PLANET FITNESS, INC., 10-K filed on 3/1/2022
Annual Report
v3.22.0.1
Cover Page - USD ($)
$ in Billions
12 Months Ended
Dec. 31, 2021
Feb. 24, 2022
Jun. 30, 2021
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
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     $ 6.3
Documents Incorporated by Reference Portions of the Definitive Proxy Statement for the registrant’s 2021 Annual Meeting of Stockholders to be held May 2, 2022, 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 2021    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001637207    
Class A Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   84,331,677  
Class B Common Stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   6,693,897  
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Audit Information
12 Months Ended
Dec. 31, 2021
Audit Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Boston, Massachusetts
Auditor Firm ID 185
v3.22.0.1
Consolidated balance sheets - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 545,909 $ 439,478
Restricted cash 58,032 76,322
Accounts receivable, net of allowance for bad debts of $0 and $7 as of December 31, 2021 and 2020, respectively 27,257 16,447
Inventory 1,155 473
Prepaid expenses 12,869 11,881
Other receivables 13,519 16,754
Income tax receivable 3,673 5,461
Total current assets 662,414 566,816
Property and equipment, net 173,687 160,677
Investments, net of allowance for expected credit losses of $17,462 and $0 as of December 31, 2021 and 2020, respectively 18,760 0
Right-of-use assets, net 190,330 164,252
Intangible assets, net 200,937 217,075
Goodwill 228,569 227,821
Deferred income taxes 539,264 511,200
Other assets, net 2,022 1,896
Total assets 2,015,983 1,849,737
Current liabilities:    
Current maturities of long-term debt 17,500 17,500
Accounts payable 27,892 19,388
Accrued expenses 51,714 22,042
Equipment deposits 6,036 795
Current portion of deferred revenue 28,351 26,691
Payable pursuant to tax benefit arrangements, current 20,302 0
Other current liabilities 24,815 25,479
Total current liabilities 176,610 111,895
Long-term debt, net of current maturities 1,665,273 1,676,426
Borrowings under 2018 Variable Funding Notes 75,000 75,000
Lease liabilities, net of current portion 197,682 167,910
Deferred revenue, net of current portion 33,428 32,587
Deferred tax liabilities 0 881
Payable pursuant to tax benefit arrangements, net of current portion 507,805 488,200
Other liabilities 3,030 2,511
Total noncurrent liabilities 2,482,218 2,443,515
Commitments and contingencies (Note 17)
Stockholders’ equity (deficit):    
Accumulated other comprehensive income 12 27
Additional paid in capital 63,428 45,673
Accumulated deficit (708,804) (751,578)
Total stockholders’ deficit attributable to Planet Fitness, Inc. (645,355) (705,869)
Non-controlling interests 2,510 196
Total stockholders’ deficit (642,845) (705,673)
Total liabilities and stockholders’ deficit 2,015,983 1,849,737
Class A Common Stock    
Stockholders’ equity (deficit):    
Common stock, value 8 8
Class B Common Stock    
Stockholders’ equity (deficit):    
Common stock, value $ 1 $ 1
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Consolidated balance sheets (Parenthetical) - USD ($)
shares in Thousands, $ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Current assets:    
Accounts receivable, allowance for bad debts $ 0 $ 7
Stockholders’ equity (deficit):    
Allowance for expected credit loss $ 17,462 $ 0
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) 83,804 82,821
Common stock, shares outstanding (in shares) 83,804 82,821
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) 3,056 3,722
Common stock, shares outstanding (in shares) 3,056 3,722
v3.22.0.1
Consolidated statements of operations - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Revenue:      
Revenue $ 587,023 $ 406,618 $ 688,803
Operating costs and expenses:      
Cost of revenue 100,993 70,955 194,449
Store operations 110,716 87,797 86,108
Selling, general and administrative 94,540 68,585 78,818
National advertising fund expense 59,442 61,255 50,153
Depreciation and amortization 62,800 53,832 44,346
Other loss 15,137 4,434 1,846
Total operating costs and expenses 443,628 346,858 455,720
Income from operations 143,395 59,760 233,083
Other income (expense), net:      
Interest income 878 2,937 7,053
Interest expense (81,211) (82,117) (60,852)
Other income (expense), net (11,102) 4,903 (6,107)
Total other expense, net (91,435) (74,277) (59,906)
Income (expense) before income taxes 51,960 (14,517) 173,177
Equity earnings (losses) of unconsolidated entities, net of tax (179) 0 0
Provision for income taxes 5,659 687 37,764
Net income (loss) 46,122 (15,204) 135,413
Less net income (loss) attributable to non-controlling interests 3,348 (213) 17,718
Net income (loss) attributable to Planet Fitness, Inc. $ 42,774 $ (14,991) $ 117,695
Class A Common Stock      
Net income (loss) per share of Class A common stock:      
Basic (usd per share) $ 0.51 $ (0.19) $ 1.42
Diluted (usd per share) $ 0.51 $ (0.19) $ 1.41
Weighted-average shares of Class A common stock outstanding:      
Basic (shares) 83,295,580 80,303,277 82,976,620
Diluted (shares) 83,894,149 80,303,277 83,619,180
Franchise      
Revenue:      
Revenue $ 290,710 $ 206,156 $ 277,582
Franchise | Franchise      
Revenue:      
Revenue 237,570 162,159 223,139
Franchise | Commission income      
Revenue:      
Revenue 779 696 4,288
Franchise | National advertising fund revenue      
Revenue:      
Revenue 52,361 43,301 50,155
Corporate-owned stores      
Revenue:      
Revenue 167,219 117,142 159,697
Equipment      
Revenue:      
Revenue $ 129,094 $ 83,320 $ 251,524
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Consolidated statements of comprehensive income - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net income (loss) including non-controlling interests $ 46,122 $ (15,204) $ 135,413
Net income (loss) including non-controlling interests      
Foreign currency translation adjustments (15) (276) 209
Total other comprehensive income (loss), net (15) (276) 209
Total comprehensive income (loss) including non-controlling interests 46,107 (15,480) 135,622
Less: total comprehensive income (loss) attributable to non-controlling interests 3,348 (213) 17,718
Total comprehensive income (loss) attributable to Planet Fitness, Inc. $ 42,759 $ (15,267) $ 117,904
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Consolidated statements of cash flows - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities:      
Net income (loss) $ 46,122 $ (15,204) $ 135,413
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 62,800 53,832 44,346
Amortization of deferred financing costs 6,346 6,411 5,454
Amortization of favorable leases and asset retirement obligations 71 57 237
Equity earnings (losses) of unconsolidated entities, net of tax 179 0 0
Dividends accrued on investment (1,401) 0 0
Deferred tax expense 1,528 7,213 21,625
Loss (gain) on re-measurement of tax benefit arrangement 11,737 (5,949) 5,966
Provision for bad debts 10 (74) 87
Credit loss expense on held-to-maturity investment 17,462 0 0
Gain on disposal of property and equipment (46) (107) (159)
Other (22) (494) (472)
Loss on reacquired franchise rights 0 0 1,810
Equity-based compensation 8,805 4,777 4,826
Changes in operating assets and liabilities:      
Accounts receivable (10,804) 23,611 (895)
Inventory (681) 404 4,244
Other assets and other current assets 8,259 (2,676) (3,198)
Accounts payable and accrued expenses 30,928 (10,938) (6,268)
Other liabilities and other current liabilities (3,063) 4,384 1,687
Income taxes 2,202 (4,461) 6,231
Payments pursuant to tax benefit arrangements (445) (26,621) (24,998)
Equipment deposits 5,235 (2,212) (4,900)
Deferred revenue 2,349 (2,842) 11,452
Deferred rent 1,718 2,027 1,823
Net cash provided by operating activities 189,289 31,138 204,311
Cash flows from investing activities:      
Additions to property and equipment (54,074) (52,560) (57,890)
Acquisitions of franchises (1,888) 0 (52,613)
Proceeds from sale of property and equipment 46 282 109
Investments (35,000) 0 0
Purchase of intellectual property 0 0 (300)
Net cash used in investing activities (90,916) (52,278) (110,694)
Cash flows from financing activities:      
Proceeds from issuance of long-term debt 0 75,000 550,000
Proceeds from issuance of Class A common stock 8,186 2,571 2,863
Principal payments on capital lease obligations (182) (165) (93)
Repayment of long-term debt (17,500) (17,500) (12,000)
Payment of deferred financing and other debt-related costs 0 0 (10,577)
Repurchase and retirement of Class A common stock 0 0 (458,166)
Dividend equivalent paid to members of Pla-Fit Holdings 0 (234) (243)
Distributions to members of Pla-Fit Holdings (750) (1,822) (7,436)
Net cash (used in) provided by financing activities (10,246) 57,850 64,348
Effects of exchange rate changes on cash and cash equivalents 14 295 691
Net increase in cash, cash equivalents and restricted cash 88,141 37,005 158,656
Cash, cash equivalents and restricted cash, beginning of period 515,800 478,795 320,139
Cash, cash equivalents and restricted cash, end of period 603,941 515,800 478,795
Supplemental cash flow information:      
Net cash paid (refund received) for income taxes 1,848 (2,157) 10,001
Cash paid for interest 74,869 75,629 53,713
Non-cash investing activities:      
Non-cash additions to property and equipment $ 5,659 $ 1,172 $ 2,827
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Consolidated statement of changes in equity - USD ($)
$ in Thousands
Total
Cumulative effect adjustment (Note 8)
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
Accumulated deficit
Cumulative effect adjustment (Note 8)
Non-controlling interests
Beginning balance (shares) at Dec. 31, 2018         83,584,000 9,448,000          
Beginning balance at Dec. 31, 2018 $ (382,789) $ (1,713)     $ 9 $ 1 $ 94 $ 19,732 $ (394,410) $ (1,713) $ (8,215)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net income (loss) 135,413               117,695   17,718
Equity-based compensation expense 4,826             4,826      
Exchanges of Class B common stock (shares)         886,000 (886,000)          
Exchanges of Class B common stock 0             (1,172)     1,172
Repurchase and retirement of common stock (shares)         (6,086,000)            
Repurchase and retirement of Class A common stock (458,166)       $ (1)     488 (458,165)   (488)
Tax benefit arrangement liability and deferred taxes arising from secondary offerings and other exchanges 3,156             3,156      
Exercise of stock options and vesting of restricted share units (shares)         141,000            
Exercise of stock options and vesting of restricted share units 2,790             2,790      
Forfeiture of dividend equivalents 6               6    
Distributions paid to members of Pla-Fit Holdings (7,436)                   (7,436)
Non-cash adjustments to VIEs (4,050)                   (4,050)
Other comprehensive income (loss) 209           209        
Ending balance (shares) at Dec. 31, 2019         78,525,000 8,562,000          
Ending 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 (shares)         4,840,000 (4,840,000)          
Exchanges of Class B common stock 0             (1,526)     1,526
Repurchase and retirement of common stock (shares)         (667,000)            
Repurchase and retirement of Class A common stock 0             (2,879)     2,879
Tax benefit arrangement liability and deferred taxes arising from secondary offerings and other exchanges 12,779             12,779      
Exercise of stock options and vesting of restricted share units (shares)         123,000            
Exercise of stock options and vesting of restricted share units 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 income (loss) (276)           (276)        
Ending balance (shares) at Dec. 31, 2020     82,821,000 3,722,000 82,821,000 3,722,000          
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 (shares)         623,000 (623,000)          
Exchanges of Class B common stock 0             (608)     608
Repurchase and retirement of common stock (shares)           (43,000)          
Tax benefit arrangement liability and deferred taxes arising from secondary offerings and other exchanges $ 1,454             1,454      
Exercise of stock options and vesting of restricted share units (shares) 308,389       360,000            
Exercise of stock options and vesting of restricted share units $ 8,104             8,104      
Distributions paid to members of Pla-Fit Holdings (750)                   (750)
Non-cash adjustments to VIEs (892)                   (892)
Other comprehensive income (loss) (15)           (15)        
Ending balance (shares) at Dec. 31, 2021     83,804,000 3,056,000 83,804,000 3,056,000          
Ending balance at Dec. 31, 2021 $ (642,845)       $ 8 $ 1 $ 12 $ 63,428 $ (708,804)   $ 2,510
v3.22.0.1
Business organization
12 Months Ended
Dec. 31, 2021
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 15.2 million members and 2,254 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, 2021.
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 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.
During the years ended December 31, 2021, 2020 and 2019, certain Continuing LLC Owners have exercised their exchange rights and exchanged 622,979, 4,839,866 and 885,810 Holdings Units, respectively, for 622,979, 4,839,866 and 885,810 newly-issued shares of Class A common stock, respectively. Simultaneously, and in connection with these exchanges, 622,979, 4,839,866 and 885,810 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, 2021, 2020 and 2019, respectively. Additionally, in connection with these exchanges, Planet Fitness, Inc. received 622,979, 4,839,866 and 885,810 Holdings Units during the years ended December 31, 2021, 2020 and 2019, respectively, increasing its total ownership interest in Pla-Fit Holdings.
As of December 31, 2021, the Company held 100% of the voting interest, and approximately 96.5% of the economic interest in Pla-Fit Holdings and the Continuing LLC Owners held the remaining 3.5% 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.
v3.22.0.1
Summary of significant accounting policies
12 Months Ended
Dec. 31, 2021
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 on behalf of which 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, 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 reserves for unrecognized tax benefits, 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 our franchisees, and their broad dispersion over many different geographic areas. We do not have any concentrations with respect to our 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, 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. For the year ended December 31, 2019 purchases from three equipment vendors comprised 48%, 35%, and 12%, respectively, of total equipment purchases.
The Company, including the NAF, uses various vendors for advertising services. For the year ended December 31, 2021, purchases from one vendor comprised 41% of total advertising purchases. For the year ended December 31, 2020 purchases from one vendor comprised 71% of total advertising purchases, and for the year ended December 31, 2019 purchases from two vendors comprised 38% and 15%, respectively, 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, 2021, the Company had restricted cash held by the Trustee of $42,024. 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.
(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, other fees and commission income. 
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 as a single performance obligation, which is satisfied by granting certain rights to use our intellectual property over the term of each franchise agreement.
Royalties, including 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 our 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. Our franchise royalties, as well as our NAF contributions, represent sales-based royalties that are related entirely to our 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. Our 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. and Canada 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. and Canada 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.
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 our 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.
(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 our store management and staff, rent expense, utilities, supplies, maintenance, and local advertising.
(i) Selling, general and administrative
Selling, general and administrative expenses consist of costs associated with administrative and franchisee support functions related to our 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 $4,358, $3,341, and $7,063, for the years ended December 31, 2021, 2020 and 2019, 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 doubtful accounts 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) Leases and asset retirement obligations
The Company leases space to operate corporate-owned stores, equipment, office, and warehouse space. We currently lease our corporate headquarters and all but one of our corporate-owned stores. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We account 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.
Our corporate-owned store leases generally have remaining terms of one to ten years, and typically include one or more renewal options, with renewal terms that can generally extend the lease term from three to ten years or more. The exercise of lease renewal options is at our 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, we determine its appropriate classification as an operating or financing lease. The majority of our 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. Operating lease right of use (“ROU”) assets represent
our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs and lease incentives. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases based upon interpolated rates using our Notes.
The Company has an immaterial amount of non-real estate leases that are accounted for as finance leases under ASC 842.
Our leases typically contain rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce our ROU asset related to the lease. These tenant incentives are amortized as reduction of rent expense over the lease term.
Our 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.
(l) Property and equipment
Property and equipment is recorded at cost 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 fixed assets 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

(m) Advertising expenses
The Company expenses advertising costs as incurred. Advertising expenses for our corporate-owned stores are included within store operations and selling, general and administrative expenses and totaled $21,258, $15,132, and $13,749 for the years ended December 31, 2021, 2020 and 2019, respectively. See Note 4 for discussion of the national advertising fund.
(n) Goodwill, long-lived assets, and other intangible assets
Goodwill and other intangible assets that arise from acquisitions are recorded in accordance with 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 31 of each year. 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.
(o) 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 our allocable share of any taxable income of Pla-Fit Holdings. The Company is also subject to taxes in 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 16).
(p) Tax benefit arrangements
The Company’s acquisition of Holdings Units in connection with the IPO and future and certain 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 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, 2021 the Company has recorded a liability of $528,107 payable to the TRA Holders under the tax benefit obligations, representing approximately 85% of the calculated tax savings based on the original basis adjustments the Company anticipates being able to utilize in future years. Changes in the projected liability resulting from 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 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. 
(q) 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 carrying value and estimated fair value of long-term debt as of December 31, 2021 and 2020 were as follows:
December 31, 2021December 31, 2020
Carrying value
Estimated fair value(1)
Carrying value
Estimated fair value(1)
Long-term debt$1,700,000 $1,725,021 $1,717,500 $1,699,749 
2018 Variable Funding Notes$75,000 $75,000 $75,000 $75,000 
(1) The Company’s 2018 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 our fixed rate long-term debt is estimated primarily based on current bid prices for our long-term debt. Judgment is required to develop these estimates. As such, the fair value of our long-term debt is classified within Level 2, as defined under U.S. GAAP.
(r) 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.
(s) 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. We reserve for expected credit losses on our 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.
(t) 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 14 for further information.
(u) 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, including trade names, member relationships and re-acquired franchise rights, deferred revenue and favorable and unfavorable leases.
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 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 an estimation of future royalty income and related expenses associated with existing franchise contracts at the acquisition date. For re-acquired franchise rights with terms that are either favorable or unfavorable (from the Company’s perspective) to the terms included in the Company’s 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. Deferred revenue is valued based on estimated costs to fulfill the obligations assumed, plus a normal profit margin. No deferred revenue amounts are recognized for enrollment fees in the Company’s business combinations as there is no remaining obligation.
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. Amortization of re-acquired franchise rights and franchisee relationships is recorded over the respective franchise terms using the straight-line method which the Company believes approximates the period during which the related benefits are expected to be received. Member relationships are
amortized on an accelerated basis based on expected attrition. Favorable and unfavorable operating leases are amortized into rental expense over the lease term of the respective leases using the straight-line method.
(v) 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 17 for further discussion of such obligations guaranteed.
(w) 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.
(x) Reclassifications
Certain amounts have been reclassified to conform to current year presentation.
(y) Recent accounting pronouncements
The FASB issued ASU No. 2017-4, Simplifying the Test for Goodwill Impairment, in January 2017. This guidance eliminates the requirement to calculate the implied fair value, essentially eliminating step two from the goodwill impairment test. The new standard requires goodwill impairment to be based upon the results of step one of the impairment test, which is defined as the excess of the carrying value of a reporting unit over its fair value. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The Company adopted the new guidance on January 1, 2020, with no material impact on the Company’s consolidated financial statements.
The FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, in August 2018. The guidance helps align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the new guidance on January 1, 2020, with no material impact on the Company’s consolidated financial statements.
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. This guidance will be effective for fiscal years beginning after December 15, 2022, including interim periods within that year, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
v3.22.0.1
Variable interest entities
12 Months Ended
Dec. 31, 2021
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, 2021 and December 31, 2020 are as follows:
 December 31, 2021December 31, 2020
 AssetsLiabilitiesAssetsLiabilities
PF Melville$2,363 $— $2,523 $— 
MMR$1,991 — $2,099 — 
Total$4,354 $— $4,622 $— 
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 $1,997, $793 and $2,177 for the years ended December 31, 2021, 2020 and 2019, 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, 2021December 31, 2020
Assets
Cash & cash equivalents$15,754 $11,281 
Other current assets388 357 
Total current assets$16,142 $11,638 
Liabilities
Accounts payable$175 $7,022 
Accrued expenses and other current liabilities16,240 4,451 
Deferred revenue - current— 417 
Total current liabilities$16,415 $11,890 
v3.22.0.1
National advertising fund
12 Months Ended
Dec. 31, 2021
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, 2021 and December 31, 2020 are as follows:
 December 31, 2021December 31, 2020
 AssetsLiabilitiesAssetsLiabilities
PF Melville$2,363 $— $2,523 $— 
MMR$1,991 — $2,099 — 
Total$4,354 $— $4,622 $— 
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 $1,997, $793 and $2,177 for the years ended December 31, 2021, 2020 and 2019, 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, 2021December 31, 2020
Assets
Cash & cash equivalents$15,754 $11,281 
Other current assets388 357 
Total current assets$16,142 $11,638 
Liabilities
Accounts payable$175 $7,022 
Accrued expenses and other current liabilities16,240 4,451 
Deferred revenue - current— 417 
Total current liabilities$16,415 $11,890 
v3.22.0.1
Acquisition
12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Acquisition Acquisition
New Jersey Acquisition
On December 16, 2019, the Company purchased from one of its franchisees certain assets associated with twelve franchisee-owned stores in New Jersey for a cash payment of $37,812. As a result of the transaction, the Company incurred a loss on unfavorable reacquired franchise rights of $1,810. The loss incurred reduced the net purchase price to $36,002. The Company financed the purchase through cash on hand. The acquired stores are included in the Corporate-owned stores segment.
The purchase consideration was allocated as follows:
Amount
Fixed assets$3,044 
Reacquired franchise rights9,480 
Customer relationships940 
Favorable leases, net1,508 
Reacquired area development rights90 
Other assets314 
Goodwill21,069 
Liabilities assumed, including deferred revenues(443)
$36,002 
The goodwill created through the purchase is attributable to the assumed future value of the cash flows from the stores acquired. The goodwill is amortizable and deductible for tax purposes over 15 years.
The acquisition was not material to the results of operations of the Company.
Maine Acquisition
On May 30, 2019, the Company purchased from one of its franchisees certain assets associated with four franchisee-owned stores in Maine for a cash payment of $14,801. The Company financed the purchase through cash on hand. The acquired stores are included in the Corporate-owned stores segment.
The purchase consideration was allocated as follows:
Amount
Fixed assets$999 
Reacquired franchise rights6,740 
Customer relationships30 
Unfavorable leases, net(140)
Other assets78 
Goodwill7,239 
Liabilities assumed, including deferred revenues(145)
$14,801 
The goodwill created through the purchase is attributable to the assumed future value of the cash flows from the stores acquired. The goodwill is amortizable and deductible for tax purposes over 15 years.
The acquisition was not material to the results of operations of the Company.
v3.22.0.1
Property and equipment
12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Property and equipment Property and equipment
Property and equipment as of December 31, 2021 and 2020 consists of the following: 
 December 31, 2021December 31, 2020
Land$1,341 $1,341 
Equipment66,369 57,687 
Leasehold improvements146,810 115,619 
Buildings and improvements8,589 8,589 
Furniture & fixtures29,409 23,836 
Information technology and systems assets62,803 48,552 
Other2,463 2,615 
Construction in progress8,199 10,158 
 $325,983 $268,397 
Accumulated depreciation(152,296)(107,720)
Total$173,687 $160,677 
The Company recorded depreciation expense of $46,123, $36,943, and $27,987 for the years ended December 31, 2021, 2020 and 2019, respectively.
v3.22.0.1
Investments
12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Investments - Debt securities
As of December 31, 2021, the Company’s debt security investments consist of redeemable preferred shares that are accounted for as held-to-maturity debt securities. The Company’s investments are measured at amortized cost within Investments in the condensed 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, 2021, the Company’s review of the investee’s operations and financial position indicated that the establishment of an 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 investees recent financial results, current financial position, and forward-looking financial forecasts. Based upon the analysis, the Company recorded a credit loss expense of $17,462 within other loss on the consolidated statements of operations.
The amortized cost, including accrued dividends, of the Company’s held-to-maturity debt security investments was $26,401 and $0 and the allowance for expected credit losses was $17,462 and $0, as of December 31, 2021 and December 31, 2020, respectively. During the year ended December 31, 2021, the Company recognized dividend income of $1,401 within other income (expense) on the consolidated statements of operations.
As of December 31, 2021, all of the Company’s held-to-maturity investments had a contractual maturity in 2026.
A rollforward of the Company’s allowance for expected credit losses on held-to-maturity investments is as follows:
Year Ended December 31, 2021Year Ended December 31, 2020
Beginning allowance for expected credit losses$— $— 
Credit loss expense17,462 — 
Write-offs, net of recoveries— — 
Ending allowance for expected credit losses$17,462 $— 
Equity method investments
On April 9, 2021, the Company acquired a 21% ownership in Planet Fitness Australia Holdings, the Company’s franchisee and store operator in Australia, which is deemed to be a related party, for $10,000. For the year ended December 31, 2021, the Company’s proportionate share of the equity method earnings was a loss of $179.
v3.22.0.1
Leases
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
LeasesClassificationDecember 31, 2021December 31, 2020
Assets
Operating lease assetsRight of use asset, net$190,330 $164,252 
Finance lease assetsProperty and equipment, net of accumulated depreciation222 306 
Total lease assets$190,552 $164,558 
Liabilities
Current:
OperatingOther current liabilities$22,523 $19,544 
Noncurrent:
OperatingLease liabilities, net of current portion197,682 167,910 
FinancingOther liabilities230 327 
Total lease liabilities$220,435 $187,781 
Weighted-average remaining lease term (years) - operating leases8.78.7
Weighted-average discount rate - operating leases5.0 %5.1 %

For the years ended December 31, 2021, 2020 and 2019, the components of lease cost were as follows:
December 31, 2021December 31, 2020December 31, 2019
Operating lease cost$29,012 $26,255 $20,635 
Variable lease cost11,317 10,324 8,323 
Total lease cost$40,329 $36,579 $28,958 

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, 2021, 2020 and 2019:
December 31, 2021December 31, 2020December 31, 2019
Cash paid for lease liabilities$28,126 $24,091 $19,502 
Operating assets obtained in exchange for operating lease liabilities$48,651 $33,140 $43,016 
As of December 31, 2021, maturities of lease liabilities were as follows:
Amount
2022$32,479 
202333,192 
202433,544 
202533,007 
202630,238 
Thereafter111,718 
Total lease payments$274,178 
Less: imputed interest53,743 
Present value of lease liabilities$220,435 

As of December 31, 2021, operating lease payments exclude approximately $13,194 of legally binding minimum lease payments for leases signed but not yet commenced.
Leases Leases
LeasesClassificationDecember 31, 2021December 31, 2020
Assets
Operating lease assetsRight of use asset, net$190,330 $164,252 
Finance lease assetsProperty and equipment, net of accumulated depreciation222 306 
Total lease assets$190,552 $164,558 
Liabilities
Current:
OperatingOther current liabilities$22,523 $19,544 
Noncurrent:
OperatingLease liabilities, net of current portion197,682 167,910 
FinancingOther liabilities230 327 
Total lease liabilities$220,435 $187,781 
Weighted-average remaining lease term (years) - operating leases8.78.7
Weighted-average discount rate - operating leases5.0 %5.1 %

For the years ended December 31, 2021, 2020 and 2019, the components of lease cost were as follows:
December 31, 2021December 31, 2020December 31, 2019
Operating lease cost$29,012 $26,255 $20,635 
Variable lease cost11,317 10,324 8,323 
Total lease cost$40,329 $36,579 $28,958 

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, 2021, 2020 and 2019:
December 31, 2021December 31, 2020December 31, 2019
Cash paid for lease liabilities$28,126 $24,091 $19,502 
Operating assets obtained in exchange for operating lease liabilities$48,651 $33,140 $43,016 
As of December 31, 2021, maturities of lease liabilities were as follows:
Amount
2022$32,479 
202333,192 
202433,544 
202533,007 
202630,238 
Thereafter111,718 
Total lease payments$274,178 
Less: imputed interest53,743 
Present value of lease liabilities$220,435 

As of December 31, 2021, operating lease payments exclude approximately $13,194 of legally binding minimum lease payments for leases signed but not yet commenced.
v3.22.0.1
Goodwill and intangible assets
12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and intangible assets Goodwill and intangible assets
A summary of goodwill and intangible assets at December 31, 2021 and 2020 is as follows:
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 
 
December 31, 2020Weighted
average
amortization
period (years)
Gross
carrying
amount
Accumulated
amortization
Net carrying
Amount
Customer relationships11.0$174,033 (124,907)$49,126 
Reacquired franchise rights8.037,660 (16,311)21,349 
 $211,693 $(141,218)$70,475 
Indefinite-lived intangible:
Trade and brand namesN/A146,600 — 146,600 
Total intangible assets$358,293 $(141,218)$217,075 
Goodwill$227,821 $— $227,821 
 
A rollforward of goodwill during the years ended December 31, 2021 and 2020 is as follows:
FranchiseCorporate-owned storesEquipmentTotal
As of December 31, 2019$16,938 $118,217 $92,666 $227,821 
Acquisition of franchisee-owned stores— — — — 
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 
The Company determined that no impairment charges were required during any periods presented, and the increase to goodwill was due to the acquisition of two franchisee-owned stores in 2021.
Amortization expense related to the intangible assets totaled $16,677, $16,888, and $16,359 for the years ended December 31, 2021, 2020 and 2019, respectively. The anticipated annual amortization expense to be recognized in future years as of December 31, 2021 is as follows:
 Amount
2022$16,808 
202316,639 
202414,148 
20253,146 
20261,804 
Thereafter1,792 
Total$54,337 
v3.22.0.1
Long-term debt
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Long-term debt Long-term debt
Long-term debt as of December 31, 2021 and 2020 consists of the following:
 December 31, 2021December 31, 2020
2018-1 Class A-2-I notes$556,312 $562,063 
2018-1 Class A-2-II notes604,688 610,938 
2019-1 Class A-2 notes539,000 544,500 
2018 Variable Funding Notes75,000 75,000 
Total debt, excluding deferred financing costs1,775,000 1,792,501 
Deferred financing costs, net of accumulated amortization(17,227)(23,575)
Total debt1,757,773 1,768,926 
Current portion of long-term debt and 2018 Variable Funding Note17,500 17,500 
Long-term debt and borrowings under 2018 Variable Funding Notes, net of current portion$1,740,273 $1,751,426 
On February 10, 2022, the Company completed a prepayment in full of its 2018-1 Class A-2-I Notes (as defined below) and an issuance of Series 2022-1 3.251% Fixed Rate Senior Secured Notes, Class A-2-I and Series 2022-1 4.008% Fixed Rate Senior Secured Notes, Class A-2-II, 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”). On February 10, 2022, the Company borrowed in 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. The below footnote details are as of December 31, 2021 and do not include the impact of the refinancing. See Note 21, Subsequent Events, for further details of the refinancing.
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. Outstanding amounts under the 2018 Variable Funding Notes bear interest at a variable rate, which is 2.15% as of December 31, 2021. 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 “Indenture”). Together the Notes and 2018 Variable Funding Notes will be referred to as the “Securitized Senior Notes”.
The Notes were issued in a securitization transaction 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 Notes is in September 2048, but as of December 31, 2021, unless earlier prepaid to the extent permitted under the Indenture, the anticipated repayment date of the 2018 Class A-2-I Notes was September 2022 and the anticipated repayment date of the 2018 Class A-2-II Notes is in 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 December 2029 (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 2018 Variable Funding Notes on March 20, 2020. The 2018 Variable Funding Notes accrue interest at a variable interest rate based on (i) the prime rate, (ii) overnight federal funds rates, (iii) the London interbank offered 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 2018 Variable Funding Notes. There is a commitment fee on the unused portion of the 2018 Variable Funding Notes of 0.5% based on utilization. As of December 31, 2021, the anticipated repayment date of the Variable Funding Notes was September 2023. Following the anticipated repayment date (and any extensions thereof) additional interest will accrue on the 2018 Variable Funding Notes equal to 5.0% per year.
In connection with the issuance of the 2018 Notes and 2019 Notes, the Company incurred debt issuance costs of $27,133 and $10,577, 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.
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, 2021, the Company had restricted cash held by the Trustee of $42,024. 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.
Future annual principal payments of long-term debt as of December 31, 2021 are as follows:
 Amount
2022$568,063 
202386,750 
202411,750 
2025591,437 
20265,500 
Thereafter511,500 
Total$1,775,000 
v3.22.0.1
Revenue from contract with customers
12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue from contract with customers Revenue from contracts with customers
Contract Liabilities
Contract liabilities consist of deferred revenue resulting 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. Also included are corporate-owned store enrollment fees, annual fees and monthly fees. We classify these contract liabilities as deferred revenue in our condensed consolidated balance sheets. The following table reflects the change in contract liabilities between December 31, 2020 and December 31, 2021:
Contract liabilities
Balance at December 31, 2020
$59,278 
Revenue recognized that was included in the contract liability at the beginning of the year(25,139)
Increase, excluding amounts recognized as revenue during the period27,640 
Balance at December 31, 2021
$61,779 

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, 2021. 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
2022$28,351 
20234,541 
20243,815 
20253,446 
20263,023 
Thereafter18,603 
Total$61,779 
The summary set forth below represents the balances in deferred revenue as of December 31, 2021 and 2020:
 December 31, 2021December 31, 2020
Prepaid membership fees$6,491 $6,021 
Enrollment fees1,257 399 
Equipment discount3,152 4,013 
Annual membership fees13,591 12,506 
Area development and franchise fees37,288 36,339 
Total deferred revenue61,779 59,278 
Long-term portion of deferred revenue33,428 32,587 
Current portion of deferred revenue$28,351 $26,691 
 
Equipment deposits received in advance of delivery as of December 31, 2021 and 2020 were $6,036 and $795, respectively and are expected to be recognized as revenue in the next twelve months.
v3.22.0.1
Related party transactions
12 Months Ended
Dec. 31, 2021
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,
 202120202019
Franchise revenue$2,840 $1,783 $2,821 
Equipment revenue1,626 515 3,333 
Total revenue from related parties$4,466 $2,298 $6,154 
 
Additionally, the Company had deferred ADA revenue from related parties of $164 and $182 as of December 31, 2021 and 2020, respectively.
As of December 31, 2021 and 2020, the Company had $84,595 and $71,416, respectively, payable to related parties pursuant to tax benefit arrangements, see Note 16.
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 COVID-19. The services provided include accounting, information technology, data processing, product development, legal and administrative support, and other operating expenses, which amounted $1,997, $793 and $2,177 for the years ended December 31, 2021, 2020 and 2019, 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 $220 and $196, during the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, the software was being utilized at 110 and 101 corporate-owned stores, respectively, and approximately 653 and 599 franchise stores, respectively.
For the years ended December 31, 2021, 2020 and 2019, the Company incurred approximately $173, $90 and $190, 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.
In May 2020, the Company provided a short-term loan of approximately $8,950 to its third party payment processor related to amounts drafted by franchisee-owned stores in March 2020 that were not collected as part of the typical monthly process as a result of the impact of COVID-19. As of December 31, 2021, the loan has been fully repaid.
v3.22.0.1
Stockholders’ equity
12 Months Ended
Dec. 31, 2021
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.
Other Exchanges
In addition to the secondary offerings mentioned above, during the years ended December 31, 2021, 2020 and 2019, respectively, certain Continuing LLC Owners have exercised their exchange right and exchanged 622,979, 4,839,866 and 885,810 Holdings Units for 622,979, 4,839,866 and 885,810 newly-issued shares of Class A common stock. Simultaneously, and in connection with these exchanges, 622,979, 4,839,866 and 885,810 shares of Class B common stock were surrendered by the Continuing LLC Owners that exercised their exchange right and canceled in the years ended December 31, 2021 and 2020, respectively. Additionally, in connection with these exchanges, Planet Fitness, Inc. received 622,979, 4,839,866 and 885,810 Holdings Units, during the years ended December 31, 2021, 2020 and 2019 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, 2021:
the public investors collectively owned 83,803,821 shares of our Class A common stock, representing 96.5% of the voting power in the Company and, through the Company, 96.5% of the economic interest in Pla-Fit Holdings; and
the Continuing LLC Owners collectively hold 3,056,219 Holdings Units, representing 3.5% of the economic interest in Pla-Fit Holdings and 3,056,219 shares of our Class B common stock, representing 3.5% of the voting power in the Company;
Share repurchase programs
2018 share repurchase program
On August 3, 2018, our board of directors approved an increase to the total amount of the previously approved share repurchase program to $500,000.
On November 13, 2018, the Company entered into a $300,000 accelerated share repurchase agreement (the “2018 ASR Agreement”) with Citibank, N.A. (“Citibank”). Pursuant to the terms of the 2018 ASR Agreement, on November 14, 2018, the Company paid Citibank $300,000 upfront in cash and received 4,607,410 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 2018 ASR Agreement occurred on April 30, 2019. At final settlement, Citibank delivered 524,124 additional shares of the Company’s Class A common stock, based on a weighted average cost per share of $58.46 over the term of the 2018 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.
Additionally, during the year ended December 31, 2019, the Company repurchased at market value and retired 2,272,001 shares of Class A common stock for a total cost of $157,945, completing the 2018 share repurchase plan.
2019 share repurchase program
On November 5, 2019, our 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.
On March 18, 2020, the Company announced the suspension of its 2019 share repurchase program. If the 2019 share repurchase program is reinstated, 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. The Company may reinstate or terminate the program at any time.
Dividends
The Company did not declare or pay any dividends during the years ended December 31, 2021, 2020, or 2019.
Preferred stock
The Company had 50,000,000 preferred stock shares authorized and none issued or outstanding for the years ended December 31, 2021 or 2020.
Sunshine Acquisition
Subsequent to year end, on February 10, 2022, the Company completed an acquisition of a franchisee for aggregate consideration of approximately $800,000 including approximately $425,000 in cash consideration and approximately $375,000 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. See Note 21 for further details.
v3.22.0.1
Equity-based compensation
12 Months Ended
Dec. 31, 2021
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,
 20212020
Expected term (years)(1)
6.25
0.25 - 6.25
Expected volatility(2)
48.8% - 49.4%
28.5% - 139.8%
Risk-free interest rate(3)
1.05% - 1.21%
0.14% - 1.67%
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, 2021: 
 Stock OptionsWeighted average
exercise price
Weighted average remaining contractual term (years)Aggregate intrinsic value
Outstanding at January 1, 2021
965,636 $31.05 
Granted196,652 $78.35 
Exercised(308,389)$23.91 
Forfeited(21,574)$69.76 
Outstanding at December 31, 2021
832,325 $43.86 6.7$38,882 
Vested or expected to vest at December 31, 2021
832,325 $43.86 6.7$38,882 
Exercisable at December 31, 2021
506,035 $26.95 5.5$32,201 

The weighted-average grant date fair value of stock options granted during the year ended December 31, 2021 was $37.51. During the years ended December 31, 2021 and 2020, $3,915 and $2,313, respectively, was recorded to selling, general and administrative expense related to stock options. As of December 31, 2021, total unrecognized compensation expense related to unvested stock options, was $4,865, which is expected to be recognized over a weighted-average period of 2.0 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, 2021
86,031 $57.35 
Granted99,917 $78.26 
Vested(38,897)$57.23 
Forfeited(8,134)$70.53 
Unvested outstanding at December 31, 2021
138,917 $71.65 2.0$12,583 
During the years ended December 31, 2021 and 2020, $4,568 and $2,426, respectively, was recorded to selling, general and administrative expense related to RSUs. As of December 31, 2021, total unrecognized compensation expense related to unvested RSUs was $4,832, which is expected to be recognized over a weighted-average period of 2.0 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, 2021
65,629 $67.24 
Granted— $— 
Vested— $— 
Forfeited(65,629)$67.24 
Unvested outstanding at December 31, 2021
— $— 0.0$— 
As a result of COVID-19, the performance metrics related to all outstanding PSU awards fell below the minimum threshold and as a result, the Company cancelled all the previously granted PSU awards. During the years ended December 31, 2021 and 2020, an expense of $0 and a gain of $355, respectively, was recorded to selling, general and administrative expense related to these PSUs. As of December 31, 2021, total unrecognized compensation expense related to unvested PSUs was $0.
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, 2021, 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, 2021, employees purchased 12,231 shares and $322 was recorded to expense related to the ESPP.
v3.22.0.1
Earnings per share
12 Months Ended
Dec. 31, 2021
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, 2021, 2020, and 2019, 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, 2021Year Ended December 31, 2020Year Ended December 31, 2019
Numerator
Net income (loss)$46,122 $(15,204)$135,413 
Less: net income (loss) attributable to non-controlling interests3,348 (213)17,718 
Net income (loss) attributable to Planet Fitness, Inc. - basic & diluted$42,774 $(14,991)$117,695 
Denominator
Weighted-average shares of Class A common stock outstanding - basic83,295,580 80,303,277 82,976,620 
Effect of dilutive securities:
Stock options540,381 — 599,425 
RSUs and PSUs58,188 — 43,135 
Weighted-average shares of Class A common stock outstanding - diluted83,894,149 80,303,277 83,619,180 
Earnings (loss) per share of Class A common stock - basic$0.51 $(0.19)$1.42 
Earnings (loss) per share of Class A common stock - diluted$0.51 $(0.19)$1.41 
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 3,323,399, 6,292,971 and 8,739,015 for the years ended December 31, 2021, 2020 and 2019, 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 160,833, 162,740 and 57,273 for the years ended December 31, 2021, 2020 and 2019, 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 114, 548 and 755, for the year ended December 31, 2021, 2020 and 2019, respectively, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive.
v3.22.0.1
Income taxes
12 Months Ended
Dec. 31, 2021
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,
 202120202019
Domestic$52,425 $(13,382)$171,970 
Foreign(465)(1,135)1,207 
Total income (loss) before the provision for income taxes51,960 (14,517)173,177 
 
The provision (benefit) for income taxes consists of the following:
 Year Ended December 31,
 202120202019
Current:
Federal$(314)$(6,938)$7,359 
State4,197 256 8,280 
Foreign248 156 500 
Total current tax expense (benefit)4,131 (6,526)16,139 
Deferred:
Federal11,079 2,769 23,289 
State(9,750)4,530 (1,346)
Foreign199 (86)(318)
Total deferred tax expense1,528 7,213 21,625 
Provision for income taxes$5,659 $687 $37,764 

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,
 202120202019
U.S. statutory tax rate21.0 %21.0 %21.0 %
State and local taxes, net of federal benefit6.6 %5.7 %6.2 %
State rate change impact on deferred taxes(22.7)%(37.4)%(4.1)%
Tax benefit arrangement liability adjustment4.7 %8.6 %0.7 %
Foreign tax rate differential0.7 %(1.0)%— %
Withholding taxes and other0.6 %(0.3)%0.5 %
Change in valuation allowance8.6 %— %— %
Equity-based compensation(7.4)%— %(0.4)%
Income attributable to non-controlling interests(1.2)%(1.3)%(2.1)%
Effective tax rate10.9 %(4.7)%21.8 %
 
The Company’s effective tax rate was 10.9% for the year ended December 31, 2021, in comparison to the U.S. statutory tax rate in 2021 of 21.0%. The effective tax rate differs from the U.S. statutory rate primarily due to an income tax benefit recorded in 2021 resulting from a change in our deferred tax rate, partially offset by 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 10.9% for the year ended December 31, 2021, compared to (4.7)% in the prior year. The increase in the effective income tax rate was primarily due to having an income tax benefit on pretax income in 2021 compared to income tax expense on a pretax loss in 2020, partially offset by the impact of the remeasurement of the tax benefit arrangements, which is not deductible for income tax purposes.

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,
 20212020
Deferred tax assets:
Deferred revenue$7,518 $5,829 
Goodwill and intangible assets487,752 479,627 
Net operating loss47,361 34,580 
Lease liabilities53,625 46,061 
Valuation allowance(4,630)— 
Other11,209 3,295 
Deferred tax assets$602,835 $569,392 
Deferred tax liabilities:
Prepaid expenses(2,244)(2,591)
Property and equipment(16,433)(16,429)
Right of use assets(44,894)(40,053)
Total deferred tax liabilities$(63,571)$(59,073)
Total deferred tax assets and liabilities$539,264 $510,319 
Reported as:
Deferred income taxes - non-current assets$539,264 $511,200 
Deferred income taxes - non-current liabilities— (881)
Total deferred tax assets and liabilities$539,264 $510,319 
As of December 31, 2021, we had a net deferred tax asset of $539,264, 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, 2021, the Company has provided a valuation allowance of $4,630 against the portion of its deferred tax assets that arose from capital losses for which the Company does not have sufficient positive evidence to support its recoverability.
As of December 31, 2021, the Company had federal net operating loss carryforwards of $190,900, with an indefinite lived carryforward.
A summary of the changes in the Company’s unrecognized tax positions is as follows:
 Year Ended December 31,
 20212020
Balance at beginning of year$420 $420 
Increase related to current year tax positions— — 
Decrease related to prior year tax positions— — 
Balance at end of year$420 $420 
As of December 31, 2021 and 2020, the total liability related to uncertain tax positions was $420, 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, 2021 and 2020.
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 2018 through 2021 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 future and certain 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 expense of $11,737, other income of $5,949 and other expense of $5,966 in the years ended December 31, 2021, 2020 and 2019, 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 2019 was also due to acquisitions which resulted in an increase 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 in the secondary offerings and other exchanges during 2021 and 2020, 622,979 and 4,839,866 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 subject to the provisions of the tax receivable agreements. As a result of the change in Planet Fitness, Inc.’s ownership percentage of Pla-Fit Holdings that occurred in conjunction with the exchanges, we recorded a decrease to our net deferred tax assets of $468 and $3,490, during the years ended December 31, 2021 and 2020, respectively. As a result of these exchanges and other activity, during the years ended December 31, 2021 and 2020 we also recognized deferred tax assets in the amount of $17,714 and $109,823, respectively, and corresponding tax benefit arrangement liabilities of $15,034 and $93,554, respectively, representing approximately 85% of the tax benefits due to the TRA Holders. The offset to the entries recorded in connection with exchanges in each year was to stockholders’ equity.
The tax benefit obligation was $528,107 and $488,200 as of December 31, 2021 and 2020, respectively.
Projected future payments under the tax benefit arrangements are as follows:
 Amount
2022$20,302 
202335,303 
202441,992 
202551,861 
202652,192 
Thereafter326,457 
Total$528,107 
v3.22.0.1
Commitments and contingencies
12 Months Ended
Dec. 31, 2021
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 September 3, 2020, the Company and other defendants, including an officer of the Company who is a related party, received a final amendment to the joint and several judgment against them in the amount of $5,576, inclusive of accrued interest, in a civil action brought by a former employee. As of December 31, 2021, the Company has estimated its obligation related to this matter to be approximately $2,225, which is included in other current liabilities on the condensed consolidated balance sheet. In connection with 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 therefore recorded an offsetting indemnification receivable of $2,225 in other receivables on the Company’s condensed consolidated balance sheet, for which it has determined to record a full reserve as a result of potential uncertainty around collectability. Due to the joint and several nature of the judgment, the Company has
determined that the amount of estimated obligation recorded constitutes a related party transaction. The Company has incurred, and may incur in the future, legal costs on behalf of the defendants in the case, which include a related party. These costs have not been and are not expected to be material in the future.
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 has not closed as of December 31, 2021 as the parties are in dispute over the final terms of the transaction and related matters. The Company estimates that the purchase price will approximate fair value of the acquired assets.
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, 2021, the Company had advertising purchase commitments of approximately $60,700, including commitments made by the NAF. In addition, the Company had open purchase orders of approximately $19,694 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 $6,670 and $7,842 as of December 31, 2021 and 2020, 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, 2021 and 2020, no accrual has been recorded for the Company’s potential obligation under its guaranty arrangement.
v3.22.0.1
Retirement Plan
12 Months Ended
Dec. 31, 2021
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 $846, $910, and $986 for the years ended December 31, 2021, 2020 and 2019, respectively.
v3.22.0.1
Segments
12 Months Ended
Dec. 31, 2021
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, 2021, 2020 and 2019. 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,
 202120202019
Revenue
Franchise segment revenue - U.S.$286,283 $202,844 $271,375 
Franchise segment revenue - International4,427 3,312 6,207 
Franchise segment total290,710 206,156 277,582 
Corporate-owned stores segment - U.S.165,433 115,174 155,308 
Corporate-owned stores segment - International1,786 1,968 4,389 
Corporate-owned stores segment total167,219 117,142 159,697 
Equipment segment - U.S.125,023 82,331 251,524 
Equipment segment - International4,071 989 — 
Equipment segment total129,094 83,320 251,524 
Total revenue$587,023 $406,618 $688,803 
 
Franchise revenue includes revenue generated from placement services of $9,968, $6,918, and $17,755 for the years ended December 31, 2021, 2020 and 2019, respectively. 
 Year Ended December 31,
 202120202019
Segment EBITDA
Franchise$194,303 $114,968 $192,281 
Corporate-owned stores49,196 23,672 65,613 
Equipment29,680 13,097 59,618 
Corporate and other(78,265)(33,242)(46,190)
Total Segment EBITDA$194,914 $118,495 $271,322 
 
The following table reconciles total Segment EBITDA to income before taxes: 
 Year Ended December 31,
 202120202019
Total Segment EBITDA$194,914 $118,495 $271,322 
Less:
Depreciation and amortization62,800 53,832 44,346 
Other income (expense)(11,102)4,903 (6,107)
Equity earnings (losses) of unconsolidated entities, net of tax(179)— — 
Income from operations143,395 59,760 233,083 
Interest expense, net(80,333)(79,180)(53,799)
Other income (expense)(11,102)4,903 (6,107)
Income before income taxes$51,960 $(14,517)$173,177 
The following table summarizes the Company’s assets by reportable segment: 
 December 31, 2021December 31, 2020
Franchise$172,822 $174,812 
Corporate-owned stores516,714 468,628 
Equipment193,983 171,201 
Unallocated1,132,464 1,035,096 
Total consolidated assets$2,015,983 $1,849,737 
 
The table above includes $1,203 and $828 of long-lived assets located in the Company’s international corporate-owned stores as of December 31, 2021 and 2020, respectively.
The following table summarizes the Company’s goodwill by reportable segment:
 December 31, 2021December 31, 2020
Franchise$16,938 $16,938 
Corporate-owned stores118,965 118,217 
Equipment92,666 92,666 
Total consolidated goodwill$228,569 $227,821 
v3.22.0.1
Corporate-owned and franchisee-owned stores
12 Months Ended
Dec. 31, 2021
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, 2021, 2020 and 2019:
 Year Ended December 31,
 202120202019
Franchisee-owned stores:
Stores operated at beginning of period2,021 1,903 1,666 
New stores opened125 125 255 
Stores debranded, sold or consolidated(1)
(4)(7)(18)
Stores operated at end of period(2)
2,142 2,021 1,903 
Corporate-owned stores:
Stores operated at beginning of period103 98 76 
New stores opened
Stores acquired from franchisees— 16 
Stores operated at end of period(2)
112 103 98 
Total stores:
Stores operated at beginning of period2,124 2,001 1,742 
New stores opened132 130 261 
Stores debranded, sold or consolidated(1)
(2)(7)(2)
Stores operated at end of period(2)
2,254 2,124 2,001 
 
(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 COVID-19, and as of December 31, 2021, 2,246 were re-opened and operating, of which 2,134 were franchisee-owned stores and 112 were corporate-owned stores.
v3.22.0.1
Subsequent Events
12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Refinancing transactions
On February 10, 2022, the Company issued the Series 2022-1 Class A-2 Fixed Rate Senior Secured Notes (the “ 2022 Class A-2 Notes”), which consist of two tranches: the 2022 Class A-2-I Senior Secured Notes with an anticipated repayment term of five years, with an aggregate principal amount of $425,000 and a fixed interest rate of 3.251% per annum, payable quarterly, and the 2022 Class A-2-II Senior Secured Notes with an anticipated repayment term of ten years, with an aggregate principal amount of $475,000 and a fixed interest rate of 4.008% per annum, payable quarterly. The 2022 Class A-2 Notes were issued by the Master Issuer in a privately placed securitization transaction. In conjunction with the issuance, the Master Issuer used a portion of the net proceeds for the repayment in full of approximately $556,312 in aggregate principal amount of the Series 2018-1 Class A-2-I Notes (together with any accrued and unpaid interest on such Series 2018-1 Class A-2-I Notes), and paid the transaction costs and funded the reserve accounts associated with the securitized financing facility. and funded a portion of the Sunshine Acquisition.
In addition to the 2022 Class A-2 Notes, the refinancing transaction also included a revolving financing facility that allows for the incurrence of up to $75,000 in revolving loans and/or letters of credit (the “2022 Variable Funding Notes”), which replaces the Master Issuer’s 2018 Variable Funding Notes. After closing, all $75,000 of the 2022 Variable Funding Notes were drawn and used to pay down the borrowed balance under the 2018 Variable Funding Notes. The 2022 Variable Funding Notes accrue interest at a variable interest rate based on (i) the prime rate, (ii) overnight federal funds rates, (iii) adjusted term secured overnight financing rate (“SOFR”), 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.
Sunshine acquisition
On February 10, 2022, the Company and Pla-Fit Holdings (together with the Company, the “Buyers”), acquired 100% of the equity interests of franchisee Sunshine Fitness Growth Holdings, LLC, a Delaware limited liability company and Planet Fitness franchisee (“Sunshine Fitness”). Sunshine Fitness operates 114 locations in Alabama, Florida, Georgia, North Carolina, and South Carolina. The purchase price of the acquisition was approximately $800,000 including approximately $425,000 in cash consideration and approximately $375,000 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.
v3.22.0.1
Valuation and Qualifying Accounts
12 Months Ended
Dec. 31, 2021
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 doubtful accounts:    
December 31, 2021$$10 $(17)$— 
December 31, 2020$111 $(74)$(30)$
December 31, 2019$84 $87 $(60)$111 
(in thousands)Balance at Beginning of PeriodProvision of allowanceUtilization of allowanceBalance at End of Period
Valuation allowance:    
December 31, 2021$— $4,630 $— $4,630 
December 31, 2020$— $— $— $— 
December 31, 2019$— $— $— $— 
v3.22.0.1
Summary of significant accounting policies (Policies)
12 Months Ended
Dec. 31, 2021
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 on behalf of which 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, 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 reserves for unrecognized tax benefits, 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 our franchisees, and their broad dispersion over many different geographic areas. We do not have any concentrations with respect to our 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 contract with customer and Deferred revenue 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, other fees and commission income. 
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 as a single performance obligation, which is satisfied by granting certain rights to use our intellectual property over the term of each franchise agreement.
Royalties, including 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 our 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. Our franchise royalties, as well as our NAF contributions, represent sales-based royalties that are related entirely to our 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. Our 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. and Canada 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. and Canada 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.
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 our 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.
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 our store management and staff, rent expense, utilities, supplies, maintenance, and local advertising.
Selling, general and administrative Selling, general and administrativeSelling, general and administrative expenses consist of costs associated with administrative and franchisee support functions related to our 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 doubtful accounts 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.
Leases and asset retirement obligations Leases and asset retirement obligations
The Company leases space to operate corporate-owned stores, equipment, office, and warehouse space. We currently lease our corporate headquarters and all but one of our corporate-owned stores. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We account 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.
Our corporate-owned store leases generally have remaining terms of one to ten years, and typically include one or more renewal options, with renewal terms that can generally extend the lease term from three to ten years or more. The exercise of lease renewal options is at our 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, we determine its appropriate classification as an operating or financing lease. The majority of our 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. Operating lease right of use (“ROU”) assets represent
our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs and lease incentives. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases based upon interpolated rates using our Notes.
The Company has an immaterial amount of non-real estate leases that are accounted for as finance leases under ASC 842.
Our leases typically contain rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce our ROU asset related to the lease. These tenant incentives are amortized as reduction of rent expense over the lease term.
Our 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 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 our corporate-owned stores are included within store operations and selling, general and administrative expenses and totaled $21,258, $15,132, and $13,749 for the years ended December 31, 2021, 2020 and 2019, 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 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 31 of each year. 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 our allocable share of any taxable income of Pla-Fit Holdings. The Company is also subject to taxes in 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 16).
Tax benefit arrangements Tax benefit arrangementsThe Company’s acquisition of Holdings Units in connection with the IPO and future and certain 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 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, 2021 the Company has recorded a liability of $528,107 payable to the TRA Holders under the tax benefit obligations, representing approximately 85% of the calculated tax savings based on the original basis adjustments the Company anticipates being able to utilize in future years. Changes in the projected liability resulting from 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 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 Financial instrumentsThe 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.
(s) 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. We reserve for expected credit losses on our 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, 2021, the Company’s debt security investments consist of redeemable preferred shares that are accounted for as held-to-maturity debt securities. The Company’s investments are measured at amortized cost within Investments in the condensed 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, 2021, the Company’s review of the investee’s operations and financial position indicated that the establishment of an 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 investees recent financial results, current financial position, and forward-looking financial forecasts. Based upon the analysis, the Company recorded a credit loss expense of $17,462 within other loss 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 14 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, including trade names, member relationships and re-acquired franchise rights, deferred revenue and favorable and unfavorable leases.
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 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 an estimation of future royalty income and related expenses associated with existing franchise contracts at the acquisition date. For re-acquired franchise rights with terms that are either favorable or unfavorable (from the Company’s perspective) to the terms included in the Company’s 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. Deferred revenue is valued based on estimated costs to fulfill the obligations assumed, plus a normal profit margin. No deferred revenue amounts are recognized for enrollment fees in the Company’s business combinations as there is no remaining obligation.
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. Amortization of re-acquired franchise rights and franchisee relationships is recorded over the respective franchise terms using the straight-line method which the Company believes approximates the period during which the related benefits are expected to be received. Member relationships are
amortized on an accelerated basis based on expected attrition. 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 17 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. 2017-4, Simplifying the Test for Goodwill Impairment, in January 2017. This guidance eliminates the requirement to calculate the implied fair value, essentially eliminating step two from the goodwill impairment test. The new standard requires goodwill impairment to be based upon the results of step one of the impairment test, which is defined as the excess of the carrying value of a reporting unit over its fair value. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The Company adopted the new guidance on January 1, 2020, with no material impact on the Company’s consolidated financial statements.
The FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, in August 2018. The guidance helps align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted the new guidance on January 1, 2020, with no material impact on the Company’s consolidated financial statements.
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. This guidance will be effective for fiscal years beginning after December 15, 2022, including interim periods within that year, with early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
v3.22.0.1
Summary of significant accounting policies (Tables)
12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Schedule of Estimated Useful Lives of Fixed Assets The estimated useful lives of the Company’s fixed assets 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, 2021 and 2020 consists of the following: 
 December 31, 2021December 31, 2020
Land$1,341 $1,341 
Equipment66,369 57,687 
Leasehold improvements146,810 115,619 
Buildings and improvements8,589 8,589 
Furniture & fixtures29,409 23,836 
Information technology and systems assets62,803 48,552 
Other2,463 2,615 
Construction in progress8,199 10,158 
 $325,983 $268,397 
Accumulated depreciation(152,296)(107,720)
Total$173,687 $160,677 
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, 2021 and 2020 were as follows:
December 31, 2021December 31, 2020
Carrying value
Estimated fair value(1)
Carrying value
Estimated fair value(1)
Long-term debt$1,700,000 $1,725,021 $1,717,500 $1,699,749 
2018 Variable Funding Notes$75,000 $75,000 $75,000 $75,000 
(1) The Company’s 2018 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 our fixed rate long-term debt is estimated primarily based on current bid prices for our long-term debt. Judgment is required to develop these estimates. As such, the fair value of our long-term debt is classified within Level 2, as defined under U.S. GAAP.
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Variable interest entities (Tables)
12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
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, 2021 and December 31, 2020 are as follows:
 December 31, 2021December 31, 2020
 AssetsLiabilitiesAssetsLiabilities
PF Melville$2,363 $— $2,523 $— 
MMR$1,991 — $2,099 — 
Total$4,354 $— $4,622 $— 
Assets and liabilities of the NAF, which are restricted in their use, included in the Consolidated Balance Sheets were as follows:
December 31, 2021December 31, 2020
Assets
Cash & cash equivalents$15,754 $11,281 
Other current assets388 357 
Total current assets$16,142 $11,638 
Liabilities
Accounts payable$175 $7,022 
Accrued expenses and other current liabilities16,240 4,451 
Deferred revenue - current— 417 
Total current liabilities$16,415 $11,890 
v3.22.0.1
National advertising fund (Tables)
12 Months Ended
Dec. 31, 2021
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, 2021 and December 31, 2020 are as follows:
 December 31, 2021December 31, 2020
 AssetsLiabilitiesAssetsLiabilities
PF Melville$2,363 $— $2,523 $— 
MMR$1,991 — $2,099 — 
Total$4,354 $— $4,622 $— 
Assets and liabilities of the NAF, which are restricted in their use, included in the Consolidated Balance Sheets were as follows:
December 31, 2021December 31, 2020
Assets
Cash & cash equivalents$15,754 $11,281 
Other current assets388 357 
Total current assets$16,142 $11,638 
Liabilities
Accounts payable$175 $7,022 
Accrued expenses and other current liabilities16,240 4,451 
Deferred revenue - current— 417 
Total current liabilities$16,415 $11,890 
v3.22.0.1
Acquisition (Tables)
12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Purchase Consideration Allocation
The purchase consideration was allocated as follows:
Amount
Fixed assets$3,044 
Reacquired franchise rights9,480 
Customer relationships940 
Favorable leases, net1,508 
Reacquired area development rights90 
Other assets314 
Goodwill21,069 
Liabilities assumed, including deferred revenues(443)
$36,002 
The purchase consideration was allocated as follows:
Amount
Fixed assets$999 
Reacquired franchise rights6,740 
Customer relationships30 
Unfavorable leases, net(140)
Other assets78 
Goodwill7,239 
Liabilities assumed, including deferred revenues(145)
$14,801 
v3.22.0.1
Property and equipment (Tables)
12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment The estimated useful lives of the Company’s fixed assets 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, 2021 and 2020 consists of the following: 
 December 31, 2021December 31, 2020
Land$1,341 $1,341 
Equipment66,369 57,687 
Leasehold improvements146,810 115,619 
Buildings and improvements8,589 8,589 
Furniture & fixtures29,409 23,836 
Information technology and systems assets62,803 48,552 
Other2,463 2,615 
Construction in progress8,199 10,158 
 $325,983 $268,397 
Accumulated depreciation(152,296)(107,720)
Total$173,687 $160,677 
v3.22.0.1
Investments, Debt and Equity Securities (Tables)
12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Debt Securities, Held-to-maturity, Allowance for Credit Loss
A rollforward of the Company’s allowance for expected credit losses on held-to-maturity investments is as follows:
Year Ended December 31, 2021Year Ended December 31, 2020
Beginning allowance for expected credit losses$— $— 
Credit loss expense17,462 — 
Write-offs, net of recoveries— — 
Ending allowance for expected credit losses$17,462 $— 
v3.22.0.1
Leases (Tables)
12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Balance Sheet Classification of Lease Assets and Liabilities
LeasesClassificationDecember 31, 2021December 31, 2020
Assets
Operating lease assetsRight of use asset, net$190,330 $164,252 
Finance lease assetsProperty and equipment, net of accumulated depreciation222 306 
Total lease assets$190,552 $164,558 
Liabilities
Current:
OperatingOther current liabilities$22,523 $19,544 
Noncurrent:
OperatingLease liabilities, net of current portion197,682 167,910 
FinancingOther liabilities230 327 
Total lease liabilities$220,435 $187,781 
Weighted-average remaining lease term (years) - operating leases8.78.7
Weighted-average discount rate - operating leases5.0 %5.1 %
Components of Lease Cost
For the years ended December 31, 2021, 2020 and 2019, the components of lease cost were as follows:
December 31, 2021December 31, 2020December 31, 2019
Operating lease cost$29,012 $26,255 $20,635 
Variable lease cost11,317 10,324 8,323 
Total lease cost$40,329 $36,579 $28,958 
Supplemental disclosures of cash flow information related to leases were as follows for the years ended December 31, 2021, 2020 and 2019:
December 31, 2021December 31, 2020December 31, 2019
Cash paid for lease liabilities$28,126 $24,091 $19,502 
Operating assets obtained in exchange for operating lease liabilities$48,651 $33,140 $43,016 
Schedule of Supplemental Disclosures of Cash Flow Information Related to Leases
For the years ended December 31, 2021, 2020 and 2019, the components of lease cost were as follows:
December 31, 2021December 31, 2020December 31, 2019
Operating lease cost$29,012 $26,255 $20,635 
Variable lease cost11,317 10,324 8,323 
Total lease cost$40,329 $36,579 $28,958 
Supplemental disclosures of cash flow information related to leases were as follows for the years ended December 31, 2021, 2020 and 2019:
December 31, 2021December 31, 2020December 31, 2019
Cash paid for lease liabilities$28,126 $24,091 $19,502 
Operating assets obtained in exchange for operating lease liabilities$48,651 $33,140 $43,016 
Maturities of Lease Liabilities
As of December 31, 2021, maturities of lease liabilities were as follows:
Amount
2022$32,479 
202333,192 
202433,544 
202533,007 
202630,238 
Thereafter111,718 
Total lease payments$274,178 
Less: imputed interest53,743 
Present value of lease liabilities$220,435 
Maturities of Lease Liabilities
As of December 31, 2021, maturities of lease liabilities were as follows:
Amount
2022$32,479 
202333,192 
202433,544 
202533,007 
202630,238 
Thereafter111,718 
Total lease payments$274,178 
Less: imputed interest53,743 
Present value of lease liabilities$220,435 
v3.22.0.1
Goodwill and intangible assets (Tables)
12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Goodwill and Intangible Assets
A summary of goodwill and intangible assets at December 31, 2021 and 2020 is as follows:
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 
 
December 31, 2020Weighted
average
amortization
period (years)
Gross
carrying
amount
Accumulated
amortization
Net carrying
Amount
Customer relationships11.0$174,033 (124,907)$49,126 
Reacquired franchise rights8.037,660 (16,311)21,349 
 $211,693 $(141,218)$70,475 
Indefinite-lived intangible:
Trade and brand namesN/A146,600 — 146,600 
Total intangible assets$358,293 $(141,218)$217,075 
Goodwill$227,821 $— $227,821 
Summary of Goodwill
A rollforward of goodwill during the years ended December 31, 2021 and 2020 is as follows:
FranchiseCorporate-owned storesEquipmentTotal
As of December 31, 2019$16,938 $118,217 $92,666 $227,821 
Acquisition of franchisee-owned stores— — — — 
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 
The following table summarizes the Company’s goodwill by reportable segment:
 December 31, 2021December 31, 2020
Franchise$16,938 $16,938 
Corporate-owned stores118,965 118,217 
Equipment92,666 92,666 
Total consolidated goodwill$228,569 $227,821 
Summary of Amortization expenses The anticipated annual amortization expense to be recognized in future years as of December 31, 2021 is as follows:
 Amount
2022$16,808 
202316,639 
202414,148 
20253,146 
20261,804 
Thereafter1,792 
Total$54,337 
v3.22.0.1
Long-term debt (Tables)
12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Schedule of Long-term Debt
Long-term debt as of December 31, 2021 and 2020 consists of the following:
 December 31, 2021December 31, 2020
2018-1 Class A-2-I notes$556,312 $562,063 
2018-1 Class A-2-II notes604,688 610,938 
2019-1 Class A-2 notes539,000 544,500 
2018 Variable Funding Notes75,000 75,000 
Total debt, excluding deferred financing costs1,775,000 1,792,501 
Deferred financing costs, net of accumulated amortization(17,227)(23,575)
Total debt1,757,773 1,768,926 
Current portion of long-term debt and 2018 Variable Funding Note17,500 17,500 
Long-term debt and borrowings under 2018 Variable Funding Notes, net of current portion$1,740,273 $1,751,426 
Schedule of Future Annual Payments of Long-term Debt
Future annual principal payments of long-term debt as of December 31, 2021 are as follows:
 Amount
2022$568,063 
202386,750 
202411,750 
2025591,437 
20265,500 
Thereafter511,500 
Total$1,775,000 
v3.22.0.1
Revenue from contract with customers (Tables)
12 Months Ended
Dec. 31, 2021
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, 2020 and December 31, 2021:
Contract liabilities
Balance at December 31, 2020
$59,278 
Revenue recognized that was included in the contract liability at the beginning of the year(25,139)
Increase, excluding amounts recognized as revenue during the period27,640 
Balance at December 31, 2021
$61,779 
The summary set forth below represents the balances in deferred revenue as of December 31, 2021 and 2020:
 December 31, 2021December 31, 2020
Prepaid membership fees$6,491 $6,021 
Enrollment fees1,257 399 
Equipment discount3,152 4,013 
Annual membership fees13,591 12,506 
Area development and franchise fees37,288 36,339 
Total deferred revenue61,779 59,278 
Long-term portion of deferred revenue33,428 32,587 
Current portion of deferred revenue$28,351 $26,691 
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
2022$28,351 
20234,541 
20243,815 
20253,446 
20263,023 
Thereafter18,603 
Total$61,779 
v3.22.0.1
Related party transactions (Tables)
12 Months Ended
Dec. 31, 2021
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,
 202120202019
Franchise revenue$2,840 $1,783 $2,821 
Equipment revenue1,626 515 3,333 
Total revenue from related parties$4,466 $2,298 $6,154 
v3.22.0.1
Equity-based compensation (Tables)
12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
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,
 20212020
Expected term (years)(1)
6.25
0.25 - 6.25
Expected volatility(2)
48.8% - 49.4%
28.5% - 139.8%
Risk-free interest rate(3)
1.05% - 1.21%
0.14% - 1.67%
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, 2021: 
 Stock OptionsWeighted average
exercise price
Weighted average remaining contractual term (years)Aggregate intrinsic value
Outstanding at January 1, 2021
965,636 $31.05 
Granted196,652 $78.35 
Exercised(308,389)$23.91 
Forfeited(21,574)$69.76 
Outstanding at December 31, 2021
832,325 $43.86 6.7$38,882 
Vested or expected to vest at December 31, 2021
832,325 $43.86 6.7$38,882 
Exercisable at December 31, 2021
506,035 $26.95 5.5$32,201 
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, 2021
86,031 $57.35 
Granted99,917 $78.26 
Vested(38,897)$57.23 
Forfeited(8,134)$70.53 
Unvested outstanding at December 31, 2021
138,917 $71.65 2.0$12,583 
 Performance share unitsWeighted average
fair value
Weighted average remaining contractual term (years)Aggregate intrinsic value
Unvested outstanding at January 1, 2021
65,629 $67.24 
Granted— $— 
Vested— $— 
Forfeited(65,629)$67.24 
Unvested outstanding at December 31, 2021
— $— 0.0$— 
v3.22.0.1
Earnings per share (Tables)
12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
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, 2021Year Ended December 31, 2020Year Ended December 31, 2019
Numerator
Net income (loss)$46,122 $(15,204)$135,413 
Less: net income (loss) attributable to non-controlling interests3,348 (213)17,718 
Net income (loss) attributable to Planet Fitness, Inc. - basic & diluted$42,774 $(14,991)$117,695 
Denominator
Weighted-average shares of Class A common stock outstanding - basic83,295,580 80,303,277 82,976,620 
Effect of dilutive securities:
Stock options540,381 — 599,425 
RSUs and PSUs58,188 — 43,135 
Weighted-average shares of Class A common stock outstanding - diluted83,894,149 80,303,277 83,619,180 
Earnings (loss) per share of Class A common stock - basic$0.51 $(0.19)$1.42 
Earnings (loss) per share of Class A common stock - diluted$0.51 $(0.19)$1.41 
v3.22.0.1
Income taxes (Tables)
12 Months Ended
Dec. 31, 2021
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,
 202120202019
Domestic$52,425 $(13,382)$171,970 
Foreign(465)(1,135)1,207 
Total income (loss) before the provision for income taxes51,960 (14,517)173,177 
Schedule of Provision (Benefit) for Income Taxes
The provision (benefit) for income taxes consists of the following:
 Year Ended December 31,
 202120202019
Current:
Federal$(314)$(6,938)$7,359 
State4,197 256 8,280 
Foreign248 156 500 
Total current tax expense (benefit)4,131 (6,526)16,139 
Deferred:
Federal11,079 2,769 23,289 
State(9,750)4,530 (1,346)
Foreign199 (86)(318)
Total deferred tax expense1,528 7,213 21,625 
Provision for income taxes$5,659 $687 $37,764 
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,
 202120202019
U.S. statutory tax rate21.0 %21.0 %21.0 %
State and local taxes, net of federal benefit6.6 %5.7 %6.2 %
State rate change impact on deferred taxes(22.7)%(37.4)%(4.1)%
Tax benefit arrangement liability adjustment4.7 %8.6 %0.7 %
Foreign tax rate differential0.7 %(1.0)%— %
Withholding taxes and other0.6 %(0.3)%0.5 %
Change in valuation allowance8.6 %— %— %
Equity-based compensation(7.4)%— %(0.4)%
Income attributable to non-controlling interests(1.2)%(1.3)%(2.1)%
Effective tax rate10.9 %(4.7)%21.8 %
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,
 20212020
Deferred tax assets:
Deferred revenue$7,518 $5,829 
Goodwill and intangible assets487,752 479,627 
Net operating loss47,361 34,580 
Lease liabilities53,625 46,061 
Valuation allowance(4,630)— 
Other11,209 3,295 
Deferred tax assets$602,835 $569,392 
Deferred tax liabilities:
Prepaid expenses(2,244)(2,591)
Property and equipment(16,433)(16,429)
Right of use assets(44,894)(40,053)
Total deferred tax liabilities$(63,571)$(59,073)
Total deferred tax assets and liabilities$539,264 $510,319 
Reported as:
Deferred income taxes - non-current assets$539,264 $511,200 
Deferred income taxes - non-current liabilities— (881)
Total deferred tax assets and liabilities$539,264 $510,319 
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,
 20212020
Balance at beginning of year$420 $420 
Increase related to current year tax positions— — 
Decrease related to prior year tax positions— — 
Balance at end of year$420 $420 
Schedule of Future Payments Under Tax Benefit Arrangements
Projected future payments under the tax benefit arrangements are as follows:
 Amount
2022$20,302 
202335,303 
202441,992 
202551,861 
202652,192 
Thereafter326,457 
Total$528,107 
v3.22.0.1
Segments (Tables)
12 Months Ended
Dec. 31, 2021
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, 2021, 2020 and 2019. 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,
 202120202019
Revenue
Franchise segment revenue - U.S.$286,283 $202,844 $271,375 
Franchise segment revenue - International4,427 3,312 6,207 
Franchise segment total290,710 206,156 277,582 
Corporate-owned stores segment - U.S.165,433 115,174 155,308 
Corporate-owned stores segment - International1,786 1,968 4,389 
Corporate-owned stores segment total167,219 117,142 159,697 
Equipment segment - U.S.125,023 82,331 251,524 
Equipment segment - International4,071 989 — 
Equipment segment total129,094 83,320 251,524 
Total revenue$587,023 $406,618 $688,803 
 Year Ended December 31,
 202120202019
Segment EBITDA
Franchise$194,303 $114,968 $192,281 
Corporate-owned stores49,196 23,672 65,613 
Equipment29,680 13,097 59,618 
Corporate and other(78,265)(33,242)(46,190)
Total Segment EBITDA$194,914 $118,495 $271,322 
Reconciliation of Total Segment EBITDA to Income Before Taxes
The following table reconciles total Segment EBITDA to income before taxes: 
 Year Ended December 31,
 202120202019
Total Segment EBITDA$194,914 $118,495 $271,322 
Less:
Depreciation and amortization62,800 53,832 44,346 
Other income (expense)(11,102)4,903 (6,107)
Equity earnings (losses) of unconsolidated entities, net of tax(179)— — 
Income from operations143,395 59,760 233,083 
Interest expense, net(80,333)(79,180)(53,799)
Other income (expense)(11,102)4,903 (6,107)
Income before income taxes$51,960 $(14,517)$173,177 
Summary of Company's Assets by Reportable Segment
The following table summarizes the Company’s assets by reportable segment: 
 December 31, 2021December 31, 2020
Franchise$172,822 $174,812 
Corporate-owned stores516,714 468,628 
Equipment193,983 171,201 
Unallocated1,132,464 1,035,096 
Total consolidated assets$2,015,983 $1,849,737 
Summary of Company's Goodwill by Reportable Segment
A rollforward of goodwill during the years ended December 31, 2021 and 2020 is as follows:
FranchiseCorporate-owned storesEquipmentTotal
As of December 31, 2019$16,938 $118,217 $92,666 $227,821 
Acquisition of franchisee-owned stores— — — — 
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 
The following table summarizes the Company’s goodwill by reportable segment:
 December 31, 2021December 31, 2020
Franchise$16,938 $16,938 
Corporate-owned stores118,965 118,217 
Equipment92,666 92,666 
Total consolidated goodwill$228,569 $227,821 
v3.22.0.1
Corporate-owned and franchisee-owned stores (Tables)
12 Months Ended
Dec. 31, 2021
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, 2021, 2020 and 2019:
 Year Ended December 31,
 202120202019
Franchisee-owned stores:
Stores operated at beginning of period2,021 1,903 1,666 
New stores opened125 125 255 
Stores debranded, sold or consolidated(1)
(4)(7)(18)
Stores operated at end of period(2)
2,142 2,021 1,903 
Corporate-owned stores:
Stores operated at beginning of period103 98 76 
New stores opened
Stores acquired from franchisees— 16 
Stores operated at end of period(2)
112 103 98 
Total stores:
Stores operated at beginning of period2,124 2,001 1,742 
New stores opened132 130 261 
Stores debranded, sold or consolidated(1)
(2)(7)(2)
Stores operated at end of period(2)
2,254 2,124 2,001 
 
(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 COVID-19, and as of December 31, 2021, 2,246 were re-opened and operating, of which 2,134 were franchisee-owned stores and 112 were corporate-owned stores.
v3.22.0.1
Business organization - Additional Information (Detail)
member in Millions
12 Months Ended
Dec. 31, 2021
state
member
segment
store
shares
Dec. 31, 2020
store
shares
Dec. 31, 2019
store
shares
Dec. 31, 2018
store
Aug. 05, 2015
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Number of members | member 15.2        
Number of owned and franchised locations | store 2,254 2,124 2,001 1,742  
Number of states in which entity operates | state 50        
Number of reportable segments | segment 3        
Class A Common Stock          
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Number of stock issued during period (in shares) 622,979 4,839,866 885,810    
Class B Common Stock          
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Number of shares exchanged (in shares) 622,979 4,839,866 885,810    
Continuing LLC Owners          
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Stock issued during period, shares, conversion of units (in shares) 622,979 4,839,866 885,810    
Percentage of economic interest (in percentage) 3.50%        
Continuing LLC Owners | Class A Common Stock          
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Number of stock issued during period (in shares) 622,979 4,839,866 885,810    
Number of shares exchanged (in shares) 622,979 4,839,866      
Continuing LLC Owners | Class B Common Stock          
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Number of shares exchanged (in shares) 622,979 4,839,866 885,810    
Pla-Fit Holdings, LLC          
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Number of units held by owners (in shares) 622,979 4,839,866 885,810    
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) 96.50%        
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%
v3.22.0.1
Summary of significant accounting policies - Additional Information (Detail)
12 Months Ended
Dec. 31, 2021
USD ($)
agreement
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Significant Accounting Policies [Line Items]      
Restricted cash $ 58,032,000 $ 76,322,000  
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.    
Selling, general and administrative $ 94,540,000 68,585,000 $ 78,818,000
Advertising expenses 21,258,000 15,132,000 13,749,000
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%    
TRA Holders      
Significant Accounting Policies [Line Items]      
Liability payable under tax benefit obligations $ 528,107,000    
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]      
Remaining lease term (in years) 1 year    
Renewal term (in years) 3 years    
Placement services      
Significant Accounting Policies [Line Items]      
Selling, general and administrative $ 4,358,000 $ 3,341,000 $ 7,063,000
Cash held by Trustee      
Significant Accounting Policies [Line Items]      
Restricted cash $ 42,024,000    
Equipment purchases | Vendor | Vendor one      
Significant Accounting Policies [Line Items]      
Purchases from vendor (in percentage) 70.00% 48.00% 48.00%
Equipment purchases | Vendor | Vendor two      
Significant Accounting Policies [Line Items]      
Purchases from vendor (in percentage) 28.00% 40.00% 35.00%
Equipment purchases | Vendor | Vendor three      
Significant Accounting Policies [Line Items]      
Purchases from vendor (in percentage)     12.00%
Advertising purchases | Vendor | Vendor one      
Significant Accounting Policies [Line Items]      
Purchases from vendor (in percentage) 41.00% 71.00% 38.00%
Advertising purchases | Vendor | Vendor two      
Significant Accounting Policies [Line Items]      
Purchases from vendor (in percentage)     15.00%
v3.22.0.1
Summary of significant accounting policies - Summary of Estimated Useful Lives of Company's Fixed assets (Detail)
12 Months Ended
Dec. 31, 2021
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
v3.22.0.1
Summary of significant accounting policies - Summary of Company's Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Carrying value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt $ 1,700,000 $ 1,717,500
2018 Variable Funding Notes 75,000 75,000
Estimated fair value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt 1,725,021 1,699,749
2018 Variable Funding Notes $ 75,000 $ 75,000
v3.22.0.1
Variable interest entities - Carrying Value of Variable Interest Entities of Consolidated Financial Statements (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Variable Interest Entity [Line Items]    
Assets $ 2,015,983 $ 1,849,737
VIE    
Variable Interest Entity [Line Items]    
Assets 4,354 4,622
Liabilities 0 0
VIE | PF Melville    
Variable Interest Entity [Line Items]    
Assets 2,363 2,523
Liabilities 0 0
VIE | MMR    
Variable Interest Entity [Line Items]    
Assets 1,991 2,099
Liabilities $ 0 $ 0
v3.22.0.1
National advertising fund - Additional Information (Detail) - NAF - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Related Party Transaction [Line Items]      
General and Administrative Expense $ 1,997 $ 793 $ 2,177
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%    
v3.22.0.1
National advertising fund - Assets and liabilities of the NAF (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 545,909 $ 439,478
Total current assets 662,414 566,816
Current liabilities:    
Accounts payable 27,892 19,388
Current portion of deferred revenue 28,351 26,691
Total current liabilities 176,610 111,895
NAF    
Current assets:    
Cash and cash equivalents 15,754 11,281
Other current assets 388 357
Total current assets 16,142 11,638
Current liabilities:    
Accounts payable 175 7,022
Accrued expenses and other current liabilities 16,240 4,451
Current portion of deferred revenue 0 417
Total current liabilities $ 16,415 $ 11,890
v3.22.0.1
Acquisition - Narrative (Details)
$ in Thousands
Dec. 16, 2019
USD ($)
store
May 30, 2019
USD ($)
store
Dec. 31, 2021
store
Dec. 31, 2020
store
Dec. 31, 2019
store
Dec. 31, 2018
store
Business Acquisition [Line Items]            
Number of owned and franchised locations | store     2,254 2,124 2,001 1,742
New Jersey Acquisition            
Business Acquisition [Line Items]            
Number of owned and franchised locations | store 12          
Acquisition, gross cash payments $ 37,812          
Loss on reacquired franchise rights 1,810          
Consideration transferred $ 36,002          
Maine Acquisition            
Business Acquisition [Line Items]            
Number of owned and franchised locations | store   4        
Acquisition, gross cash payments   $ 14,801        
v3.22.0.1
Acquisition - Purchase Consideration Allocation (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 16, 2019
May 30, 2019
Business Acquisition [Line Items]          
Goodwill $ 228,569 $ 227,821 $ 227,821    
New Jersey Acquisition          
Business Acquisition [Line Items]          
Fixed assets       $ 3,044  
Other assets       314  
Goodwill       21,069  
Liabilities assumed, including deferred revenues       (443)  
Net assets acquired       36,002  
Maine Acquisition          
Business Acquisition [Line Items]          
Fixed assets         $ 999
Unfavorable leases, net         (140)
Other assets         78
Goodwill         7,239
Liabilities assumed, including deferred revenues         (145)
Net assets acquired         14,801
Reacquired franchise rights | New Jersey Acquisition          
Business Acquisition [Line Items]          
Intangible assets       9,480  
Reacquired franchise rights | Maine Acquisition          
Business Acquisition [Line Items]          
Intangible assets         6,740
Customer relationships | New Jersey Acquisition          
Business Acquisition [Line Items]          
Intangible assets       940  
Customer relationships | Maine Acquisition          
Business Acquisition [Line Items]          
Intangible assets         $ 30
Favorable leases, net | New Jersey Acquisition          
Business Acquisition [Line Items]          
Intangible assets       1,508  
Reacquired area development rights | New Jersey Acquisition          
Business Acquisition [Line Items]          
Intangible assets       $ 90  
v3.22.0.1
Property and equipment - Schedule of Property and Equipment (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 325,983 $ 268,397
Accumulated depreciation (152,296) (107,720)
Total 173,687 160,677
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 66,369 57,687
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 146,810 115,619
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 29,409 23,836
Information technology and systems assets    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 62,803 48,552
Other    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 2,463 2,615
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 8,199 $ 10,158
v3.22.0.1
Property and equipment - Additional Information (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 46,123 $ 36,943 $ 27,987
v3.22.0.1
Investments - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Apr. 09, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Schedule of Equity Method Investments [Line Items]        
Allowance for expected credit loss   $ 17,462 $ 0 $ 0
Amortized cost of held-to-maturity debt security investments   26,401 0  
Dividends accrued on investment   1,401    
Proportionate share of equity method loss   $ (179) $ 0 $ 0
Planet Fitness Australia Holdings        
Schedule of Equity Method Investments [Line Items]        
Ownership percentage 21.00%      
Payment to acquire equity method investment $ 10,000      
v3.22.0.1
Investments - Held-to-Maturity Debt Security Investments (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]      
Beginning allowance for expected credit losses $ 0 $ 0  
Credit loss expense 17,462 0 $ 0
Write-offs, net of recoveries 0 0  
Ending allowance for expected credit losses $ 17,462 $ 0 $ 0
v3.22.0.1
Leases - Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property and equipment, net Property and equipment, net
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
Operating lease assets $ 190,330 $ 164,252
Finance lease assets 222 306
Total lease assets 190,552 164,558
Current operating lease liabilities 22,523 19,544
Noncurrent operating lease liabilities 197,682 167,910
Noncurrent finance lease liabilities 230 327
Total lease liabilities $ 220,435 $ 187,781
Weighted-average remaining lease term (years) - operating leases 8 years 8 months 12 days 8 years 8 months 12 days
Weighted-average discount rate - operating leases 5.00% 5.10%
v3.22.0.1
Leases - Components of Lease Cost (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]      
Operating lease cost $ 29,012 $ 26,255 $ 20,635
Variable lease cost 11,317 10,324 8,323
Total lease cost $ 40,329 $ 36,579 $ 28,958
v3.22.0.1
Leases - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Leases [Abstract]      
Cash paid for lease liabilities $ 28,126 $ 24,091 $ 19,502
Operating assets obtained in exchange for operating lease liabilities $ 48,651 $ 33,140 $ 43,016
v3.22.0.1
Leases - Maturities of Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
2022 $ 32,479  
2023 33,192  
2024 33,544  
2025 33,007  
2026 30,238  
Thereafter 111,718  
Total lease payments 274,178  
Less: imputed interest 53,743  
Present value of lease liabilities $ 220,435 $ 187,781
v3.22.0.1
Leases - Additional Information (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Leases [Abstract]  
Lease payments for leases signed but not yet commenced $ 13,194
v3.22.0.1
Goodwill and intangible assets - Summary of Goodwill and Intangible Assets (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Gross carrying amount      
Finite-lived intangibles $ 212,191 $ 211,693  
Total intangible assets 358,791 358,293  
Accumulated amortization      
Total intangible assets (157,854) (141,218)  
Net carrying Amount      
Finite-lived intangibles 54,337 70,475  
Total intangible assets 200,937 217,075  
Goodwill      
Gross carrying amount 228,569 227,821  
Accumulated amortization 0 0  
Net carrying Amount 228,569 227,821 $ 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) 11 years 11 years  
Gross carrying amount      
Finite-lived intangibles $ 174,033 $ 174,033  
Accumulated amortization      
Total intangible assets (137,699) (124,907)  
Net carrying Amount      
Finite-lived intangibles $ 36,334 $ 49,126  
Reacquired franchise rights      
Goodwill And Intangible Assets [Line Items]      
Weighted average amortization period (years) 8 years 8 years  
Gross carrying amount      
Finite-lived intangibles $ 38,158 $ 37,660  
Accumulated amortization      
Total intangible assets (20,155) (16,311)  
Net carrying Amount      
Finite-lived intangibles $ 18,003 $ 21,349  
v3.22.0.1
Goodwill and intangible assets - Goodwill Rollforward (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Goodwill [Roll Forward]    
Beginning balance $ 227,821 $ 227,821
Acquisition of franchisee-owned stores 748 0
Ending balance 228,569 227,821
Franchise    
Goodwill [Roll Forward]    
Beginning balance 16,938 16,938
Acquisition of franchisee-owned stores 0 0
Ending balance 16,938 16,938
Corporate-owned stores    
Goodwill [Roll Forward]    
Beginning balance 118,217 118,217
Acquisition of franchisee-owned stores 748 0
Ending balance 118,965 118,217
Equipment    
Goodwill [Roll Forward]    
Beginning balance 92,666 92,666
Acquisition of franchisee-owned stores 0 0
Ending balance $ 92,666 $ 92,666
v3.22.0.1
Goodwill and intangible assets - Additional Information (Detail)
12 Months Ended
Dec. 31, 2021
USD ($)
store
Dec. 31, 2020
USD ($)
store
Dec. 31, 2019
USD ($)
store
Dec. 31, 2018
store
Goodwill And Intangible Assets [Line Items]        
Impairment charges | $ $ 0 $ 0 $ 0  
Number of owned and franchised locations | store 2,254 2,124 2,001 1,742
Amortization of intangible assets | $ $ 16,677,000 $ 16,888,000 $ 16,359,000  
2021 Acquisitions        
Goodwill And Intangible Assets [Line Items]        
Number of owned and franchised locations | store 2      
v3.22.0.1
Goodwill and intangible assets - Summary of Amortization expenses (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]    
2022 $ 16,808  
2023 16,639  
2024 14,148  
2025 3,146  
2026 1,804  
Thereafter 1,792  
Finite-lived intangibles $ 54,337 $ 70,475
v3.22.0.1
Long-term debt - Schedule of Long-term Debt (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs $ 1,775,000 $ 1,792,501
Deferred financing costs, net of accumulated amortization (17,227) (23,575)
Total debt 1,757,773 1,768,926
Current portion of long-term debt and 2018 Variable Funding Note 17,500 17,500
Long-term debt and borrowings under 2018 Variable Funding Notes, net of current portion 1,740,273 1,751,426
2018 Variable Funding Notes | 2018 Variable Funding Notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs 75,000 75,000
Senior Notes | 2018-1 Class A-2-I notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs 556,312 562,063
Senior Notes | 2018-1 Class A-2-II notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs 604,688 610,938
Senior Notes | 2019-1 Class A-2 notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs $ 539,000 $ 544,500
v3.22.0.1
Long-term debt - Additional Information (Detail) - USD ($)
12 Months Ended
Feb. 10, 2022
Mar. 20, 2020
Dec. 03, 2019
Aug. 01, 2018
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Debt Instrument [Line Items]              
Debt issuance costs     $ 10,577,000 $ 27,133,000 $ 0 $ 0 $ 10,577,000
Restricted cash         58,032,000 $ 76,322,000  
Cash held by Trustee              
Debt Instrument [Line Items]              
Restricted cash         $ 42,024,000    
Revolving Credit Facility              
Debt Instrument [Line Items]              
Commitment fee percentage       0.50%      
Interest rate after repayment date and extensions       5.00%      
3.251% Fixed Rate Class A-2-I Senior Secured Notes | Senior Notes | Subsequent Event              
Debt Instrument [Line Items]              
Interest rate 3.251%            
Principal amount $ 425,000,000            
4.008% Fixed Rate Class A-2-II Senior Secured Notes | Senior Notes | Subsequent Event              
Debt Instrument [Line Items]              
Interest rate 4.008%            
Principal amount $ 475,000,000            
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      
2018 Variable Funding Notes | Revolving Credit Facility              
Debt Instrument [Line Items]              
Maximum borrowing capacity       $ 75,000,000      
Proceeds from issuance of debt   $ 75,000,000          
Variable rate percentage         2.15%    
2018 Variable Funding Notes | Revolving Credit Facility | Subsequent Event              
Debt Instrument [Line Items]              
Maximum borrowing capacity 75,000,000            
Proceeds from issuance of debt 75,000,000            
2018 Variable Funding Notes | New Revolving Credit Facility | Subsequent Event              
Debt Instrument [Line Items]              
Maximum borrowing capacity 75,000,000            
Proceeds from issuance of debt $ 75,000,000            
2019-1 Class A-2 notes | Senior Notes              
Debt Instrument [Line Items]              
Interest rate     3.858%        
Principal amount     $ 550,000,000        
Securitized Senior Notes | Securitized Senior Notes              
Debt Instrument [Line Items]              
Cap on non-securitized indebtedness         $ 50,000,000    
Leverage ratio cap         7.0    
v3.22.0.1
Long-term debt - Schedule of Future Annual Payments of Long-term Debt (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Disclosure [Abstract]    
2022 $ 568,063  
2023 86,750  
2024 11,750  
2025 591,437  
2026 5,500  
Thereafter 511,500  
Total $ 1,775,000 $ 1,792,501
v3.22.0.1
Revenue from contract with customers - Schedule of Contract Liabilities (Details)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
Contract liabilities  
Beginning Balance $ 59,278
Revenue recognized that was included in the contract liability at the beginning of the year (25,139)
Increase, excluding amounts recognized as revenue during the period 27,640
Ending Balance $ 61,779
v3.22.0.1
Revenue from contract with customers - Remaining Performance Obligation (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 61,779
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 28,351
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 4,541
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 3,815
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 3,446
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 3,023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue from Contract with Customer [Abstract]  
Remaining performance obligation $ 18,603
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation, expected timing of satisfaction
v3.22.0.1
Revenue from contract with customers - Schedule of Deferred Revenue (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue $ 61,779 $ 59,278
Long-term portion of deferred revenue 33,428 32,587
Current portion of deferred revenue 28,351 26,691
Prepaid membership fees    
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue 6,491 6,021
Enrollment fees    
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue 1,257 399
Equipment discount    
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue 3,152 4,013
Annual membership fees    
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue 13,591 12,506
Area development and franchise fees    
Deferred Revenue Arrangement [Line Items]    
Total deferred revenue $ 37,288 $ 36,339
v3.22.0.1
Revenue from contract with customers - Narrative (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]    
Equipment deposits $ 6,036 $ 795
Deferred revenue expected recognition period (in months) 12 months  
v3.22.0.1
Related party transactions - Schedule of Related Party Transactions (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Related Party Transaction [Line Items]      
Total revenue from related parties $ 4,466 $ 2,298 $ 6,154
Franchise      
Related Party Transaction [Line Items]      
Total revenue from related parties 2,840 1,783 2,821
Equipment      
Related Party Transaction [Line Items]      
Total revenue from related parties $ 1,626 $ 515 $ 3,333
v3.22.0.1
Related party transactions - Additional Information (Detail)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
store
Dec. 31, 2020
USD ($)
store
Dec. 31, 2019
USD ($)
May 31, 2020
USD ($)
Related Party Transaction [Line Items]        
Initial administrative fees charged $ 4,466 $ 2,298 $ 6,154  
Number of corporate-owned stores utilizing software | store 110 101    
Number of franchise stores utilizing software | store 653 599    
Short-term loan to third party payment processor       $ 8,950
Board of Directors        
Related Party Transaction [Line Items]        
Ownership percentage 10.50%      
Direct TSG Investors        
Related Party Transaction [Line Items]        
Liability payable under tax benefit obligations $ 84,595 $ 71,416    
Area Development Agreements        
Related Party Transaction [Line Items]        
Deferred ADA revenue from related parties 164 182    
Amenity tracking compliance software | Affiliated entity        
Related Party Transaction [Line Items]        
Purchases from related party 220 196    
Corporate travel | Affiliated entity        
Related Party Transaction [Line Items]        
Expense incurred for corporate travel to a third-party company $ 173 $ 90 $ 190  
v3.22.0.1
Stockholders’ equity - Additional Information (Detail) - USD ($)
12 Months Ended
Feb. 10, 2022
Mar. 02, 2020
Dec. 04, 2019
Apr. 30, 2019
Nov. 14, 2018
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Nov. 05, 2019
Nov. 13, 2018
Aug. 03, 2018
Class of Stock [Line Items]                      
Repurchase and retirement of common stock             $ 0 $ 458,166,000      
Stock repurchased           $ 0 $ 0 $ 458,166,000      
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        
Sunshine Acquisition | Subsequent Event                      
Class of Stock [Line Items]                      
Aggregate consideration $ 800,000,000                    
Acquisition, gross cash payments $ 425,000,000                    
2018 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            
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                
Pla-Fit Holdings, LLC                      
Class of Stock [Line Items]                      
Number of units held by owners (in shares)           622,979 4,839,866 885,810      
Continuing LLC Owners                      
Class of Stock [Line Items]                      
Exchanges of Class B common stock, shares (in shares)           622,979 4,839,866 885,810      
Continuing LLC Owners | Secondary Offering And Exchange                      
Class of Stock [Line Items]                      
Number of units held by owners (in shares)           3,056,219          
Continuing LLC Owners | Secondary Offering And Exchange | Pla-Fit Holdings, LLC                      
Class of Stock [Line Items]                      
Percentage of economic interest           3.50%          
Investor | Secondary Offering And Exchange | Pla-Fit Holdings, LLC                      
Class of Stock [Line Items]                      
Percentage of economic interest           96.50%          
Holdings Units                      
Class of Stock [Line Items]                      
Shares exchanged for Class A common stock           1          
Holdings Units | Sunshine Acquisition | Subsequent Event                      
Class of Stock [Line Items]                      
Equity consideration (in share) 3,637,678                    
Class A Common Stock                      
Class of Stock [Line Items]                      
Number of stock issued during period (in shares)           622,979 4,839,866 885,810      
Dividends declared and paid           $ 0 $ 0 $ 0      
Common stock, par value (in usd per share)           $ 0.0001 $ 0.0001        
Class A Common Stock | Sunshine Acquisition | Subsequent Event                      
Class of Stock [Line Items]                      
Business combination $ 375,000,000                    
Equity consideration (in share) 517,348                    
Common stock, par value (in usd per share) $ 0.0001                    
Class A Common Stock | 2018 ASR Agreement                      
Class of Stock [Line Items]                      
Stock repurchased (in shares)       524,124 4,607,410     2,272,001      
Weighted average cost per share (in usd per share)       $ 58.46              
Stock repurchased               $ 157,945,000      
Class A Common Stock | 2019 ASR Agreement                      
Class of Stock [Line Items]                      
Stock repurchased (in shares)   666,961 3,289,924                
Weighted average cost per share (in usd per share)   $ 75.82                  
Class A Common Stock | Continuing LLC Owners                      
Class of Stock [Line Items]                      
Number of stock issued during period (in shares)           622,979 4,839,866 885,810      
Number of shares exchanged (in shares)           622,979 4,839,866        
Class A Common Stock | Investor | Secondary Offering And Exchange                      
Class of Stock [Line Items]                      
Number of units held by owners (in shares)           83,803,821          
Class A Common Stock | Investor | Secondary Offering And Exchange | Pla-Fit Holdings, LLC | Common Stockholders                      
Class of Stock [Line Items]                      
Percentage of voting power           96.50%          
Class B Common Stock                      
Class of Stock [Line Items]                      
Shares exchanged for Class A common stock           1          
Number of shares exchanged (in shares)           622,979 4,839,866 885,810      
Common stock, par value (in usd per share)           $ 0.0001 $ 0.0001        
Class B Common Stock | Sunshine Acquisition | Subsequent Event                      
Class of Stock [Line Items]                      
Common stock, par value (in usd per share) $ 0.0001                    
Class B Common Stock | Continuing LLC Owners                      
Class of Stock [Line Items]                      
Number of shares exchanged (in shares)           622,979 4,839,866 885,810      
Class B Common Stock | Continuing LLC Owners | Secondary Offering And Exchange                      
Class of Stock [Line Items]                      
Number of units held by owners (in shares)           3,056,219          
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           3.50%          
v3.22.0.1
Equity-based compensation - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
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) $ 37.51    
Total unrecognized compensation expense related to unvested stock options. $ 4,865    
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, compensation expense (gain) $ 3,915 $ 2,313  
Stock options, expected recognition, weighted-average period (in years) 2 years    
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, compensation expense (gain) $ 4,568 2,426  
Stock options, expected recognition, weighted-average period (in years) 2 years    
Unrecognized compensation expense related to unvested RSUs, including an estimate for pre-vesting forfeitures $ 4,832    
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    
Unrecognized compensation expense related to unvested RSUs, including an estimate for pre-vesting forfeitures $ 0    
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, compensation expense (gain) $ 0 $ (355)  
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, compensation expense (gain) $ 322    
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) 12,231    
v3.22.0.1
Equity-based compensation - Fair Value of Stock Option Awards Determined on Grant Date Using Black-Scholes Valuation Model (Detail)
1 Months Ended 12 Months Ended
Aug. 31, 2015
Dec. 31, 2021
Dec. 31, 2020
Share-based Payment Arrangement [Abstract]      
Expected term (years)   6 years 3 months 3 months
Expected volatility, Minimum (percentage)   48.80% 28.50%
Expected volatility, Maximum (percentage)   49.40% 139.80%
Risk-free interest rate, Minimum (percentage)   1.05% 0.14%
Risk-free interest rate, Maximum (percentage)   1.21% 1.67%
Dividend yield (percentage) 0.00% 0.00% 0.00%
v3.22.0.1
Equity-based compensation - Summary of Stock Option Activity (Detail)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
$ / shares
shares
Stock Options  
Outstanding at beginning of period (in shares) | shares 965,636
Granted (in shares) | shares 196,652
Exercised (in shares) | shares (308,389)
Forfeited (in shares) | shares (21,574)
Outstanding at end of period (in shares) | shares 832,325
Vested or expected to vest (in shares) | shares 832,325
Exercisable (in shares) | shares 506,035
Weighted average exercise price  
Outstanding at beginning of period (usd per share) | $ / shares $ 31.05
Granted (usd per share) | $ / shares 78.35
Exercised (usd per share) | $ / shares 23.91
Forfeited (usd per share) | $ / shares 69.76
Outstanding at end of period (usd per share) | $ / shares 43.86
Vested or expected to vest (usd per share) | $ / shares 43.86
Exercisable (usd per share) | $ / shares $ 26.95
Weighted average remaining contractual term (years)  
Outstanding 6 years 8 months 12 days
Vested or expected to vest 6 years 8 months 12 days
Exercisable 5 years 6 months
Aggregate intrinsic value  
Outstanding | $ $ 38,882
Vested or expected to vest | $ 38,882
Exercisable | $ $ 32,201
v3.22.0.1
Equity-based compensation - Summary of Restricted Stock Units Activity and Performance Share Units Activity (Detail)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
$ / shares
shares
RSUs  
Stock Units  
Unvested outstanding at beginning of period (in shares) | shares 86,031
Granted (in shares) | shares 99,917
Vested (in shares) | shares (38,897)
Forfeited (in shares) | shares (8,134)
Unvested outstanding at end of period (in shares) | shares 138,917
Weighted average fair value  
Unvested outstanding at beginning of period (in usd per share) | $ / shares $ 57.35
Granted (in usd per share) | $ / shares 78.26
Vested (usd per share) | $ / shares 57.23
Forfeited (in usd per share) | $ / shares 70.53
Unvested outstanding at end of period (in usd per share) | $ / shares $ 71.65
Weighted average remaining contractual term (years) 2 years
Aggregate intrinsic value | $ $ 12,583
PSUs  
Stock Units  
Unvested outstanding at beginning of period (in shares) | shares 65,629
Granted (in shares) | shares 0
Vested (in shares) | shares 0
Forfeited (in shares) | shares (65,629)
Unvested outstanding at end of period (in shares) | shares 0
Weighted average fair value  
Unvested outstanding at beginning of period (in usd per share) | $ / shares $ 67.24
Granted (in usd per share) | $ / shares 0
Vested (usd per share) | $ / shares 0
Forfeited (in usd per share) | $ / shares 67.24
Unvested outstanding at end of period (in usd per share) | $ / shares $ 0
Weighted average remaining contractual term (years) 0 years
Aggregate intrinsic value | $ $ 0
v3.22.0.1
Earnings per share - Additional Information (Detail) - shares
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
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) 160,833 162,740 57,273
Class B 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) 114 548 755
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) 3,323,399 6,292,971 8,739,015
v3.22.0.1
Earnings per share - Reconciliation of Numerators and Denominators Used to Compute Basic and Diluted Earnings per Share (Detail) - USD ($)
$ / shares in Units, $ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Numerator      
Net income (loss) $ 46,122 $ (15,204) $ 135,413
Less: net income (loss) attributable to non-controlling interests 3,348 (213) 17,718
Net income (loss) attributable to Planet Fitness, Inc. $ 42,774 $ (14,991) $ 117,695
Stock options      
Effect of dilutive securities:      
Weighted-average shares outstanding adjustment (shares) 540,381 0 599,425
RSUs and PSUs      
Effect of dilutive securities:      
Weighted-average shares outstanding adjustment (shares) 58,188 0 43,135
Class A Common Stock      
Denominator      
Weighted-average shares of Class A common stock outstanding - basic (shares) 83,295,580 80,303,277 82,976,620
Effect of dilutive securities:      
Weighted-average shares of Class A common stock outstanding - diluted (shares) 83,894,149 80,303,277 83,619,180
Earnings (loss) per share of Class A common stock - basic (usd per share) $ 0.51 $ (0.19) $ 1.42
Earnings (loss) per share of Class A common stock - diluted (usd per share) $ 0.51 $ (0.19) $ 1.41
v3.22.0.1
Income taxes - Schedule of Income Before Provision for Income Taxes (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
Domestic $ 52,425 $ (13,382) $ 171,970
Foreign (465) (1,135) 1,207
Income (expense) before income taxes $ 51,960 $ (14,517) $ 173,177
v3.22.0.1
Income taxes - Schedule of Provision (Benefit) for Income Taxes Expenses (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current:      
Federal $ (314) $ (6,938) $ 7,359
State 4,197 256 8,280
Foreign 248 156 500
Total current tax expense (benefit) 4,131 (6,526) 16,139
Deferred:      
Federal 11,079 2,769 23,289
State (9,750) 4,530 (1,346)
Foreign 199 (86) (318)
Total deferred tax expense 1,528 7,213 21,625
Provision for income taxes $ 5,659 $ 687 $ 37,764
v3.22.0.1
Income taxes - Schedule of Reconciliation of U.S. Statutory Income Tax Rate to Company's Effective Tax Rate (Detail)
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
U.S. statutory tax rate 21.00% 21.00% 21.00%
State and local taxes, net of federal benefit 6.60% 5.70% 6.20%
State rate change impact on deferred taxes (22.70%) (37.40%) (4.10%)
Tax benefit arrangement liability adjustment 4.70% 8.60% 0.70%
Foreign tax rate differential 0.70% (1.00%) 0.00%
Withholding taxes and other 0.60% (0.30%) 0.50%
Change in valuation allowance 8.60% 0.00% 0.00%
Equity-based compensation (7.40%) 0.00% (0.40%)
Income attributable to non-controlling interests (1.20%) (1.30%) (2.10%)
Effective tax rate 10.90% (4.70%) 21.80%
v3.22.0.1
Income taxes - Additional information (Detail)
$ in Thousands
12 Months Ended
Dec. 31, 2021
USD ($)
agreement
shares
Dec. 31, 2020
USD ($)
shares
Dec. 31, 2019
USD ($)
Tax Credit Carryforward [Line Items]      
Effective tax rate 10.90% (4.70%) 21.80%
Net deferred tax asset $ 539,264 $ 510,319  
Federal net operating loss carryforwards 190,900    
Liability related to uncertain tax positions $ 420 420  
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 $ 11,737 5,949 $ 5,966
Deferred tax liability 63,571 59,073  
Tax benefit obligation 528,107 488,200  
Continuing LLC Owners      
Tax Credit Carryforward [Line Items]      
Decrease in deferred tax assets 468 3,490  
Deferred tax asset 17,714 109,823  
Deferred tax liability $ 15,034 $ 93,554  
Class A Common Stock | Continuing LLC Owners      
Tax Credit Carryforward [Line Items]      
Number of shares exchanged (in shares) | shares 622,979 4,839,866  
v3.22.0.1
Income taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets:    
Deferred revenue $ 7,518 $ 5,829
Goodwill and intangible assets 487,752 479,627
Net operating loss 47,361 34,580
Lease liabilities 53,625 46,061
Valuation allowance (4,630) 0
Other 11,209 3,295
Deferred tax assets 602,835 569,392
Deferred tax liabilities:    
Prepaid expenses (2,244) (2,591)
Property and equipment (16,433) (16,429)
Right of use assets (44,894) (40,053)
Total deferred tax liabilities (63,571) (59,073)
Total deferred tax assets and liabilities 539,264 510,319
Reported as:    
Deferred income taxes - non-current assets 539,264 511,200
Deferred income taxes - non-current liabilities 0 (881)
Total deferred tax assets and liabilities $ 539,264 $ 510,319
v3.22.0.1
Income taxes - Summary Of Changes In Unrecognized Tax Positions (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
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 0 0
Balance at end of year $ 420 $ 420
v3.22.0.1
Income taxes - Schedule of Future Payments Under Tax Benefit Arrangements (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Income Tax Disclosure [Abstract]    
2022 $ 20,302  
2023 35,303  
2024 41,992  
2025 51,861  
2026 52,192  
Thereafter 326,457  
Total $ 528,107 $ 488,200
v3.22.0.1
Commitments and contingencies - Additional Information (Detail) - USD ($)
12 Months Ended
Sep. 03, 2020
Dec. 31, 2021
Dec. 31, 2020
Commitment And Contingencies [Line Items]      
Litigation settlement expense recorded as other loss     $ 3,800,000
Guarantor obligations, maximum period   10 years  
Maximum obligation of guarantees of leases and debt   $ 6,670,000 7,842,000
Accrued potential obligation recorded under guaranty arrangement   0 $ 0
Advertising Purchase Commitment      
Commitment And Contingencies [Line Items]      
Purchase commitments   60,700,000  
Equipment Purchase Commitment      
Commitment And Contingencies [Line Items]      
Purchase commitments   19,694,000  
Final judgement | Civil Action Brought By Former Employee      
Commitment And Contingencies [Line Items]      
Judgement awarded   2,225,000  
Loss contingency, receivable   $ 2,225,000  
Final judgement | Civil Action Brought By Former Employee | Planet Fitness, Inc And Other Defendants      
Commitment And Contingencies [Line Items]      
Judgement awarded $ 5,576,000    
v3.22.0.1
Retirement Plan - Additional Information (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Retirement Benefits [Abstract]      
Percentage of employer matching contribution 100.00%    
Maximum percentage of employee contribution 4.00%    
Total employer matching contributions expense $ 846 $ 910 $ 986
v3.22.0.1
Segments - Additional Information (Detail)
12 Months Ended
Dec. 31, 2021
USD ($)
segment
Dec. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | segment 3    
Number of operating segments | segment 0    
Revenue $ 587,023,000 $ 406,618,000 $ 688,803,000
Franchise      
Segment Reporting Information [Line Items]      
Revenue 290,710,000 206,156,000 277,582,000
Franchise | International      
Segment Reporting Information [Line Items]      
Revenue 4,427,000 3,312,000 6,207,000
Franchise | Placement services      
Segment Reporting Information [Line Items]      
Revenue 9,968,000 6,918,000 17,755,000
Corporate-owned stores      
Segment Reporting Information [Line Items]      
Revenue 167,219,000 117,142,000 159,697,000
Corporate-owned stores | International      
Segment Reporting Information [Line Items]      
Revenue 1,786,000 1,968,000 $ 4,389,000
Long-lived assets 1,203,000 $ 828,000  
Intersegment revenues      
Segment Reporting Information [Line Items]      
Revenue $ 0    
v3.22.0.1
Segments - Summary of Financial Information for the Company's Reportable Segments (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]      
Revenue $ 587,023 $ 406,618 $ 688,803
Total Segment EBITDA 194,914 118,495 271,322
Corporate and other      
Segment Reporting Information [Line Items]      
Total Segment EBITDA (78,265) (33,242) (46,190)
Franchise      
Segment Reporting Information [Line Items]      
Revenue 290,710 206,156 277,582
Franchise | Operating segments      
Segment Reporting Information [Line Items]      
Total Segment EBITDA 194,303 114,968 192,281
Franchise | US      
Segment Reporting Information [Line Items]      
Revenue 286,283 202,844 271,375
Franchise | International      
Segment Reporting Information [Line Items]      
Revenue 4,427 3,312 6,207
Corporate-owned stores      
Segment Reporting Information [Line Items]      
Revenue 167,219 117,142 159,697
Corporate-owned stores | Operating segments      
Segment Reporting Information [Line Items]      
Total Segment EBITDA 49,196 23,672 65,613
Corporate-owned stores | US      
Segment Reporting Information [Line Items]      
Revenue 165,433 115,174 155,308
Corporate-owned stores | International      
Segment Reporting Information [Line Items]      
Revenue 1,786 1,968 4,389
Equipment      
Segment Reporting Information [Line Items]      
Revenue 129,094 83,320 251,524
Equipment | Operating segments      
Segment Reporting Information [Line Items]      
Total Segment EBITDA 29,680 13,097 59,618
Equipment | US      
Segment Reporting Information [Line Items]      
Revenue 125,023 82,331 251,524
Equipment | International      
Segment Reporting Information [Line Items]      
Revenue $ 4,071 $ 989 $ 0
v3.22.0.1
Segments - Reconciliation of Total Segment EBITDA to Income Before Taxes (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting [Abstract]      
Total Segment EBITDA $ 194,914 $ 118,495 $ 271,322
Depreciation and amortization 62,800 53,832 44,346
Other income (expense) (11,102) 4,903 (6,107)
Equity earnings (losses) of unconsolidated entities, net of tax (179) 0 0
Income from operations 143,395 59,760 233,083
Interest expense, net (80,333) (79,180) (53,799)
Other income (expense), net (11,102) 4,903 (6,107)
Income (expense) before income taxes $ 51,960 $ (14,517) $ 173,177
v3.22.0.1
Segments - Summary of Company's Assets by Reportable Segment (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets $ 2,015,983 $ 1,849,737
Operating segments | Franchise    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets 172,822 174,812
Operating segments | Corporate-owned stores    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets 516,714 468,628
Operating segments | Equipment    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets 193,983 171,201
Unallocated    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets $ 1,132,464 $ 1,035,096
v3.22.0.1
Segments - Summary of Company's Goodwill by Reportable Segment (Detail) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Total consolidated goodwill $ 228,569 $ 227,821 $ 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 118,965 118,217 118,217
Equipment      
Segment Reporting, Other Significant Reconciling Item [Line Items]      
Total consolidated goodwill $ 92,666 $ 92,666 $ 92,666
v3.22.0.1
Corporate-owned and franchisee-owned stores - Schedule of Changes in Corporate-owned and Franchisee-owned Stores (Detail) - store
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Number Of Stores [Roll Forward]      
Stores operated at beginning of period 2,124 2,001 1,742
New stores opened 132 130 261
Stores debranded, sold or consolidated (2) (7) (2)
Stores operated at end of period(2) 2,254 2,124 2,001
COVID-19      
Number Of Stores [Roll Forward]      
Number of stores reopened 2,246    
Franchisee-owned stores      
Number Of Stores [Roll Forward]      
Stores operated at beginning of period 2,021 1,903 1,666
New stores opened 125 125 255
Stores debranded, sold or consolidated (4) (7) (18)
Stores operated at end of period(2) 2,142 2,021 1,903
Franchisee-owned stores | COVID-19      
Number Of Stores [Roll Forward]      
Number of stores reopened 2,134    
Corporate-owned stores      
Number Of Stores [Roll Forward]      
Stores operated at beginning of period 103 98 76
New stores opened 7 5 6
Stores acquired from franchisees 2 0 16
Stores operated at end of period(2) 112 103 98
Corporate-owned stores | COVID-19      
Number Of Stores [Roll Forward]      
Number of stores reopened 112    
v3.22.0.1
Subsequent Events - Additional Information (Detail)
Feb. 10, 2022
USD ($)
tranche
$ / shares
shares
Mar. 20, 2020
USD ($)
Dec. 31, 2021
USD ($)
$ / shares
Dec. 31, 2020
USD ($)
$ / shares
Aug. 01, 2018
USD ($)
Subsequent Event [Line Items]          
Repayment     $ 1,775,000,000 $ 1,792,501,000  
Class A Common Stock          
Subsequent Event [Line Items]          
Common stock, par value (in usd per share) | $ / shares     $ 0.0001 $ 0.0001  
Class B Common Stock          
Subsequent Event [Line Items]          
Common stock, par value (in usd per share) | $ / shares     $ 0.0001 $ 0.0001  
2018 Variable Funding Notes | Revolving Credit Facility          
Subsequent Event [Line Items]          
Repayment     $ 75,000,000 $ 75,000,000  
Maximum borrowing capacity         $ 75,000,000
Proceeds from issuance of debt   $ 75,000,000      
Subsequent Event | Sunshine Acquisition          
Subsequent Event [Line Items]          
Percentage of voting power 100.00%        
Aggregate consideration $ 800,000,000        
Acquisition, gross cash payments 425,000,000        
Subsequent Event | Class A Common Stock | Sunshine Acquisition          
Subsequent Event [Line Items]          
Equity consideration $ 375,000,000        
Equity consideration (in share) | shares 517,348        
Common stock, par value (in usd per share) | $ / shares $ 0.0001        
Subsequent Event | Class B Common Stock | Sunshine Acquisition          
Subsequent Event [Line Items]          
Common stock, par value (in usd per share) | $ / shares $ 0.0001        
Subsequent Event | Holdings Units | Sunshine Acquisition          
Subsequent Event [Line Items]          
Equity consideration (in share) | shares 3,637,678        
Subsequent Event | Senior Notes          
Subsequent Event [Line Items]          
Number of tranches | tranche 2        
Subsequent Event | 3.251% Fixed Rate Class A-2-I Senior Secured Notes | Senior Notes          
Subsequent Event [Line Items]          
Debt term 5 years        
Principal amount $ 425,000,000        
Interest rate 3.251%        
Repayment $ 556,312,000        
Subsequent Event | 4.008% Fixed Rate Class A-2-II Senior Secured Notes | Senior Notes          
Subsequent Event [Line Items]          
Payment terms ten years        
Principal amount $ 475,000,000        
Interest rate 4.008%        
Subsequent Event | 2018 Variable Funding Notes | Revolving Credit Facility          
Subsequent Event [Line Items]          
Maximum borrowing capacity $ 75,000,000        
Proceeds from issuance of debt $ 75,000,000        
Commitment fee unused portion 0.50%        
v3.22.0.1
Valuation and Qualifying Accounts (Detail) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Allowance for doubtful accounts:      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 7 $ 111 $ 84
Provision for (recovery of) doubtful accounts, net 10 (74) 87
Write-offs and other (17) (30) (60)
Balance at End of Period 0 7 111
Valuation allowance:      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 0 0 0
Provision for (recovery of) doubtful accounts, net 4,630 0 0
Write-offs and other 0 0 0
Balance at End of Period $ 4,630 $ 0 $ 0