal costs on behalf of the defendants in the case, which include a related party. These costs have historically not been material. During the fourth quarter of 2022, the Company and other defendants, as applicable, paid the final judgment in full, of which the Company paid $3,414. During 2022, the Company recorded an increase to its indemnification receivable of $1,189, and recorded a corresponding reserve against the indemnification receivable of $1,189 through other gain (loss) on the statement of operations.
On December 31, 2020, the Company reached agreement on the settlement of certain legal claims for $3,800 and recorded this amount as expense in other gain (loss) in our consolidated statements of operations in the year ended December 31, 2020.
Mexico Acquisition
On March 19, 2020, a franchisee in Mexico exercised a put option that requires the Company to acquire their franchisee-owned stores in Mexico. The transaction had not closed as of December 31, 2022 as the parties were in dispute over the final terms of the transaction and related matters. Subsequent to year-end, in February 2023, the Company and the franchisee agreed on a summary of terms for a settlement agreement (“Preliminary Settlement Agreement”), which will include the Company’s acquisition of the franchisee-owned stores and a release of all claims by all parties. In connection with the Preliminary Settlement Agreement, the Company recorded a legal settlement reserve of $8,550, inclusive of estimated future legal fees, through other loss on the statement of operations.
The Company is not currently aware of any other legal proceedings or claims that the Company believes will have, individually or in the aggregate, a material adverse effect on the Company’s financial position or result of operations.
(b) Purchase commitments
As of December 31, 2022, the Company had advertising purchase commitments of approximately $77,865, including commitments made by the NAF. In addition, the Company had open purchase orders of approximately $22,019 primarily related to equipment to be sold to franchisees.
(c) Guarantees
The Company historically guaranteed lease agreements for certain franchisees and in 2019, in connection with a real estate partnership, the Company began guaranteeing certain leases of its franchisees up to a maximum period of ten years, with earlier expiration dates if certain conditions are met. The Company’s maximum obligation, as a result of its guarantees of leases, is approximately $5,942 and $6,670 as of December 31, 2022 and 2021, respectively, and would only require payment upon default by the primary obligor. The Company has determined the fair value of these guarantees at inception is not material, and as of December 31, 2022 and 2021, no accrual has been recorded for the Company’s potential obligation under its guaranty arrangement.
v3.22.4
Retirement plan
12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Retirement plan Retirement planThe Company maintains a 401(k) deferred tax savings plan (the Plan) for eligible employees. The Plan provides for the Company to make an employer matching contribution currently equal to 100% of employee deferrals up to a maximum of 4% of each eligible participating employees’ wages. Total employer matching contributions expensed in the consolidated statements of operations were approximately $1,123, $846, and $910 for the years ended December 31, 2022, 2021 and 2020, respectively.
v3.22.4
Segments
12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segments Segments
The Company has three reportable segments: (i) Franchise; (ii) Corporate-owned stores; and (iii) Equipment.  
The Company’s operations are organized and managed by type of products and services and segment information is reported accordingly. The Company’s chief operating decision maker (the “CODM”) is its Chief Executive Officer. The CODM reviews financial performance and allocates resources by reportable segment. There have been no operating segments aggregated to arrive at the Company’s reportable segments.
The Franchise segment includes operations related to the Company’s franchising business in the United States, Puerto Rico, Canada, Panama, Mexico and Australia. The Company records all revenues and expenses of the NAF within the franchise segment. The Corporate-owned stores segment includes operations with respect to all Corporate-owned stores throughout the United States and Canada. The Equipment segment includes the sale of equipment to franchisee-owned stores.
The accounting policies of the reportable segments are the same as those described in Note 2. The Company evaluates the performance of its segments and allocates resources to them based on revenue and earnings before interest, taxes, depreciation, and amortization, referred to as Segment EBITDA. Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues.
The tables below summarize the financial information for the Company’s reportable segments for the years ended December 31, 2022, 2021 and 2020. The “Corporate and other” column, as it relates to Segment EBITDA, primarily includes corporate overhead costs, such as payroll and related benefit costs and professional services which are not directly attributable to any individual segment.
 Year Ended December 31,
 202220212020
Revenue
Franchise segment revenue - U.S.$321,062 $286,283 $202,844 
Franchise segment revenue - International8,572 4,427 3,312 
Franchise segment total329,634 290,710 206,156 
Corporate-owned stores segment - U.S.375,375 165,433 115,174 
Corporate-owned stores segment - International4,018 1,786 1,968 
Corporate-owned stores segment total379,393 167,219 117,142 
Equipment segment - U.S.212,269 125,023 82,331 
Equipment segment - International15,476 4,071 989 
Equipment segment total227,745 129,094 83,320 
Total revenue$936,772 $587,023 $406,618 
 
Franchise revenue includes revenue generated from placement services of $17,125, $9,968, and $6,918 for the years ended December 31, 2022, 2021 and 2020, respectively. 
 Year Ended December 31,
 202220212020
Segment EBITDA
Franchise$216,817 $194,303 $114,968 
Corporate-owned stores142,083 49,196 23,672 
Equipment59,082 29,680 13,097 
Corporate and other(49,366)(78,265)(33,242)
Total Segment EBITDA$368,616 $194,914 $118,495 
 
The following table reconciles total Segment EBITDA to income before taxes: 
 Year Ended December 31,
 202220212020
Total Segment EBITDA$368,616 $194,914 $118,495 
Less:
Depreciation and amortization124,022 62,800 53,832 
Other income (expense)14,983 (11,102)4,903 
Equity earnings (losses) of unconsolidated entities, net of tax(467)(179)— 
Income from operations230,078 143,395 59,760 
Interest expense, net(83,623)(80,333)(79,180)
Other income (expense)14,983 (11,102)4,903 
Income before income taxes$161,438 $51,960 $(14,517)

The following table summarizes the Company’s assets by reportable segment: 
 December 31, 2022December 31, 2021
Franchise$161,355 $172,822 
Corporate-owned stores1,559,985 516,714 
Equipment200,020 193,983 
Unallocated933,229 1,132,464 
Total consolidated assets$2,854,589 $2,015,983 
 
The table above includes $916 and $1,203 of long-lived assets located in the Company’s international corporate-owned stores as of December 31, 2022 and 2021, respectively.
The following table summarizes the Company’s goodwill by reportable segment:
 December 31, 2022December 31, 2021
Franchise$16,938 $16,938 
Corporate-owned stores593,086 118,965 
Equipment92,666 92,666 
Total consolidated goodwill$702,690 $228,569 
v3.22.4
Corporate-owned and franchisee-owned stores
12 Months Ended
Dec. 31, 2022
Franchisors [Abstract]  
Corporate-owned and franchisee-owned stores Corporate-owned and franchisee-owned stores
The following table shows changes in our corporate-owned and franchisee-owned stores for the years ended December 31, 2022, 2021 and 2020:
 Year Ended December 31,
 202220212020
Franchisee-owned stores:
Stores operated at beginning of period2,142 2,021 1,903 
New stores opened144 125 125 
Stores acquired from the Company— — 
Stores debranded, sold or consolidated(1)
(116)(4)(7)
Stores operated at end of period(2)
2,176 2,142 2,021 
Corporate-owned stores:
Stores operated at beginning of period112 103 98 
New stores opened14 
Stores sold to franchisees(6)— — 
Stores acquired from franchisees114 — 
Stores operated at end of period(2)
234 112 103 
Total stores:
Stores operated at beginning of period2,254 2,124 2,001 
New stores opened158 132 130 
Stores debranded, sold or consolidated(1)
(2)(2)(7)
Stores operated at end of period(2)
2,410 2,254 2,124 
 
(1)The term “debrand” refers to a franchisee-owned store whose right to use the Planet Fitness brand and marks has been terminated in accordance with the franchise agreement. We retain the right to prevent debranded stores from continuing to operate as fitness centers. The term “consolidated” refers to the combination of a franchisee’s store with another store located in close proximity with our prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store. 
(2)The “stores operated” includes stores that have closed temporarily related to the COVID-19 pandemic. All stores were closed in March 2020 in response to the COVID-19 pandemic, and as of December 31, 2022, all 2,410 were re-opened and operating.
v3.22.4
Subsequent events
12 Months Ended
Dec. 31, 2022
Subsequent Events [Abstract]  
Subsequent events Subsequent eventsSubsequent to year-end, in February 2023, the Company reached a Preliminary Settlement Agreement in its litigation with a franchisee, which will include the Company’s acquisition of the franchisee-owned stores and a release of all claims by all parties. See Note 18.
v3.22.4
Valuation and Qualifying Accounts
12 Months Ended
Dec. 31, 2022
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Valuation and Qualifying Accounts Schedule II – Valuation and Qualifying Accounts
(in thousands)Balance at Beginning of PeriodProvision for (recovery of) doubtful accounts, netWrite-offs and otherBalance at End of Period
Allowance for uncollectible amounts:    
December 31, 2022$— $— $— $— 
December 31, 2021$$10 $(17)$— 
December 31, 2020$111 $(74)$(30)$
(in thousands)Balance at Beginning of Period(Gain) loss on adjustment of allowance for credit losses on held-to-maturity investmentWrite-offs and otherBalance at End of Period
Allowance for credit losses on held to maturity investment:    
December 31, 2022$17,462 $(2,505)$— $14,957 
December 31, 2021$— $17,462 $— $17,462 
December 31, 2020$— $— $— $— 
(in thousands)Balance at Beginning of Period(Benefit) provision of allowanceUtilization of allowanceBalance at End of Period
Valuation allowance on deferred tax assets:    
December 31, 2022$4,630 $(593)$— $4,037 
December 31, 2021$— $4,630 $— $4,630 
December 31, 2020$— $— $— $— 
v3.22.4
Summary of significant accounting policies (Policies)
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Basis of presentation and consolidation Basis of presentation and consolidation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). All significant intercompany balances and transactions have been eliminated in consolidation.
As discussed in Note 1, Planet Fitness, Inc. consolidates Pla-Fit Holdings. The Company also consolidates entities in which it has a controlling financial interest, the usual condition of which is ownership of a majority voting interest. The Company also considers for consolidation certain interests where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary of a VIE is considered to possess the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the rights to receive benefits from the VIE that are significant to it. The principal entities in which the Company possesses a variable interest include franchise entities and certain other entities. The Company is not deemed to be the primary beneficiary for Planet Fitness franchise entities. Therefore, these entities are not consolidated.
The results of the Company have been consolidated with Matthew Michael Realty LLC (“MMR”), PF Melville LLC (“PF Melville”), and Planet Fitness NAF, LLC (the “NAF”) based on the determination that the Company is the primary beneficiary with respect to these VIEs. MMR and PF Melville are real estate holding companies that derive a majority of their financial support from the Company through lease agreements for corporate stores. See Note 3 for further information related to the Company’s VIEs. The NAF is an advertising fund, which on behalf of the Company collects 2% annually of gross monthly membership fees from franchisees, in accordance with the provisions of the franchise agreements, and uses the amounts
received to increase sales and further enhance the public reputation of the Planet Fitness brand. See Note 4 for further information related to the NAF.
Use of estimates Use of estimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the consolidated financial statements include revenue recognition, valuation of equity-based compensation awards, valuation of assets and liabilities acquired in business combinations, the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets, allowance for expected credit losses, the present value of lease liabilities, income taxes, including deferred tax assets and liabilities, and the liability for the Company’s tax benefit arrangements.
Concentrations Concentrations
Cash and cash equivalents are financial instruments, which potentially subject the Company to a concentration of credit risk. The Company invests its excess cash in several major financial institutions, which are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. The Company maintains balances in excess of these limits, but does not believe that such deposits with its banks are subject to any unusual risk.
The credit risk associated with trade receivables is mitigated due to the large number of customers, generally franchisees, and their broad dispersion over many different geographic areas. The Company does not have any concentrations greater than 10% with respect to revenues.
Cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cashThe Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents.
Revenue from contracts with customers Revenue from contracts with customers
The Company’s revenues are comprised of franchise revenue, equipment revenue, and corporate-owned stores revenue.
Franchise revenue
Franchise revenues consist primarily of royalties, NAF contributions, initial and successor franchise fees and upfront fees from area development agreements (“ADAs”), transfer fees, equipment placement revenue, commission income, online join fees, and other fees. 
The Company’s primary performance obligation under the franchise license is granting certain rights to use the Company’s intellectual property, and all other services the Company provides under the ADA and franchise agreement are highly interrelated, not distinct within the contract, and therefore accounted for under ASC 606 - Revenue Recognition as a single
performance obligation, which is satisfied by granting certain rights to use intellectual property over the term of each franchise agreement.
Royalties and franchisee contributions to national advertising funds, are calculated as a percentage of franchise monthly dues and annual fees over the term of the franchise agreement. Under the franchise agreements, advertising contributions paid by franchisees must be spent on advertising, marketing and related activities. Initial and successor franchise fees are payable by the franchisee upon signing a new franchise agreement or successor franchise agreement, and transfer fees are paid to the Company when one franchisee transfers a franchise agreement to a different franchisee. Franchise royalties, as well as NAF contributions, represent sales-based royalties that are related entirely to the performance obligation under the franchise agreement and are recognized as franchise sales occur.
Initial and successor franchise fees, as well as transfer fees, are recognized as revenue on a straight-line basis over the term of the respective franchise agreement. ADAs generally consist of an obligation to grant geographic exclusive area development rights. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for exclusive development rights are deferred and apportioned to each franchise agreement signed by the franchisee. The pro-rata amount apportioned to each franchise agreement is accounted for identically to the initial franchise fee.
The Company is generally responsible for assembly and placement of equipment it sells to U.S., Canada, and Mexico based franchisee-owned stores. Placement revenue is recognized upon completion and acceptance of the services at the franchise location.
The Company recognizes commission income from certain of its franchisees’ use of certain preferred vendor arrangements. Commissions are recognized when amounts have been earned and collectability from the vendor is reasonably assured.
Online member join fees are paid to the Company by franchisees for processing new membership transactions when a new member signs up for a membership to a franchisee-owned store through the Company’s website. These fees are recognized as revenue as each transaction occurs.
Billing transaction fees are paid to the Company by certain of its franchisees for the processing of franchisee membership dues and annual fees through the Company’s third-party hosted point-of-sale system and are recognized as revenue as they are earned.
Equipment revenue
The Company sells and delivers equipment purchased from third-party equipment manufacturers to U.S., Canada, and Mexico based franchisee-owned stores. Revenue is recognized upon transfer of control of ordered items, generally upon delivery to the customer, which is when the customer obtains physical possession of the goods, legal title is transferred, the customer has all risks and rewards of ownership and an obligation to pay for the goods is created. Franchisees are charged for all freight costs incurred for the delivery of equipment. Freight revenue is recorded within equipment revenue and freight costs are recorded within cost of revenue. In most instances, the Company recognizes equipment revenue on a gross basis as management has determined the Company to be the principal in these transactions. Management determined the Company to be the principal in the transaction because the Company controls the equipment prior to delivery to the final customer as evidenced by its pricing discretion over the goods, inventory transfer of title and risk of loss while the inventory is in transit, and having the primary responsibility to fulfill the customer order and direct the third-party vendor.
Corporate-owned stores revenue
The following revenues are generated from stores owned and operated by the Company.
Membership dues revenue
Customers are offered multiple membership choices varying in length. Membership dues are earned and recognized over the membership term on a straight-line basis.
Enrollment fee revenue
Enrollment fees are charged to new members at the commencement of their membership. The Company recognizes enrollment fees ratably over the estimated duration of the membership life, which is generally two years.
Annual membership fee revenue
Annual membership fees are annual fees charged to members in addition to and in order to maintain low monthly membership dues. The Company recognizes annual membership fees ratably over the 12-month membership period or as long as there is a service obligation to the member.
Retail sales
The Company sells Planet Fitness branded apparel, food, beverages, and other accessories. The revenue for these items is recognized at the point of sale.
Sales tax
All revenue amounts are recorded net of applicable sales tax.
Deferred revenueFranchise deferred revenue results from initial and successor franchise fees and ADA fees paid by franchisees, as well as transfer fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement. Deferred revenue is also recognized in the Corporate-owned stores segment for cash received from members for enrollment fees, membership dues and annual fees for the portion not yet earned based on the membership period. Equipment deposits made at the time of ordering equipment are also deferred until the revenue recognition criteria are met.
Cost of revenue Cost of revenueCost of revenue consists primarily of direct costs associated with equipment sales (including freight costs) and the cost of retail merchandise sold in corporate-owned stores. Costs related to retail merchandise sales were immaterial in all periods presented. Rebates from equipment vendors where the Company has recognized the related equipment revenue and costs are recorded as a reduction to the cost of revenue.
Store operations Store operationsStore operations consists of the direct costs related to operating corporate-owned stores, including store management and staff, rent expense, utilities, supplies, maintenance, and local and national advertising.
Selling, general and administrative Selling, general and administrativeSelling, general and administrative expenses consist of costs associated with administrative, corporate-owned and franchisee support functions related to the existing business as well as growth and development activities. These costs primarily consist of payroll, IT related, marketing, legal and accounting expenses.
Accounts receivable Accounts receivableAccounts receivable is primarily comprised of amounts owed to the Company resulting from equipment, placement, and commission revenue. The Company evaluates its accounts receivable on an ongoing basis and may establish an allowance for uncollectible amounts based on collections and current credit conditions. Accounts are written off as uncollectible when it is determined that further collection efforts will be unsuccessful. Historically, the Company has not had a significant amount of write-offs.
Inventory InventoryThe Company has inventory at period ends when the Company has title and risk of loss in advance of sale to its franchisees.
Leases and asset retirement obligations Leases and asset retirement obligations
The Company leases space to operate corporate-owned stores, equipment, office, and warehouse space. The Company currently leases the corporate headquarters, corporate-owned store headquarters and all but one of the corporate-owned stores. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company accounts for fixed lease and non-lease components together as a single, combined lease component. Variable lease costs, which may include common area maintenance, insurance, and taxes are not included in the lease liability and are expensed in the period incurred.
Corporate-owned store leases generally have original lease terms of ten years, and typically include one or more renewal options, with renewal option terms that can generally extend the lease term from three to ten years or more. The exercise of lease renewal options is at the Company’s sole discretion. The Company includes options to renew in the expected term when
they are reasonably certain to be exercised. The depreciable life of assets and leasehold improvements are limited by the expected lease term.
At the inception of each lease, the Company determines its appropriate classification as an operating or financing lease. The majority of the Company’s leases are operating leases. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid, reduced by expected reimbursements from landlords. Operating lease right of use (“ROU”) assets represent the right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments, initial direct costs and lease incentives. To determine the present value of lease payments not yet paid, the Company estimates incremental secured borrowing rates corresponding to the maturities of the leases based upon interpolated rates using the Company’s Notes.
The Company has an immaterial amount of non-real estate leases that are accounted for as finance leases under ASC 842 - Leases.
Leases typically contain rent escalations over the lease term. The Company recognizes expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements reduce the ROU asset related to the lease. These tenant incentives are amortized as reduction of rent expense over the lease term.
Lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Asset retirement obligations
In accordance with ASC Topic 410, Asset Retirement and Environmental Obligations, the Company establishes assets and liabilities for the present value of estimated future costs to return certain leased facilities to their original condition. Such assets are depreciated on a straight-line basis over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated restoration costs.
Property and equipment Property and equipmentProperty and equipment is recorded at cost, or fair value when acquired as part of a business combination, and depreciated using the straight-line method over its related estimated useful life. Leasehold improvements are amortized over the shorter of the expected lease term or the estimated useful life of the related asset. Upon sale or retirement, the asset cost and related accumulated depreciation are removed from the respective accounts, and any related gain or loss is reflected in the consolidated statements of operations. Ordinary maintenance and repair costs are expensed as incurred.
Advertising expenses Advertising expensesThe Company expenses advertising costs as incurred. Advertising expenses for corporate-owned stores are included within store operations and totaled $31,462, $15,667, and $10,252 for the years ended December 31, 2022, 2021 and 2020, respectively. In addition to NAF expenses, advertising related to the franchise segment is included within selling, general and administrative expenses and totaled $3,103, $7,144, and $5,408 for the years ended December 31, 2022, 2021 and 2020, respectively. See Note 4 for discussion of the national advertising fund.
Goodwill, long-lived assets, and other intangible assets Goodwill, long-lived assets, and other intangible assets
Goodwill and other intangible assets that arise from acquisitions are recorded in accordance with ASC Topic 805 - Business Combinations and ASC Topic 350, Intangibles—Goodwill and Other. In accordance with this guidance, specifically identified intangible assets must be recorded as a separate asset from goodwill if either of the following two criteria is met: (1) the intangible asset acquired arises from contractual or other legal rights; or (2) the intangible asset is separable. Intangibles are typically trade and brand names, customer relationships, and reacquired franchise rights. Transactions are evaluated to determine whether any gain or loss on reacquired franchise rights, based on their fair value, should be recognized separately from identified intangibles. Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination.
Goodwill and indefinite-lived intangible assets are not amortized, but are reviewed annually for impairment or more frequently if impairment indicators arise. Separable intangible assets that are not deemed to have an indefinite life are amortized over their estimated useful lives on either a straight-line or accelerated basis as deemed appropriate, and are reviewed for impairment when events or circumstances suggest that the assets may not be recoverable.
The Company performs its annual test for impairment of goodwill and indefinite lived intangible assets on December 1 of each year. During 2022, the Company moved its assessment date from December 31 to December 1 in order to better align with the Company’s annual planning cycle. The annual goodwill test begins with a qualitative assessment, where qualitative factors and their impact on critical inputs are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the Company determines that a reporting unit has an indication of impairment based on the qualitative assessment, it is required to perform a quantitative assessment. During the periods presented, the Company did not need to proceed beyond the qualitative analysis, and no goodwill impairments were recorded.
For indefinite lived intangible assets, the impairment assessment consists of comparing the carrying value of the asset to its estimated fair value. To the extent that the carrying value exceeds the fair value of the asset, an impairment is recorded to reduce the carrying value to its fair value. The Company is also permitted to make a qualitative assessment of whether it is more likely than not an indefinite lived intangible asset’s fair value is less than its carrying value prior to applying the quantitative assessment. If based on the Company’s qualitative assessment it is not more likely than not that the carrying value of the asset is less than its fair value, then a quantitative assessment is not required.
During the periods presented, the Company did not need to proceed beyond the qualitative analysis, and determined that no impairment charges were required.
The Company applies the provisions of ASC Topic 360, Property, Plant and Equipment, which requires that long-lived assets, including amortizable intangible assets, be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group to be tested for impairment, then assets are required to be grouped and evaluated at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the undiscounted future net cash flows expected to be generated by the asset or asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. There were no assets that were impaired during any of the periods presented.
Income taxes Income taxes
The Company accounts for income taxes using the asset and liability method. Deferred income taxes are recognized for the expected future tax consequences attributable to temporary differences between the carrying amount of the existing tax assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied in the years in which temporary differences are expected to be recovered or settled. The principal items giving rise to temporary differences are the use of accelerated depreciation and certain basis differences resulting from acquisitions and the recapitalization transactions. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.
Planet Fitness, Inc. is the sole managing member of Pla-Fit Holdings, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, Pla-Fit Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Pla-Fit Holdings is passed through to and included in the taxable income or loss of its members, including Planet Fitness, Inc. following the recapitalization transactions, on a pro rata
basis. Planet Fitness, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to the allocable share of any taxable income of Pla-Fit Holdings. The Company is also subject to taxes in certain foreign jurisdictions.
The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs (see Note 17).
Tax benefit arrangements Tax benefit arrangementsThe Company’s acquisition of Holdings Units in connection with the IPO and certain future and past exchanges of Holdings Units for shares of the Company’s Class A common stock (or cash at the option of the Company) are expected to produce and have produced favorable tax attributes. In connection with the IPO, the Company entered into two tax receivable agreements. Under the first of those agreements, the Company generally is required to pay to certain existing and previous equity owners of Pla-Fit Holdings, LLC who are unaffiliated with TSG (the “TRA Holders”) 85% of the applicable tax savings, if any, in U.S. federal and state income tax that the Company is deemed to realize as a result of certain tax attributes of their Holdings Units sold to the Company (or exchanged in a taxable sale) and that are created as a result of (i) the sales of their Holdings Units for shares of Class A common stock and (ii) tax benefits attributable to payments made under the tax receivable agreement (including imputed interest). Under the second tax receivable agreement, the Company generally is required to pay to TSG AIV II-A L.P and TSG PF Co-Investors A L.P. (the “Direct TSG Investors”) 85% of the amount of tax savings, if any, that the Company is deemed to realize as a result of the tax attributes of the Holdings Units held in respect of the Direct TSG Investors’ interest in the Company, which resulted from the Direct TSG Investors’ purchase of interests in Pla-Fit Holdings in 2012, and certain other tax benefits. Under both agreements, the Company generally retains the benefit of the remaining 15% of the applicable tax savings.Based on current projections, the Company anticipates having sufficient taxable income to utilize these tax attributes and receive corresponding tax deductions in future periods. Accordingly, as of December 31, 2022 the Company has recorded a liability of $494,465 payable to the TRA Holders under the tax benefit obligations, representing approximately 85% of the calculated expected tax savings based on the original basis adjustments the Company anticipates being able to utilize in future years. Changes in the liability resulting from historical changes under these tax benefit arrangements may occur based on changes in anticipated future taxable income, changes in applicable tax rates or other changes in tax attributes that may occur and impact the expected future tax benefits to be received by the Company. Changes in the projected liability under these tax benefit arrangements are and will be recorded as a component of other income (expense) each period. The projection of future taxable income involves significant judgment. Actual taxable income may differ from estimates, which could significantly impact the liability under the tax benefit arrangements and the Company’s consolidated results of operations.
Fair value Fair value
ASC 820, Fair Value Measurements and Disclosures, establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:
Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
Financial instruments and Investments Financial instruments
The carrying values of cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate fair value because of the short-term nature of these instruments.
(t) Investments
The Company’s investments consist of held-to-maturity investments in debt securities and equity method investments. Held-to-maturity investment securities are financial instruments for which the Company has the intent and ability to hold to maturity. Held-to-maturity securities are reported at amortized cost. The Company reserves for expected credit losses on held-to-maturity debt securities through the allowance for expected credit losses. The allowance for expected credit losses estimate reflects a lifetime loss estimate and is based on historical loss information for assets with similar risk characteristics, adjusted for management’s expectations. Adjustments for management’s expectations may be based on factors such as investee earnings performance, recent financing rounds at reduced valuations, changes in the regulatory, economic or technological environment of an investee or doubt about an investee’s ability to continue as a going concern. An increase or a decrease in the allowance for expected credit losses is recorded through other gain (loss) as a credit loss expense or a reversal thereof. The allowance for expected credit losses is presented as a deduction from the amortized cost. A held-to-maturity investment security is written off when deemed uncollectible.
The Company accounts for investments under the equity method if it holds less than 50% of the voting stock, has the ability to exercise significant influence, and is not a VIE in which the Company is the primary beneficiary. These investments are recorded initially at cost and the carrying amount is adjusted to reflect the Company’s share of earnings or losses of the investee.
Investments - Debt securities
As of December 31, 2022, the Company’s debt security investment consists of redeemable preferred shares that are accounted for as a held-to-maturity investment. The Company’s investment is measured at amortized cost within investments in the consolidated balance sheets. The Company reviews its held-to-maturity securities for expected credit losses under ASC Topic 326, Credit Impairment, on an ongoing basis.
During the year ended December 31, 2022, the Company’s review of the investee’s operations and financial position indicated that an adjustment to its allowance for expected credit losses was necessary. The Company utilized a probability-of-default (“PD”) and loss-given-default (“LGD”) methodology to calculate the allowance for expected credit losses. The Company derived its estimate using historical lifetime loss information for assets with similar risk characteristics, adjusted for management’s expectations. Adjustments for management’s expectations were based on the investee’s recent financial results, current financial position, and forward-looking financial forecasts. Based upon its analysis during the years ended December 31, 2022 and December 31, 2021, the Company recorded a gain on the adjustment of its allowance for credit losses of $2,505 and expense of $17,462, respectively, within other (income) expense on the consolidated statements of operations.
Equity-based compensation Equity-based compensationThe Company has an equity-based compensation plan under which it receives services from employees and directors as consideration for equity instruments of the Company. The compensation expense is determined based on the fair value of the award as of the grant date. Compensation expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are satisfied. For awards with graded vesting, the fair value of each tranche is recognized over its respective vesting period. For awards with performance targets, the Company recognizes compensation expense ratably over the required service period based on its estimate of the number of shares will vest upon achieving the measurement criteria. The Company accounts for forfeitures as they occur by reversing compensation cost for unvested awards when the award is forfeited. See Note 15 for further information.
Business combinations Business combinations
The Company accounts for business combinations using the purchase method of accounting which results in the assets acquired and liabilities assumed being recorded at fair value.
The valuation methodologies used are based on the nature of the asset or liability. The significant assets and liabilities measured at fair value include property and equipment, intangible assets, and favorable and unfavorable leases. For the 2012 Acquisition, intangible assets consisted of trade and brand names, member relationships, franchisee relationships related to both the franchise and equipment segments, non-compete agreements, order backlog and favorable and unfavorable leases. For other acquisitions, which consist of acquisitions of stores from franchisees, intangible assets generally consist of member relationships, re-acquired franchise rights, and favorable and unfavorable leases.
The Company uses a variety of information sources to determine the estimated fair values of acquired assets and liabilities, including third-party valuation experts. The fair value of trade and brand names is estimated using the relief from royalty method, an income approach to valuation, which includes projecting future system-wide sales and other estimates. Membership relationships and franchisee relationships are valued based on an estimate of future revenues and costs related to the respective contracts over the remaining expected lives. The Company’s valuation includes assumptions related to the projected attrition and renewal rates on those existing franchise and membership arrangements being valued. Re-acquired franchise rights are valued using an excess earnings approach. The valuation of re-acquired franchise rights is determined using a multi-period
excess earnings method under the income approach. For re-acquired franchise rights with terms that are either favorable or unfavorable to the terms included in current franchise agreements, a gain or charge is recorded at the time of the acquisition to the extent of the favorability or unfavorability, respectively. Favorable and unfavorable operating leases are recorded based on differences between contractual rents under the respective lease agreements and prevailing market rents at the lease acquisition date, and are recorded as a component of the ROU asset. Real and personal property asset valuation is determined using the replacement cost approach.The Company considers its trade and brand name intangible assets to have an indefinite useful life, and, therefore, these assets are not amortized but rather are tested for impairment annually as discussed above. Finite-lived intangible assets, such as re-acquired franchise rights and member relationships are subject to amortization over the assets’ estimated useful lives based on the pattern in which the economic benefits are expected to be received, which may be straight-line or an accelerated method. Favorable and unfavorable operating leases are amortized into rental expense over the lease term of the respective leases using the straight-line method.
Guarantees GuaranteesThe Company, as a guarantor, is required to recognize, at inception of the guaranty, a liability for the fair value of the obligation undertaken in issuing the guarantee. See Note 18 for further discussion of such obligations guaranteed.
Contingencies ContingenciesThe Company records estimated future losses related to contingencies when such amounts are probable and estimable. The Company includes estimated legal fees related to such contingencies as part of the accrual for estimated future losses.
Reclassifications ReclassificationsCertain amounts have been reclassified to conform to current year presentation.
Recent accounting pronouncements Recent accounting pronouncements
The FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes, in December 2019. The guidance simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The Company adopted the new guidance on January 1, 2021, with no material impact on the Company’s consolidated financial statements.
The FASB issued ASU No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, in October, 2021. The guidance improves the accounting for acquired revenue contracts with customers in a business combination by aligning the acquisition date measurement with ASC 606 - Revenue Recognition. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within that year, with early adoption permitted. The Company early adopted the new guidance on January 1, 2022 and applied it to the Sunshine Acquisition, noting the impact of adoption was not material. See Note 5.
v3.22.4
Summary of significant accounting policies (Tables)
12 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Schedule of Estimated Useful Lives of Fixed Assets The estimated useful lives of the Company’s property and equipment by class of asset are as follows:
 Years
Buildings and building improvements
20–40
Information technology and systems
3-5
Furniture and fixtures5
Leasehold improvementsUseful life or term of lease
whichever is shorter
Fitness equipment
5–7
Vehicles5
Property and equipment as of December 31, 2022 and 2021 consists of the following: 
 December 31, 2022December 31, 2021
Land$1,341 $1,341 
Equipment140,160 66,369 
Leasehold improvements272,360 146,810 
Buildings and improvements8,589 8,589 
Furniture & fixtures59,015 29,409 
Information technology and systems assets78,330 62,803 
Other2,920 2,463 
Construction in progress13,974 8,199 
 $576,689 $325,983 
Accumulated depreciation(227,869)(152,296)
Total$348,820 $173,687 
Summary of Company's Assets and Liabilities Measured at Fair Value on Recurring Basis The carrying value and estimated fair value of long-term debt as of December 31, 2022 and 2021 were as follows:
December 31, 2022December 31, 2021
Carrying value
Estimated fair value(1)
Carrying value
Estimated fair value(1)
Long-term debt(1)
$2,025,188 $1,730,634 $1,700,000 $1,725,021 
Variable Funding Notes(1)
$— $— $75,000 $75,000 
(1) The Company’s Variable Funding Notes are a variable rate loan and the fair value of this loan approximates book value based on the borrowing rates currently available for variable rate loans obtained from third-party lending institutions. The estimated fair value of the Company’s fixed rate long-term debt is estimated primarily based on current bid prices for the long-term debt. Judgment is required to develop these estimates. As such, the fair value of long-term debt is classified within Level 2, as defined under U.S. GAAP.
v3.22.4
Variable interest entities (Tables)
12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Carrying Value of Variable Interest Entities of Consolidated Financial Statements
The carrying values of certain VIEs included in the consolidated financial statements as of December 31, 2022 and December 31, 2021 are as follows:
 December 31, 2022December 31, 2021
 AssetsLiabilitiesAssetsLiabilities
PF Melville$2,204 $— $2,363 $— 
MMR$1,884 — $1,991 — 
Total$4,088 $— $4,354 $— 
Assets and liabilities of the NAF, which are restricted in their use, included in the Consolidated Balance Sheets were as follows:
December 31, 2022December 31, 2021
Assets
Cash & cash equivalents$4,938 $15,754 
Other current assets938 388 
Total current assets$5,876 $16,142 
Liabilities
Accounts payable$1,089 $175 
Accrued expenses and other current liabilities3,620 16,240 
Total current liabilities$4,709 $16,415 
v3.22.4
National advertising fund (Tables)
12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Schedule of Assets And Liabilities of NAF
The carrying values of certain VIEs included in the consolidated financial statements as of December 31, 2022 and December 31, 2021 are as follows:
 December 31, 2022December 31, 2021
 AssetsLiabilitiesAssetsLiabilities
PF Melville$2,204 $— $2,363 $— 
MMR$1,884 — $1,991 — 
Total$4,088 $— $4,354 $— 
Assets and liabilities of the NAF, which are restricted in their use, included in the Consolidated Balance Sheets were as follows:
December 31, 2022December 31, 2021
Assets
Cash & cash equivalents$4,938 $15,754 
Other current assets938 388 
Total current assets$5,876 $16,142 
Liabilities
Accounts payable$1,089 $175 
Accrued expenses and other current liabilities3,620 16,240 
Total current liabilities$4,709 $16,415 
v3.22.4
Acquisitions (Tables)
12 Months Ended
Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Purchase Consideration Allocation
The allocation of the estimated purchase consideration was as follows:
Amount
Cash and cash equivalents$5,917 
Other current assets757 
Property and equipment153,092 
Right of use assets162,827 
Other long-term assets1,830 
Intangible assets259,430 
Goodwill488,544 
Deferred income taxes, net(54,737)
Deferred revenue(16,973)
Other current liabilities(13,720)
Lease liabilities(162,327)
Other long-term liabilities(1,213)
$823,427 
Schedule of Components of Identifiable Intangible Assets Acquired
The following table sets forth the components of identifiable intangible assets acquired in the Sunshine Acquisition and their estimated useful lives as of the date of the acquisition:
Fair valueUseful life
Reacquired franchise rights (1)
233,070 11.3
Customer relationships (2)
24,920 8.0
Reacquired area development rights (3)
1,440 5.0
Total intangible assets subject to amortization259,430 
(1) Reacquired franchise rights represent the fair value of the reacquired franchise agreements using the income approach, specifically, the multi-period excess earnings method.
(2) Customer relationships represent the fair value of the existing contractual customer relationships using the income approach, specifically, the multi-period excess earnings method.
(3) Reacquired area development rights represent the fair value of the undeveloped area development agreement rights using the cost approach.
Schedule of Revenues and Income Before Taxes
Revenues and income before taxes of Sunshine Fitness included in the Company’s consolidated statement of operations from the acquisition date of February 10, 2022 to December 31, 2022 are as follows:
Year Ended December 31, 2022
Total revenues$180,841 
Income before taxes$17,478 
Schedule of Pro Forma Financial Information
The following pro forma financial information summarizes the combined results of operations for the Company and Sunshine Fitness, as though the companies were combined as of the beginning of 2021. The unaudited pro forma financial information was as follows:
Year Ended December 31,
20222021
Total revenues957,222 731,606 
Income before taxes161,284 41,041 
Net income110,340 37,911 
v3.22.4
Property and equipment (Tables)
12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment The estimated useful lives of the Company’s property and equipment by class of asset are as follows:
 Years
Buildings and building improvements
20–40
Information technology and systems
3-5
Furniture and fixtures5
Leasehold improvementsUseful life or term of lease
whichever is shorter
Fitness equipment
5–7
Vehicles5
Property and equipment as of December 31, 2022 and 2021 consists of the following: 
 December 31, 2022December 31, 2021
Land$1,341 $1,341 
Equipment140,160 66,369 
Leasehold improvements272,360 146,810 
Buildings and improvements8,589 8,589 
Furniture & fixtures59,015 29,409 
Information technology and systems assets78,330 62,803 
Other2,920 2,463 
Construction in progress13,974 8,199 
 $576,689 $325,983 
Accumulated depreciation(227,869)(152,296)
Total$348,820 $173,687 
v3.22.4
Investments (Tables)
12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Schedule of Debt Securities, Held-to-maturity, Allowance for Credit Loss
A rollforward of the Company’s allowance for expected credit losses on held-to-maturity investments is as follows:
Year Ended December 31, 2022Year Ended December 31, 2021
Beginning allowance for expected credit losses$17,462 $— 
(Gain) loss on adjustment of allowance for credit losses on held-to-maturity investment(2,505)17,462 
Write-offs, net of recoveries— — 
Ending allowance for expected credit losses$14,957 $17,462 
v3.22.4
Leases (Tables)
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Schedule of Balance Sheet Classification of Lease Assets and Liabilities
LeasesClassificationDecember 31, 2022December 31, 2021
Assets
OperatingRight of use asset, net$346,937 $190,330 
FinanceProperty and equipment, net 370 222 
Total lease assets$347,307 $190,552 
Liabilities
Current:
OperatingOther current liabilities$33,233 $22,523 
Noncurrent:
OperatingLease liabilities, net of current portion341,843 197,682 
FinanceOther liabilities380 230 
Total lease liabilities$375,456 $220,435 
Weighted-average remaining lease term (years) - operating leases8.18.7
Weighted-average discount rate - operating leases4.7 %5.0 %
Schedule of Components of Lease Cost
For the years ended December 31, 2022, 2021 and 2020, the components of lease cost were as follows:
December 31, 2022December 31, 2021December 31, 2020
Operating lease cost$56,319 $29,012 $26,255 
Variable lease cost20,327 11,317 10,324 
Total lease cost$76,646 $40,329 $36,579 
Supplemental disclosures of cash flow information related to leases were as follows for the years ended December 31, 2022, 2021 and 2020:
December 31, 2022December 31, 2021December 31, 2020
Cash paid, net, for lease liabilities$44,928 $28,126 $24,091 
Operating lease ROU assets obtained in exchange for operating
   lease liabilities, excluding the Sunshine Acquisition
$37,928 $48,651 $33,140 
Sunshine Acquisition operating lease ROU assets
   obtained in exchange for operating lease liabilities
$162,827 $— $— 
Schedule of Supplemental Disclosures of Cash Flow Information Related to Leases
For the years ended December 31, 2022, 2021 and 2020, the components of lease cost were as follows:
December 31, 2022December 31, 2021December 31, 2020
Operating lease cost$56,319 $29,012 $26,255 
Variable lease cost20,327 11,317 10,324 
Total lease cost$76,646 $40,329 $36,579 
Supplemental disclosures of cash flow information related to leases were as follows for the years ended December 31, 2022, 2021 and 2020:
December 31, 2022December 31, 2021December 31, 2020
Cash paid, net, for lease liabilities$44,928 $28,126 $24,091 
Operating lease ROU assets obtained in exchange for operating
   lease liabilities, excluding the Sunshine Acquisition
$37,928 $48,651 $33,140 
Sunshine Acquisition operating lease ROU assets
   obtained in exchange for operating lease liabilities
$162,827 $— $— 
Schedule of Maturities of Lease Liabilities
As of December 31, 2022, maturities of lease liabilities were as follows:
Amount
2023$49,853 
202460,578 
202560,889 
202659,495 
202754,964 
Thereafter170,818 
Total lease payments$456,597 
Less: imputed interest81,141 
Present value of lease liabilities$375,456 
Schedule of Maturities of Lease Liabilities
As of December 31, 2022, maturities of lease liabilities were as follows:
Amount
2023$49,853 
202460,578 
202560,889 
202659,495 
202754,964 
Thereafter170,818 
Total lease payments$456,597 
Less: imputed interest81,141 
Present value of lease liabilities$375,456 
v3.22.4
Goodwill and intangible assets (Tables)
12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Goodwill and Intangible Assets
A summary of goodwill and intangible assets at December 31, 2022 and 2021 is as follows:
December 31, 2022Weighted
average
amortization
period (years)
Gross
carrying
amount
Accumulated
amortization
Net carrying
Amount
Customer relationships10.6$198,813 (153,243)$45,570 
Reacquired franchise and area development rights10.8268,058 (43,161)224,897 
 $466,871 $(196,404)$270,467 
Indefinite-lived intangible:
Trade and brand namesN/A146,600 — 146,600 
Total intangible assets$613,471 $(196,404)$417,067 
Goodwill$702,690 $— $702,690 
 
December 31, 2021Weighted
average
amortization
period (years)
Gross
carrying
amount
Accumulated
amortization
Net carrying
Amount
Customer relationships11.0$174,033 (137,699)$36,334 
Reacquired franchise rights8.038,158 (20,155)18,003 
 $212,191 $(157,854)$54,337 
Indefinite-lived intangible:
Trade and brand namesN/A146,600 — 146,600 
Total intangible assets$358,791 $(157,854)$200,937 
Goodwill$228,569 $— $228,569 
Summary of Goodwill
A rollforward of goodwill during the years ended December 31, 2022 and 2021 is as follows:
FranchiseCorporate-owned storesEquipmentTotal
As of December 31, 2020$16,938 $118,217 $92,666 $227,821 
Acquisition of franchisee-owned stores— 748 — 748 
As of December 31, 2021$16,938 $118,965 $92,666 $228,569 
Acquisition of franchisee-owned stores— 488,544 — 488,544 
Sale of corporate-owned stores— (14,423)— (14,423)
As of December 31, 2022$16,938 $593,086 $92,666 $702,690 
The following table summarizes the Company’s goodwill by reportable segment:
 December 31, 2022December 31, 2021
Franchise$16,938 $16,938 
Corporate-owned stores593,086 118,965 
Equipment92,666 92,666 
Total consolidated goodwill$702,690 $228,569 
Summary of Amortization expenses The anticipated annual amortization expense to be recognized in future years as of December 31, 2022 is as follows:
 Amount
2023$50,307 
202447,601 
202535,476 
202631,024 
202727,119 
Thereafter78,940 
Total$270,467 
v3.22.4
Long-term debt (Tables)
12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Schedule of Long-term Debt
Long-term debt as of December 31, 2022 and 2021 consists of the following:
 December 31, 2022December 31, 2021
2018-1 Class A-2-I notes$— $556,312 
2018-1 Class A-2-II notes598,438 604,688 
2019-1 Class A-2 notes533,500 539,000 
2022-1 Class A-2-I notes421,812 — 
2022-1 Class A-2-II notes471,437 — 
Borrowings under Variable Funding notes— 75,000 
Total debt, excluding deferred financing costs2,025,187 1,775,000 
Deferred financing costs, net of accumulated amortization(26,306)(17,227)
Total debt1,998,881 1,757,773 
Current portion of long-term debt20,750 17,500 
Long-term debt and borrowings under Variable Funding Notes, net of current portion$1,978,131 $1,740,273 
Schedule of Future Annual Payments of Long-term Debt
Future annual principal payments of long-term debt as of December 31, 2022 are as follows:
 Amount
2023$20,750 
202420,750 
2025600,438 
2026419,313 
202710,250 
Thereafter953,686 
Total$2,025,187 
v3.22.4
Revenue from contract with customers (Tables)
12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Contract Liabilities and Deferred Revenue The following table reflects the change in contract liabilities between December 31, 2021 and December 31, 2022:
Contract liabilities
Balance at December 31, 2021
$61,779 
Revenue recognized that was included in the contract liability at the beginning of the year(28,115)
Other gain on settlement of preexisting contracts in connection with the Sunshine Acquisition(2,059)
Deferred revenue acquired in the Sunshine Acquisition16,973 
Increase, excluding amounts recognized as revenue during the period38,333 
Balance at December 31, 2022
$86,911 
The summary set forth below represents the balances in deferred revenue as of December 31, 2022 and 2021:
 December 31, 2022December 31, 2021
Prepaid membership fees$14,160 $6,491 
Enrollment fees3,806 1,257 
Equipment discount5,256 3,152 
Annual membership fees26,848 13,591 
Area development and franchise fees36,841 37,288 
Total deferred revenue86,911 61,779 
Long-term portion of deferred revenue33,152 33,428 
Current portion of deferred revenue$53,759 $28,351 
Schedule of Remaining Performance Obligation The Company has elected to exclude short term contracts, sales and usage based royalties and any other variable consideration recognized on an “as invoiced” basis.
Contract liabilities to be recognized in:Amount
2023$53,759 
20245,305 
20253,931 
20263,495 
20273,030 
Thereafter17,391 
Total$86,911 
v3.22.4
Related party transactions (Tables)
12 Months Ended
Dec. 31, 2022
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
Activity with franchisees considered to be related parties is summarized below.
 For the Year Ended December 31,
 202220212020
Franchise revenue$4,074 $3,511 $1,783 
Equipment revenue1,909 1,626 515 
Total revenue from related parties$5,983 $5,137 $2,298 
v3.22.4
Equity-based compensation (Tables)
12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
Summary of Fair Value of Stock Option Awards Determined on Grant Date
The fair value of stock option awards granted were determined on the grant date using the Black-Scholes valuation model based on the following assumptions:
 Year ended December 31,
 20222021
Expected term (years)(1)
0.25 - 6.25
6.25
Expected volatility(2)
28.0% - 55.5%
48.8% - 49.4%
Risk-free interest rate(3)
0.65% - 4.20%
1.05% - 1.21%
Dividend yield(4)
— %— %
 
(1)Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.
(2)Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.
(3)The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.
(4)Based on an assumed a dividend yield of zero at the time of grant.
Summary of Stock Option Activity
A summary of stock option activity for the year ended December 31, 2022: 
 Stock OptionsWeighted average
exercise price
Weighted average remaining contractual term (years)Aggregate intrinsic value
Outstanding at January 1, 2022
832,325 $43.86 
Granted119,364 $77.05 
Exercised(8,063)$23.17 
Forfeited(73,687)$76.39 
Outstanding at December 31, 2022
869,939 $45.85 5.5$28,903 
Vested or expected to vest at December 31, 2022
869,939 $45.85 5.5$28,903 
Exercisable at December 31, 2022
650,955 $35.49 4.7$28,193 
Summary of Restricted Stock Units Activity
 Restricted stock unitsWeighted average
fair value
Weighted average remaining contractual term (years)Aggregate intrinsic value
Unvested outstanding at January 1, 2022
138,917 $71.65 
Granted80,472 $82.42 
Vested(65,433)$66.06 
Forfeited(48,592)$84.38 
Unvested outstanding at December 31, 2022
105,364 $77.47 1.8$8,303 
 Performance share unitsWeighted average
fair value
Weighted average remaining contractual term (years)Aggregate intrinsic value
Unvested outstanding at January 1, 2022
— $— 
Granted95,338 $90.21 
Vested— $— 
Forfeited(66,394)$93.52 
Unvested outstanding at December 31, 2022
28,944 $82.61 2.2$2,281 
Expected to vest at December 31, 2022
25,177 $82.61 2.2$1,984 
v3.22.4
Earnings per share (Tables)
12 Months Ended
Dec. 31, 2022
Earnings Per Share [Abstract]  
Schedule of Reconciliation of Numerators and Denominators Used to Compute Basic and Diluted Earnings per Share
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:
Basic net income per share:Year Ended December 31, 2022Year Ended December 31, 2021Year Ended December 31, 2020
Numerator
Net income (loss)$110,456 $46,122 $(15,204)
Less: net income (loss) attributable to non-controlling interests11,054 3,348 (213)
Net income (loss) attributable to Planet Fitness, Inc. - basic & diluted$99,402 $42,774 $(14,991)
Denominator
Weighted-average shares of Class A common stock outstanding - basic84,136,819 83,295,580 80,303,277 
Effect of dilutive securities:
Stock options351,200 540,381 — 
Restricted stock units54,864 58,188 — 
Performance stock units1,215 — — 
Weighted-average shares of Class A common stock outstanding - diluted84,544,098 83,894,149 80,303,277 
Earnings (loss) per share of Class A common stock - basic$1.18 $0.51 $(0.19)
Earnings (loss) per share of Class A common stock - diluted$1.18 $0.51 $(0.19)
v3.22.4
Income taxes (Tables)
12 Months Ended
Dec. 31, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income Before Provision for Income Taxes
Income (loss) before the provision for income taxes as shown in the accompanying consolidated statements of operations is as follows:
 
 Year Ended December 31,
 202220212020
Domestic$158,345 $52,425 $(13,382)
Foreign3,093 (465)(1,135)
Total income (loss) before the provision for income taxes161,438 51,960 (14,517)
Schedule of Provision (Benefit) for Income Taxes
The provision (benefit) for income taxes consists of the following:
 Year Ended December 31,
 202220212020
Current:
Federal$— $(314)$(6,938)
State842 4,197 256 
Foreign1,055 248 156 
Total current tax expense (benefit)1,897 4,131 (6,526)
Deferred:
Federal27,401 11,079 2,769 
State21,049 (9,750)4,530 
Foreign168 199 (86)
Total deferred tax expense48,618 1,528 7,213 
Provision for income taxes$50,515 $5,659 $687 
Schedule of Reconciliation of U.S. Statutory Income Tax Rate to Company's Effective Tax Rate
A reconciliation of the U.S. statutory income tax rate to the Company’s effective tax rate is as follows:
 Year Ended December 31,
 202220212020
U.S. statutory tax rate21.0 %21.0 %21.0 %
State and local taxes, net of federal benefit4.0 %6.6 %5.7 %
State rate change impact on deferred taxes8.6 %(22.7)%(37.4)%
Tax benefit arrangement liability adjustment(1.8)%4.7 %8.6 %
Foreign tax rate differential0.2 %0.7 %(1.0)%
Withholding taxes and other0.3 %0.6 %(0.3)%
Colorado store sale0.9 %— %— %
Change in valuation allowance(0.4)%8.6 %— %
Equity-based compensation(0.2)%(7.4)%— %
Income attributable to non-controlling interests(1.3)%(1.2)%(1.3)%
Effective tax rate31.3 %10.9 %(4.7)%
Schedule of Deferred Tax Assets and Liabilities Details of the Company’s deferred tax assets and liabilities are summarized as follows: 
 Year Ended December 31,
 20222021
Deferred tax assets:
Deferred revenue$5,277 $7,518 
Goodwill and intangible assets401,438 487,752 
Net operating loss53,370 47,361 
Lease liabilities91,205 53,625 
Other12,585 11,209 
Deferred tax assets563,875 607,465 
Valuation allowance(4,037)(4,630)
Deferred tax assets, net of valuation allowance$559,838 $602,835 
Deferred tax liabilities:
Prepaid expenses(952)(2,244)
Property and equipment(23,718)(16,433)
Right of use assets(82,074)(44,894)
Total deferred tax liabilities$(106,744)$(63,571)
Total deferred tax assets and liabilities$453,094 $539,264 
Reported as:
Deferred income taxes - non-current assets$454,565 $539,264 
Deferred income taxes - non-current liabilities(1,471)— 
Total deferred tax assets and liabilities$453,094 $539,264 
Summary Of Changes In Unrecognized Tax Positions
A summary of the changes in the Company’s unrecognized tax positions is as follows:
 Year Ended December 31,
 20222021
Balance at beginning of year$420 $420 
Increase related to current year tax positions— — 
Decrease related to prior year tax positions(92)— 
Balance at end of year$328 $420 
Schedule of Future Payments Under Tax Benefit Arrangements
Projected future payments under the tax benefit arrangements are as follows:
 Amount
2023$31,940 
202441,153 
202551,713 
202654,038 
202756,761 
Thereafter258,860 
Total$494,465 
v3.22.4
Segments (Tables)
12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Summary of Financial Information for the Company's Reportable Segments The tables below summarize the financial information for the Company’s reportable segments for the years ended December 31, 2022, 2021 and 2020. The “Corporate and other” column, as it relates to Segment EBITDA, primarily includes corporate overhead costs, such as payroll and related benefit costs and professional services which are not directly attributable to any individual segment.
 Year Ended December 31,
 202220212020
Revenue
Franchise segment revenue - U.S.$321,062 $286,283 $202,844 
Franchise segment revenue - International8,572 4,427 3,312 
Franchise segment total329,634 290,710 206,156 
Corporate-owned stores segment - U.S.375,375 165,433 115,174 
Corporate-owned stores segment - International4,018 1,786 1,968 
Corporate-owned stores segment total379,393 167,219 117,142 
Equipment segment - U.S.212,269 125,023 82,331 
Equipment segment - International15,476 4,071 989 
Equipment segment total227,745 129,094 83,320 
Total revenue$936,772 $587,023 $406,618 
 Year Ended December 31,
 202220212020
Segment EBITDA
Franchise$216,817 $194,303 $114,968 
Corporate-owned stores142,083 49,196 23,672 
Equipment59,082 29,680 13,097 
Corporate and other(49,366)(78,265)(33,242)
Total Segment EBITDA$368,616 $194,914 $118,495 
Reconciliation of Total Segment EBITDA to Income Before Taxes
The following table reconciles total Segment EBITDA to income before taxes: 
 Year Ended December 31,
 202220212020
Total Segment EBITDA$368,616 $194,914 $118,495 
Less:
Depreciation and amortization124,022 62,800 53,832 
Other income (expense)14,983 (11,102)4,903 
Equity earnings (losses) of unconsolidated entities, net of tax(467)(179)— 
Income from operations230,078 143,395 59,760 
Interest expense, net(83,623)(80,333)(79,180)
Other income (expense)14,983 (11,102)4,903 
Income before income taxes$161,438 $51,960 $(14,517)
Summary of Company's Assets by Reportable Segment
The following table summarizes the Company’s assets by reportable segment: 
 December 31, 2022December 31, 2021
Franchise$161,355 $172,822 
Corporate-owned stores1,559,985 516,714 
Equipment200,020 193,983 
Unallocated933,229 1,132,464 
Total consolidated assets$2,854,589 $2,015,983 
Summary of Company's Goodwill by Reportable Segment
A rollforward of goodwill during the years ended December 31, 2022 and 2021 is as follows:
FranchiseCorporate-owned storesEquipmentTotal
As of December 31, 2020$16,938 $118,217 $92,666 $227,821 
Acquisition of franchisee-owned stores— 748 — 748 
As of December 31, 2021$16,938 $118,965 $92,666 $228,569 
Acquisition of franchisee-owned stores— 488,544 — 488,544 
Sale of corporate-owned stores— (14,423)— (14,423)
As of December 31, 2022$16,938 $593,086 $92,666 $702,690 
The following table summarizes the Company’s goodwill by reportable segment:
 December 31, 2022December 31, 2021
Franchise$16,938 $16,938 
Corporate-owned stores593,086 118,965 
Equipment92,666 92,666 
Total consolidated goodwill$702,690 $228,569 
v3.22.4
Corporate-owned and franchisee-owned stores (Tables)
12 Months Ended
Dec. 31, 2022
Franchisors [Abstract]  
Schedule of Changes in Corporate-owned and Franchisee-owned Stores
The following table shows changes in our corporate-owned and franchisee-owned stores for the years ended December 31, 2022, 2021 and 2020:
 Year Ended December 31,
 202220212020
Franchisee-owned stores:
Stores operated at beginning of period2,142 2,021 1,903 
New stores opened144 125 125 
Stores acquired from the Company— — 
Stores debranded, sold or consolidated(1)
(116)(4)(7)
Stores operated at end of period(2)
2,176 2,142 2,021 
Corporate-owned stores:
Stores operated at beginning of period112 103 98 
New stores opened14 
Stores sold to franchisees(6)— — 
Stores acquired from franchisees114 — 
Stores operated at end of period(2)
234 112 103 
Total stores:
Stores operated at beginning of period2,254 2,124 2,001 
New stores opened158 132 130 
Stores debranded, sold or consolidated(1)
(2)(2)(7)
Stores operated at end of period(2)
2,410 2,254 2,124 
 
(1)The term “debrand” refers to a franchisee-owned store whose right to use the Planet Fitness brand and marks has been terminated in accordance with the franchise agreement. We retain the right to prevent debranded stores from continuing to operate as fitness centers. The term “consolidated” refers to the combination of a franchisee’s store with another store located in close proximity with our prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store. 
(2)The “stores operated” includes stores that have closed temporarily related to the COVID-19 pandemic. All stores were closed in March 2020 in response to the COVID-19 pandemic, and as of December 31, 2022, all 2,410 were re-opened and operating.
v3.22.4
Business organization (Details)
member in Millions
12 Months Ended
Dec. 31, 2022
segment
state
member
store
Dec. 31, 2021
store
Dec. 31, 2020
store
Dec. 31, 2019
store
Aug. 05, 2015
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Number of members | member 17.0        
Number of owned and franchised locations | store 2,410 2,254 2,124 2,001  
Number of states in which entity operates | state 50        
Number of reportable segments | segment 3        
Pla-Fit Holdings, LLC          
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Percentage of ownership (in percentage) 100.00%       100.00%
Percentage of economic interest (in percentage) 93.10%        
Pla-Fit Holdings, LLC | Continuing LLC Owners          
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Percentage of economic interest (in percentage) 6.90%        
Planet Intermediate, LLC | Pla-Fit Holdings, LLC          
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Percentage of ownership (in percentage)         100.00%
Planet Fitness Holdings, LLC | Planet Intermediate, LLC          
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Percentage of ownership (in percentage)         100.00%
v3.22.4
Summary of significant accounting policies - Additional Information (Details)
12 Months Ended
Dec. 31, 2022
USD ($)
agreement
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Significant Accounting Policies [Line Items]      
Restricted cash $ 62,659,000 $ 58,032,000  
Fee recognition period Enrollment fee revenueEnrollment fees are charged to new members at the commencement of their membership. The Company recognizes enrollment fees ratably over the estimated duration of the membership life, which is generally two years.Annual membership fee revenueAnnual membership fees are annual fees charged to members in addition to and in order to maintain low monthly membership dues. The Company recognizes annual membership fees ratably over the 12-month membership period or as long as there is a service obligation to the member.    
Selling, general and administrative $ 114,853,000 94,540,000 $ 68,585,000
Advertising expenses 31,462,000 15,667,000 10,252,000
Goodwill impairment 0 0 0
Impairment charges $ 0 0 0
Number of tax receivable agreements | agreement 2    
Applicable tax savings (in percentage) 85.00%    
Percentage of remaining tax savings (in percentage) 15.00%    
Cash held by Trustee      
Significant Accounting Policies [Line Items]      
Restricted cash $ 46,651,000    
Legal Matter      
Significant Accounting Policies [Line Items]      
Restricted cash 16,008,000    
TRA Holders      
Significant Accounting Policies [Line Items]      
Liability payable under tax benefit obligations 494,465,000    
Maximum      
Significant Accounting Policies [Line Items]      
Insured amount $ 250,000,000    
Remaining lease term (in years) 10 years    
Renewal term (in years) 10 years    
Minimum      
Significant Accounting Policies [Line Items]      
Renewal term (in years) 3 years    
Placement services      
Significant Accounting Policies [Line Items]      
Selling, general and administrative $ 6,069,000 $ 4,358,000 $ 3,341,000
Equipment purchases | Vendor | Vendor one      
Significant Accounting Policies [Line Items]      
Purchases from vendor (in percentage) 71.00% 70.00% 48.00%
Equipment purchases | Vendor | Vendor two      
Significant Accounting Policies [Line Items]      
Purchases from vendor (in percentage) 22.00% 28.00% 40.00%
Advertising purchases | Vendor | Vendor one      
Significant Accounting Policies [Line Items]      
Purchases from vendor (in percentage) 77.00% 41.00% 71.00%
VIE      
Significant Accounting Policies [Line Items]      
Advertising expenses $ 3,103,000 $ 7,144,000 $ 5,408,000
Franchisee-owned stores: | VIE      
Significant Accounting Policies [Line Items]      
Percentage of franchise membership billing revenue 2.00%    
v3.22.4
Summary of significant accounting policies - Summary of Estimated Useful Lives of Company's Fixed assets (Details)
12 Months Ended
Dec. 31, 2022
Buildings and building improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, estimated useful lives (in years) 20 years
Buildings and building improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, estimated useful lives (in years) 40 years
Information technology and systems | Minimum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, estimated useful lives (in years) 3 years
Information technology and systems | Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, estimated useful lives (in years) 5 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, estimated useful lives (in years) 5 years
Fitness equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, estimated useful lives (in years) 5 years
Fitness equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, estimated useful lives (in years) 7 years
Vehicles  
Property, Plant and Equipment [Line Items]  
Property, plant and equipment, estimated useful lives (in years) 5 years
v3.22.4
Summary of significant accounting policies - Summary of Company's Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Carrying value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt $ 2,025,188 $ 1,700,000
Variable Funding Notes 0 75,000
Estimated fair value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 1,730,634 1,725,021
Variable Funding Notes $ 0 $ 75,000
v3.22.4
Variable interest entities - Carrying Value of Variable Interest Entities of Consolidated Financial Statements (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Variable Interest Entity [Line Items]    
Assets $ 2,854,589 $ 2,015,983
VIE    
Variable Interest Entity [Line Items]    
Assets 4,088 4,354
Liabilities 0 0
VIE | PF Melville    
Variable Interest Entity [Line Items]    
Assets 2,204 2,363
Liabilities 0 0
VIE | MMR    
Variable Interest Entity [Line Items]    
Assets 1,884 1,991
Liabilities $ 0 $ 0
v3.22.4
National advertising fund - Additional Information (Details) - NAF - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Related Party Transaction [Line Items]      
General and administrative expense $ 2,437 $ 1,997 $ 793
Franchisee-owned stores:      
Related Party Transaction [Line Items]      
Percentage of franchise membership billing revenue 2.00%    
Corporate-owned stores:      
Related Party Transaction [Line Items]      
Percentage of franchise membership billing revenue 2.00%    
v3.22.4
National advertising fund - Assets and liabilities of the NAF (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Assets    
Cash and cash equivalents $ 409,840 $ 545,909
Total current assets 555,531 662,414
Liabilities    
Accounts payable 20,578 27,892
Total current liabilities 244,530 176,610
NAF    
Assets    
Cash and cash equivalents 4,938 15,754
Other current assets 938 388
Total current assets 5,876 16,142
Liabilities    
Accounts payable 1,089 175
Accrued expenses and other current liabilities 3,620 16,240
Total current liabilities $ 4,709 $ 16,415
v3.22.4
Acquisitions - Narrative (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Feb. 10, 2022
USD ($)
store
$ / shares
shares
Dec. 31, 2022
USD ($)
store
$ / shares
Dec. 31, 2021
store
$ / shares
Dec. 31, 2020
store
Dec. 31, 2019
store
Business Acquisition [Line Items]          
Number of owned and franchised locations | store   2,410 2,254 2,124 2,001
Settlement of preexisting contracts   $ 2,059      
Class A common stock          
Business Acquisition [Line Items]          
Common stock, par value (in usd per share) | $ / shares   $ 0.0001 $ 0.0001    
Class B common stock          
Business Acquisition [Line Items]          
Common stock, par value (in usd per share) | $ / shares $ 0.0001 $ 0.0001 $ 0.0001    
Sunshine Acquisition          
Business Acquisition [Line Items]          
Equity interest acquired 100.00%        
Number of owned and franchised locations | store 114        
Aggregate consideration $ 824,587        
Acquisition, gross cash payments 430,857        
Loss on unfavorable reacquired franchise rights 1,160        
Adjusted net assets acquired 823,427        
Settlement of preexisting contracts 2,059        
Goodwill and expected tax deductible amount $ 175,600        
Expected tax deductible period 15 years        
Sunshine Acquisition | Class A common stock          
Business Acquisition [Line Items]          
Business combination $ 393,730        
Equity consideration (in share) | shares 517,348        
Common stock, par value (in usd per share) | $ / shares $ 0.0001        
Sunshine Acquisition | Holdings Units          
Business Acquisition [Line Items]          
Equity consideration (in share) | shares 3,637,678        
v3.22.4
Acquisitions - Schedule of Purchase Consideration (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Feb. 10, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]        
Goodwill $ 702,690   $ 228,569 $ 227,821
Sunshine Acquisition        
Business Acquisition [Line Items]        
Cash and cash equivalents   $ 5,917    
Other current assets   757    
Property and equipment   153,092    
Right of use assets   162,827    
Other long-term assets   1,830    
Intangible assets   259,430    
Goodwill   488,544    
Deferred income taxes, net   (54,737)    
Deferred revenue   (16,973)    
Other current liabilities   (13,720)    
Lease liabilities   (162,327)    
Other long-term liabilities   (1,213)    
Net assets acquired   $ 823,427    
v3.22.4
Acquisitions - Components of Identifiable Intangible Assets Acquired (Details) - Sunshine Acquisition
$ in Thousands
Feb. 10, 2022
USD ($)
Business Acquisition [Line Items]  
Fair value $ 259,430
Reacquired franchise and area development rights  
Business Acquisition [Line Items]  
Fair value $ 233,070
Useful life 11 years 3 months 18 days
Customer relationships  
Business Acquisition [Line Items]  
Fair value $ 24,920
Useful life 8 years
Reacquired area development rights  
Business Acquisition [Line Items]  
Fair value $ 1,440
Useful life 5 years
v3.22.4
Acquisitions - Schedule of Revenues and Income Before Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]      
Total revenues $ 936,772 $ 587,023 $ 406,618
Income before taxes 161,438 $ 51,960 $ (14,517)
Sunshine Acquisition      
Business Acquisition [Line Items]      
Total revenues 180,841    
Income before taxes $ 17,478    
v3.22.4
Acquisitions - Schedule of Pro Forma Financial Information (Details) - Sunshine Acquisition - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Business Acquisition [Line Items]    
Total revenues $ 957,222 $ 731,606
Income before taxes 161,284 41,041
Net income $ 110,340 $ 37,911
v3.22.4
Sale of corporate-owned stores (Details)
$ in Thousands
12 Months Ended
Aug. 31, 2022
USD ($)
store
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Proceeds from sale of corporate-owned stores   $ 20,820 $ 0 $ 0
Gain on sale of corporate-owned stores   $ 1,324 $ 0 $ 0
Sale | Six Colorado Stores        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Number of stores sold | store 6      
Proceeds from sale of corporate-owned stores $ 20,820      
Net value of assets sold 19,496      
Goodwill 14,423      
Intangible assets 2,629      
Net tangible assets 2,444      
Gain on sale of corporate-owned stores $ 1,324      
v3.22.4
Property and equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 576,689 $ 325,983
Accumulated depreciation (227,869) (152,296)
Total 348,820 173,687
Land    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 1,341 1,341
Equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 140,160 66,369
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 272,360 146,810
Buildings and improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 8,589 8,589
Furniture & fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 59,015 29,409
Information technology and systems assets    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 78,330 62,803
Other    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 2,920 2,463
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 13,974 $ 8,199
v3.22.4
Property and equipment - Additional Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 83,310 $ 46,123 $ 36,943
v3.22.4
Investments - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Apr. 09, 2021
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]          
Credit (gain) loss expense on held-to-maturity investment     $ (2,505) $ 17,462 $ 0
Amortized cost of held-to-maturity debt security investments   $ 28,277 28,277 26,401  
Allowance for expected credit loss   $ 14,957 14,957 17,462 0
Dividends accrued on investment     1,876 1,401  
Proportionate share of equity method loss     $ (467) (179) $ 0
Bravo Fit Holdings Pty Ltd          
Schedule of Equity Method Investments [Line Items]          
Ownership percentage 21.00% 21.00% 21.00%    
Payment to acquire equity method investment $ 10,000 $ 2,449      
Underlying equity in net assets   $ 11,802 $ 11,802 $ 9,820  
v3.22.4
Investments - Held-to-Maturity Debt Security Investments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]      
Beginning allowance for expected credit losses $ 17,462 $ 0  
(Gain) loss on adjustment of allowance for credit losses on held-to-maturity investment (2,505) 17,462 $ 0
Write-offs, net of recoveries 0 0  
Ending allowance for expected credit losses $ 14,957 $ 17,462 $ 0
v3.22.4
Leases - Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Assets    
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property and equipment, net of accumulated depreciation of $227,869 and $152,296, as of December 31, 2022 and 2021, respectively Property and equipment, net of accumulated depreciation of $227,869 and $152,296, as of December 31, 2022 and 2021, respectively
Operating $ 346,937 $ 190,330
Finance 370 222
Total lease assets $ 347,307 $ 190,552
Liabilities [Abstract]    
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Current operating lease liabilities $ 33,233 $ 22,523
Noncurrent operating lease liabilities 341,843 197,682
Noncurrent finance lease liabilities 380 230
Total lease liabilities $ 375,456 $ 220,435
Weighted-average remaining lease term (years) - operating leases 8 years 1 month 6 days 8 years 8 months 12 days
Weighted-average discount rate - operating leases 4.70% 5.00%
v3.22.4
Leases - Components of Lease Cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Operating lease cost $ 56,319 $ 29,012 $ 26,255
Variable lease cost 20,327 11,317 10,324
Total lease cost $ 76,646 $ 40,329 $ 36,579
v3.22.4
Leases - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]      
Cash paid, net, for lease liabilities $ 44,928 $ 28,126 $ 24,091
Operating lease ROU assets obtained in exchange for operating lease liabilities, excluding the Sunshine Acquisition 37,928 48,651 33,140
Sunshine Acquisition operating lease ROU assets obtained in exchange for operating lease liabilities $ 162,827 $ 0 $ 0
v3.22.4
Leases - Maturities of Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]    
2023 $ 49,853  
2024 60,578  
2025 60,889  
2026 59,495  
2027 54,964  
Thereafter 170,818  
Total lease payments 456,597  
Less: imputed interest 81,141  
Present value of lease liabilities $ 375,456 $ 220,435
v3.22.4
Leases - Additional Information (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Leases [Abstract]  
Lease payments for leases signed but not yet commenced $ 19,017
v3.22.4
Goodwill and intangible assets - Summary of Goodwill and Intangible Assets (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Gross carrying amount      
Finite-lived intangibles $ 466,871 $ 212,191  
Total intangible assets 613,471 358,791  
Accumulated amortization      
Total intangible assets (196,404) (157,854)  
Net carrying Amount      
Total 270,467 54,337  
Total intangible assets 417,067 200,937  
Goodwill      
Gross carrying amount 702,690 228,569  
Accumulated amortization 0 0  
Net carrying Amount 702,690 228,569 $ 227,821
Trade and brand names      
Gross carrying amount      
Indefinite-lived intangible 146,600 146,600  
Net carrying Amount      
Indefinite-lived intangible $ 146,600 $ 146,600  
Customer relationships      
Goodwill And Intangible Assets [Line Items]      
Weighted average amortization period (years) 10 years 7 months 6 days 11 years  
Gross carrying amount      
Finite-lived intangibles $ 198,813 $ 174,033  
Accumulated amortization      
Total intangible assets (153,243) (137,699)  
Net carrying Amount      
Total $ 45,570 $ 36,334  
Reacquired franchise and area development rights      
Goodwill And Intangible Assets [Line Items]      
Weighted average amortization period (years) 10 years 9 months 18 days 8 years  
Gross carrying amount      
Finite-lived intangibles $ 268,058 $ 38,158  
Accumulated amortization      
Total intangible assets (43,161) (20,155)  
Net carrying Amount      
Total $ 224,897 $ 18,003  
v3.22.4
Goodwill and intangible assets - Goodwill Rollforward (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Goodwill [Roll Forward]    
Beginning balance $ 228,569 $ 227,821
Acquisition of franchisee-owned stores 488,544 748
Sale of corporate-owned stores (14,423)  
Ending balance 702,690 228,569
Franchise    
Goodwill [Roll Forward]    
Beginning balance 16,938 16,938
Acquisition of franchisee-owned stores 0 0
Sale of corporate-owned stores 0  
Ending balance 16,938 16,938
Corporate-owned stores    
Goodwill [Roll Forward]    
Beginning balance 118,965 118,217
Acquisition of franchisee-owned stores 488,544 748
Sale of corporate-owned stores (14,423)  
Ending balance 593,086 118,965
Equipment    
Goodwill [Roll Forward]    
Beginning balance 92,666 92,666
Acquisition of franchisee-owned stores 0 0
Sale of corporate-owned stores 0  
Ending balance $ 92,666 $ 92,666
v3.22.4
Goodwill and intangible assets - Additional Information (Details)
12 Months Ended
Dec. 31, 2022
USD ($)
store
Dec. 31, 2021
USD ($)
store
Dec. 31, 2020
USD ($)
store
Dec. 31, 2019
store
Goodwill And Intangible Assets [Line Items]        
Impairment charges | $ $ 0 $ 0 $ 0  
Number of owned and franchised locations 2,410 2,254 2,124 2,001
Amortization of intangible assets | $ $ 40,294,000 $ 16,677,000 $ 16,888,000  
2022 Acquisitions        
Goodwill And Intangible Assets [Line Items]        
Number of owned and franchised locations 114      
2021 Acquisitions        
Goodwill And Intangible Assets [Line Items]        
Number of owned and franchised locations   2    
v3.22.4
Goodwill and intangible assets - Summary of Amortization expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
2023 $ 50,307  
2024 47,601  
2025 35,476  
2026 31,024  
2027 27,119  
Thereafter 78,940  
Total $ 270,467 $ 54,337
v3.22.4
Long-term debt - Schedule of Long-term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs $ 2,025,187 $ 1,775,000
Deferred financing costs, net of accumulated amortization (26,306) (17,227)
Total debt 1,998,881 1,757,773
Current portion of long-term debt 20,750 17,500
Long-term debt and borrowings under Variable Funding Notes, net of current portion 1,978,131 1,740,273
Borrowings under Variable Funding notes | Borrowings under Variable Funding notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs 0 75,000
Senior Notes | 2018-1 Class A-2-I notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs 0 556,312
Senior Notes | 2018-1 Class A-2-II notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs 598,438 604,688
Senior Notes | 2019-1 Class A-2 notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs 533,500 539,000
Senior Notes | 2022-1 Class A-2-I notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs 421,812 0
Senior Notes | 2022-1 Class A-2-II notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs $ 471,437 $ 0
v3.22.4
Long-term debt - Additional Information (Details)
12 Months Ended
May 09, 2022
USD ($)
Feb. 10, 2022
USD ($)
extension
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Dec. 03, 2019
USD ($)
Dec. 31, 2018
USD ($)
Aug. 01, 2018
USD ($)
Debt Instrument [Line Items]                  
Proceeds from issuance of Variable Funding Notes     $ 75,000,000 $ 0 $ 0        
Debt issuance costs     16,193,000     $ 10,577,000   $ 27,133,000  
Restricted cash     62,659,000 $ 58,032,000          
2018-1 Class A-2-I notes | Senior Notes                  
Debt Instrument [Line Items]                  
Interest rate                 4.262%
Principal amount                 $ 575,000,000
2018-1 Class A-2-II notes | Senior Notes                  
Debt Instrument [Line Items]                  
Interest rate                 4.666%
Principal amount                 $ 625,000,000
Borrowings under Variable Funding notes | Revolving Credit Facility                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity                 $ 75,000,000
2019-1 Class A-2 notes | Senior Notes                  
Debt Instrument [Line Items]                  
Interest rate             3.858%    
Principal amount             $ 550,000,000    
3.251% Fixed Rate Class A-2-I Senior Secured Notes                  
Debt Instrument [Line Items]                  
Loss on extinguishment of debt     1,583,000            
3.251% Fixed Rate Class A-2-I Senior Secured Notes | Senior Notes                  
Debt Instrument [Line Items]                  
Interest rate   3.251%              
Principal amount   $ 425,000              
4.008% Fixed Rate Class A-2-II Senior Secured Notes | Senior Notes                  
Debt Instrument [Line Items]                  
Interest rate   4.008%              
Principal amount   $ 475,000              
2022 Variable Funding Notes | Revolving Credit Facility                  
Debt Instrument [Line Items]                  
Maximum borrowing capacity   75,000              
Proceeds from issuance of Variable Funding Notes   $ 75,000              
Repayment of long-term debt and Variable Funding Notes $ 75,000                
Commitment fee percentage   0.50%              
Number of additional extensions | extension   2              
Term of extension (in years)   1 year              
Interest rate during period   5.00%              
Securitized Senior Notes | Securitized Senior Notes                  
Debt Instrument [Line Items]                  
Cap on non-securitized indebtedness     $ 50,000,000            
Leverage ratio cap     7.0            
v3.22.4
Long-term debt - Schedule of Future Annual Payments of Long-term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Debt Disclosure [Abstract]    
2023 $ 20,750  
2024 20,750  
2025 600,438  
2026 419,313  
2027 10,250  
Thereafter 953,686  
Total $ 2,025,187 $ 1,775,000
v3.22.4
Revenue from contract with customers - Schedule of Contract Liabilities (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
Contract liabilities  
Beginning Balance $ 61,779
Revenue recognized that was included in the contract liability at the beginning of the year (28,115)
Other gain on settlement of preexisting contracts in connection with the Sunshine Acquisition (2,059)
Deferred revenue acquired in the Sunshine Acquisition 16,973
Increase, excluding amounts recognized as revenue during the period 38,333
Ending Balance $ 86,911
v3.22.4
Revenue from contract with customers - Remaining Performance Obligation (Details)
$ in Thousands
Dec. 31, 2022
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 86,911
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 53,759
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 5,305
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 3,931
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 3,495
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 3,030
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 17,391
Remaining performance obligation, expected timing of satisfaction
v3.22.4
Revenue from contract with customers - Schedule of Deferred Revenue (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue $ 86,911 $ 61,779
Long-term portion of deferred revenue 33,152 33,428
Deferred revenue - current 53,759 28,351
Prepaid membership fees    
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue 14,160 6,491
Enrollment fees    
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue 3,806 1,257
Equipment discount    
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue 5,256 3,152
Annual membership fees    
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue 26,848 13,591
Area development and franchise fees    
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue $ 36,841 $ 37,288
v3.22.4
Revenue from contract with customers - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]    
Equipment deposits $ 8,443 $ 6,036
Deferred revenue expected recognition period (in months) 12 months  
v3.22.4
Related party transactions - Schedule of Related Party Transactions (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Related Party Transaction [Line Items]      
Total revenue from related parties $ 5,983 $ 5,137 $ 2,298
Franchise revenue      
Related Party Transaction [Line Items]      
Total revenue from related parties 4,074 3,511 1,783
Equipment revenue      
Related Party Transaction [Line Items]      
Total revenue from related parties $ 1,909 $ 1,626 $ 515
v3.22.4
Related party transactions - Additional Information (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
store
Dec. 31, 2021
USD ($)
store
Dec. 31, 2020
USD ($)
Related Party Transaction [Line Items]      
Number of corporate-owned stores utilizing software | store 192 110  
Number of franchise stores utilizing software | store 672 653  
VIE      
Related Party Transaction [Line Items]      
General and administrative expense $ 2,437 $ 1,997 $ 793
Board of Directors | Amenity Tracking Compliance Software Company      
Related Party Transaction [Line Items]      
Ownership percentage 10.50%    
Direct TSG Investors      
Related Party Transaction [Line Items]      
Liability payable under tax benefit obligations $ 80,717 84,595  
Reacquired area development rights      
Related Party Transaction [Line Items]      
Deferred ADA revenue from related parties 467 292  
Amenity tracking compliance software | Affiliated entity      
Related Party Transaction [Line Items]      
Purchases from related party 272 220  
Corporate travel | Affiliated entity      
Related Party Transaction [Line Items]      
Expense incurred for corporate travel to a third-party company $ 378 $ 173 $ 90
v3.22.4
Stockholders’ equity (Details) - USD ($)
1 Months Ended 12 Months Ended
Mar. 02, 2020
Dec. 04, 2019
Jan. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Nov. 04, 2022
Nov. 05, 2019
Class of Stock [Line Items]                
Repurchase and retirement of common stock       $ 94,315,000   $ 0    
Preferred stock shares authorized (in shares)       50,000,000 50,000,000      
Preferred stock shares issued (in shares)       0 0      
Preferred stock shares outstanding (in shares)       0 0      
2019 ASR Agreement                
Class of Stock [Line Items]                
Share repurchase program, authorized amount   $ 300,000,000           $ 500,000,000
Repurchase and retirement of common stock $ 60,000,000 $ 240,000,000            
Remaining number of shares authorized to be repurchased (in shares)       105,686,000        
2022 Share Repurchase Program                
Class of Stock [Line Items]                
Share repurchase program, authorized amount             $ 500,000,000  
Pla-Fit Holdings, LLC                
Class of Stock [Line Items]                
Number of units held by owners (in shares)       548,175 622,979 4,839,866    
Continuing LLC Owners                
Class of Stock [Line Items]                
Exchanges of Class B common stock, shares (in shares)       548,175 622,979 4,839,866    
Continuing LLC Owners | Secondary Offering And Exchange                
Class of Stock [Line Items]                
Number of units held by owners (in shares)       6,145,722        
Continuing LLC Owners | Secondary Offering And Exchange | Pla-Fit Holdings, LLC                
Class of Stock [Line Items]                
Percentage of economic interest       6.90%        
Investor | Secondary Offering And Exchange | Pla-Fit Holdings, LLC                
Class of Stock [Line Items]                
Percentage of economic interest       93.10%        
Holdings Units                
Class of Stock [Line Items]                
Shares exchanged for Class A common stock       1        
Class A common stock                
Class of Stock [Line Items]                
Stock repurchased       $ 94,315,000 $ 0 $ 0    
Class A common stock | 2019 ASR Agreement                
Class of Stock [Line Items]                
Stock repurchased (in shares) 666,961 3,289,924   1,528,720        
Repurchase and retirement of common stock       $ 94,315,000        
Weighted average cost per share (in usd per share) $ 75.82              
Class A common stock | 2022 Share Repurchase Program | Subsequent Event                
Class of Stock [Line Items]                
Stock repurchased (in shares)     317,599          
Repurchase and retirement of common stock     $ 25,005,000          
Class A common stock | Continuing LLC Owners                
Class of Stock [Line Items]                
Number of stock issued during period (in shares)       548,175 622,979 4,839,866    
Number of shares exchanged (in shares)       548,175 622,979      
Class A common stock | Investor | Secondary Offering And Exchange                
Class of Stock [Line Items]                
Number of units held by owners (in shares)       83,430,495        
Class A common stock | Investor | Secondary Offering And Exchange | Pla-Fit Holdings, LLC | Common Stockholders                
Class of Stock [Line Items]                
Percentage of voting power       93.10%        
Class B common stock                
Class of Stock [Line Items]                
Shares exchanged for Class A common stock       1        
Class B common stock | Continuing LLC Owners                
Class of Stock [Line Items]                
Number of shares exchanged (in shares)       548,175 622,979 4,839,866    
Class B common stock | Continuing LLC Owners | Secondary Offering And Exchange                
Class of Stock [Line Items]                
Number of units held by owners (in shares)       6,145,722        
Class B common stock | Continuing LLC Owners | Secondary Offering And Exchange | Pla-Fit Holdings, LLC | Continuing LLC Owners                
Class of Stock [Line Items]                
Percentage of voting power       6.90%        
v3.22.4
Equity-based compensation - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Aug. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Weighted-average grant date fair value of stock options granted (in usd per share) $ 29.31    
Total unrecognized compensation expense related to unvested stock options. $ 3,045    
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Options and awards authorized (in shares)     7,896,800
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Contractual term 10 years    
Share based compensation expense $ 2,947 $ 3,915  
Stock options, expected recognition, weighted-average period (in years) 1 year 10 months 24 days    
Stock options | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share based compensation, vest equally over a period (in years) 4 years    
RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share based compensation expense $ 4,202 4,568  
Stock options, expected recognition, weighted-average period (in years) 1 year 9 months 18 days    
Unrecognized compensation expense related to unvested RSUs, including an estimate for pre-vesting forfeitures $ 3,162    
RSUs | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share based compensation, vest equally over a period (in years) 4 years    
PSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share based compensation, vest equally over a period (in years) 3 years    
Stock options, expected recognition, weighted-average period (in years) 2 years 2 months 12 days    
Unrecognized compensation expense related to unvested RSUs, including an estimate for pre-vesting forfeitures $ 1,540    
Share based compensation, performance period (in years) 3 years    
PSUs | COVID-19      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share based compensation expense $ 540 $ 0  
PSUs | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Adjustment of quantity of awards earned for performance metrics, percent 0.00%    
PSUs | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Adjustment of quantity of awards earned for performance metrics, percent 200.00%    
ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share based compensation expense $ 377    
Payroll deduction for ESPP, percent 10.00%    
ESPP offering period (in months) 6 months    
ESPP purchase discount, percent 85.00%    
Number of shares of common stock authorized and available for issuance under the ESPP (in shares) 1,000,000    
Shares purchased (in shares) 16,375    
v3.22.4
Equity-based compensation - Fair Value of Stock Option Awards Determined on Grant Date Using Black-Scholes Valuation Model (Details)
1 Months Ended 12 Months Ended
Aug. 31, 2015
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years)     6 years 3 months
Expected volatility, Minimum (percentage)   28.00% 48.80%
Expected volatility, Maximum (percentage)   55.50% 49.40%
Risk-free interest rate, Minimum (percentage)   0.65% 1.05%
Risk-free interest rate, Maximum (percentage)   4.20% 1.21%
Dividend yield (percentage) 0.00% 0.00% 0.00%
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years)   3 months  
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years)   6 years 3 months  
v3.22.4
Equity-based compensation - Summary of Stock Option Activity (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
shares
Stock Options  
Outstanding at beginning of period (in shares) | shares 832,325
Granted (in shares) | shares 119,364
Exercised (in shares) | shares (8,063)
Forfeited (in shares) | shares (73,687)
Outstanding at end of period (in shares) | shares 869,939
Vested or expected to vest (in shares) | shares 869,939
Exercisable (in shares) | shares 650,955
Weighted average exercise price  
Outstanding at beginning of period (usd per share) | $ / shares $ 43.86
Granted (usd per share) | $ / shares 77.05
Exercised (usd per share) | $ / shares 23.17
Forfeited (usd per share) | $ / shares 76.39
Outstanding at end of period (usd per share) | $ / shares 45.85
Vested or expected to vest (usd per share) | $ / shares 45.85
Exercisable (usd per share) | $ / shares $ 35.49
Weighted average remaining contractual term (years)  
Outstanding 5 years 6 months
Vested or expected to vest 5 years 6 months
Exercisable 4 years 8 months 12 days
Aggregate intrinsic value  
Outstanding | $ $ 28,903
Vested or expected to vest | $ 28,903
Exercisable | $ $ 28,193
v3.22.4
Equity-based compensation - Summary of Restricted Stock Units Activity and Performance Share Units Activity (Details)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
$ / shares
shares
RSUs  
Restricted stock units  
Unvested outstanding at beginning of period (in shares) | shares 138,917
Granted (in shares) | shares 80,472
Vested (in shares) | shares (65,433)
Forfeited (in shares) | shares (48,592)
Unvested outstanding at end of period (in shares) | shares 105,364
Weighted average fair value  
Unvested outstanding at beginning of period (in usd per share) | $ / shares $ 71.65
Granted (in usd per share) | $ / shares 82.42
Vested (usd per share) | $ / shares 66.06
Forfeited (in usd per share) | $ / shares 84.38
Unvested outstanding at end of period (in usd per share) | $ / shares $ 77.47
Weighted average remaining contractual term (years)  
Outstanding 1 year 9 months 18 days
Aggregate intrinsic value  
Outstanding | $ $ 8,303
PSUs  
Restricted stock units  
Unvested outstanding at beginning of period (in shares) | shares 0
Granted (in shares) | shares 95,338
Vested (in shares) | shares 0
Forfeited (in shares) | shares (66,394)
Unvested outstanding at end of period (in shares) | shares 28,944
Expected to vest (in shares) | shares 25,177
Weighted average fair value  
Unvested outstanding at beginning of period (in usd per share) | $ / shares $ 0
Granted (in usd per share) | $ / shares 90.21
Vested (usd per share) | $ / shares 0
Forfeited (in usd per share) | $ / shares 93.52
Unvested outstanding at end of period (in usd per share) | $ / shares 82.61
Expected to vest (usd per share) | $ / shares $ 82.61
Weighted average remaining contractual term (years)  
Outstanding 2 years 2 months 12 days
Expected to vest 2 years 2 months 12 days
Aggregate intrinsic value  
Outstanding | $ $ 2,281
Expected to vest | $ $ 1,984
v3.22.4
Earnings per share - Additional Information (Details) - shares
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
RSUs      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Anti-dilutive securities excluded from the calculation of earnings per share (shares) 11,963 114 548
PSUs      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Anti-dilutive securities excluded from the calculation of earnings per share (shares) 1,066 0 0
Holdings Units      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Shares exchanged for Class A common stock 1    
Class A common stock | Stock options      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Anti-dilutive securities excluded from the calculation of earnings per share (shares)     528,464
Class A common stock | RSUs      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Anti-dilutive securities excluded from the calculation of earnings per share (shares)     41,223
Class B common stock      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Shares exchanged for Class A common stock 1    
Class B common stock | Stock options      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Anti-dilutive securities excluded from the calculation of earnings per share (shares) 244,660 160,833 162,740
Class B common stock | Equity Unit Purchase Agreements      
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Anti-dilutive securities excluded from the calculation of earnings per share (shares) 5,867,367 3,323,399 6,292,971
v3.22.4
Earnings per share - Reconciliation of Numerators and Denominators Used to Compute Basic and Diluted Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Numerator      
Net income (loss) $ 110,456 $ 46,122 $ (15,204)
Less: net income (loss) attributable to non-controlling interests 11,054 3,348 (213)
Net income (loss) attributable to Planet Fitness, Inc. - basic 99,402 42,774 (14,991)
Net income (loss) attributable to Planet Fitness, Inc. - diluted $ 99,402 $ 42,774 $ (14,991)
Stock options      
Effect of dilutive securities:      
Weighted-average shares outstanding adjustment (shares) 351,200 540,381 0
Restricted stock units      
Effect of dilutive securities:      
Weighted-average shares outstanding adjustment (shares) 54,864 58,188 0
Performance stock units      
Effect of dilutive securities:      
Weighted-average shares outstanding adjustment (shares) 1,215 0 0
Class A common stock      
Denominator      
Weighted-average shares of Class A common stock outstanding - basic (in shares) 84,136,819 83,295,580 80,303,277
Effect of dilutive securities:      
Weighted-average shares of Class A common stock outstanding - diluted (in shares) 84,544,098 83,894,149 80,303,277
Earnings (loss) per share of Class A common stock - basic (in usd per share) $ 1.18 $ 0.51 $ (0.19)
Earnings (loss) per share of Class A common stock - diluted (in usd per share) $ 1.18 $ 0.51 $ (0.19)
v3.22.4
Income taxes - Schedule of Income Before Provision for Income Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
Domestic $ 158,345 $ 52,425 $ (13,382)
Foreign 3,093 (465) (1,135)
Income (expense) before income taxes $ 161,438 $ 51,960 $ (14,517)
v3.22.4
Income taxes - Schedule of Provision (Benefit) for Income Taxes Expenses (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Current:      
Federal $ 0 $ (314) $ (6,938)
State 842 4,197 256
Foreign 1,055 248 156
Total current tax expense (benefit) 1,897 4,131 (6,526)
Deferred:      
Federal 27,401 11,079 2,769
State 21,049 (9,750) 4,530
Foreign 168 199 (86)
Total deferred tax expense 48,618 1,528 7,213
Provision for income taxes $ 50,515 $ 5,659 $ 687
v3.22.4
Income taxes - Schedule of Reconciliation of U.S. Statutory Income Tax Rate to Company's Effective Tax Rate (Details)
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]      
U.S. statutory tax rate 21.00% 21.00% 21.00%
State and local taxes, net of federal benefit 4.00% 6.60% 5.70%
State rate change impact on deferred taxes 8.60% (22.70%) (37.40%)
Tax benefit arrangement liability adjustment (1.80%) 4.70% 8.60%
Foreign tax rate differential 0.20% 0.70% (1.00%)
Withholding taxes and other 0.30% 0.60% (0.30%)
Colorado store sale 0.90% 0.00% 0.00%
Change in valuation allowance (0.40%) 8.60% 0.00%
Equity-based compensation (0.20%) (7.40%) 0.00%
Income attributable to non-controlling interests (1.30%) (1.20%) (1.30%)
Effective tax rate 31.30% 10.90% (4.70%)
v3.22.4
Income taxes - Additional information (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2022
USD ($)
agreement
shares
Dec. 31, 2021
USD ($)
shares
Dec. 31, 2020
USD ($)
Tax Credit Carryforward [Line Items]      
Effective tax rate 31.30% 10.90% (4.70%)
Net deferred tax asset $ 453,094 $ 539,264  
Valuation allowance 4,037 4,630  
Federal net operating loss carryforwards 210,717    
Liability related to uncertain tax positions $ 328 420  
Number of tax receivable agreements | agreement 2    
Applicable tax savings (in percentage) 85.00%    
Percentage of remaining tax savings (in percentage) 15.00%    
Other income (expense) reflecting change in tax benefit obligation $ 13,831 11,737 $ 5,949
Deferred tax asset 563,875 607,465  
Deferred tax liability 106,744 63,571  
Tax benefit obligation 494,465 528,107  
Capital losses without sufficient positive evidence to support recoverability      
Tax Credit Carryforward [Line Items]      
Valuation allowance 4,037    
Continuing LLC Owners      
Tax Credit Carryforward [Line Items]      
Decrease in deferred tax assets 2,000 468  
Deferred tax asset 16,326 17,714  
Deferred tax liability $ 0 $ 15,034  
Class A common stock | Continuing LLC Owners      
Tax Credit Carryforward [Line Items]      
Number of shares exchanged (in shares) | shares 548,175 622,979  
v3.22.4
Income taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Deferred tax assets:    
Deferred revenue $ 5,277 $ 7,518
Goodwill and intangible assets 401,438 487,752
Net operating loss 53,370 47,361
Lease liabilities 91,205 53,625
Other 12,585 11,209
Deferred tax assets 563,875 607,465
Valuation allowance (4,037) (4,630)
Deferred tax assets, net of valuation allowance 559,838 602,835
Deferred tax liabilities:    
Prepaid expenses (952) (2,244)
Property and equipment (23,718) (16,433)
Right of use assets (82,074) (44,894)
Total deferred tax liabilities (106,744) (63,571)
Total deferred tax assets and liabilities 453,094 539,264
Reported as:    
Deferred income taxes - non-current assets 454,565 539,264
Deferred income taxes - non-current liabilities (1,471) 0
Total deferred tax assets and liabilities $ 453,094 $ 539,264
v3.22.4
Income taxes - Summary Of Changes In Unrecognized Tax Positions (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Balance at beginning of year $ 420 $ 420
Increase related to current year tax positions 0 0
Decrease related to prior year tax positions (92) 0
Balance at end of year $ 328 $ 420
v3.22.4
Income taxes - Schedule of Future Payments Under Tax Benefit Arrangements (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]    
2023 $ 31,940  
2024 41,153  
2025 51,713  
2026 54,038  
2027 56,761  
Thereafter 258,860  
Total $ 494,465 $ 528,107
v3.22.4
Commitments and contingencies (Details) - USD ($)
3 Months Ended 12 Months Ended
May 27, 2022
Mar. 19, 2020
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2020
Dec. 31, 2021
Commitment And Contingencies [Line Items]            
Litigation settlement         $ 3,800,000  
Guarantor obligations, maximum period       10 years    
Maximum obligation of guarantees of leases and debt     $ 5,942,000 $ 5,942,000   $ 6,670,000
Accrued potential obligation recorded under guaranty arrangement     0 0   $ 0
Advertising Purchase Commitment            
Commitment And Contingencies [Line Items]            
Purchase commitments     77,865,000 77,865,000    
Equipment Purchase Commitment            
Commitment And Contingencies [Line Items]            
Purchase commitments     22,019,000 $ 22,019,000    
Mexico Acquisition            
Commitment And Contingencies [Line Items]            
Loss contingency reserve   $ 8,550,000        
Final judgement | Civil Action Brought By Former Employee            
Commitment And Contingencies [Line Items]            
Paid     $ 3,414,000      
Indemnification receivable increase $ 1,189,000          
Loss contingency reserve $ 1,189,000          
v3.22.4
Retirement plan (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Retirement Benefits [Abstract]      
Percentage of employer matching contribution 100.00%    
Maximum percentage of employee contribution 4.00%    
Total employer matching contributions expense $ 1,123 $ 846 $ 910
v3.22.4
Segments - Additional Information (Details)
12 Months Ended
Dec. 31, 2022
USD ($)
segment
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | segment 3    
Number of operating segments | segment 0    
Total revenue $ 936,772,000 $ 587,023,000 $ 406,618,000
Franchise      
Segment Reporting Information [Line Items]      
Total revenue 329,634,000 290,710,000 206,156,000
Franchise | International      
Segment Reporting Information [Line Items]      
Total revenue 8,572,000 4,427,000 3,312,000
Franchise | Placement services      
Segment Reporting Information [Line Items]      
Total revenue 17,125,000 9,968,000 6,918,000
Corporate-owned stores      
Segment Reporting Information [Line Items]      
Total revenue 379,393,000 167,219,000 117,142,000
Corporate-owned stores | International      
Segment Reporting Information [Line Items]      
Total revenue 4,018,000 1,786,000 $ 1,968,000
Long-lived assets 916,000 $ 1,203,000  
Intersegment revenues      
Segment Reporting Information [Line Items]      
Total revenue $ 0    
v3.22.4
Segments - Summary of Financial Information for the Company's Reportable Segments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting Information [Line Items]      
Total revenue $ 936,772 $ 587,023 $ 406,618
Total Segment EBITDA 368,616 194,914 118,495
Corporate and other      
Segment Reporting Information [Line Items]      
Total Segment EBITDA (49,366) (78,265) (33,242)
Franchise      
Segment Reporting Information [Line Items]      
Total revenue 329,634 290,710 206,156
Franchise | Operating segments      
Segment Reporting Information [Line Items]      
Total Segment EBITDA 216,817 194,303 114,968
Franchise | US      
Segment Reporting Information [Line Items]      
Total revenue 321,062 286,283 202,844
Franchise | International      
Segment Reporting Information [Line Items]      
Total revenue 8,572 4,427 3,312
Corporate-owned stores      
Segment Reporting Information [Line Items]      
Total revenue 379,393 167,219 117,142
Corporate-owned stores | Operating segments      
Segment Reporting Information [Line Items]      
Total Segment EBITDA 142,083 49,196 23,672
Corporate-owned stores | US      
Segment Reporting Information [Line Items]      
Total revenue 375,375 165,433 115,174
Corporate-owned stores | International      
Segment Reporting Information [Line Items]      
Total revenue 4,018 1,786 1,968
Equipment      
Segment Reporting Information [Line Items]      
Total revenue 227,745 129,094 83,320
Equipment | Operating segments      
Segment Reporting Information [Line Items]      
Total Segment EBITDA 59,082 29,680 13,097
Equipment | US      
Segment Reporting Information [Line Items]      
Total revenue 212,269 125,023 82,331
Equipment | International      
Segment Reporting Information [Line Items]      
Total revenue $ 15,476 $ 4,071 $ 989
v3.22.4
Segments - Reconciliation of Total Segment EBITDA to Income Before Taxes (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting [Abstract]      
Total Segment EBITDA $ 368,616 $ 194,914 $ 118,495
Depreciation and amortization 124,022 62,800 53,832
Other income (expense) 14,983 (11,102) 4,903
Equity losses of unconsolidated entities, net of tax (467) (179) 0
Income from operations 230,078 143,395 59,760
Interest expense, net (83,623) (80,333) (79,180)
Other income (expense), net 14,983 (11,102) 4,903
Income (expense) before income taxes $ 161,438 $ 51,960 $ (14,517)
v3.22.4
Segments - Summary of Company's Assets by Reportable Segment (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets $ 2,854,589 $ 2,015,983
Operating segments | Franchise    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets 161,355 172,822
Operating segments | Corporate-owned stores    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets 1,559,985 516,714
Operating segments | Equipment    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets 200,020 193,983
Unallocated    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets $ 933,229 $ 1,132,464
v3.22.4
Segments - Summary of Company's Goodwill by Reportable Segment (Details) - USD ($)
$ in Thousands
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Total consolidated goodwill $ 702,690 $ 228,569 $ 227,821
Franchise      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Total consolidated goodwill 16,938 16,938 16,938
Corporate-owned stores      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Total consolidated goodwill 593,086 118,965 118,217
Equipment      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Total consolidated goodwill $ 92,666 $ 92,666 $ 92,666
v3.22.4
Corporate-owned and franchisee-owned stores - Schedule of Changes in Corporate-owned and Franchisee-owned Stores (Details) - store
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Number Of Stores [Roll Forward]      
Stores operated at beginning of period 2,254 2,124 2,001
New stores opened 158 132 130
Stores debranded, sold or consolidated (2) (2) (7)
Stores operated at end of period 2,410 2,254 2,124
COVID-19      
Number Of Stores [Roll Forward]      
Number of stores reopened 2,410    
Franchisee-owned stores:      
Number Of Stores [Roll Forward]      
Stores operated at beginning of period 2,142 2,021 1,903
New stores opened 144 125 125
Stores acquired from the Company 6 0  
Stores debranded, sold or consolidated (116) (4) (7)
Stores operated at end of period 2,176 2,142 2,021
Corporate-owned stores:      
Number Of Stores [Roll Forward]      
Stores operated at beginning of period 112 103 98
New stores opened 14 7 5
Stores sold to franchisees (6) 0 0
Stores acquired from franchisees 114 2 0
Stores operated at end of period 234 112 103
v3.22.4
Valuation and Qualifying Accounts (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Allowance for uncollectible amounts:      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 0 $ 7 $ 111
Provision for (recovery of) doubtful accounts, net 0 10 (74)
Write-offs and other 0 (17) (30)
Balance at End of Period 0 0 7
Allowance for credit losses on held to maturity investment:      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 17,462 0 0
Provision for (recovery of) doubtful accounts, net (2,505) 17,462 0
Write-offs and other 0 0 0
Balance at End of Period 14,957 17,462 0
Valuation allowance on deferred tax assets:      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 4,630 0 0
Provision for (recovery of) doubtful accounts, net (593) 4,630 0
Write-offs and other 0 0 0
Balance at End of Period $ 4,037 $ 4,630 $ 0