PLANET FITNESS, INC., 10-K filed on 2/29/2024
Annual Report
v3.24.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2023
Feb. 22, 2024
Jun. 30, 2023
Document Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
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    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 5.7
Documents Incorporated by Reference
Portions of the Definitive Proxy Statement for the registrant’s 2023 Annual Meeting of Stockholders to be held April 30, 2024, 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 2023    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001637207    
Class A common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   87,023,326  
Class B common stock      
Document Information [Line Items]      
Entity Common Stock, Shares Outstanding   1,146,094  
v3.24.0.1
Audit Information
 12 Months Ended
Dec. 31, 2023
Audit Information [Abstract]  
Auditor Name KPMG LLP
Auditor Location Boston, Massachusetts
Auditor Firm ID 185
v3.24.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 275,842 $ 409,840
Restricted cash 46,279 62,659
Short-term marketable securities 74,901 0
Accounts receivable, net of allowances for uncollectible amounts of $0 and $0 as of December 31, 2023 and 2022, respectively 41,890 46,242
Inventory 4,677 5,266
Prepaid expenses 13,842 11,078
Other receivables 11,072 14,975
Income tax receivable 3,314 5,471
Total current assets 471,817 555,531
Long-term marketable securities 50,886 0
Property and equipment, net of accumulated depreciation of $322,958 and $227,869, as of December 31, 2023 and 2022, respectively 390,405 348,820
Investments, net of allowance for expected credit losses of $17,689 and $14,957 as of December 31, 2023 and 2022, respectively 77,507 25,122
Right-of-use assets, net 381,010 346,937
Intangible assets, net 372,507 417,067
Goodwill 717,502 702,690
Deferred income taxes 504,188 454,565
Other assets, net 3,871 3,857
Total assets 2,969,693 2,854,589
Current liabilities:    
Current maturities of long-term debt 20,750 20,750
Accounts payable 23,788 20,578
Accrued expenses 66,299 66,993
Equipment deposits 4,506 8,443
Deferred revenue, current 59,591 53,759
Payable pursuant to tax benefit arrangements, current 41,294 31,940
Other current liabilities 35,101 42,067
Total current liabilities 251,329 244,530
Long-term debt, net of current maturities 1,962,874 1,978,131
Lease liabilities, net of current portion 381,589 341,843
Deferred revenue, net of current portion 32,047 33,152
Deferred tax liabilities 1,644 1,471
Payable pursuant to tax benefit arrangements, net of current portion 454,368 462,525
Other liabilities 4,833 4,498
Total noncurrent liabilities 2,837,355 2,821,620
Commitments and contingencies (Note 18)
Stockholders’ equity (deficit):    
Accumulated other comprehensive income (loss) 172 (448)
Additional paid in capital 575,631 505,144
Accumulated deficit (691,461) (703,717)
Total stockholders’ deficit attributable to Planet Fitness, Inc. (115,649) (199,012)
Non-controlling interests (3,342) (12,549)
Total stockholders’ deficit (118,991) (211,561)
Total liabilities and stockholders’ deficit 2,969,693 2,854,589
Class A common stock    
Stockholders’ equity (deficit):    
Common stock, value 9 8
Class B common stock    
Stockholders’ equity (deficit):    
Common stock, value $ 0 $ 1
v3.24.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
shares in Thousands, $ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Current assets:    
Accounts receivable, allowance for bad debts $ 0 $ 0
Accumulated depreciation 322,958 227,869
Allowance for expected credit loss $ 17,689 $ 14,957
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) 86,760 83,430
Common stock, shares outstanding (in shares) 86,760 83,430
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) 1,397 6,146
Common stock, shares outstanding (in shares) 1,397 6,146
v3.24.0.1
Consolidated Statements of Operations - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenue:      
Total revenue $ 1,071,326 $ 936,772 $ 587,023
Operating costs and expenses:      
Cost of revenue 190,026 177,200 100,993
Store operations 253,619 219,422 110,716
Selling, general and administrative 124,930 114,853 94,540
National advertising fund expense 70,095 66,116 59,442
Depreciation and amortization 149,413 124,022 62,800
Other losses, net 10,379 5,081 15,137
Total operating costs and expenses 798,462 706,694 443,628
Income from operations 272,864 230,078 143,395
Other income (expense), net:      
Interest income 17,741 5,005 878
Interest expense (86,576) (88,628) (81,211)
Other income (expense), net 3,512 14,983 (11,102)
Total other expense, net (65,323) (68,640) (91,435)
Income before income taxes 207,541 161,438 51,960
Provision for income taxes 58,512 50,515 5,659
Losses from equity-method investments, net of tax (1,994) (467) (179)
Net income 147,035 110,456 46,122
Less net income attributable to non-controlling interests 8,722 11,054 3,348
Net income attributable to Planet Fitness, Inc. $ 138,313 $ 99,402 $ 42,774
Class A common stock      
Net income per share of Class A common stock:      
Basic (in usd per share) $ 1.63 $ 1.18 $ 0.51
Diluted (in usd per share) $ 1.62 $ 1.18 $ 0.51
Weighted-average shares of Class A common stock outstanding:      
Basic (in shares) 84,896,397 84,136,819 83,295,580
Diluted (in shares) 85,184,918 84,544,098 83,894,149
Franchise      
Revenue:      
Total revenue $ 317,917 $ 271,559 $ 238,349
National advertising fund revenue      
Revenue:      
Total revenue 70,012 58,075 52,361
Corporate-owned stores      
Revenue:      
Total revenue 449,296 379,393 167,219
Equipment revenue      
Revenue:      
Total revenue $ 234,101 $ 227,745 $ 129,094
v3.24.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net income including non-controlling interests $ 147,035 $ 110,456 $ 46,122
Other comprehensive income (loss), net:      
Foreign currency translation adjustments 179 (460) (15)
Change in unrealized gain on marketable securities, net of tax 441 0 0
Total other comprehensive income (loss), net 620 (460) (15)
Total comprehensive income including non-controlling interests 147,655 109,996 46,107
Less: total comprehensive income attributable to non-controlling interests 8,722 11,054 3,348
Total comprehensive income attributable to Planet Fitness, Inc. $ 138,933 $ 98,942 $ 42,759
v3.24.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities:      
Net income $ 147,035 $ 110,456 $ 46,122
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 149,413 124,022 62,800
Amortization of deferred financing costs 5,492 5,514 6,346
Write-off of deferred financing costs 0 1,583 0
Accretion of marketable securities discount (3,273) 0 0
Losses from equity-method investments, net of tax 1,994 467 179
Dividends accrued on held-to-maturity investment (2,066) (1,876) (1,401)
Credit loss (gain) on held-to-maturity investment 2,732 (2,505) 17,462
Deferred tax expense 51,189 48,618 1,528
(Gain) loss on re-measurement of tax benefit arrangement liability (1,964) (13,831) 11,737
Gain on sale of corporate-owned stores 0 (1,324) 0
Loss on reacquired franchise rights 110 1,160 0
Equity-based compensation 7,906 8,068 8,805
Other (394) 262 13
Changes in operating assets and liabilities, net of acquisitions:      
Accounts receivable 4,761 (19,177) (10,804)
Inventory 599 (4,112) (681)
Other assets and other current assets 929 (5,152) 8,259
Accounts payable and accrued expenses (975) (14,721) 30,928
Other liabilities and other current liabilities (8,106) 8,636 (3,063)
Income taxes 2,183 (1,672) 2,202
Payments pursuant to tax benefit arrangements (34,797) (19,253) (445)
Equipment deposits (3,937) 2,457 5,235
Deferred revenue 3,942 9,404 2,349
Leases 7,481 3,183 1,718
Net cash provided by operating activities 330,254 240,207 189,289
Cash flows from investing activities:      
Additions to property and equipment (135,986) (100,057) (54,074)
Acquisitions of franchisees (43,264) (424,940) (1,888)
Proceeds from sale of property and equipment 99 60 46
Proceeds from sale of corporate-owned stores 0 20,820 0
Purchases of marketable securities (203,285) 0 0
Maturities of marketable securities 80,490 0 0
Other investments (38,045) (2,449) (35,000)
Net cash used in investing activities (339,991) (506,566) (90,916)
Cash flows from financing activities:      
Proceeds from issuance of long-term debt 0 900,000 0
Proceeds from issuance of Variable Funding Notes 0 75,000 0
Proceeds from issuance of Class A common stock 9,160 925 8,186
Principal payments on capital lease obligations (193) (268) (182)
Repayment of long-term debt and variable funding notes (20,749) (724,813) (17,500)
Payment of deferred financing and other debt-related costs 0 (16,176) 0
Repurchase and retirement of Class A common stock (125,030) (94,315) 0
Distributions to members of Pla-Fit Holdings (4,605) (4,628) (750)
Net cash (used in) provided by financing activities (141,417) 135,725 (10,246)
Effects of exchange rate changes on cash and cash equivalents 776 (808) 14
Net (decrease) increase in cash, cash equivalents and restricted cash (150,378) (131,442) 88,141
Cash, cash equivalents and restricted cash, beginning of period 472,499 603,941 515,800
Cash, cash equivalents and restricted cash, end of period 322,121 472,499 603,941
Supplemental cash flow information:      
Net cash paid for income taxes 5,258 3,625 1,848
Cash paid for interest 81,184 80,961 74,869
Non-cash investing activities:      
Non-cash additions to property and equipment included in accounts payable and accrued expenses 18,639 13,936 5,659
Fair value of stores exchanged for equity-method investment 17,000 0 0
Fair value of common stock issued as consideration for acquisition $ 0 $ 393,730 $ 0
v3.24.0.1
Consolidated Statements of Changes in Equity - USD ($)
$ in Thousands
Total
Class A common stock
Class B common stock
Common Stock
Class A common stock
Common Stock
Class B common stock
Accumulated other comprehensive income (loss)
Additional paid-in capital
Accumulated deficit
Non-controlling interests
Beginning balance (in shares) at Dec. 31, 2020       82,821,000 3,722,000        
Beginning balance at Dec. 31, 2020 $ (705,673)     $ 8 $ 1 $ 27 $ 45,673 $ (751,578) $ 196
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 46,122             42,774 3,348
Equity-based compensation expense 8,805           8,805    
Repurchase and retirement of common stock (in shares)         (43,000)        
Exchanges of Class B common stock and other adjustments (in shares)   622,979   623,000 (623,000)        
Exchanges of Class B common stock and other adjustments 0           (608)   608
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock 1,454           1,454    
Exercise of stock options, vesting of restricted share units and ESPP share purchase (in shares)       360,000          
Exercise of stock options, vesting of restricted share units and ESPP share purchase 8,104           8,104    
Distributions paid to members of Pla-Fit Holdings (750)               (750)
Non-cash adjustments to VIEs (892)               (892)
Other comprehensive income (loss) (15)         (15)      
Ending balance (in shares) at Dec. 31, 2021       83,804,000 3,056,000        
Ending balance at Dec. 31, 2021 (642,845)     $ 8 $ 1 12 63,428 (708,804) 2,510
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 110,456             99,402 11,054
Equity-based compensation expense 8,068           8,068    
Repurchase and retirement of common stock (in shares)       (1,529,000)          
Repurchase and retirement of Class A common stock (94,315)           6,426 (94,315) (6,426)
Exchanges of Class B common stock and other adjustments (in shares)   548,175   548,000 (548,000)        
Exchanges of Class B common stock and other adjustments 0           22,533   (22,533)
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock 18,326           18,326    
Exercise of stock options, vesting of restricted share units and ESPP share purchase (in shares)       90,000          
Exercise of stock options, vesting of restricted share units and ESPP share purchase 1,039           1,039    
Distributions paid to members of Pla-Fit Holdings (4,628)               (4,628)
Issuance of common stock for acquisition (in shares)       517,000 3,638,000        
Issuance of common stock for acquisition 393,730           385,324   8,406
Non-cash adjustments to VIEs (932)               (932)
Other comprehensive income (loss) (460)         (460)      
Ending balance (in shares) at Dec. 31, 2022   83,430,000 6,146,000 83,430,000 6,146,000        
Ending balance at Dec. 31, 2022 (211,561)     $ 8 $ 1 (448) 505,144 (703,717) (12,549)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Net income 147,035             138,313 8,722
Equity-based compensation expense 7,906           7,906    
Repurchase and retirement of common stock (in shares)       (1,699,000)          
Repurchase and retirement of Class A common stock (126,079)           3,117 (126,079) (3,117)
Exchanges of Class B common stock and other adjustments (in shares)   4,748,555   4,749,000 (4,749,000)        
Exchanges of Class B common stock and other adjustments 0     $ 1 $ (1)   (12,572)   12,572
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock 63,002           63,002    
Exercise of stock options, vesting of restricted share units and ESPP share purchase (in shares)       280,000          
Exercise of stock options, vesting of restricted share units and ESPP share purchase 9,034           9,034    
Distributions paid to members of Pla-Fit Holdings (4,605)               (4,605)
Non-cash adjustments to VIEs (389)               (389)
Deconsolidation of VIEs (3,954)             22 (3,976)
Other comprehensive income (loss) 620         620      
Ending balance (in shares) at Dec. 31, 2023   86,760,000 1,397,000 86,760,000 1,397,000        
Ending balance at Dec. 31, 2023 $ (118,991)     $ 9 $ 0 $ 172 $ 575,631 $ (691,461) $ (3,342)
v3.24.0.1
Business organization
 12 Months Ended
Dec. 31, 2023
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 18.7 million members and 2,575 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, 2023.
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 (“IPO”) and related transactions in order to carry on the business of Pla-Fit Holdings, LLC and its subsidiaries (“Pla-Fit Holdings”). As of August 5, 2015, in connection with the recapitalization transactions, the Company became the sole managing member and holder of 100% of the voting power of Pla-Fit Holdings. Pla-Fit Holdings owns 100% of Planet Intermediate, LLC which has no operations but is the 100% owner of Planet Fitness Holdings, LLC, a franchisor and operator of fitness centers. With respect to the Company, Pla-Fit Holdings and Planet Intermediate, LLC, each entity owns nothing other than the respective entity below it in the corporate structure and each entity has no other material operations.
The Company is a holding company whose principal asset is a controlling equity interest in the membership units (“Holdings Units”) in Pla-Fit Holdings. As the sole managing member of Pla-Fit Holdings, the Company operates and controls all of the business and affairs of Pla-Fit Holdings, and through Pla-Fit Holdings, conducts its business. As a result, the Company consolidates Pla-Fit Holdings’ financial results and reports a non-controlling interest related to the portion of Holdings Units not owned by the Company.
As of December 31, 2023, the Company held 100% of the voting interest, and approximately 98.4% of the economic interest in Pla-Fit Holdings and the owners of Holdings Units other than the Company (the “Continuing LLC Owners”) held the remaining 1.6% 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.
v3.24.0.1
Summary of significant accounting policies
 12 Months Ended
Dec. 31, 2023
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.
Historically, 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 “national advertising fund” or “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. During 2023, the Company determined MMR and PF Melville no longer qualify for consolidation as VIEs as the Company no longer qualifies as the primary beneficiary of the VIEs and therefore deconsolidated the entities. See Note 3 for further information related to the Company’s VIEs. The NAF is an advertising fund, which on behalf of the Company collects 2% annually of gross
monthly membership dues, and beginning in January 2023 annual dues, from franchisees, in accordance with the provisions of the franchise agreements, and uses the amounts received to increase sales and further enhance the public reputation of the Planet Fitness brand. See Note 4 for further information related to the NAF.
(b) Use of estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the consolidated financial statements include revenue recognition, valuation of equity-based compensation awards, valuation of assets and liabilities acquired in business combinations, the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets, allowance for expected credit losses, the present value of lease liabilities, income taxes, including deferred tax assets and liabilities, and the liability for the Company’s tax benefit arrangements.
(c) Concentrations
Financial instruments that potentially subject the Company to concentration risk consist of cash and cash equivalents and marketable securities. All of the Company’s cash and cash equivalents, restricted cash, and marketable securities are maintained by major financial institutions, of which cash deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250. The Company maintains balances in excess of these limits, but does not believe that such deposits with its banks are subject to any unusual risk.
The credit risk associated with trade receivables is mitigated due to the large number of customers, generally franchisees, and their broad dispersion over many different geographic areas. The Company does not have any concentrations greater than 10% with respect to revenues or accounts receivable.
The Company purchases equipment, both for corporate-owned stores and for sales to franchisee-owned stores from various equipment vendors. The percentages of equipment purchases from vendors that represent 10% or more of total equipment purchases was as follows:
Years Ended December 31,
202320222021
Vendor A72%71%70%
Vendor B21%22%28%
The Company, including the NAF, uses various vendors for advertising services. The percentages of advertising purchases from vendors that represent 10% or more of total advertising purchases was as follows:
Years Ended December 31,
202320222021
Vendor A38%**
Vendor B24%**
Vendor C
18%*41%
Vendor D
*77%*
* Represents less than 10% of advertising purchases for the period.
(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, 2023, the Company had restricted cash held by the Trustee of $46,279. 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 and are accounted for under ASC 606 - Revenue Recognition, net of applicable sales tax.
Franchise revenue
Franchise revenues consist primarily of royalties, NAF contributions, initial and successor franchise fees and upfront fees from area development agreements (“ADAs”), transfer fees, equipment placement revenue, commission income, online join fees, and other fees. 
The Company’s primary performance obligation under the franchise license is granting certain rights to use the Company’s intellectual property, and all other services the Company provides under the ADA and franchise agreement are highly interrelated and not distinct within the contract, and therefore accounted for as a single performance obligation, which is satisfied by granting certain rights to use intellectual property over the term of each franchise agreement.
Royalties and franchisee contributions to national advertising funds, are calculated as a percentage of franchise monthly dues and annual fees over the term of the franchise agreement. Under the franchise agreements, advertising contributions paid by franchisees must be spent on advertising, marketing and related activities. Initial and successor franchise fees are payable by the franchisee upon signing a new franchise agreement or successor franchise agreement, and transfer fees are paid to the Company when one franchisee transfers a franchise agreement to a different franchisee. Franchise royalties, as well as NAF contributions, represent sales-based royalties that are related entirely to the performance obligation under the franchise agreement and are recognized as franchise sales occur.
Initial and successor franchise fees, as well as transfer fees, are recognized as revenue on a straight-line basis over the term of the respective franchise agreement. ADAs generally consist of an obligation to grant geographic exclusive area development rights. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for exclusive development rights are deferred and apportioned to each franchise agreement signed by the franchisee. The pro-rata amount apportioned to each franchise agreement is accounted for identically to the initial franchise fee.
The Company is generally responsible for assembly and placement of equipment it sells to U.S., Canada, and Mexico based franchisee-owned stores. Placement revenue is recognized upon completion and acceptance of the services at the franchise location.
The Company recognizes commission income from certain of its franchisees’ use of certain preferred vendor arrangements. Commissions are recognized when amounts have been earned and collectability from the vendor is reasonably assured.
Online member join fees are paid to the Company by franchisees for processing new membership transactions when a new member signs up for a membership to a franchisee-owned store through the Company’s website. These fees are recognized as revenue as each transaction occurs.
Equipment revenue
The Company sells and delivers equipment purchased from third-party equipment manufacturers to U.S., Canada, and Mexico based franchisee-owned stores. Revenue is recognized upon transfer of control of ordered items, generally upon delivery to the customer, which is when the customer obtains physical possession of the goods, legal title is transferred, the customer has all risks and rewards of ownership and an obligation to pay for the goods is created. Franchisees are charged for all freight costs incurred for the delivery of equipment. Freight revenue is recorded within equipment revenue and freight costs are recorded within cost of revenue. In most instances, the Company recognizes equipment revenue on a gross basis as management has determined the Company to be the principal in these transactions. Management determined the Company to be the principal in the transaction because the Company controls the equipment prior to delivery to the final customer as evidenced by its pricing discretion over the goods, inventory transfer of title and risk of loss while the inventory is in transit, and having the primary responsibility to fulfill the customer order and direct the third-party vendor.
Corporate-owned stores revenue
The following revenues are generated from stores owned and operated by the Company.
Membership dues revenue
Customers are offered multiple membership choices varying in length. Membership dues are earned and recognized over the membership term on a straight-line basis.
Enrollment fee revenue
Enrollment fees are charged to new members at the commencement of their membership. The Company recognizes enrollment fees ratably over the estimated duration of the membership life, which is generally two years.
Annual membership fee revenue
Annual membership fees are annual fees charged to members in addition to and in order to maintain low monthly membership dues. The Company recognizes annual membership fees ratably over the 12-month membership period or as long as there is a service obligation to the member.
Retail sales
The Company sells Planet Fitness branded apparel, food, beverages, and other accessories. The revenue for these items is recognized at the point of sale.
(f) Deferred revenue
Franchise deferred revenue results from initial and successor franchise fees and ADA fees paid by franchisees, as well as transfer fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement. Deferred revenue is also recognized in the Corporate-owned stores segment for cash received from members for enrollment fees, membership dues and annual fees for the portion not yet earned based on the membership period. Equipment deposits made at the time of ordering equipment are also deferred until the revenue recognition criteria are met.
(g) Cost of revenue
Cost of revenue consists primarily of direct costs associated with equipment sales, including freight costs, to new and existing franchisee-owned stores in the United States, Canada and Mexico and the cost of retail merchandise sold in corporate-owned stores. 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 associated with our corporate-owned stores, primarily payroll, rent, utilities, supplies, maintenance, and local and national advertising.
(i) Selling, general and administrative
Selling, general and administrative expenses are primarily associated with administrative, corporate-owned and franchisee support functions related to our existing business as well as growth and development activities. These costs primarily consist of payroll, information technology, marketing, legal, accounting and insurance related expenses. These expenses include costs related to equipment placement and assembly services of $6,961, $6,069 and $4,358, for the years ended December 31, 2023, 2022 and 2021, respectively.
(j) Accounts receivable
Accounts receivable is primarily comprised of amounts owed to the Company resulting from equipment and placement revenue. The Company evaluates its accounts receivable on an ongoing basis and may establish an allowance for uncollectible amounts based on collections and current credit conditions. Accounts are written off as uncollectible when it is determined that further collection efforts will be unsuccessful. Historically, the Company has not had a significant amount of write-offs.
(k) Inventory
The Company has inventory at period ends when the Company has title and risk of loss in advance of sale to its franchisees.
(l) Leases and asset retirement obligations
Leases
The Company leases space to operate corporate-owned stores, equipment, office, and warehouse space. The Company currently leases the corporate headquarters, corporate-owned store headquarters and all but one of the corporate-owned stores. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these
leases on a straight-line basis over the lease term. The Company accounts for fixed lease and non-lease components together as a single, combined lease component. Variable lease costs, which may include common area maintenance, insurance, and taxes are not included in the lease liability and are expensed in the period incurred.
Corporate-owned store leases generally have original lease terms of ten years, and typically include one or more renewal options, with renewal option terms that can generally extend the lease term from three to ten years or more. The exercise of lease renewal options is at the Company’s sole discretion. The Company includes renewal options in the expected lease term when they are reasonably certain to be exercised.
At the inception of each lease, the Company determines its appropriate classification as an operating or financing lease. The majority of the Company’s leases are operating leases. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid, reduced by expected reimbursements from landlords. Operating lease right of use (“ROU”) assets represent the right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments, initial direct costs and lease incentives. To determine the present value of lease payments not yet paid, the Company estimates incremental secured borrowing rates corresponding to the maturities of the leases based upon interpolated rates using the Company’s Notes. All ROU assets are periodically reviewed for impairment in accordance with standards that apply to long-lived assets.
The Company has an immaterial amount of non-real estate leases that are accounted for as finance leases under ASC 842 - Leases.
Leases typically contain rent escalations over the lease term. The Company recognizes expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements reduce the ROU asset related to the lease. These tenant incentives are amortized as reduction of rent expense over the lease term.
The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Asset retirement obligations
In accordance with ASC Topic 410, Asset Retirement and Environmental Obligations, the Company establishes assets and liabilities for the present value of estimated future costs to return certain leased facilities to their original condition. Such assets are depreciated on a straight-line basis over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated restoration costs.
(m) Property and equipment
Property and equipment is recorded at cost, or fair value when acquired as part of a business combination, and depreciated using the straight-line method over its related estimated useful life. Upon sale or retirement, the asset cost and related accumulated depreciation are removed from the respective accounts, and any related gain or loss is reflected in the consolidated statements of operations. Ordinary maintenance and repair costs are expensed as incurred. The estimated useful lives of the Company’s property and equipment by class of asset, other than construction in progress, are as follows:
Buildings and building improvements
20 to 40 years
Information technology and systems
3 to 5 years
Fitness equipment
5 to 7 years
Furniture and fixtures
5 years
Vehicles
5 years
Leasehold improvementsShorter of useful life of asset or lease term
(n) Advertising expenses
The Company expenses advertising costs as incurred. Advertising expenses for corporate-owned stores are included within store operations and totaled $39,642, $31,462 and $15,667 for the years ended December 31, 2023, 2022 and 2021, respectively. In addition to NAF expenses, advertising related to the franchise segment is included within selling, general and administrative expenses and totaled $2,514, $3,103 and $7,144 for the years ended December 31, 2023, 2022 and 2021, respectively. See Note 4 for discussion of the national advertising fund.
(o) Goodwill, long-lived assets, and other intangible assets
Goodwill and other intangible assets that arise from acquisitions are recorded in accordance with ASC Topic 805, Business Combinations and ASC Topic 350, Intangibles—Goodwill and Other. In accordance with this guidance, specifically identified intangible assets must be recorded as a separate asset from goodwill if either of the following two criteria is met: (1) the intangible asset acquired arises from contractual or other legal rights; or (2) the intangible asset is separable. Intangibles are typically trade and brand names, customer relationships, and reacquired franchise rights. Transactions are evaluated to determine whether any gain or loss on reacquired franchise rights, based on their fair value, should be recognized separately from identified intangibles. Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination.
Goodwill and indefinite-lived intangible assets are not amortized, but are reviewed annually for impairment or more frequently if impairment indicators arise. Separable intangible assets that are not deemed to have an indefinite life are amortized over their estimated useful lives on either a straight-line or accelerated basis as deemed appropriate, and are reviewed for impairment when events or circumstances suggest that the assets may not be recoverable.
The Company performs its annual impairment assessment of goodwill and indefinite lived intangible assets on December 1 of each year. During 2022, the Company moved its assessment date from December 31 to December 1 in order to better align with the Company’s annual planning cycle. For goodwill, the annual impairment assessment 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.
For indefinite lived intangible assets, the annual 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 for its goodwill or indefinite lived intangible assets, 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 and ROU 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 long-lived assets that were impaired during any of the periods presented.
(p) Income taxes
The Company accounts for income taxes using the asset and liability method. Deferred income taxes are recognized for the expected future tax consequences attributable to temporary differences between the carrying amount of the existing tax assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied in the years in which temporary differences are expected to be recovered or settled. The principal items giving rise to temporary differences are the use of accelerated depreciation and certain basis differences resulting from acquisitions and the recapitalization transactions. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.
Planet Fitness, Inc. is the sole managing member of Pla-Fit Holdings, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, Pla-Fit Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Pla-Fit Holdings is passed through to and included in the taxable income or loss of its members, including Planet Fitness, Inc. following the recapitalization transactions, on a pro rata basis. Planet Fitness, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to the allocable share of any taxable income of Pla-Fit Holdings. The Company is also subject to taxes in certain foreign jurisdictions.
The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs (see Note 17).
(q) Tax benefit arrangements
The Company’s acquisition of Holdings Units in connection with the IPO and certain future and past exchanges of Holdings Units for shares of the Company’s Class A common stock (or cash at the option of the Company) are expected to produce and have produced favorable tax attributes. In connection with the IPO, the Company entered into two tax receivable agreements, pursuant to which the Company is required to make payments to certain holders of equity interests or their successors-in-interest (“TRA Holders”). 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 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 85% of the amount of tax savings, if any, that the Company is deemed to realize as a result of tax attributes of certain equity interests previously held by affiliates of TSG that resulted from TSG’s purchase of interests in our 2012 acquisition, and certain other tax benefits. Under both agreements, the Company generally retains the remaining 15% benefit 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, 2023 the Company has recorded a liability of $495,662 payable to the TRA Holders under the tax benefit obligations, representing approximately 85% of the calculated expected tax savings based on the original basis adjustments the Company anticipates being able to utilize in future years. Changes in the liability resulting from historical changes under these tax benefit arrangements may occur based on changes in anticipated future taxable income, changes in applicable tax rates or other changes in tax attributes that may occur and impact the expected future tax benefits to be received by the Company. Changes in the projected liability under these tax benefit arrangements are and will be recorded as a component of other income (expense) each period. The projection of future taxable income involves significant judgment. Actual taxable income may differ from estimates, which could significantly impact the liability under the tax benefit arrangements and the Company’s consolidated results of operations. 
(r) Fair value
ASC 820, Fair Value Measurements and Disclosures, establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:
Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
Certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued expenses and other current liabilities are carried at cost, which approximates their fair value because of their short-term nature. See Note 8 for investments that are measured at fair value on a recurring basis.
The carrying value and estimated fair value of long-term debt were as follows:
December 31, 2023December 31, 2022
Carrying value
Estimated fair value(1)
Carrying value
Estimated fair value(1)
Long-term debt(1)
$2,004,438 $1,829,286 $2,025,187 $1,730,634 
(1) The estimated fair value of the Company’s fixed rate long-term debt is estimated primarily based on current bid prices for the long-term debt. Judgment is required to develop these estimates. As such, the fair value of long-term debt is classified within Level 2, as defined under U.S. GAAP.
(s) Investments
The Company’s investments consist of available-for-sale and held-to-maturity investments in debt securities and equity method investments.
Available-for-sale marketable debt securities
Marketable debt securities primarily consist of commercial paper, corporate debt securities, U.S. treasury securities, and U.S. government agency securities. We classify our marketable debt securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. The Company invests in a diversified portfolio of marketable debt securities and limits the concentration of its investment in any particular security. Securities with maturities greater than three months, but less than one year, are included in short-term marketable securities and securities with maturities greater than one year are included in long-term marketable securities on the consolidated balance sheets, respectively. All marketable debt securities classified as available-for-sale are reported at fair value.
If the estimated fair value of an available-for-sale debt security is below its amortized cost basis, then the Company evaluates the security for impairment. The Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the debt security’s amortized cost basis is written down to fair value through other income (expense), net in the consolidated statements of operations. If neither of these criteria are met, the Company evaluates whether unrealized losses have resulted from a credit loss or other factors. The factors considered in determining whether a credit loss exists can include the extent to which fair value is less than the amortized cost basis, changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, as well as other factors. An impairment relating to credit losses is recorded through an allowance for credit losses reported in other income (expense), net in the consolidated statements of operations. The allowance is limited by the amount that the fair value of the debt security is below its amortized cost basis. When a credit loss exists, the Company compares the present value of cash flows expected to be collected from the debt security with the amortized cost basis of the security to determine what allowance amount, if any, should be recorded. Unrealized gains or losses not resulting from credit losses or impairment are recorded through accumulated other comprehensive income (loss). Realized gains and losses from the sale of marketable securities are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of operations. Interest income from marketable securities is recognized as earned within the consolidated statement of operations.
Held-to-maturity debt securities
Held-to-maturity debt securities are financial instruments for which the Company has the intent and ability to hold to maturity and are reported at amortized cost. The Company reserves for expected credit losses on held-to-maturity debt securities through the allowance for expected credit losses. The Company utilizes a probability-of-default (“PD”) and loss-given-default (“LGD”) methodology to calculate 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 debt security is written off when deemed uncollectible.
Equity method investments
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 as a non-current asset on the consolidated balance sheets. The Company records its interest in the net earnings of its equity method investees along with adjustments for unrealized profits or losses on intra-entity transactions and amortization of basis differences, within losses from equity-method investments, net of tax in the consolidated statements of operations. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are amortized into losses from equity method investments over the useful lives of the underlying assets that gave rise to them. Equity method goodwill is not amortized or tested for impairment; instead the equity method investment is tested for impairment. The Company records its interest in the net earnings of its equity method investments based on the most recently available financial statements of the investees.
The Company evaluates its equity method investments for impairment whenever an event or change in circumstances occurs that may have a significant adverse impact on the fair value of the investment. If a loss in value has occurred and is deemed to be other than temporary, an impairment loss is recorded in the period the impairment occurs in the consolidated statements of operations. The Company did not record any impairment charges on any of its equity method investments during any periods presented.
(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 that will vest upon achieving the measurement criteria. The Company accounts for forfeitures as they occur by reversing compensation cost for unvested awards when the award is forfeited. See Note 15 for further information.
(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, and favorable and unfavorable leases. For the 2012 Acquisition, intangible assets consisted of trade and brand names, member relationships, franchisee relationships related to both the franchise and equipment segments, non-compete agreements, order backlog and favorable and unfavorable leases. For other acquisitions, which consist of acquisitions of stores from franchisees, intangible assets generally consist of member relationships, re-acquired franchise rights, and favorable and unfavorable leases.
The Company uses a variety of information sources to determine the estimated fair values of acquired assets and liabilities, including third-party valuation experts. The fair value of trade and brand names is estimated using the relief from royalty method, an income approach to valuation, which includes projecting future system-wide sales and other estimates. Membership relationships and franchisee relationships are valued based on an estimate of future revenues and costs related to the respective contracts over the remaining expected lives. The Company’s valuation includes assumptions related to the projected attrition and renewal rates on those existing franchise and membership arrangements being valued. Re-acquired franchise rights are valued using an excess earnings approach. The valuation of re-acquired franchise rights is determined using a multi-period excess earnings method under the income approach. For re-acquired franchise rights with terms that are either favorable or unfavorable to the terms included in current franchise agreements, a gain or charge is recorded at the time of the acquisition to the extent of the favorability or unfavorability, respectively. Favorable and unfavorable operating leases are recorded based on differences between contractual rents under the respective lease agreements and prevailing market rents at the lease acquisition date, and are recorded as a component of the ROU asset. Real and personal property asset valuation is determined using the replacement cost approach.
The Company considers its trade and brand name intangible assets to have an indefinite useful life, and, therefore, these assets are not amortized but rather are tested for impairment annually as discussed above. Finite-lived intangible assets, such as re-acquired franchise rights and member relationships are subject to amortization over the assets’ estimated useful lives based on
the pattern in which the economic benefits are expected to be received, which may be straight-line or an accelerated method. Favorable and unfavorable operating leases are amortized into rental expense over the lease term of the respective leases using the straight-line method.
(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 18 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) Reclassification
Certain amounts have been reclassified to conform to current year presentation.
(y) Recent accounting pronouncements
The FASB issued ASU No. 2023-05, Business Combinations-Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, in August 2023. The standard addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The new standard is effective prospectively for all joint ventures with a formation date on or after January 1, 2025. The Company will apply the standard to any relevant transactions subsequent to the adoption date.
The FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures, in November 2023. The standard expands reportable segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The new standard is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of adoption on our financial disclosures.
The FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, in December 2023. The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. The new standard is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of adoption on our financial disclosures.
v3.24.0.1
Variable interest entities
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable interest entities Variable interest entities
During 2023, a triggering event occurred that resulted in the Company analyzing the PF Melville LLC and Matthew Michael Realty LLC VIEs to determine if they still met the criteria for consolidation. As a result of the analysis, the Company determined these entities no longer qualify for consolidation as VIEs as the Company no longer qualifies as the primary beneficiary of the VIEs and therefore deconsolidated the entities. The deconsolidation removed the net assets and non-controlling interest from the VIEs and did not impact the Company’s condensed consolidated statements of operations.
The carrying values of the VIEs included in the consolidated balance sheets as of December 31, 2022 were as follows:
 AssetsLiabilities
PF Melville$2,204 $— 
MMR1,884 — 
Total$4,088 $— 
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 dues, and beginning in January 2023 also on annual dues, 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 gross monthly membership dues, and beginning in January 2023 annual dues, 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 $3,746, $2,437 and $1,997 for the years ended December 31, 2023, 2022 and 2021, 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, 2023December 31, 2022
Assets
Cash & cash equivalents$11,279 $4,938 
Other current assets2,487 938 
Total current assets$13,766 $5,876 
Liabilities
Accounts payable$2,976 $1,089 
Accrued expenses and other current liabilities3,610 3,620 
Total current liabilities$6,586 $4,709 
v3.24.0.1
National advertising fund
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
National advertising fund Variable interest entities
During 2023, a triggering event occurred that resulted in the Company analyzing the PF Melville LLC and Matthew Michael Realty LLC VIEs to determine if they still met the criteria for consolidation. As a result of the analysis, the Company determined these entities no longer qualify for consolidation as VIEs as the Company no longer qualifies as the primary beneficiary of the VIEs and therefore deconsolidated the entities. The deconsolidation removed the net assets and non-controlling interest from the VIEs and did not impact the Company’s condensed consolidated statements of operations.
The carrying values of the VIEs included in the consolidated balance sheets as of December 31, 2022 were as follows:
 AssetsLiabilities
PF Melville$2,204 $— 
MMR1,884 — 
Total$4,088 $— 
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 dues, and beginning in January 2023 also on annual dues, 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 gross monthly membership dues, and beginning in January 2023 annual dues, 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 $3,746, $2,437 and $1,997 for the years ended December 31, 2023, 2022 and 2021, 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, 2023December 31, 2022
Assets
Cash & cash equivalents$11,279 $4,938 
Other current assets2,487 938 
Total current assets$13,766 $5,876 
Liabilities
Accounts payable$2,976 $1,089 
Accrued expenses and other current liabilities3,610 3,620 
Total current liabilities$6,586 $4,709 
v3.24.0.1
Acquisition
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Acquisition Acquisitions
Sunshine Fitness Acquisition
On February 10, 2022, the Company and Pla-Fit Holdings (together with the Company, the “Buyers”), acquired 100% of the equity interests (the “Sunshine Acquisition”) of Sunshine Fitness Growth Holdings, LLC, a Delaware limited liability company and Planet Fitness franchisee (“Sunshine Fitness”). The Company acquired 114 stores in Alabama, Florida, Georgia, North Carolina, and South Carolina from Sunshine Fitness. The purchase price of the acquisition was $824,587 consisting of $430,857 in cash consideration, and $393,730 of equity consideration, including 517,348 shares of Class A Common Stock, par value $0.0001, of the Company and 3,637,678 membership units of Pla-Fit Holdings, LLC, together with shares of Class B Common Stock, par value $0.0001, of the Company, valued based on the closing trading price of the Company’s Class A common stock on the acquisition date. As a result of the transaction, the Company incurred a loss on unfavorable reacquired franchise rights of $1,160, which has been reflected in other (gains) losses, net in the consolidated statement of operations. The loss reduced the net purchase price to $823,427. In connection with the acquisition, the Company recorded a gain of $2,059 related to the settlement of preexisting contracts with Sunshine Fitness within other (gains) losses, net on the consolidated statement of operations. The acquired stores are included in the corporate-owned stores segment.
The allocation of the purchase consideration was as follows:
Amount
Cash and cash equivalents$5,917 
Other current assets757 
Property and equipment153,092 
Right of use assets162,827 
Other long-term assets1,830 
Intangible assets259,430 
Goodwill488,544 
Deferred income taxes, net(54,737)
Deferred revenue(16,973)
Other current liabilities(13,720)
Lease liabilities(162,327)
Other long-term liabilities(1,213)
Total
$823,427 
The fair values assigned to tangible and intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions, which include Level 3 unobservable inputs, and are determined using generally accepted valuation techniques. The excess of purchase consideration over the fair value of other assets acquired and liabilities assumed was recorded as goodwill. The resulting goodwill is primarily attributable to increased expansion for market opportunities, the expansion of store membership and synergies from the integration of the stores into the broader corporate-owned store portfolio. Approximately $175,600 of the goodwill recorded is expected to be amortizable and deductible for tax purposes, the majority of which is deductible over 15 years.
The following table sets forth the components of identifiable intangible assets acquired in the Sunshine Acquisition and their estimated useful lives in years as of the date of the acquisition:
Fair valueUseful life
Reacquired franchise rights (1)
$233,070 11.3
Customer relationships (2)
24,920 8.0
Reacquired area development rights (3)
1,440 5.0
Total intangible assets subject to amortization$259,430 
(1) Reacquired franchise rights represent the fair value of the reacquired franchise agreements using the income approach, specifically, the multi-period excess earnings method.
(2) Customer relationships represent the fair value of the existing contractual customer relationships using the income approach, specifically, the multi-period excess earnings method.
(3) Reacquired area development rights represent the fair value of the undeveloped area development agreement rights using the cost approach.
The fair value of the identified intangible assets subject to amortization will be amortized over the assets’ estimated useful lives based on the pattern in which the economic benefits are expected to be received.
Revenues and income before taxes of Sunshine Fitness included in the Company’s consolidated statement of operations from the acquisition date of February 10, 2022 to December 31, 2022 are as follows:
Year Ended December 31, 2022
Total revenues$180,841 
Income before taxes$17,478 
The following pro forma financial information summarizes the combined results of operations for the Company and Sunshine Fitness, as though the companies were combined as of the beginning of 2021. The total revenues, income before taxes, and net
income for the year ended December 31, 2023 are included within the consolidated statement of operations. The unaudited pro forma financial information was as follows:
Years Ended December 31,
20222021
Total revenues$957,222 $731,606 
Income before taxes$161,284 $41,041 
Net income$110,340 $37,911 
Florida Acquisition
On April 16, 2023, the Company purchased from one of its franchisees a majority of the assets associated with four franchisee stores operating in Florida (the “Florida Acquisition”) for cash consideration of $26,264. As a result of the transaction, the Company incurred a loss on unfavorable reacquired franchise rights of $110, which is included in other losses, net on the consolidated statement of operations. The loss incurred reduced the net purchase price to $26,154. The Company financed the purchase through cash on hand. The acquired stores are included in the Corporate-owned stores segment.
The allocation of the purchase consideration was as follows:
Amount
Property and equipment$3,851 
Right of use assets5,424 
Other long-term assets95 
Intangible assets6,880 
Goodwill14,812 
Deferred revenue(687)
Other current liabilities(17)
Lease liabilities(4,204)
Total
$26,154 
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 following table sets forth the components of identifiable intangible assets acquired in the Florida Acquisition and their estimated useful lives in years as of the date of the acquisition:
Fair valueUseful life
Reacquired franchise rights (1)
$6,650 6.8
Customer relationships (2)
230 6.0
Total intangible assets subject to amortization$6,880 
(1) Reacquired franchise rights represent the fair value of the reacquired franchise agreements using the income approach, specifically, the multi-period excess earnings method.
(2) Customer relationships represent the fair value of the existing contractual customer relationships using the income approach, specifically, the multi-period excess earnings method.
The acquisition did not have a material effect on the results of operations of the Company.
v3.24.0.1
Sale of corporate-owned stores
 12 Months Ended
Dec. 31, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Sale of corporate-owned stores Sale of corporate-owned stores
On August 31, 2022, the Company sold 6 corporate-owned stores located in Colorado to a franchisee for $20,820. The net value of assets derecognized in connection with the sale amounted to $19,496, which included goodwill of $14,423, intangible assets of $2,629, and net tangible assets of $2,444, which resulted in a gain on sale of corporate-owned stores of $1,324.
v3.24.0.1
Property and equipment
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property and equipment Property and equipment
Property and equipment consists of the following: 
 December 31, 2023December 31, 2022
Land$1,341 $1,341 
Equipment176,524 140,160 
Leasehold improvements342,725 272,360 
Buildings and improvements2,572 8,589 
Furniture & fixtures73,872 59,015 
Information technology and systems assets99,734 78,330 
Other3,065 2,920 
Construction in progress13,530 13,974 
Total property and equipment
$713,363 $576,689 
Accumulated depreciation(322,958)(227,869)
Total property and equipment, net
$390,405 $348,820 
The Company recorded depreciation expense of $97,931, $83,310 and $46,123 for the years ended December 31, 2023, 2022 and 2021, respectively.
v3.24.0.1
Investments
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Marketable securities
The following table summarizes the amortized cost, gross unrealized gains and losses, fair value, and the level in the fair value hierarchy of the Company’s investments in marketable securities, that are classified as available-for-sale, as of December 31, 2023, and which had maturity dates that range from approximately 1 month to 23 months. The Company had no investments in marketable securities as of December 31, 2022. Realized gains or losses were insignificant for the year ended December 31, 2023.
December 31, 2023
Amortized CostUnrealized GainsUnrealized Losses
Fair Value(1)
Level 1Level 2
Cash equivalents
Money market funds$761 $— $— $761 $761 $— 
U.S. treasury securities2,997 1 — 2,998 — 2,998 
Total cash equivalents3,758 1 — 3,759 761 2,998 
Short-term marketable securities
Commercial paper37,063 24 — 37,087 — 37,087 
Corporate debt securities34,632 — (38)34,594 — 34,594 
U.S. government agency securities3,210 10 — 3,220 — 3,220 
Total short-term marketable securities74,905 34 (38)74,901 — 74,901 
Long-term marketable securities
Corporate debt securities47,388 328 — 47,716 — 47,716 
U.S. government agency securities3,151 19 — 3,170 — 3,170 
Total long-term marketable securities50,539 347 — 50,886 — 50,886 
Total$129,202 $382 $(38)$129,546 $761 $128,785 
(1) Fair values were determined using market prices obtained from third-party pricing sources.
For marketable securities with unrealized loss positions, the Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis and they are therefore all categorized as available for sale. No allowance for credit losses was recorded for these securities as of December 31, 2023.
Held-to-maturity debt security
As of December 31, 2023, the Company’s debt security investment consists of redeemable preferred shares that are accounted for as a held-to-maturity investment. The Company’s investment is measured at amortized cost within investments in the consolidated balance sheets. The Company reviews its held-to-maturity securities for expected credit losses under ASC Topic 326, Financial Instruments – Credit Losses, on an ongoing basis.
During the year ended December 31, 2023, the Company’s review of the investment indicated that an adjustment to its allowance for expected credit losses was necessary. The Company utilized probability-of-default (“PD”) and loss-given-default (“LGD”) methodologies to calculate the allowance for expected credit losses. The Company derived its estimate using historical lifetime loss information for assets with similar risk characteristics, adjusted for management’s expectations. Adjustments for management’s expectations were based on the investee’s recent financial results, current financial position, and forward-looking financial forecasts. Based upon its analysis during the years ended December 31, 2023, 2022, and 2021, the Company recorded a credit loss expense of $2,732, a gain on the reversal of credit loss allowance of $2,505, and a credit loss expense of $17,462 respectively, on the adjustment of its allowance for credit losses within other (income) expense, net on the consolidated statements of operations.
The amortized cost, including accrued dividends, of the Company’s held-to-maturity debt security investment was $30,343 and $28,277 and the allowance for expected credit losses was $17,689 and $14,957, as of December 31, 2023 and December 31, 2022, respectively. The amortized cost, net of the allowance for expected credit losses, approximates fair value. The Company recognized dividend income of $2,066, $1,876 and $1,401 during the years ended December 31, 2023, 2022 and 2021, respectively, within other income (expense), net on the consolidated statements of operations.
As of December 31, 2023, the Company’s held-to-maturity investment had a contractual maturity in 2026.
A rollforward of the Company’s allowance for expected credit losses on held-to-maturity investments is as follows:
Year Ended December 31,
20232022
Beginning allowance for expected credit losses$14,957 $17,462 
Loss (gain) on adjustment of allowance for credit losses on held-to-maturity investment2,732 (2,505)
Write-offs, net of recoveries— — 
Ending allowance for expected credit losses$17,689 $14,957 
Equity method investments
For the following investments, the Company recorded its proportionate share of the investees’ earnings, prepared in accordance with U.S. GAAP on a one-month lag, with an adjustment to eliminate unrealized profits on intra-entity sales, if any, and the amortization of basis differences, within losses from equity-method investments, net of tax on the consolidated statements of operations. As of December 31, 2023 and 2022, the Company determined that no impairment of its equity method investments existed.
On April 9, 2021, the Company acquired a 21.0% ownership in Bravo Fit Holdings Pty Ltd, the Company’s franchisee and store operator in Australia, which is deemed to be a related party, for $10,000. During each of the years ended December 31, 2023 and 2022, the Company invested an additional $2,449, in Bravo Fit Holdings Pty Ltd, increasing its ownership from 21.0% to 21.8%. As of December 31, 2023 and 2022, the difference between the carrying amount of the Company’s investment and the underlying amount of equity in net assets of the investment was $6,812 and $6,515, respectively. These basis differences are attributable to intangible assets, which are being amortized on a straight-line basis over a weighted-average life of 9 years, and equity method goodwill. For the years ended December 31, 2023, 2022 and 2021, the Company’s proportionate share of the earnings in accordance with the equity method was a loss of $1,031, $467 and $179 respectively, which included $261, $0 and $0 of basis difference amortization.
On June 23, 2023, the Company acquired a 12.5% ownership interest in Planet Fitmex, LLC, the Company’s franchisee and store operator in Mexico, which is deemed to be a related party and classified as an equity method investment as a result of its organizational structure, for $10,000. During the remainder of 2023, the Company invested an additional $25,596 in cash and received $17,000 worth of equity interests for the contribution of five stores that were acquired from a franchisee in October 2023 in connection with a legal settlement (see Note 18). Following such additional investments, the Company’s ownership stake increased to 33.2%, with a total investment of $52,596. As of December 31, 2023, the difference between the carrying amount of the Company’s investment and the underlying amount of equity in net assets of the investment was $17,458. This basis difference is attributable to intangible assets, which are being amortized on a straight-line basis over a weighted-average life of 9 years, and equity method goodwill. For the year ended December 31, 2023, the Company’s proportionate share of the earnings in accordance with the equity method was a loss of $963, which included $177 of basis difference amortization.
v3.24.0.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Leases
The right-of-use assets and lease liabilities for operating and finance leases, including their classification in the consolidated balance sheets, were as follows:
LeasesBalance Sheet ClassificationDecember 31, 2023December 31, 2022
Assets
OperatingRight of use asset, net$381,010 $346,937 
FinanceProperty and equipment, net 179 370 
Total lease assets$381,189 $347,307 
Liabilities
Current:
OperatingOther current liabilities$33,849 $33,233 
FinanceOther current liabilities125 — 
Noncurrent:
OperatingLease liabilities, net of current portion381,589 341,843 
FinanceOther liabilities63 380 
Total lease liabilities$415,626 $375,456 
Weighted-average remaining lease term - operating leases8.0 years8.1 years
Weighted-average discount rate - operating leases5.4%4.7%

The components of lease cost were as follows:
Years Ended December 31,
202320222021
Operating lease cost$64,187 $56,319 $29,012 
Variable lease cost22,718 20,327 11,317 
Total lease cost$86,905 $76,646 $40,329 

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:
Years Ended December 31,
202320222021
Cash paid, net, for lease liabilities$56,145 $44,928 $28,126 
Operating lease ROU assets obtained in exchange for operating lease liabilities, excluding Acquisitions$67,242 $37,928 $48,651 
Acquisition-related operating lease ROU assets obtained in exchange for operating lease liabilities
$5,424 $162,827 $— 

Maturities of lease liabilities as of December 31, 2023 were as follows:
Amount
2024$53,813 
202569,762 
202670,433 
202768,510 
202863,382 
Thereafter193,662 
Total lease payments$519,562 
Less: imputed interest(103,936)
Present value of future minimum lease liabilities
$415,626 
As of December 31, 2023, operating lease payments exclude approximately $48,010 of legally binding minimum lease payments for leases signed but not yet commenced.
Leases Leases
The right-of-use assets and lease liabilities for operating and finance leases, including their classification in the consolidated balance sheets, were as follows:
LeasesBalance Sheet ClassificationDecember 31, 2023December 31, 2022
Assets
OperatingRight of use asset, net$381,010 $346,937 
FinanceProperty and equipment, net 179 370 
Total lease assets$381,189 $347,307 
Liabilities
Current:
OperatingOther current liabilities$33,849 $33,233 
FinanceOther current liabilities125 — 
Noncurrent:
OperatingLease liabilities, net of current portion381,589 341,843 
FinanceOther liabilities63 380 
Total lease liabilities$415,626 $375,456 
Weighted-average remaining lease term - operating leases8.0 years8.1 years
Weighted-average discount rate - operating leases5.4%4.7%

The components of lease cost were as follows:
Years Ended December 31,
202320222021
Operating lease cost$64,187 $56,319 $29,012 
Variable lease cost22,718 20,327 11,317 
Total lease cost$86,905 $76,646 $40,329 

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:
Years Ended December 31,
202320222021
Cash paid, net, for lease liabilities$56,145 $44,928 $28,126 
Operating lease ROU assets obtained in exchange for operating lease liabilities, excluding Acquisitions$67,242 $37,928 $48,651 
Acquisition-related operating lease ROU assets obtained in exchange for operating lease liabilities
$5,424 $162,827 $— 

Maturities of lease liabilities as of December 31, 2023 were as follows:
Amount
2024$53,813 
202569,762 
202670,433 
202768,510 
202863,382 
Thereafter193,662 
Total lease payments$519,562 
Less: imputed interest(103,936)
Present value of future minimum lease liabilities
$415,626 
As of December 31, 2023, operating lease payments exclude approximately $48,010 of legally binding minimum lease payments for leases signed but not yet commenced.
v3.24.0.1
Goodwill and intangible assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and intangible assets Goodwill and intangible assets
Goodwill and related changes in the carrying amount were as follows:
Amount
Goodwill at December 31, 2022
$702,690 
Acquisition of franchisee-owned stores (Note 5)
14,812 
Goodwill at December 31, 2023
$717,502 
A summary of intangible assets is as follows:
December 31, 2023December 31, 2022
Gross
carrying
amount		Accumulated
amortization		Net carrying
Amount		Gross
carrying
amount		Accumulated
amortization		Net carrying
Amount
Finite-lived intangible assets:
Customer relationships$199,043 $(169,155)$29,888 $198,813 $(153,243)$45,570 
Reacquired franchise rights274,708 (78,689)196,019 268,058 (43,161)224,897 
Total finite-lived intangible assets473,751 (247,844)225,907 466,871 (196,404)270,467 
Indefinite-lived intangible assets:
Trade and brand names146,600 — 146,600 146,600 — 146,600 
Total intangible assets$620,351 $(247,844)$372,507 $613,471 $(196,404)$417,067 
Our customer relationships and reacquired franchise rights are amortized over a weighted-average amortization period of 10.6 and 10.7 years, respectively.
Amortization expense related to the finite-lived intangible assets totaled $51,482, $40,294, and $16,677 for the years ended December 31, 2023, 2022 and 2021, respectively. The anticipated annual amortization expense to be recognized in future years as of December 31, 2023 is as follows:
 Amount
2024$49,190 
202536,713 
202632,079 
202727,956 
202827,300 
Thereafter52,669 
Total$225,907 
v3.24.0.1
Long-term debt
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Long-term debt Long-term debt
Long-term debt consists of the following:
 December 31, 2023December 31, 2022
2018-1 Class A-2-II notes$592,187 $598,438 
2019-1 Class A-2 notes528,000 533,500 
2022-1 Class A-2-I notes417,563 421,812 
2022-1 Class A-2-II notes466,688 471,437 
Total debt, excluding deferred financing costs2,004,438 2,025,187 
Deferred financing costs, net of accumulated amortization(20,814)(26,306)
Total debt, net
1,983,624 1,998,881 
Current portion of long-term debt20,750 20,750 
Long-term debt and borrowings under Variable Funding Notes, net of current portion$1,962,874 $1,978,131 
Future annual principal payments of long-term debt as of December 31, 2023 are as follows:
 Amount
2024$20,750 
2025600,438 
2026419,313 
202710,250 
202810,250 
Thereafter943,437 
Total$2,004,438 
On August 1, 2018, Planet Fitness Master Issuer LLC (the “Master Issuer”), a limited-purpose, bankruptcy remote, wholly-owned indirect subsidiary of Pla-Fit Holdings, LLC, entered into a base indenture and a related supplemental indenture (collectively, the “2018 Indenture”) under which the Master Issuer may issue multiple series of notes. On the same date, the Master Issuer issued Series 2018-1 4.262% Fixed Rate Senior Secured Notes, Class A-2-I (the “2018 Class A-2-I Notes”) with an initial principal amount of $575,000 and Series 2018-1 4.666% Fixed Rate Senior Secured Notes, Class A-2-II (the “2018 Class A-2-II Notes” and, together with the 2018 Class A-2-I Notes, the “2018 Notes”) with an initial principal amount of $625,000. In connection with the issuance of the 2018 Notes, the Master Issuer also entered into a revolving financing facility that allows for the incurrence of up to $75,000 in revolving loans and/or Letters of Credit under the Master Issuer’s Series 2018-1 Variable Funding Senior Notes, Class A-1 (the “2018 Variable Funding Notes”). The Company fully drew down on the 2018 Variable Funding Notes on March 20, 2020. On December 3, 2019, the Master Issuer issued Series 2019-1 3.858% Fixed Rate Senior Secured Notes, Class A-2 (the “2019 Notes” and, together with the 2018 Notes, the “Notes”) with an initial principal amount of $550,000. The 2019 Notes were issued under the 2018 Indenture and a related supplemental indenture dated December 3, 2019 (together, the “2019 Indenture”). On February 10, 2022, the Company completed a prepayment in full
of its 2018-1 Class A-2-I Notes and an issuance of Series 2022-1 3.251% Fixed Rate Senior Secured Notes, Class A-2-I with an initial principal amount of $425,000 and Series 2022-1 4.008% Fixed Rate Senior Secured Notes, Class A-2-II with an initial principal amount of $475,000 (the “2022 Notes” and, together with the 2018 Notes and 2019 Notes, the “Notes”), and also entered into a new revolving financing facility that allows for the issuance of up to $75,000 in Variable Funding Notes (“2022 Variable Funding Notes”) and certain Letters of Credit (the issuance of such notes, the “Series 2022-I Issuance”). The 2022 Notes were issued under the 2018 Indenture and a related supplemental indenture dated February 10, 2022 (together, with the 2019 Indenture, the “Indenture”). Together, the Notes, 2018 Variable Funding Notes and 2022 Variable Funding Notes will be referred to as the “Securitized Senior Notes”. On February 10, 2022, the Company borrowed the full amount of the $75,000 2022 Variable Funding Notes and used such proceeds to repay the outstanding principal amount (together with all accrued and unpaid interest thereon) of the 2018 Variable Funding Notes in full. On May 9, 2022, the Company repaid in full its $75,000 of borrowings under the 2022 Variable Funding Notes using cash on hand.
The Notes were issued in securitization transactions pursuant to which most of the Company’s domestic revenue-generating assets, consisting principally of franchise-related agreements, certain corporate-owned store assets, equipment supply agreements and intellectual property and license agreements for the use of intellectual property, were assigned to the Master Issuer and certain other limited-purpose, bankruptcy remote, wholly-owned indirect subsidiaries of the Company that act as guarantors of the Securitized Senior Notes and that have pledged substantially all of their assets to secure the Securitized Senior Notes.
Interest and principal payments on the Notes are payable on a quarterly basis. The requirement to make such quarterly principal payments on the Notes is subject to certain financial conditions set forth in the Indenture. The legal final maturity date of the 2018 Class A-2-II Notes is in September 2048, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2018 Class A-2-II Notes will be repaid in or prior to September 2025. The legal final maturity date of the 2019 Notes is in December 2049, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2019 Notes will be repaid in or prior to December 2029. The legal final maturity date of the 2022 Notes is in February 2052, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2022 Class A-2-I Notes will be repaid in or prior to December 2026 and the 2022 Class A-2-II Notes will be repaid in or prior to December 2031 (together, the “Anticipated Repayment Dates”). If the Master Issuer has not repaid or refinanced the Notes prior to the respective Anticipated Repayment Dates, additional interest will accrue pursuant to the Indenture.
As noted above, the Company borrowed the full $75,000 in 2022 Variable Funding Notes on February 10, 2022, which was repaid in full using cash on hand on May 9, 2022. If outstanding, the 2022 Variable Funding Notes will accrue interest at a variable interest rate based on (i) the prime rate, (ii) overnight federal funds rates, (iii) the secured overnight financing rate for U.S. Dollars, or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, in each case plus any applicable margin and as specified in the 2022 Variable Funding Notes. There is a commitment fee on the unused portion of the 2022 Variable Funding Notes of 0.5% based on utilization. It is anticipated that the principal and interest on the 2022 Variable Funding Notes, if any, will be repaid in full on or prior to December 2026, subject to two additional one-year extension options. Following the anticipated repayment date (and any extensions thereof), additional interest will accrue on the 2022 Variable Funding Notes equal to 5.0% per year.
In connection with the issuance of the 2018 Notes, 2019 Notes, and 2022 Notes, the Company incurred debt issuance costs of $27,133, $10,577, and $16,193 respectively. The debt issuance costs are being amortized to interest expense through the Anticipated Repayment Dates of the Notes utilizing the effective interest rate method. As a result of the repayment of the 2018 Class A-2-I Notes prior to the Anticipated Repayment Date, the Company recorded a loss on early extinguishment of debt of $1,583 within interest expense on the Consolidated statements of operations, consisting of the write-off of remaining unamortized deferred financing costs related to the issuance of the 2018 Class A-2-I Notes.
The Securitized Senior Notes are subject to covenants and restrictions customary for transactions of this type, including (i) that the Master Issuer maintains specified reserve accounts to be used to make required payments in respect of the Securitized Senior Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the assets pledged as collateral for the Securitized Senior Notes are in stated ways defective or ineffective, (iv) a cap on non-securitized indebtedness of $50,000 (provided that the Company may incur non-securitized indebtedness in excess of such amount, subject to the leverage ratio cap described below, under certain conditions, including if the relevant lenders execute a non-disturbance agreement that acknowledges the bankruptcy-remote status of the Master Issuer and its subsidiaries and of their respective assets), (v) a leverage ratio cap incurrence test on the Company of 7.0x (calculated without regard for any indebtedness subject to the $50,000 cap) and (vi) covenants relating to recordkeeping, access
to information and similar matters.
Pursuant to a parent company support agreement, the Company has agreed to cause its subsidiary to perform each of its obligations (including any indemnity obligations) and duties under the Management Agreement and under the contribution agreements entered into in connection with the securitized financing facility, in each case as and when due. To the extent that such subsidiary has not performed any such obligation or duty within the prescribed time frame after such obligation or duty was required to be performed, the Company has agreed to either (i) perform such obligation or duty or (ii) cause such obligations or duties to be performed on the Company’s behalf.
The Securitized Senior Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain stated debt service coverage ratios, certain manager termination events, an event of default, and the failure to repay or refinance the Notes on the applicable scheduled Anticipated Repayment Dates. The Securitized Senior Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal, or other amounts due on or with respect to the Securitized Senior Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments.
In accordance with the Indenture, certain cash accounts have been established with the Indenture trustee (the “Trustee”) for the benefit of the trustee and the noteholders, and are restricted in their use. The Company holds restricted cash which primarily represents cash collections held by the Trustee, interest, principal, and commitment fee reserves held by the Trustee related to the Securitized Senior Notes. As of December 31, 2023, the Company had restricted cash held by the Trustee of $46,279.
v3.24.0.1
Revenue from contract with customers
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from contract with customers Revenue from contracts with customers
Contract Liabilities
Contract liabilities consist primarily of deferred revenue resulting from initial and renewal franchise fees and ADA fees paid by franchisees, as well as transfer fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement. Also included are corporate-owned store enrollment fees, annual fees and monthly fees as well as deferred equipment rebates relating to our equipment business. We classify these contract liabilities as deferred revenue in our consolidated balance sheets.
The following table reflects the change in contract liabilities between December 31, 2022 and December 31, 2023:
Contract liabilities
Balance at December 31, 2022
$86,911 
Revenue recognized that was included in the contract liability at the beginning of the year(53,825)
Increase, excluding amounts recognized as revenue during the period58,552 
Balance at December 31, 2023
$91,638 

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, 2023. 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
2024$59,591 
20255,486 
20263,990 
20273,498 
20283,037 
Thereafter16,036 
Total$91,638 
The summary set forth below represents the balances in deferred revenue:
 December 31, 2023December 31, 2022
Prepaid membership fees$15,983 $14,160 
Enrollment fees4,222 3,806 
Equipment discount3,296 5,256 
Annual membership fees32,233 26,848 
Area development and franchise fees35,904 36,841 
Total deferred revenue91,638 86,911 
Long-term portion of deferred revenue32,047 33,152 
Current portion of deferred revenue$59,591 $53,759 
Equipment deposits received in advance of delivery as of December 31, 2023 and 2022 were $4,506 and $8,443, respectively and are expected to be recognized as revenue in the next twelve months.
v3.24.0.1
Related party transactions
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Related party transactions Related party transactions
Activity with franchisees considered to be related parties is summarized below.
 
Years Ended December 31,
 202320222021
Franchise revenue - interim CEO
$3,909 $3,208 $2,809 
Franchise revenue - other
2,204 866 702 
Equipment revenue - interim CEO
3,640 1,909 1,626 
Equipment revenue - other
3,655 — — 
Total revenue from related parties$13,408 $5,983 $5,137 
Associated with the equipment revenue above, the Company had $2,916 of accounts receivable attributable to a related party as of December 31, 2023.
Additionally, the Company had deferred ADA and franchise agreement revenue from related parties of $719 and $467 as of December 31, 2023 and 2022, respectively, of which $142 and $138 is from a franchisee in which the Company’s interim CEO has a financial interest.
As of December 31, 2023 and 2022, the Company had $98,494 and $80,717, respectively, payable to related parties pursuant to tax benefit arrangements, see Note 17.
The Company provides administrative services to the NAF and typically charges the NAF a fee for providing those services. The services provided, which include accounting, information technology, data processing, product development, legal and administrative support, and other operating expenses, amounted to $3,746, $2,437 and $1,997 for the years ended December 31, 2023, 2022 and 2021, respectively.
A member of the Company’s board of directors, who is also the Company’s interim Chief Executive Officer and 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 $390, $272, and $220 during the years ended December 31, 2023, 2022 and 2021 respectively. As of December 31, 2023 and 2022, the software was being utilized at 220 and 192 corporate-owned stores, respectively, and approximately 730 and 672 franchise stores, respectively.
For the years ended December 31, 2023, 2022 and 2021, the Company incurred approximately $487, $378 and $173, 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 former Chief Executive Officer.
v3.24.0.1
Stockholders’ equity
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Stockholders’ equity Stockholders’ equity
Pursuant to the exchange agreement between the Company and the Continuing LLC Owners, the Continuing LLC Owners (or certain permitted transferees thereof) have the right, from time to time and subject to the terms of the exchange agreement, to exchange their Holdings Units, along with a corresponding number of shares of Class B common stock, for shares of Class A common stock (or cash at the option of the Company) on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends, reclassifications and similar transactions. In connection with any exchange of Holdings Units for shares of Class A common stock by a Continuing LLC Owner, the number of Holdings Units held by the Company is correspondingly increased as it acquires the exchanged Holdings Units, and a corresponding number of shares of Class B common stock are canceled.
During the year ended December 31, 2022, the Company issued 517,348 shares of Class A Common Stock, of the Company and 3,637,678 membership units of Pla-Fit Holdings, LLC, together with shares of Class B Common Stock as consideration in conjunction with the Sunshine Acquisition. See Note 5.
Other Exchanges
During the years ended December 31, 2023, 2022 and 2021, respectively, certain Continuing LLC Owners have exercised their exchange right and exchanged 4,748,555, 548,175 and 622,979 Holdings Units, respectively, for 4,748,555, 548,175 and 622,979 newly-issued shares of Class A common stock, respectively. Simultaneously, and in connection with these exchanges, 4,748,555, 548,175 and 622,979 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, 2023, 2022 and 2021, respectively. Additionally, in connection with these exchanges, Planet Fitness, Inc. received 4,748,555, 548,175 and 622,979 Holdings Units, during the years ended December 31, 2023, 2022 and 2021 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, 2023:
•the public investors collectively owned 86,760,768 shares of our Class A common stock, representing 98.4% of the voting power in the Company and, through the Company, 98.4% of the economic interest in Pla-Fit Holdings; and
•the Continuing LLC Owners collectively hold 1,397,167 Holdings Units, representing 1.6% of the economic interest in Pla-Fit Holdings and 1,397,167 shares of our Class B common stock, representing 1.6% of the voting power in the Company;
Share repurchase programs
2019 share repurchase program
On November 5, 2019, the Company’s board of directors approved a share repurchase program of up to $500,000. During the year ended December 31, 2022, the Company purchased 1,528,720 shares of Class A common stock for a total cost of $94,315. All purchased shares were retired.
2022 share repurchase program
On November 4, 2022, the Company’s board of directors approved a share repurchase program of up to $500,000, which replaced the 2019 share repurchase program. During the year ended December 31, 2023, the Company purchased 1,698,753 shares of Class A common stock for a total cost of $125,030. A share repurchase excise tax of $1,048 was also incurred as a result of new legislation that went into effect beginning in 2023. All repurchased shares were retired. Subsequent to these repurchases, there is $374,970 remaining under the 2022 share repurchase program.
The timing of purchases and amount of stock repurchased will be subject to the Company’s discretion and will depend on market and business conditions, the Company’s general working capital needs, stock price, applicable legal requirements and other factors. Our ability to repurchase shares at any particular time is also subject to the terms of the Indenture governing the Securitized Senior Notes. Purchases may be effected through one or more open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or a combination of the foregoing.
Dividends
The Company did not declare or pay any dividends during the years ended December 31, 2023, 2022 or 2021.
Preferred stock
The Company had 50,000,000 preferred stock shares authorized and none issued or outstanding for the years ended December 31, 2023 or 2022.
v3.24.0.1
Equity-based compensation
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Equity-based compensation Equity-based compensation
Equity-based compensation
The following table summarizes equity-based compensation expense by award type:
Years Ended December 31,
202320222021
Stock options
$1,004 $2,947 $3,915 
RSUs
5,699 4,202 4,568 
PSUs
795 540 — 
ESPP
408 377 322 
Total(1)
$7,906 $8,066 $8,805 
(1) Equity-based compensation was recorded to selling, general and administrative expense in the consolidated statements of operations related to stock options, RSUs, PSUs and ESPP.
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:
 
Years Ended December 31,
 20222021
Expected term (years)(1)
0.25 - 6.25
6.25
Expected volatility(2)
28.0% - 55.5%
48.8% - 49.4%
Risk-free interest rate(3)
0.65% - 4.20%
1.05% - 1.21%
Dividend yield(4)
—%—%
(1) Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.
(2) Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.
(3) The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.
(4) Based on an assumed a dividend yield of zero at the time of grant.
The following summarizes stock option activity for the year ended December 31, 2023: 
 Stock OptionsWeighted average
exercise price		Weighted average remaining contractual term (years)Aggregate intrinsic value
Outstanding at January 1, 2023
869,939 $45.85 
Granted— $— 
Exercised(212,320)$37.94 $8,776 
Forfeited(47,647)$76.95 
Outstanding at December 31, 2023
609,972 $46.00 4.4$17,509 
Vested or expected to vest at December 31, 2023
609,972 $46.00 4.4$17,509 
Exercisable at December 31, 2023
515,792 $40.37 4.4$17,355 

The weighted-average grant-date fair value per share of stock options granted was $29.31 and $37.51 during the years ended December 31, 2022 and 2021, respectively. The aggregate intrinsic value of options exercised was $435 and $20,805 for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2023, total unrecognized compensation expense related to unvested stock options was $563, which is expected to be recognized over a weighted-average period of 1.5 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 three to four years. RSU awards are valued using the intrinsic value method. 
 Restricted stock unitsWeighted average
fair value
Unvested outstanding at January 1, 2023
105,364 $77.47 
Granted150,685 $75.71 
Vested(53,469)$74.74 
Forfeited(69,824)$77.37 
Unvested outstanding at December 31, 2023
132,756 $76.62 
The weighted-average grant-date fair value per share of RSUs granted was $82.42 and $78.26 for the years ended December 31, 2022 and 2021, respectively. The total fair value of RSUs vested was $3,997, $4,333, and $2,226 for the years ended December 31, 2023, 2022, and 2021, respectively. As of December 31, 2023, total unrecognized compensation expense related to unvested RSUs was $3,468, which is expected to be recognized over a weighted-average period of 1.4 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
Unvested outstanding at January 1, 2023
28,944 $82.61 
Granted66,053 $75.28 
Vested— $— 
Forfeited(46,609)$78.03 
Unvested outstanding at December 31, 2023
48,388 $77.02 
Expected to vest at December 31, 2023
49,179 $76.99 
The weighted-average grant-date fair value per share of PSUs granted was $90.21 for the year ended December 31, 2022. There were no PSUs granted during the year ended December 31, 2021. As of December 31, 2023, total unrecognized compensation expense related to unvested PSUs was $2,451, which is expected to be recognized over a weighted average period of 2.0 years.
2018 Employee stock purchase plan
The 2018 Employee Stock Purchase Plan (the “ESPP”), as adopted by the Board of Directors in March 2018, allows eligible employees to purchase shares of the Company’s Class A common stock at a discount through payroll deductions of up to 10% of their eligible compensation, subject to any plan limitations. The ESPP provides for six-month offering periods, and at the end of each offering period, employees are able to purchase shares at 85% of the lower of the fair market value of the Company’s Class A common stock on the first trading day of the offering period or on the last day of the offering period. As of December 31, 2023, a total of 1,000,000 shares of common stock were authorized for the issuance of equity awards under the ESPP. During the year ended December 31, 2023, employees purchased 14,682 shares under the ESPP.
v3.24.0.1
Earnings per share
 12 Months Ended
Dec. 31, 2023
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. by the weighted-average number of shares of Class A common stock outstanding. 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:
Years Ended December 31,
202320222021
Numerator
Net income
$147,035 $110,456 $46,122 
Less: net income attributable to non-controlling interests
8,722 11,054 3,348 
Net income attributable to Planet Fitness, Inc. - basic & diluted
$138,313 $99,402 $42,774 
Denominator
Weighted-average shares of Class A common stock outstanding - basic84,896,397 84,136,819 83,295,580 
Effect of dilutive securities:
Stock options232,630 351,200 540,381 
Restricted stock units44,785 54,864 58,188 
Performance stock units11,106 1,215 — 
Weighted-average shares of Class A common stock outstanding - diluted85,184,918 84,544,098 83,894,149 
Earnings per share of Class A common stock - basic
$1.63 $1.18 $0.51 
Earnings per share of Class A common stock - diluted
$1.62 $1.18 $0.51 
The number of weighted-average common stock equivalents excluded from the computation of diluted net income per share because either the effect would have been anti-dilutive, or the performance criteria related to the units had not yet been met, were as follows:
Years Ended December 31,
202320222021
Class B common stock
3,735,1095,867,3673,323,399
Stock options248,647244,660160,833
Restricted stock units4,25111,963114
Performance stock units1,2761,0660
Total
3,989,2836,125,0563,484,346
v3.24.0.1
Income taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
Income before the provision for income taxes as shown in the accompanying consolidated statements of operations is as follows:
 
 Years Ended December 31,
 202320222021
Domestic$205,890 $158,345 $52,425 
Foreign1,651 3,093 (465)
Total income before the provision for income taxes
$207,541 $161,438 $51,960 
 
The provision for income taxes consists of the following:
 Years Ended December 31,
 202320222021
Current:
Federal$2,338 $— $(314)
State3,853 842 4,197 
Foreign1,132 1,055 248 
Total current tax expense
7,323 1,897 4,131 
Deferred:
Federal41,010 27,401 11,079 
State10,136 21,049 (9,750)
Foreign43 168 199 
Total deferred tax expense51,189 48,618 1,528 
Provision for income taxes$58,512 $50,515 $5,659 

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:
 Years Ended December 31,
 202320222021
U.S. statutory tax rate21.0 %21.0 %21.0 %
State and local taxes, net of federal benefit4.2 %4.0 %6.6 %
State rate change impact on deferred taxes1.4 %8.6 %(22.7)%
Tax benefit arrangement liability adjustment(0.2)%(1.8)%4.7 %
Foreign tax rate differential0.1 %0.2 %0.7 %
Withholding taxes and other0.8 %0.3 %0.6 %
Colorado store sale— %0.9 %— %
Change in valuation allowance0.3 %(0.4)%8.6 %
Equity-based compensation(0.1)%(0.2)%(7.4)%
Non-deductible executive compensation
1.6 %— %— %
Income attributable to non-controlling interests(0.9)%(1.3)%(1.2)%
Effective tax rate28.2 %31.3 %10.9 %
 
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: 
 As of December 31,
 20232022
Deferred tax assets:
Deferred revenue$4,773 $5,277 
Goodwill and intangible assets473,088 401,438 
Net operating loss42,631 53,370 
Lease liabilities106,848 91,205 
Equity-based compensation2,442 4,066 
Equity method investment
3,562 — 
Allowance for current expected credit loss4,427 3,540 
Other3,311 4,979 
Deferred tax assets641,082 563,875 
Valuation allowance(4,940)(4,037)
Deferred tax assets, net of valuation allowance636,142 559,838 
Deferred tax liabilities:
Prepaid expenses— (952)
Property and equipment(39,086)(23,718)
Right of use assets(94,512)(82,074)
Total deferred tax liabilities(133,598)(106,744)
Total deferred tax assets and liabilities$502,544 $453,094 
Reported as:
Deferred income taxes - non-current assets$504,188 $454,565 
Deferred income taxes - non-current liabilities(1,644)(1,471)
Total deferred tax assets and liabilities$502,544 $453,094 
As of December 31, 2023, we had a net deferred tax asset of $502,544, 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. For the years ended December 31, 2023 and 2022, the Company has continued to provide a valuation allowance of $4,940 and $4,037, respectively, against the portion of its deferred tax assets that would generate capital losses for which the Company does not have sufficient positive evidence to support its recoverability.
As of December 31, 2023, the Company had federal net operating loss carryforwards of $169,180, with an indefinite lived carryforward. These losses were generated in 2020 and 2021. The Company also has $211,646 of state net operating loss carryforwards of which $207,241 have various expirations from 2024 to 2041 and $4,405 are indefinite.
The following table presents a reconciliation of the beginning and ending balances of the liability for unrecognized tax benefits, excluding interest and penalties, which is included within other liabilities on our consolidated balance sheets:
 As of December 31,
 20232022
Balance at beginning of year$328 $420 
Decrease related to prior year tax positions(55)(92)
Balance at end of year$273 $328 
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 2020 through 2023 remain open to examination by the tax authorities in these jurisdictions.
Tax benefit arrangements
The Company recorded other income of $1,964, other expense of $13,831 and other income of $11,737 in the years ended December 31, 2023, 2022 and 2021, respectively, reflecting a change in the tax benefit obligation attributable to a change in the expected tax benefits. In each year, the remeasurement was primarily due to various state tax legislation changes enacted in the year and in 2022 was also due to the Sunshine Acquisition which resulted in a change in the amount of income apportioned to various states in future periods and accordingly resulted in a decrease to the tax benefit arrangement liability.
In connection with the exchanges that occurred during 2023 and 2022, 4,748,555 and 548,175 Holdings Units, respectively, were redeemed by the Continuing LLC Owners for newly-issued shares of Class A common stock, resulting in an increase in the tax basis of the net assets of Pla-Fit Holdings. As a result of the change in Planet Fitness, Inc.’s ownership percentage of Pla-Fit Holdings that occurred in conjunction with the exchanges and issuance of Holdings Units, we recorded a decrease to our net deferred tax assets of $5,316 and an increase to our net deferred tax assets of $2,000, during the years ended December 31, 2023 and 2022, respectively. As a result of these exchanges and other activity, during the years ended December 31, 2023 and 2022 we also recognized deferred tax assets in the amount of $106,313 and $16,326, respectively, and corresponding tax benefit arrangement liabilities of $37,995 and $0, respectively, representing approximately 85% of the tax benefits due to the TRA Holders for shares exchanged that were subject to tax benefit arrangements. The offset to the entries recorded in connection with exchanges in each year was to stockholders’ equity.
The tax benefit obligation was $495,662 and $494,465 as of December 31, 2023 and 2022, respectively.
Projected future payments under the tax benefit arrangements are as follows:
 Amount
2024$41,294 
202550,502 
202652,932 
202747,729 
202841,705 
Thereafter261,500 
Total$495,662 
v3.24.0.1
Commitments and contingencies
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and contingencies Commitments and contingencies
(a) Legal matters
From time to time, and in the ordinary course of business, the Company is subject to various claims, charges, and litigation, such as employment-related claims and slip and fall cases.
On May 27, 2022, the Company and other defendants, including an officer of the Company who is a related party, received a final judgment after appeal to the joint and several judgment against them in a civil action brought by a former employee. In connection with the 2012 acquisition of Pla-Fit Holdings on November 8, 2012, the sellers are obligated to indemnify the Company related to this specific matter. The Company has incurred legal costs on behalf of the defendants in the case, which include a related party. These costs have historically not been material. During the fourth quarter of 2022, the Company and other defendants, as applicable, paid the final judgment in full, of which the Company paid $3,414. During 2022, the Company recorded an increase to its indemnification receivable of $1,189, and recorded a corresponding reserve against the indemnification receivable of $1,189 through other gain (loss) on the statement of operations.
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. In February 2023, the Company and the franchisee agreed on a summary of terms for a settlement agreement (“Preliminary Settlement Agreement”), which included the Company’s acquisition of the franchisee-owned stores and a release of all claims by all parties. In connection with the Preliminary Settlement Agreement, the Company recorded a legal settlement reserve of $8,550 as of December 31, 2022, inclusive of estimated future legal fees, through other loss on the statement of operations. The Company revised its estimate of the legal settlement and recorded an increase to the liability of $6,250 during 2023. On October 20, 2023, the Company finalized its settlement with the franchisee in Mexico for $31,619, which included the acquisition by the Company of five stores in Mexico and the settlement of all claims.
In conjunction with the finalization of the settlement with the franchisee in Mexico, the Company entered into an agreement to sell the five stores to Planet Fitmex, LLC. As a result, the business met the discontinued operations reporting criteria and “held
for sale” accounting criteria as of the acquisition date of October 20, 2023. On December 28, 2023, the Company completed the sale of the five stores to Planet Fitmex, LLC in exchange for an equity interest in Planet Fitmex, LLC valued at $17,000.
For the year ended December 31, 2023, the operating results, comprehensive income and cash flows associated with discontinued operations was not material and thus were not presented separately in the consolidated statements of operations, consolidated statements of comprehensive income, or consolidated statements of cash flows, respectively. As of December 31, 2023, there were no assets held for sale nor liabilities held for sale on the consolidated balance sheets as a result of the sale of the five stores to Planet Fitmex. The sale of the five stores did not result in any significant gain or loss recorded in the consolidated statements of operations for the year ended December 31, 2023.
The Company is not currently aware of any other legal proceedings or claims that it 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, 2023, the Company had advertising purchase commitments of approximately $74,165, including commitments made by the NAF. In addition, the Company had open purchase orders of approximately $15,266 primarily related to equipment to be sold to franchisees.
(c) Guarantees
The Company historically guaranteed lease agreements for certain franchisees and in 2019, in connection with a real estate partnership, the Company began guaranteeing certain leases of its franchisees up to a maximum period of ten years, with earlier expiration dates if certain conditions are met. The Company’s maximum obligation, as a result of its guarantees of leases, is approximately $5,215 and $5,942 as of December 31, 2023 and 2022, 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, 2023 and 2022, no accrual has been recorded for the Company’s potential obligation under its guaranty arrangement.
v3.24.0.1
Retirement plan
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Retirement plan Retirement plan
The Company maintains a 401(k) deferred tax savings plan (the Plan) for eligible employees. The Plan provides for the Company to make an employer matching contribution currently equal to 100% of employee deferrals up to a maximum of 4% of each eligible participating employees’ wages. Total employer matching contributions expensed in the consolidated statements of operations were approximately $1,370, $1,123, and $846 for the years ended December 31, 2023, 2022 and 2021, respectively.
v3.24.0.1
Segments
 12 Months Ended
Dec. 31, 2023
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.
 Year Ended December 31,
 202320222021
Revenue
Franchise segment revenue - U.S.$376,527 $321,062 $286,283 
Franchise segment revenue - International11,402 8,572 4,427 
Franchise segment total387,929 329,634 290,710 
Corporate-owned stores segment - U.S.444,724 375,375 165,433 
Corporate-owned stores segment - International4,572 4,018 1,786 
Corporate-owned stores segment total449,296 379,393 167,219 
Equipment segment - U.S.221,533 212,269 125,023 
Equipment segment - International12,568 15,476 4,071 
Equipment segment total234,101 227,745 129,094 
Total revenue$1,071,326 $936,772 $587,023 
Franchise revenue includes revenue generated from placement services of $19,798, $17,125 and $9,968 for the years ended December 31, 2023, 2022 and 2021, respectively. 
 Year Ended December 31,
 202320222021
Segment EBITDA
Franchise$266,727 $216,817 $194,303 
Corporate-owned stores171,518 142,083 49,196 
Equipment56,047 59,082 29,680 
Corporate and other(1)
(70,497)(49,366)(78,265)
Total Segment EBITDA$423,795 $368,616 $194,914 
 (1) Corporate and other primarily includes corporate overhead costs, such as payroll and related benefit costs and professional services which are not directly attributable to any individual segment.
The following table reconciles total Segment EBITDA to income before taxes: 
 Year Ended December 31,
 202320222021
Total Segment EBITDA$423,795 $368,616 $194,914 
Less:
Depreciation and amortization149,413 124,022 62,800 
Other income (expense)3,512 14,983 (11,102)
Losses from equity-method investments, net of tax(1,994)(467)(179)
Income from operations272,864 230,078 143,395 
Interest expense, net(68,835)(83,623)(80,333)
Other income (expense), net3,512 14,983 (11,102)
Income before income taxes$207,541 $161,438 $51,960 
The following table summarizes the Company’s assets by reportable segment: 
 December 31, 2023December 31, 2022
Franchise$169,836 $161,355 
Corporate-owned stores1,637,146 1,559,985 
Equipment176,249 200,020 
Unallocated986,462 933,229 
Total consolidated assets$2,969,693 $2,854,589 
The table above includes $3,609 and $916 of long-lived assets located in the Company’s international corporate-owned stores as of December 31, 2023 and 2022, respectively.
The following table summarizes the Company’s goodwill by reportable segment:
 December 31, 2023December 31, 2022
Franchise$16,938 $16,938 
Corporate-owned stores607,898 593,086 
Equipment92,666 92,666 
Total consolidated goodwill$717,502 $702,690 
v3.24.0.1
Corporate-owned and franchisee-owned stores
 12 Months Ended
Dec. 31, 2023
Franchisors [Abstract]  
Corporate-owned and franchisee-owned stores Corporate-owned and franchisee-owned stores
The following table shows changes in our franchisee-owned and corporate-owned stores for the years ended December 31, 2023, 2022 and 2021:
 Year Ended December 31,
 202320222021
Franchisee-owned stores:
Stores operated at beginning of period2,176 2,142 2,021 
New stores opened147 144 125 
Stores acquired from the Company5 6 — 
Stores debranded, sold or consolidated(1)
(9)(116)(4)
Stores operated at end of period
2,319 2,176 2,142 
Corporate-owned stores:
Stores operated at beginning of period234 112 103 
New stores opened18 14 7 
Stores sold to franchisees(5)(6)— 
Stores acquired from franchisees9 114 2 
Stores operated at end of period
256 234 112 
Total stores:
Stores operated at beginning of period2,410 2,254 2,124 
New stores opened165 158 132 
Stores debranded, sold or consolidated(1)
— (2)(2)
Stores operated at end of period
2,575 2,410 2,254 
(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.
v3.24.0.1
Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2023
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Valuation and Qualifying Accounts Schedule II – Valuation and Qualifying Accounts
Allowance For Uncollectible Amounts:
(in thousands)Balance at Beginning of PeriodProvision for (recovery of) doubtful accounts, netWrite-offs and otherBalance at End of Period
December 31, 2023$— $— $— $— 
December 31, 2022$— $— $— $— 
December 31, 2021$7 $10 $(17)$— 
Allowance For Credit Losses On Held To Maturity Investment:
(in thousands)Balance at Beginning of Period(Gain) loss on adjustment of allowance for credit losses on held-to-maturity investmentWrite-offs and otherBalance at End of Period
December 31, 2023$14,957 $2,732 $— $17,689 
December 31, 2022$17,462 $(2,505)$— $14,957 
December 31, 2021$— $17,462 $— $17,462 
Valuation Allowance On Deferred Tax Assets:
(in thousands)Balance at Beginning of Period(Benefit) provision of allowanceUtilization of allowanceBalance at End of Period
December 31, 2023$4,037 $903 $— $4,940 
December 31, 2022$4,630 $(593)$— $4,037 
December 31, 2021$— $4,630 $— $4,630 
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net income (loss) attributable to Planet Fitness, Inc. $ 138,313 $ 99,402 $ 42,774
v3.24.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.0.1
Summary of significant accounting policies (Policies)
 12 Months Ended
Dec. 31, 2023
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.
Historically, 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 “national advertising fund” or “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. During 2023, the Company determined MMR and PF Melville no longer qualify for consolidation as VIEs as the Company no longer qualifies as the primary beneficiary of the VIEs and therefore deconsolidated the entities. See Note 3 for further information related to the Company’s VIEs. The NAF is an advertising fund, which on behalf of the Company collects 2% annually of gross
monthly membership dues, and beginning in January 2023 annual dues, 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 estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the consolidated financial statements include revenue recognition, valuation of equity-based compensation awards, valuation of assets and liabilities acquired in business combinations, the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets, allowance for expected credit losses, the present value of lease liabilities, income taxes, including deferred tax assets and liabilities, and the liability for the Company’s tax benefit arrangements.
Concentrations Concentrations
Financial instruments that potentially subject the Company to concentration risk consist of cash and cash equivalents and marketable securities. All of the Company’s cash and cash equivalents, restricted cash, and marketable securities are maintained by major financial institutions, of which cash deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250. The Company maintains balances in excess of these limits, but does not believe that such deposits with its banks are subject to any unusual risk.
The credit risk associated with trade receivables is mitigated due to the large number of customers, generally franchisees, and their broad dispersion over many different geographic areas. The Company does not have any concentrations greater than 10% with respect to revenues or accounts receivable.
Cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cashThe Company considers all highly liquid investments purchased with an original maturity of 90 days or less to be cash equivalents.
Revenue from contracts with customers and Deferred revenue Revenue from contracts with customers
The Company’s revenues are comprised of franchise revenue, equipment revenue, and corporate-owned stores revenue and are accounted for under ASC 606 - Revenue Recognition, net of applicable sales tax.
Franchise revenue
Franchise revenues consist primarily of royalties, NAF contributions, initial and successor franchise fees and upfront fees from area development agreements (“ADAs”), transfer fees, equipment placement revenue, commission income, online join fees, and other fees. 
The Company’s primary performance obligation under the franchise license is granting certain rights to use the Company’s intellectual property, and all other services the Company provides under the ADA and franchise agreement are highly interrelated and not distinct within the contract, and therefore accounted for as a single performance obligation, which is satisfied by granting certain rights to use intellectual property over the term of each franchise agreement.
Royalties and franchisee contributions to national advertising funds, are calculated as a percentage of franchise monthly dues and annual fees over the term of the franchise agreement. Under the franchise agreements, advertising contributions paid by franchisees must be spent on advertising, marketing and related activities. Initial and successor franchise fees are payable by the franchisee upon signing a new franchise agreement or successor franchise agreement, and transfer fees are paid to the Company when one franchisee transfers a franchise agreement to a different franchisee. Franchise royalties, as well as NAF contributions, represent sales-based royalties that are related entirely to the performance obligation under the franchise agreement and are recognized as franchise sales occur.
Initial and successor franchise fees, as well as transfer fees, are recognized as revenue on a straight-line basis over the term of the respective franchise agreement. ADAs generally consist of an obligation to grant geographic exclusive area development rights. These development rights are not distinct from franchise agreements, so upfront fees paid by franchisees for exclusive development rights are deferred and apportioned to each franchise agreement signed by the franchisee. The pro-rata amount apportioned to each franchise agreement is accounted for identically to the initial franchise fee.
The Company is generally responsible for assembly and placement of equipment it sells to U.S., Canada, and Mexico based franchisee-owned stores. Placement revenue is recognized upon completion and acceptance of the services at the franchise location.
The Company recognizes commission income from certain of its franchisees’ use of certain preferred vendor arrangements. Commissions are recognized when amounts have been earned and collectability from the vendor is reasonably assured.
Online member join fees are paid to the Company by franchisees for processing new membership transactions when a new member signs up for a membership to a franchisee-owned store through the Company’s website. These fees are recognized as revenue as each transaction occurs.
Equipment revenue
The Company sells and delivers equipment purchased from third-party equipment manufacturers to U.S., Canada, and Mexico based franchisee-owned stores. Revenue is recognized upon transfer of control of ordered items, generally upon delivery to the customer, which is when the customer obtains physical possession of the goods, legal title is transferred, the customer has all risks and rewards of ownership and an obligation to pay for the goods is created. Franchisees are charged for all freight costs incurred for the delivery of equipment. Freight revenue is recorded within equipment revenue and freight costs are recorded within cost of revenue. In most instances, the Company recognizes equipment revenue on a gross basis as management has determined the Company to be the principal in these transactions. Management determined the Company to be the principal in the transaction because the Company controls the equipment prior to delivery to the final customer as evidenced by its pricing discretion over the goods, inventory transfer of title and risk of loss while the inventory is in transit, and having the primary responsibility to fulfill the customer order and direct the third-party vendor.
Corporate-owned stores revenue
The following revenues are generated from stores owned and operated by the Company.
Membership dues revenue
Customers are offered multiple membership choices varying in length. Membership dues are earned and recognized over the membership term on a straight-line basis.
Enrollment fee revenue
Enrollment fees are charged to new members at the commencement of their membership. The Company recognizes enrollment fees ratably over the estimated duration of the membership life, which is generally two years.
Annual membership fee revenue
Annual membership fees are annual fees charged to members in addition to and in order to maintain low monthly membership dues. The Company recognizes annual membership fees ratably over the 12-month membership period or as long as there is a service obligation to the member.
Retail sales
The Company sells Planet Fitness branded apparel, food, beverages, and other accessories. The revenue for these items is recognized at the point of sale.
Deferred revenue
Franchise deferred revenue results from initial and successor franchise fees and ADA fees paid by franchisees, as well as transfer fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement. Deferred revenue is also recognized in the Corporate-owned stores segment for cash received from members for enrollment fees, membership dues and annual fees for the portion not yet earned based on the membership period. Equipment deposits made at the time of ordering equipment are also deferred until the revenue recognition criteria are met.
Cost of revenue Cost of revenue
Cost of revenue consists primarily of direct costs associated with equipment sales, including freight costs, to new and existing franchisee-owned stores in the United States, Canada and Mexico and the cost of retail merchandise sold in corporate-owned stores. 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 operations
Store operations consists of the direct costs associated with our corporate-owned stores, primarily payroll, rent, utilities, supplies, maintenance, and local and national advertising.
Selling, general and administrative Selling, general and administrativeSelling, general and administrative expenses are primarily associated with administrative, corporate-owned and franchisee support functions related to our existing business as well as growth and development activities. These costs primarily consist of payroll, information technology, marketing, legal, accounting and insurance related expenses.
Accounts receivable Accounts receivable
Accounts receivable is primarily comprised of amounts owed to the Company resulting from equipment and placement revenue. The Company evaluates its accounts receivable on an ongoing basis and may establish an allowance for uncollectible amounts based on collections and current credit conditions. Accounts are written off as uncollectible when it is determined that further collection efforts will be unsuccessful. Historically, the Company has not had a significant amount of write-offs.
Inventory Inventory
The Company has inventory at period ends when the Company has title and risk of loss in advance of sale to its franchisees.
Leases and asset retirement obligations Leases and asset retirement obligations
Leases
The Company leases space to operate corporate-owned stores, equipment, office, and warehouse space. The Company currently leases the corporate headquarters, corporate-owned store headquarters and all but one of the corporate-owned stores. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these
leases on a straight-line basis over the lease term. The Company accounts for fixed lease and non-lease components together as a single, combined lease component. Variable lease costs, which may include common area maintenance, insurance, and taxes are not included in the lease liability and are expensed in the period incurred.
Corporate-owned store leases generally have original lease terms of ten years, and typically include one or more renewal options, with renewal option terms that can generally extend the lease term from three to ten years or more. The exercise of lease renewal options is at the Company’s sole discretion. The Company includes renewal options in the expected lease term when they are reasonably certain to be exercised.
At the inception of each lease, the Company determines its appropriate classification as an operating or financing lease. The majority of the Company’s leases are operating leases. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid, reduced by expected reimbursements from landlords. Operating lease right of use (“ROU”) assets represent the right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments, initial direct costs and lease incentives. To determine the present value of lease payments not yet paid, the Company estimates incremental secured borrowing rates corresponding to the maturities of the leases based upon interpolated rates using the Company’s Notes. All ROU assets are periodically reviewed for impairment in accordance with standards that apply to long-lived assets.
The Company has an immaterial amount of non-real estate leases that are accounted for as finance leases under ASC 842 - Leases.
Leases typically contain rent escalations over the lease term. The Company recognizes expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements reduce the ROU asset related to the lease. These tenant incentives are amortized as reduction of rent expense over the lease term.
The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Asset retirement obligations
In accordance with ASC Topic 410, Asset Retirement and Environmental Obligations, the Company establishes assets and liabilities for the present value of estimated future costs to return certain leased facilities to their original condition. Such assets are depreciated on a straight-line basis over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated restoration costs.
Property and equipment Property and equipmentProperty and equipment is recorded at cost, or fair value when acquired as part of a business combination, and depreciated using the straight-line method over its related estimated useful life. 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 expenses
The Company expenses advertising costs as incurred. Advertising expenses for corporate-owned stores are included within store operations and totaled $39,642, $31,462 and $15,667 for the years ended December 31, 2023, 2022 and 2021, respectively. In addition to NAF expenses, advertising related to the franchise segment is included within selling, general and administrative expenses and totaled $2,514, $3,103 and $7,144 for the years ended December 31, 2023, 2022 and 2021, respectively. See Note 4 for discussion of the national advertising fund.
Goodwill, long-lived assets, and other intangible assets Goodwill, long-lived assets, and other intangible assets
Goodwill and other intangible assets that arise from acquisitions are recorded in accordance with ASC Topic 805, Business Combinations and ASC Topic 350, Intangibles—Goodwill and Other. In accordance with this guidance, specifically identified intangible assets must be recorded as a separate asset from goodwill if either of the following two criteria is met: (1) the intangible asset acquired arises from contractual or other legal rights; or (2) the intangible asset is separable. Intangibles are typically trade and brand names, customer relationships, and reacquired franchise rights. Transactions are evaluated to determine whether any gain or loss on reacquired franchise rights, based on their fair value, should be recognized separately from identified intangibles. Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination.
Goodwill and indefinite-lived intangible assets are not amortized, but are reviewed annually for impairment or more frequently if impairment indicators arise. Separable intangible assets that are not deemed to have an indefinite life are amortized over their estimated useful lives on either a straight-line or accelerated basis as deemed appropriate, and are reviewed for impairment when events or circumstances suggest that the assets may not be recoverable.
The Company performs its annual impairment assessment of goodwill and indefinite lived intangible assets on December 1 of each year. During 2022, the Company moved its assessment date from December 31 to December 1 in order to better align with the Company’s annual planning cycle. For goodwill, the annual impairment assessment 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.
For indefinite lived intangible assets, the annual 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 for its goodwill or indefinite lived intangible assets, 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 and ROU 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 long-lived assets that were impaired during any of the periods presented.
Income taxes Income taxes
The Company accounts for income taxes using the asset and liability method. Deferred income taxes are recognized for the expected future tax consequences attributable to temporary differences between the carrying amount of the existing tax assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied in the years in which temporary differences are expected to be recovered or settled. The principal items giving rise to temporary differences are the use of accelerated depreciation and certain basis differences resulting from acquisitions and the recapitalization transactions. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.
Planet Fitness, Inc. is the sole managing member of Pla-Fit Holdings, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, Pla-Fit Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Pla-Fit Holdings is passed through to and included in the taxable income or loss of its members, including Planet Fitness, Inc. following the recapitalization transactions, on a pro rata basis. Planet Fitness, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to the allocable share of any taxable income of Pla-Fit Holdings. The Company is also subject to taxes in certain foreign jurisdictions.
The Company recognizes the effect of income tax positions only if those positions are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs (see Note 17).
Tax benefit arrangements Tax benefit arrangements
The Company’s acquisition of Holdings Units in connection with the IPO and certain future and past exchanges of Holdings Units for shares of the Company’s Class A common stock (or cash at the option of the Company) are expected to produce and have produced favorable tax attributes. In connection with the IPO, the Company entered into two tax receivable agreements, pursuant to which the Company is required to make payments to certain holders of equity interests or their successors-in-interest (“TRA Holders”). 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 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 85% of the amount of tax savings, if any, that the Company is deemed to realize as a result of tax attributes of certain equity interests previously held by affiliates of TSG that resulted from TSG’s purchase of interests in our 2012 acquisition, and certain other tax benefits. Under both agreements, the Company generally retains the remaining 15% benefit 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, 2023 the Company has recorded a liability of $495,662 payable to the TRA Holders under the tax benefit obligations, representing approximately 85% of the calculated expected tax savings based on the original basis adjustments the Company anticipates being able to utilize in future years. Changes in the liability resulting from historical changes under these tax benefit arrangements may occur based on changes in anticipated future taxable income, changes in applicable tax rates or other changes in tax attributes that may occur and impact the expected future tax benefits to be received by the Company. Changes in the projected liability under these tax benefit arrangements are and will be recorded as a component of other income (expense) each period. The projection of future taxable income involves significant judgment. Actual taxable income may differ from estimates, which could significantly impact the liability under the tax benefit arrangements and the Company’s consolidated results of operations.
Fair value Fair value
ASC 820, Fair Value Measurements and Disclosures, establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows:
Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.
Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
Financial instruments and Investments
(s) Investments
The Company’s investments consist of available-for-sale and held-to-maturity investments in debt securities and equity method investments.
Available-for-sale marketable debt securities
Marketable debt securities primarily consist of commercial paper, corporate debt securities, U.S. treasury securities, and U.S. government agency securities. We classify our marketable debt securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. The Company invests in a diversified portfolio of marketable debt securities and limits the concentration of its investment in any particular security. Securities with maturities greater than three months, but less than one year, are included in short-term marketable securities and securities with maturities greater than one year are included in long-term marketable securities on the consolidated balance sheets, respectively. All marketable debt securities classified as available-for-sale are reported at fair value.
If the estimated fair value of an available-for-sale debt security is below its amortized cost basis, then the Company evaluates the security for impairment. The Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the debt security’s amortized cost basis is written down to fair value through other income (expense), net in the consolidated statements of operations. If neither of these criteria are met, the Company evaluates whether unrealized losses have resulted from a credit loss or other factors. The factors considered in determining whether a credit loss exists can include the extent to which fair value is less than the amortized cost basis, changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, as well as other factors. An impairment relating to credit losses is recorded through an allowance for credit losses reported in other income (expense), net in the consolidated statements of operations. The allowance is limited by the amount that the fair value of the debt security is below its amortized cost basis. When a credit loss exists, the Company compares the present value of cash flows expected to be collected from the debt security with the amortized cost basis of the security to determine what allowance amount, if any, should be recorded. Unrealized gains or losses not resulting from credit losses or impairment are recorded through accumulated other comprehensive income (loss). Realized gains and losses from the sale of marketable securities are determined based on the specific identification method and are reported in other income (expense), net in the consolidated statements of operations. Interest income from marketable securities is recognized as earned within the consolidated statement of operations.
Held-to-maturity debt securities
Held-to-maturity debt securities are financial instruments for which the Company has the intent and ability to hold to maturity and are reported at amortized cost. The Company reserves for expected credit losses on held-to-maturity debt securities through the allowance for expected credit losses. The Company utilizes a probability-of-default (“PD”) and loss-given-default (“LGD”) methodology to calculate 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 debt security is written off when deemed uncollectible.
Equity method investments
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 as a non-current asset on the consolidated balance sheets. The Company records its interest in the net earnings of its equity method investees along with adjustments for unrealized profits or losses on intra-entity transactions and amortization of basis differences, within losses from equity-method investments, net of tax in the consolidated statements of operations. Basis differences represent differences between the cost of the investment and the underlying equity in net assets of the investment and are amortized into losses from equity method investments over the useful lives of the underlying assets that gave rise to them. Equity method goodwill is not amortized or tested for impairment; instead the equity method investment is tested for impairment. The Company records its interest in the net earnings of its equity method investments based on the most recently available financial statements of the investees.
The Company evaluates its equity method investments for impairment whenever an event or change in circumstances occurs that may have a significant adverse impact on the fair value of the investment. If a loss in value has occurred and is deemed to be other than temporary, an impairment loss is recorded in the period the impairment occurs in the consolidated statements of operations. The Company did not record any impairment charges on any of its equity method investments during any periods presented.
Held-to-maturity debt security
As of December 31, 2023, the Company’s debt security investment consists of redeemable preferred shares that are accounted for as a held-to-maturity investment. The Company’s investment is measured at amortized cost within investments in the consolidated balance sheets. The Company reviews its held-to-maturity securities for expected credit losses under ASC Topic 326, Financial Instruments – Credit Losses, on an ongoing basis.
During the year ended December 31, 2023, the Company’s review of the investment indicated that an adjustment to its allowance for expected credit losses was necessary. The Company utilized probability-of-default (“PD”) and loss-given-default (“LGD”) methodologies to calculate the allowance for expected credit losses. The Company derived its estimate using historical lifetime loss information for assets with similar risk characteristics, adjusted for management’s expectations. Adjustments for management’s expectations were based on the investee’s recent financial results, current financial position, and forward-looking financial forecasts.
Equity-based compensation 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 that will vest upon achieving the measurement criteria. The Company accounts for forfeitures as they occur by reversing compensation cost for unvested awards when the award is forfeited. See Note 15 for further information.
Business combinations Business combinations
The Company accounts for business combinations using the purchase method of accounting which results in the assets acquired and liabilities assumed being recorded at fair value.
The valuation methodologies used are based on the nature of the asset or liability. The significant assets and liabilities measured at fair value include property and equipment, intangible assets, and favorable and unfavorable leases. For the 2012 Acquisition, intangible assets consisted of trade and brand names, member relationships, franchisee relationships related to both the franchise and equipment segments, non-compete agreements, order backlog and favorable and unfavorable leases. For other acquisitions, which consist of acquisitions of stores from franchisees, intangible assets generally consist of member relationships, re-acquired franchise rights, and favorable and unfavorable leases.
The Company uses a variety of information sources to determine the estimated fair values of acquired assets and liabilities, including third-party valuation experts. The fair value of trade and brand names is estimated using the relief from royalty method, an income approach to valuation, which includes projecting future system-wide sales and other estimates. Membership relationships and franchisee relationships are valued based on an estimate of future revenues and costs related to the respective contracts over the remaining expected lives. The Company’s valuation includes assumptions related to the projected attrition and renewal rates on those existing franchise and membership arrangements being valued. Re-acquired franchise rights are valued using an excess earnings approach. The valuation of re-acquired franchise rights is determined using a multi-period excess earnings method under the income approach. For re-acquired franchise rights with terms that are either favorable or unfavorable to the terms included in current franchise agreements, a gain or charge is recorded at the time of the acquisition to the extent of the favorability or unfavorability, respectively. Favorable and unfavorable operating leases are recorded based on differences between contractual rents under the respective lease agreements and prevailing market rents at the lease acquisition date, and are recorded as a component of the ROU asset. Real and personal property asset valuation is determined using the replacement cost approach.
The Company considers its trade and brand name intangible assets to have an indefinite useful life, and, therefore, these assets are not amortized but rather are tested for impairment annually as discussed above. Finite-lived intangible assets, such as re-acquired franchise rights and member relationships are subject to amortization over the assets’ estimated useful lives based on
the pattern in which the economic benefits are expected to be received, which may be straight-line or an accelerated method. Favorable and unfavorable operating leases are amortized into rental expense over the lease term of the respective leases using the straight-line method.
Guarantees Guarantees
The Company, as a guarantor, is required to recognize, at inception of the guaranty, a liability for the fair value of the obligation undertaken in issuing the guarantee. See Note 18 for further discussion of such obligations guaranteed.
Contingencies 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.
Reclassification Reclassification
Certain amounts have been reclassified to conform to current year presentation.
Recent accounting pronouncements Recent accounting pronouncements
The FASB issued ASU No. 2023-05, Business Combinations-Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement, in August 2023. The standard addresses the accounting for contributions made to a joint venture, upon formation, in a joint venture's separate financial statements. The new standard is effective prospectively for all joint ventures with a formation date on or after January 1, 2025. The Company will apply the standard to any relevant transactions subsequent to the adoption date.
The FASB issued ASU No. 2023-07, Improvements to Reportable Segment Disclosures, in November 2023. The standard expands reportable segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. The new standard is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact of adoption on our financial disclosures.
The FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures, in December 2023. The standard requires disaggregated information about a reporting entity's effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions and applies to all entities subject to income taxes. The new standard is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of adoption on our financial disclosures.
v3.24.0.1
Summary of significant accounting policies (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Schedule of Vendor Purchases The percentages of equipment purchases from vendors that represent 10% or more of total equipment purchases was as follows:
Years Ended December 31,
202320222021
Vendor A72%71%70%
Vendor B21%22%28%
The percentages of advertising purchases from vendors that represent 10% or more of total advertising purchases was as follows:
Years Ended December 31,
202320222021
Vendor A38%**
Vendor B24%**
Vendor C
18%*41%
Vendor D
*77%*
* Represents less than 10% of advertising purchases for the period.
Schedule of Estimated Useful Lives of Property and Equipment The estimated useful lives of the Company’s property and equipment by class of asset, other than construction in progress, are as follows:
Buildings and building improvements
20 to 40 years
Information technology and systems
3 to 5 years
Fitness equipment
5 to 7 years
Furniture and fixtures
5 years
Vehicles
5 years
Leasehold improvementsShorter of useful life of asset or lease term
Property and equipment consists of the following: 
 December 31, 2023December 31, 2022
Land$1,341 $1,341 
Equipment176,524 140,160 
Leasehold improvements342,725 272,360 
Buildings and improvements2,572 8,589 
Furniture & fixtures73,872 59,015 
Information technology and systems assets99,734 78,330 
Other3,065 2,920 
Construction in progress13,530 13,974 
Total property and equipment
$713,363 $576,689 
Accumulated depreciation(322,958)(227,869)
Total property and equipment, net
$390,405 $348,820 
Summary of Carrying Value and Estimated Fair Value of Long-term Debt
The carrying value and estimated fair value of long-term debt were as follows:
December 31, 2023December 31, 2022
Carrying value
Estimated fair value(1)
Carrying value
Estimated fair value(1)
Long-term debt(1)
$2,004,438 $1,829,286 $2,025,187 $1,730,634 
(1) The estimated fair value of the Company’s fixed rate long-term debt is estimated primarily based on current bid prices for the long-term debt. Judgment is required to develop these estimates. As such, the fair value of long-term debt is classified within Level 2, as defined under U.S. GAAP.
v3.24.0.1
Variable interest entities (Tables)
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Carrying Values of Certain VIEs
The carrying values of the VIEs included in the consolidated balance sheets as of December 31, 2022 were as follows:
 AssetsLiabilities
PF Melville$2,204 $— 
MMR1,884 — 
Total$4,088 $— 
Assets and liabilities of the NAF, which are restricted in their use, included in the Consolidated Balance Sheets were as follows:
December 31, 2023December 31, 2022
Assets
Cash & cash equivalents$11,279 $4,938 
Other current assets2,487 938 
Total current assets$13,766 $5,876 
Liabilities
Accounts payable$2,976 $1,089 
Accrued expenses and other current liabilities3,610 3,620 
Total current liabilities$6,586 $4,709 
v3.24.0.1
National advertising fund (Tables)
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Schedule of Assets And Liabilities of NAF
The carrying values of the VIEs included in the consolidated balance sheets as of December 31, 2022 were as follows:
 AssetsLiabilities
PF Melville$2,204 $— 
MMR1,884 — 
Total$4,088 $— 
Assets and liabilities of the NAF, which are restricted in their use, included in the Consolidated Balance Sheets were as follows:
December 31, 2023December 31, 2022
Assets
Cash & cash equivalents$11,279 $4,938 
Other current assets2,487 938 
Total current assets$13,766 $5,876 
Liabilities
Accounts payable$2,976 $1,089 
Accrued expenses and other current liabilities3,610 3,620 
Total current liabilities$6,586 $4,709 
v3.24.0.1
Acquisition (Tables)
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of Purchase Consideration Allocation
The allocation of the purchase consideration was as follows:
Amount
Cash and cash equivalents$5,917 
Other current assets757 
Property and equipment153,092 
Right of use assets162,827 
Other long-term assets1,830 
Intangible assets259,430 
Goodwill488,544 
Deferred income taxes, net(54,737)
Deferred revenue(16,973)
Other current liabilities(13,720)
Lease liabilities(162,327)
Other long-term liabilities(1,213)
Total
$823,427 
The allocation of the purchase consideration was as follows:
Amount
Property and equipment$3,851 
Right of use assets5,424 
Other long-term assets95 
Intangible assets6,880 
Goodwill14,812 
Deferred revenue(687)
Other current liabilities(17)
Lease liabilities(4,204)
Total
$26,154 
Schedule of Components of Identifiable Intangible Assets Acquired
The following table sets forth the components of identifiable intangible assets acquired in the Sunshine Acquisition and their estimated useful lives in years as of the date of the acquisition:
Fair valueUseful life
Reacquired franchise rights (1)
$233,070 11.3
Customer relationships (2)
24,920 8.0
Reacquired area development rights (3)
1,440 5.0
Total intangible assets subject to amortization$259,430 
(1) Reacquired franchise rights represent the fair value of the reacquired franchise agreements using the income approach, specifically, the multi-period excess earnings method.
(2) Customer relationships represent the fair value of the existing contractual customer relationships using the income approach, specifically, the multi-period excess earnings method.
(3) Reacquired area development rights represent the fair value of the undeveloped area development agreement rights using the cost approach.
The following table sets forth the components of identifiable intangible assets acquired in the Florida Acquisition and their estimated useful lives in years as of the date of the acquisition:
Fair valueUseful life
Reacquired franchise rights (1)
$6,650 6.8
Customer relationships (2)
230 6.0
Total intangible assets subject to amortization$6,880 
Schedule of Revenues and Income Before Taxes
Revenues and income before taxes of Sunshine Fitness included in the Company’s consolidated statement of operations from the acquisition date of February 10, 2022 to December 31, 2022 are as follows:
Year Ended December 31, 2022
Total revenues$180,841 
Income before taxes$17,478 
Schedule of Pro Forma Financial Information
The following pro forma financial information summarizes the combined results of operations for the Company and Sunshine Fitness, as though the companies were combined as of the beginning of 2021. The total revenues, income before taxes, and net
income for the year ended December 31, 2023 are included within the consolidated statement of operations. The unaudited pro forma financial information was as follows:
Years Ended December 31,
20222021
Total revenues$957,222 $731,606 
Income before taxes$161,284 $41,041 
Net income$110,340 $37,911 
v3.24.0.1
Property and equipment (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment The estimated useful lives of the Company’s property and equipment by class of asset, other than construction in progress, are as follows:
Buildings and building improvements
20 to 40 years
Information technology and systems
3 to 5 years
Fitness equipment
5 to 7 years
Furniture and fixtures
5 years
Vehicles
5 years
Leasehold improvementsShorter of useful life of asset or lease term
Property and equipment consists of the following: 
 December 31, 2023December 31, 2022
Land$1,341 $1,341 
Equipment176,524 140,160 
Leasehold improvements342,725 272,360 
Buildings and improvements2,572 8,589 
Furniture & fixtures73,872 59,015 
Information technology and systems assets99,734 78,330 
Other3,065 2,920 
Construction in progress13,530 13,974 
Total property and equipment
$713,363 $576,689 
Accumulated depreciation(322,958)(227,869)
Total property and equipment, net
$390,405 $348,820 
v3.24.0.1
Investments (Tables)
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Schedule of Amortized Cost, Gross Unrealized Gains (Losses), and Fair Value of Cash Equivalents and Marketable Securities
The following table summarizes the amortized cost, gross unrealized gains and losses, fair value, and the level in the fair value hierarchy of the Company’s investments in marketable securities, that are classified as available-for-sale, as of December 31, 2023, and which had maturity dates that range from approximately 1 month to 23 months. The Company had no investments in marketable securities as of December 31, 2022. Realized gains or losses were insignificant for the year ended December 31, 2023.
December 31, 2023
Amortized CostUnrealized GainsUnrealized Losses
Fair Value(1)
Level 1Level 2
Cash equivalents
Money market funds$761 $— $— $761 $761 $— 
U.S. treasury securities2,997 1 — 2,998 — 2,998 
Total cash equivalents3,758 1 — 3,759 761 2,998 
Short-term marketable securities
Commercial paper37,063 24 — 37,087 — 37,087 
Corporate debt securities34,632 — (38)34,594 — 34,594 
U.S. government agency securities3,210 10 — 3,220 — 3,220 
Total short-term marketable securities74,905 34 (38)74,901 — 74,901 
Long-term marketable securities
Corporate debt securities47,388 328 — 47,716 — 47,716 
U.S. government agency securities3,151 19 — 3,170 — 3,170 
Total long-term marketable securities50,539 347 — 50,886 — 50,886 
Total$129,202 $382 $(38)$129,546 $761 $128,785 
(1) Fair values were determined using market prices obtained from third-party pricing sources.
Rollforward of Allowance for Expected Credit Losses on Held-to-maturity Investments
A rollforward of the Company’s allowance for expected credit losses on held-to-maturity investments is as follows:
Year Ended December 31,
20232022
Beginning allowance for expected credit losses$14,957 $17,462 
Loss (gain) on adjustment of allowance for credit losses on held-to-maturity investment2,732 (2,505)
Write-offs, net of recoveries— — 
Ending allowance for expected credit losses$17,689 $14,957 
v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Schedule of Balance Sheet Classification of Lease Assets and Liabilities
LeasesBalance Sheet ClassificationDecember 31, 2023December 31, 2022
Assets
OperatingRight of use asset, net$381,010 $346,937 
FinanceProperty and equipment, net 179 370 
Total lease assets$381,189 $347,307 
Liabilities
Current:
OperatingOther current liabilities$33,849 $33,233 
FinanceOther current liabilities125 — 
Noncurrent:
OperatingLease liabilities, net of current portion381,589 341,843 
FinanceOther liabilities63 380 
Total lease liabilities$415,626 $375,456 
Weighted-average remaining lease term - operating leases8.0 years8.1 years
Weighted-average discount rate - operating leases5.4%4.7%
Schedule of Components of Lease Cost
The components of lease cost were as follows:
Years Ended December 31,
202320222021
Operating lease cost$64,187 $56,319 $29,012 
Variable lease cost22,718 20,327 11,317 
Total lease cost$86,905 $76,646 $40,329 
Supplemental disclosures of cash flow information related to leases were as follows:
Years Ended December 31,
202320222021
Cash paid, net, for lease liabilities$56,145 $44,928 $28,126 
Operating lease ROU assets obtained in exchange for operating lease liabilities, excluding Acquisitions$67,242 $37,928 $48,651 
Acquisition-related operating lease ROU assets obtained in exchange for operating lease liabilities
$5,424 $162,827 $— 
Schedule of Supplemental Disclosures of Cash Flow Information Related to Leases
The components of lease cost were as follows:
Years Ended December 31,
202320222021
Operating lease cost$64,187 $56,319 $29,012 
Variable lease cost22,718 20,327 11,317 
Total lease cost$86,905 $76,646 $40,329 
Supplemental disclosures of cash flow information related to leases were as follows:
Years Ended December 31,
202320222021
Cash paid, net, for lease liabilities$56,145 $44,928 $28,126 
Operating lease ROU assets obtained in exchange for operating lease liabilities, excluding Acquisitions$67,242 $37,928 $48,651 
Acquisition-related operating lease ROU assets obtained in exchange for operating lease liabilities
$5,424 $162,827 $— 
Schedule of Maturities of Lease Liabilities aturities of lease liabilities as of December 31, 2023 were as follows:
Amount
2024$53,813 
202569,762 
202670,433 
202768,510 
202863,382 
Thereafter193,662 
Total lease payments$519,562 
Less: imputed interest(103,936)
Present value of future minimum lease liabilities
$415,626 
Schedule of Maturities of Lease Liabilities aturities of lease liabilities as of December 31, 2023 were as follows:
Amount
2024$53,813 
202569,762 
202670,433 
202768,510 
202863,382 
Thereafter193,662 
Total lease payments$519,562 
Less: imputed interest(103,936)
Present value of future minimum lease liabilities
$415,626 
v3.24.0.1
Goodwill and intangible assets (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Goodwill
Goodwill and related changes in the carrying amount were as follows:
Amount
Goodwill at December 31, 2022
$702,690 
Acquisition of franchisee-owned stores (Note 5)
14,812 
Goodwill at December 31, 2023
$717,502 
The following table summarizes the Company’s goodwill by reportable segment:
 December 31, 2023December 31, 2022
Franchise$16,938 $16,938 
Corporate-owned stores607,898 593,086 
Equipment92,666 92,666 
Total consolidated goodwill$717,502 $702,690 
Schedule of Intangible Assets
A summary of intangible assets is as follows:
December 31, 2023December 31, 2022
Gross
carrying
amount		Accumulated
amortization		Net carrying
Amount		Gross
carrying
amount		Accumulated
amortization		Net carrying
Amount
Finite-lived intangible assets:
Customer relationships$199,043 $(169,155)$29,888 $198,813 $(153,243)$45,570 
Reacquired franchise rights274,708 (78,689)196,019 268,058 (43,161)224,897 
Total finite-lived intangible assets473,751 (247,844)225,907 466,871 (196,404)270,467 
Indefinite-lived intangible assets:
Trade and brand names146,600 — 146,600 146,600 — 146,600 
Total intangible assets$620,351 $(247,844)$372,507 $613,471 $(196,404)$417,067 
Summary of Amortization expenses The anticipated annual amortization expense to be recognized in future years as of December 31, 2023 is as follows:
 Amount
2024$49,190 
202536,713 
202632,079 
202727,956 
202827,300 
Thereafter52,669 
Total$225,907 
v3.24.0.1
Long-term debt (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Long-term Debt
Long-term debt consists of the following:
 December 31, 2023December 31, 2022
2018-1 Class A-2-II notes$592,187 $598,438 
2019-1 Class A-2 notes528,000 533,500 
2022-1 Class A-2-I notes417,563 421,812 
2022-1 Class A-2-II notes466,688 471,437 
Total debt, excluding deferred financing costs2,004,438 2,025,187 
Deferred financing costs, net of accumulated amortization(20,814)(26,306)
Total debt, net
1,983,624 1,998,881 
Current portion of long-term debt20,750 20,750 
Long-term debt and borrowings under Variable Funding Notes, net of current portion$1,962,874 $1,978,131 
Schedule of Future Annual Payments of Long-term Debt
Future annual principal payments of long-term debt as of December 31, 2023 are as follows:
 Amount
2024$20,750 
2025600,438 
2026419,313 
202710,250 
202810,250 
Thereafter943,437 
Total$2,004,438 
v3.24.0.1
Revenue from contract with customers (Tables)
 12 Months Ended
Dec. 31, 2023
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, 2022 and December 31, 2023:
Contract liabilities
Balance at December 31, 2022
$86,911 
Revenue recognized that was included in the contract liability at the beginning of the year(53,825)
Increase, excluding amounts recognized as revenue during the period58,552 
Balance at December 31, 2023
$91,638 
The summary set forth below represents the balances in deferred revenue:
 December 31, 2023December 31, 2022
Prepaid membership fees$15,983 $14,160 
Enrollment fees4,222 3,806 
Equipment discount3,296 5,256 
Annual membership fees32,233 26,848 
Area development and franchise fees35,904 36,841 
Total deferred revenue91,638 86,911 
Long-term portion of deferred revenue32,047 33,152 
Current portion of deferred revenue$59,591 $53,759 
Schedule of Remaining Performance Obligation The Company has elected to exclude short term contracts, sales and usage based royalties and any other variable consideration recognized on an “as invoiced” basis.
Contract liabilities to be recognized in:Amount
2024$59,591 
20255,486 
20263,990 
20273,498 
20283,037 
Thereafter16,036 
Total$91,638 
v3.24.0.1
Related party transactions (Tables)
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
Activity with franchisees considered to be related parties is summarized below.
 
Years Ended December 31,
 202320222021
Franchise revenue - interim CEO
$3,909 $3,208 $2,809 
Franchise revenue - other
2,204 866 702 
Equipment revenue - interim CEO
3,640 1,909 1,626 
Equipment revenue - other
3,655 — — 
Total revenue from related parties$13,408 $5,983 $5,137 
v3.24.0.1
Equity-based compensation (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Summary of Equity-based Compensation Expense
The following table summarizes equity-based compensation expense by award type:
Years Ended December 31,
202320222021
Stock options
$1,004 $2,947 $3,915 
RSUs
5,699 4,202 4,568 
PSUs
795 540 — 
ESPP
408 377 322 
Total(1)
$7,906 $8,066 $8,805 
Summary of Fair Value of Stock Option Awards Determined on Grant Date
The fair value of stock option awards granted were determined on the grant date using the Black-Scholes valuation model based on the following assumptions:
 
Years Ended December 31,
 20222021
Expected term (years)(1)
0.25 - 6.25
6.25
Expected volatility(2)
28.0% - 55.5%
48.8% - 49.4%
Risk-free interest rate(3)
0.65% - 4.20%
1.05% - 1.21%
Dividend yield(4)
—%—%
(1) Expected term represents the estimated period of time until an award is exercised and was determined using the simplified method.
(2) Expected volatility is based on the historical volatility of a selected peer group over a period equivalent to the expected term.
(3) The risk-free rate is an interpolation of yields on U.S. Treasury securities with maturities equivalent to the expected term.
(4) Based on an assumed a dividend yield of zero at the time of grant.
Summary of Stock Option Activity
The following summarizes stock option activity for the year ended December 31, 2023: 
 Stock OptionsWeighted average
exercise price		Weighted average remaining contractual term (years)Aggregate intrinsic value
Outstanding at January 1, 2023
869,939 $45.85 
Granted— $— 
Exercised(212,320)$37.94 $8,776 
Forfeited(47,647)$76.95 
Outstanding at December 31, 2023
609,972 $46.00 4.4$17,509 
Vested or expected to vest at December 31, 2023
609,972 $46.00 4.4$17,509 
Exercisable at December 31, 2023
515,792 $40.37 4.4$17,355 
Summary of Restricted Stock Units Activity
 Restricted stock unitsWeighted average
fair value
Unvested outstanding at January 1, 2023
105,364 $77.47 
Granted150,685 $75.71 
Vested(53,469)$74.74 
Forfeited(69,824)$77.37 
Unvested outstanding at December 31, 2023
132,756 $76.62 
 Performance share unitsWeighted average
fair value
Unvested outstanding at January 1, 2023
28,944 $82.61 
Granted66,053 $75.28 
Vested— $— 
Forfeited(46,609)$78.03 
Unvested outstanding at December 31, 2023
48,388 $77.02 
Expected to vest at December 31, 2023
49,179 $76.99 
v3.24.0.1
Earnings per share (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Schedule of Reconciliation of Numerators and Denominators Used to Compute Basic and Diluted Earnings per Share
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock:
Years Ended December 31,
202320222021
Numerator
Net income
$147,035 $110,456 $46,122 
Less: net income attributable to non-controlling interests
8,722 11,054 3,348 
Net income attributable to Planet Fitness, Inc. - basic & diluted
$138,313 $99,402 $42,774 
Denominator
Weighted-average shares of Class A common stock outstanding - basic84,896,397 84,136,819 83,295,580 
Effect of dilutive securities:
Stock options232,630 351,200 540,381 
Restricted stock units44,785 54,864 58,188 
Performance stock units11,106 1,215 — 
Weighted-average shares of Class A common stock outstanding - diluted85,184,918 84,544,098 83,894,149 
Earnings per share of Class A common stock - basic
$1.63 $1.18 $0.51 
Earnings per share of Class A common stock - diluted
$1.62 $1.18 $0.51 
Schedule Of Common Stock Equivalents Excluded From The Computation Of Diluted Net Income Per Share
The number of weighted-average common stock equivalents excluded from the computation of diluted net income per share because either the effect would have been anti-dilutive, or the performance criteria related to the units had not yet been met, were as follows:
Years Ended December 31,
202320222021
Class B common stock
3,735,1095,867,3673,323,399
Stock options248,647244,660160,833
Restricted stock units4,25111,963114
Performance stock units1,2761,0660
Total
3,989,2836,125,0563,484,346
v3.24.0.1
Income taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) Before Provision for Income Taxes
Income before the provision for income taxes as shown in the accompanying consolidated statements of operations is as follows:
 
 Years Ended December 31,
 202320222021
Domestic$205,890 $158,345 $52,425 
Foreign1,651 3,093 (465)
Total income before the provision for income taxes
$207,541 $161,438 $51,960 
Schedule of Provision (Benefit) for Income Taxes
The provision for income taxes consists of the following:
 Years Ended December 31,
 202320222021
Current:
Federal$2,338 $— $(314)
State3,853 842 4,197 
Foreign1,132 1,055 248 
Total current tax expense
7,323 1,897 4,131 
Deferred:
Federal41,010 27,401 11,079 
State10,136 21,049 (9,750)
Foreign43 168 199 
Total deferred tax expense51,189 48,618 1,528 
Provision for income taxes$58,512 $50,515 $5,659 
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:
 Years Ended December 31,
 202320222021
U.S. statutory tax rate21.0 %21.0 %21.0 %
State and local taxes, net of federal benefit4.2 %4.0 %6.6 %
State rate change impact on deferred taxes1.4 %8.6 %(22.7)%
Tax benefit arrangement liability adjustment(0.2)%(1.8)%4.7 %
Foreign tax rate differential0.1 %0.2 %0.7 %
Withholding taxes and other0.8 %0.3 %0.6 %
Colorado store sale— %0.9 %— %
Change in valuation allowance0.3 %(0.4)%8.6 %
Equity-based compensation(0.1)%(0.2)%(7.4)%
Non-deductible executive compensation
1.6 %— %— %
Income attributable to non-controlling interests(0.9)%(1.3)%(1.2)%
Effective tax rate28.2 %31.3 %10.9 %
Schedule of Deferred Tax Assets and Liabilities Details of the Company’s deferred tax assets and liabilities are summarized as follows: 
 As of December 31,
 20232022
Deferred tax assets:
Deferred revenue$4,773 $5,277 
Goodwill and intangible assets473,088 401,438 
Net operating loss42,631 53,370 
Lease liabilities106,848 91,205 
Equity-based compensation2,442 4,066 
Equity method investment
3,562 — 
Allowance for current expected credit loss4,427 3,540 
Other3,311 4,979 
Deferred tax assets641,082 563,875 
Valuation allowance(4,940)(4,037)
Deferred tax assets, net of valuation allowance636,142 559,838 
Deferred tax liabilities:
Prepaid expenses— (952)
Property and equipment(39,086)(23,718)
Right of use assets(94,512)(82,074)
Total deferred tax liabilities(133,598)(106,744)
Total deferred tax assets and liabilities$502,544 $453,094 
Reported as:
Deferred income taxes - non-current assets$504,188 $454,565 
Deferred income taxes - non-current liabilities(1,644)(1,471)
Total deferred tax assets and liabilities$502,544 $453,094 
Summary Of Changes In Unrecognized Tax Benefits :
 As of December 31,
 20232022
Balance at beginning of year$328 $420 
Decrease related to prior year tax positions(55)(92)
Balance at end of year$273 $328 
Schedule of Future Payments Under Tax Benefit Arrangements
Projected future payments under the tax benefit arrangements are as follows:
 Amount
2024$41,294 
202550,502 
202652,932 
202747,729 
202841,705 
Thereafter261,500 
Total$495,662 
v3.24.0.1
Segments (Tables)
 12 Months Ended
Dec. 31, 2023
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.
 Year Ended December 31,
 202320222021
Revenue
Franchise segment revenue - U.S.$376,527 $321,062 $286,283 
Franchise segment revenue - International11,402 8,572 4,427 
Franchise segment total387,929 329,634 290,710 
Corporate-owned stores segment - U.S.444,724 375,375 165,433 
Corporate-owned stores segment - International4,572 4,018 1,786 
Corporate-owned stores segment total449,296 379,393 167,219 
Equipment segment - U.S.221,533 212,269 125,023 
Equipment segment - International12,568 15,476 4,071 
Equipment segment total234,101 227,745 129,094 
Total revenue$1,071,326 $936,772 $587,023 
 Year Ended December 31,
 202320222021
Segment EBITDA
Franchise$266,727 $216,817 $194,303 
Corporate-owned stores171,518 142,083 49,196 
Equipment56,047 59,082 29,680 
Corporate and other(1)
(70,497)(49,366)(78,265)
Total Segment EBITDA$423,795 $368,616 $194,914 
Reconciliation of Total Segment EBITDA to Income Before Taxes
The following table reconciles total Segment EBITDA to income before taxes: 
 Year Ended December 31,
 202320222021
Total Segment EBITDA$423,795 $368,616 $194,914 
Less:
Depreciation and amortization149,413 124,022 62,800 
Other income (expense)3,512 14,983 (11,102)
Losses from equity-method investments, net of tax(1,994)(467)(179)
Income from operations272,864 230,078 143,395 
Interest expense, net(68,835)(83,623)(80,333)
Other income (expense), net3,512 14,983 (11,102)
Income before income taxes$207,541 $161,438 $51,960 
Summary of Company's Assets by Reportable Segment
The following table summarizes the Company’s assets by reportable segment: 
 December 31, 2023December 31, 2022
Franchise$169,836 $161,355 
Corporate-owned stores1,637,146 1,559,985 
Equipment176,249 200,020 
Unallocated986,462 933,229 
Total consolidated assets$2,969,693 $2,854,589 
Summary of Company's Goodwill by Reportable Segment
Goodwill and related changes in the carrying amount were as follows:
Amount
Goodwill at December 31, 2022
$702,690 
Acquisition of franchisee-owned stores (Note 5)
14,812 
Goodwill at December 31, 2023
$717,502 
The following table summarizes the Company’s goodwill by reportable segment:
 December 31, 2023December 31, 2022
Franchise$16,938 $16,938 
Corporate-owned stores607,898 593,086 
Equipment92,666 92,666 
Total consolidated goodwill$717,502 $702,690 
v3.24.0.1
Corporate-owned and franchisee-owned stores (Tables)
 12 Months Ended
Dec. 31, 2023
Franchisors [Abstract]  
Schedule of Changes in Corporate-owned and Franchisee-owned Stores
The following table shows changes in our franchisee-owned and corporate-owned stores for the years ended December 31, 2023, 2022 and 2021:
 Year Ended December 31,
 202320222021
Franchisee-owned stores:
Stores operated at beginning of period2,176 2,142 2,021 
New stores opened147 144 125 
Stores acquired from the Company5 6 — 
Stores debranded, sold or consolidated(1)
(9)(116)(4)
Stores operated at end of period
2,319 2,176 2,142 
Corporate-owned stores:
Stores operated at beginning of period234 112 103 
New stores opened18 14 7 
Stores sold to franchisees(5)(6)— 
Stores acquired from franchisees9 114 2 
Stores operated at end of period
256 234 112 
Total stores:
Stores operated at beginning of period2,410 2,254 2,124 
New stores opened165 158 132 
Stores debranded, sold or consolidated(1)
— (2)(2)
Stores operated at end of period
2,575 2,410 2,254 
(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.
v3.24.0.1
Business organization (Details)
member in Millions
 12 Months Ended
Dec. 31, 2023
store
member
segment
state
Dec. 31, 2022
store
Dec. 31, 2021
store
Dec. 31, 2020
store
Aug. 05, 2015
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Number of members | member 18.7        
Number of owned and franchised locations | store 2,575 2,410 2,254 2,124  
Number of states in which entity operates | state 50        
Number of reportable segments | segment 3        
Pla-Fit Holdings, LLC          
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]          
Percentage of voting power (in percentage) 100.00%       100.00%
Percentage of ownership (in percentage) 98.40%        
Economic interest 1.60%        
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%
v3.24.0.1
Summary of significant accounting policies - Additional Information (Details)
 12 Months Ended
Dec. 31, 2023
USD ($)
store
agreement
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Significant Accounting Policies [Line Items]      
Restricted Cash $ 46,279,000    
Fee recognition period Enrollment fee revenueEnrollment fees are charged to new members at the commencement of their membership. The Company recognizes enrollment fees ratably over the estimated duration of the membership life, which is generally two years.Annual membership fee revenueAnnual membership fees are annual fees charged to members in addition to and in order to maintain low monthly membership dues. The Company recognizes annual membership fees ratably over the 12-month membership period or as long as there is a service obligation to the member.    
Selling, general and administrative $ 124,930,000 $ 114,853,000 $ 94,540,000
Renewal options (or more) | store 1    
Advertising expenses $ 39,642,000 31,462,000 15,667,000
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%    
Accounts payable $ 23,788,000 20,578,000  
TRA Holders      
Significant Accounting Policies [Line Items]      
Accounts payable $ 495,662,000    
Maximum      
Significant Accounting Policies [Line Items]      
Remaining lease term (in years) 10 years    
Renewal term (in years) 10 years    
Minimum      
Significant Accounting Policies [Line Items]      
Renewal term (in years) 3 years    
Placement services      
Significant Accounting Policies [Line Items]      
Selling, general and administrative $ 6,961,000 6,069,000 4,358,000
VIE      
Significant Accounting Policies [Line Items]      
Advertising expenses 2,514,000 3,103,000 $ 7,144,000
Accounts payable $ 2,976,000 $ 1,089,000  
Franchisee-owned stores: | VIE      
Significant Accounting Policies [Line Items]      
Percentage of franchise membership billing revenue 2.00%    
v3.24.0.1
Summary of significant accounting policies - Schedule of Vendor Purchases (Details) - Vendor
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Equipment purchases | Vendor A      
Property, Plant and Equipment [Line Items]      
Percentage of purchases 72.00% 71.00% 70.00%
Equipment purchases | Vendor B      
Property, Plant and Equipment [Line Items]      
Percentage of purchases 21.00% 22.00% 28.00%
Advertising services | Vendor A      
Property, Plant and Equipment [Line Items]      
Percentage of purchases 38.00%    
Advertising services | Vendor B      
Property, Plant and Equipment [Line Items]      
Percentage of purchases 24.00%    
Advertising services | Vendor C      
Property, Plant and Equipment [Line Items]      
Percentage of purchases 18.00%   41.00%
Advertising services | Vendor D      
Property, Plant and Equipment [Line Items]      
Percentage of purchases   77.00%  
v3.24.0.1
Summary of significant accounting policies - Schedule of Estimated Useful Lives of Property and Equipment (Details)
Dec. 31, 2023
Buildings and building improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 20 years
Buildings and building improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 40 years
Information technology and systems | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 3 years
Information technology and systems | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Fitness equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Fitness equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 7 years
Furniture and fixtures  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Vehicles  
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
v3.24.0.1
Summary of significant accounting policies - Summary of Carrying Value and Estimated Fair Value of Long-term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Carrying value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt $ 2,004,438 $ 2,025,187
Estimated fair value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Long-term debt $ 1,829,286 $ 1,730,634
v3.24.0.1
Variable interest entities - Schedule of Carrying Values of Certain VIEs (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Variable Interest Entity [Line Items]    
Assets $ 2,969,693 $ 2,854,589
VIE    
Variable Interest Entity [Line Items]    
Assets   4,088
Liabilities   0
VIE | PF Melville    
Variable Interest Entity [Line Items]    
Assets   2,204
Liabilities   0
VIE | MMR    
Variable Interest Entity [Line Items]    
Assets   1,884
Liabilities   $ 0
v3.24.0.1
National advertising fund - Additional Information (Details) - NAF - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Related Party Transaction [Line Items]      
General and administrative expense $ 3,746 $ 2,437 $ 1,997
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%    
v3.24.0.1
National advertising fund - Schedule of Carrying Values of Certain VIEs (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Assets    
Cash & cash equivalents $ 275,842 $ 409,840
Total current assets 471,817 555,531
Liabilities    
Accounts payable 23,788 20,578
Total current liabilities 251,329 244,530
NAF    
Assets    
Cash & cash equivalents 11,279 4,938
Other current assets 2,487 938
Total current assets 13,766 5,876
Liabilities    
Accounts payable 2,976 1,089
Accrued expenses and other current liabilities 3,610 3,620
Total current liabilities $ 6,586 $ 4,709
v3.24.0.1
Acquisition - Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Apr. 16, 2023
USD ($)
store
Feb. 10, 2022
USD ($)
store
$ / shares
shares
Dec. 31, 2022
store
$ / shares
shares
Dec. 31, 2023
store
$ / shares
Dec. 31, 2021
store
Dec. 31, 2020
store
Business Acquisition [Line Items]            
Number of owned and franchised locations | store     2,410 2,575 2,254 2,124
Franchisee-owned stores:            
Business Acquisition [Line Items]            
Number of owned and franchised locations | store     2,176 2,319 2,142 2,021
Class A common stock            
Business Acquisition [Line Items]            
Common stock, par value (in usd per share) | $ / shares     $ 0.0001 $ 0.0001    
Class B common stock            
Business Acquisition [Line Items]            
Common stock, par value (in usd per share) | $ / shares   $ 0.0001 $ 0.0001 $ 0.0001    
Sunshine Fitness            
Business Acquisition [Line Items]            
Equity interest acquired   100.00%        
Number of owned and franchised locations | store   114        
Aggregate consideration   $ 824,587        
Acquisition, gross cash payments   430,857        
Loss on unfavorable reacquired franchise rights   1,160        
Adjusted net assets acquired   823,427        
Gain on settlement   2,059        
Goodwill and expected tax deductible amount   175,600        
Sunshine Fitness | Class A common stock            
Business Acquisition [Line Items]            
Business combination   $ 393,730        
Equity consideration (in share) | shares   517,348 517,348      
Common stock, par value (in usd per share) | $ / shares   $ 0.0001        
Sunshine Fitness | Holdings Units            
Business Acquisition [Line Items]            
Equity consideration (in share) | shares   3,637,678 3,637,678      
Florida Acquisition            
Business Acquisition [Line Items]            
Aggregate consideration $ 26,264          
Loss on unfavorable reacquired franchise rights 110          
Net purchase price $ 26,154          
Florida Acquisition | Franchisee-owned stores:            
Business Acquisition [Line Items]            
Number of owned and franchised locations | store 4          
v3.24.0.1
Acquisition - Schedule of Purchase Consideration (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Apr. 16, 2023
Dec. 31, 2022
Feb. 10, 2022
Business Acquisition [Line Items]        
Goodwill $ 717,502   $ 702,690  
Sunshine Fitness        
Business Acquisition [Line Items]        
Cash and cash equivalents       $ 5,917
Other current assets       757
Property and equipment       153,092
Right of use assets       162,827
Other long-term assets       1,830
Intangible assets       259,430
Goodwill       488,544
Deferred income taxes, net       (54,737)
Deferred revenue       (16,973)
Other current liabilities       (13,720)
Lease liabilities       (162,327)
Other long-term liabilities       (1,213)
Net assets acquired       $ 823,427
Florida Acquisition        
Business Acquisition [Line Items]        
Property and equipment   $ 3,851    
Right of use assets   5,424    
Other long-term assets   95    
Intangible assets   6,880    
Goodwill   14,812    
Deferred revenue   (687)    
Other current liabilities   (17)    
Lease liabilities   (4,204)    
Net assets acquired   $ 26,154    
v3.24.0.1
Acquisition - Components of Identifiable Intangible Assets Acquired (Details) - USD ($)
$ in Thousands
Apr. 16, 2023
Feb. 10, 2022
Sunshine Fitness    
Business Acquisition [Line Items]    
Fair value   $ 259,430
Sunshine Fitness | Franchise Rights [Member]    
Business Acquisition [Line Items]    
Fair value   $ 233,070
Useful life   11 years 3 months 18 days
Sunshine Fitness | Customer relationships    
Business Acquisition [Line Items]    
Fair value   $ 24,920
Useful life   8 years
Sunshine Fitness | Deferred ADA and franchise agreement revenue    
Business Acquisition [Line Items]    
Fair value   $ 1,440
Useful life   5 years
Florida Acquisition    
Business Acquisition [Line Items]    
Fair value $ 6,880  
Florida Acquisition | Franchise Rights [Member]    
Business Acquisition [Line Items]    
Fair value $ 6,650  
Useful life 6 years 9 months 18 days  
Florida Acquisition | Customer relationships    
Business Acquisition [Line Items]    
Fair value $ 230  
Useful life 6 years  
v3.24.0.1
Acquisition - Schedule of Revenues and Income Before Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Business Acquisition [Line Items]      
Total revenues $ 1,071,326 $ 936,772 $ 587,023
Income before taxes $ 207,541 161,438 $ 51,960
Sunshine Fitness      
Business Acquisition [Line Items]      
Total revenues   180,841  
Income before taxes   $ 17,478  
v3.24.0.1
Acquisition - Schedule of Pro Forma Financial Information (Details) - Sunshine Fitness - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Business Acquisition [Line Items]    
Total revenues $ 957,222 $ 731,606
Income before taxes 161,284 41,041
Net income $ 110,340 $ 37,911
v3.24.0.1
Sale of corporate-owned stores (Details)
$ in Thousands
 12 Months Ended
Aug. 31, 2022
USD ($)
store
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Proceeds from sale of corporate-owned stores   $ 0 $ 20,820 $ 0
Gain on sale of corporate-owned stores   $ 0 $ 1,324 $ 0
Sale | Six Colorado Stores        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Number of stores sold | store 6      
Proceeds from sale of corporate-owned stores $ 20,820      
Net value of assets sold 19,496      
Goodwill 14,423      
Intangible assets 2,629      
Net tangible assets 2,444      
Gain on sale of corporate-owned stores $ 1,324      
v3.24.0.1
Property and equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 713,363 $ 576,689
Accumulated depreciation (322,958) (227,869)
Total property and equipment, net 390,405 348,820
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 176,524 140,160
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 342,725 272,360
Buildings and improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 2,572 8,589
Furniture & fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 73,872 59,015
Information technology and systems assets    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 99,734 78,330
Other    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 3,065 2,920
Construction in progress    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 13,530 $ 13,974
v3.24.0.1
Property and equipment - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 97,931 $ 83,310 $ 46,123
v3.24.0.1
Investments - Narrative (Details)
$ in Thousands
 1 Months Ended 6 Months Ended 12 Months Ended
Jun. 23, 2023
USD ($)
Apr. 09, 2021
USD ($)
Oct. 31, 2023
USD ($)
store
Dec. 31, 2023
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Schedule of Equity Method Investments [Line Items]              
Credit loss (gain) on held-to-maturity investment         $ 2,732 $ (2,505) $ 17,462
Amortized cost of held-to-maturity debt security investments       $ 30,343 30,343 28,277  
Allowance for expected credit loss       $ 17,689 17,689 14,957 17,462
Dividends accrued on held-to-maturity investment         2,066 1,876 1,401
Losses from equity-method investments, net of tax         (1,994) (467) (179)
Basis difference amortization         $ 51,482 $ 40,294 16,677
Maximum              
Schedule of Equity Method Investments [Line Items]              
Maturity dates       23 months 23 months    
Minimum              
Schedule of Equity Method Investments [Line Items]              
Maturity dates       1 month 1 month    
Bravo Fit Holdings Pty Ltd              
Schedule of Equity Method Investments [Line Items]              
Ownership percentage   21.00%   21.80% 21.80% 21.00%  
Payment to acquire equity method investment   $ 10,000     $ 2,449 $ 2,449  
Underlying equity in net assets       $ 6,812 6,812 6,515  
Losses from equity-method investments, net of tax         (1,031) (467) (179)
Basis difference amortization         261 $ 0 $ 0
Planet Fitmex, LLC              
Schedule of Equity Method Investments [Line Items]              
Ownership percentage 12.50%   33.20%        
Payment to acquire equity method investment $ 10,000     25,596      
Underlying equity in net assets       17,458 17,458    
Contributed stores | store     5        
Losses from equity-method investments, net of tax         963    
Basis difference amortization         $ 177    
Equity interests acquired       $ 17,000      
Total investment     $ 52,596        
Useful life         9 years    
v3.24.0.1
Investments - Amortized Cost, Gross Unrealized Gains (Losses), and Fair Value of Cash Equivalents and Marketable Securities (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Schedule of Equity Method Investments [Line Items]  
Amortized Cost $ 129,202
Unrealized Gains 382
Unrealized Losses (38)
Fair Value 129,546
Cash equivalents  
Schedule of Equity Method Investments [Line Items]  
Amortized Cost 3,758
Unrealized Gains 1
Unrealized Losses 0
Fair Value 3,759
Short-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Amortized Cost 74,905
Unrealized Gains 34
Unrealized Losses (38)
Fair Value 74,901
Long-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Amortized Cost 50,539
Unrealized Gains 347
Unrealized Losses 0
Fair Value 50,886
Level 1  
Schedule of Equity Method Investments [Line Items]  
Fair Value 761
Level 1 | Cash equivalents  
Schedule of Equity Method Investments [Line Items]  
Fair Value 761
Level 1 | Short-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 0
Level 1 | Long-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 0
Level 2  
Schedule of Equity Method Investments [Line Items]  
Fair Value 128,785
Level 2 | Cash equivalents  
Schedule of Equity Method Investments [Line Items]  
Fair Value 2,998
Level 2 | Short-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 74,901
Level 2 | Long-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 50,886
Money market funds | Cash equivalents  
Schedule of Equity Method Investments [Line Items]  
Amortized Cost 761
Unrealized Gains 0
Unrealized Losses 0
Fair Value 761
Money market funds | Level 1 | Cash equivalents  
Schedule of Equity Method Investments [Line Items]  
Fair Value 761
Money market funds | Level 2 | Cash equivalents  
Schedule of Equity Method Investments [Line Items]  
Fair Value 0
U.S. treasury securities | Cash equivalents  
Schedule of Equity Method Investments [Line Items]  
Amortized Cost 2,997
Unrealized Gains 1
Unrealized Losses 0
Fair Value 2,998
U.S. treasury securities | Level 1 | Cash equivalents  
Schedule of Equity Method Investments [Line Items]  
Fair Value 0
U.S. treasury securities | Level 2 | Cash equivalents  
Schedule of Equity Method Investments [Line Items]  
Fair Value 2,998
Commercial paper | Short-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Amortized Cost 37,063
Unrealized Gains 24
Unrealized Losses 0
Fair Value 37,087
Commercial paper | Level 1 | Short-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 0
Commercial paper | Level 2 | Short-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 37,087
Corporate debt securities | Short-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Amortized Cost 34,632
Unrealized Gains 0
Unrealized Losses (38)
Fair Value 34,594
Corporate debt securities | Long-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Amortized Cost 47,388
Unrealized Gains 328
Unrealized Losses 0
Fair Value 47,716
Corporate debt securities | Level 1 | Short-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 0
Corporate debt securities | Level 1 | Long-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 0
Corporate debt securities | Level 2 | Short-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 34,594
Corporate debt securities | Level 2 | Long-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 47,716
U.S. government agency securities | Short-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Amortized Cost 3,210
Unrealized Gains 10
Unrealized Losses 0
Fair Value 3,220
U.S. government agency securities | Long-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Amortized Cost 3,151
Unrealized Gains 19
Unrealized Losses 0
Fair Value 3,170
U.S. government agency securities | Level 1 | Short-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 0
U.S. government agency securities | Level 1 | Long-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 0
U.S. government agency securities | Level 2 | Short-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value 3,220
U.S. government agency securities | Level 2 | Long-term marketable securities  
Schedule of Equity Method Investments [Line Items]  
Fair Value $ 3,170
v3.24.0.1
Investments - Rollforward of Allowance for Expected Credit Losses on Held-to-maturity Investments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]      
Beginning allowance for expected credit losses $ 14,957 $ 17,462  
Loss (gain) on adjustment of allowance for credit losses on held-to-maturity investment 2,732 (2,505) $ 17,462
Write-offs, net of recoveries 0 0  
Ending allowance for expected credit losses $ 17,689 $ 14,957 $ 17,462
v3.24.0.1
Leases - Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Assets    
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Property and equipment, net of accumulated depreciation of $322,958 and $227,869, as of December 31, 2023 and 2022, respectively Property and equipment, net of accumulated depreciation of $322,958 and $227,869, as of December 31, 2023 and 2022, respectively
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Operating $ 381,010 $ 346,937
Finance 179 370
Total lease assets $ 381,189 $ 347,307
Liabilities [Abstract]    
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Other current liabilities Other current liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Other liabilities Other liabilities
Current operating lease liabilities $ 33,849 $ 33,233
Current finance lease liabilities 125 0
Noncurrent operating lease liabilities 381,589 341,843
Noncurrent finance lease liabilities 63 380
Total lease liabilities $ 415,626 $ 375,456
Weighted-average remaining lease term - operating leases 8 years 8 years 1 month 6 days
Weighted-average discount rate - operating leases 5.40% 4.70%
v3.24.0.1
Leases - Components of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Operating lease cost $ 64,187 $ 56,319 $ 29,012
Variable lease cost 22,718 20,327 11,317
Total lease cost $ 86,905 $ 76,646 $ 40,329
v3.24.0.1
Leases - Supplemental Disclosures of Cash Flow Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Cash paid, net, for lease liabilities $ 56,145 $ 44,928 $ 28,126
Operating lease ROU assets obtained in exchange for operating lease liabilities, excluding Acquisitions 67,242 37,928 48,651
Acquisition-related operating lease ROU assets obtained in exchange for operating lease liabilities $ 5,424 $ 162,827 $ 0
v3.24.0.1
Leases - Maturities of Lease Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
2024 $ 53,813  
2025 69,762  
2026 70,433  
2027 68,510  
2028 63,382  
Thereafter 193,662  
Total lease payments 519,562  
Less: imputed interest (103,936)  
Present value of future minimum lease liabilities $ 415,626 $ 375,456
v3.24.0.1
Leases - Additional Information (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Leases [Abstract]  
Lease payments for leases signed but not yet commenced $ 48,010
v3.24.0.1
Goodwill and intangible assets - Goodwill Rollforward (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Goodwill [Roll Forward]  
Beginning balance $ 702,690
Acquisition of franchisee-owned stores 14,812
Ending balance $ 717,502
v3.24.0.1
Goodwill and intangible assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets, Net [Abstract]    
Gross carrying amount $ 473,751 $ 466,871
Accumulated amortization (247,844) (196,404)
Net carrying Amount 225,907 270,467
Intangible Assets, Net (Including Goodwill) [Abstract]    
Total intangible assets 620,351 613,471
Net carrying Amount 372,507 417,067
Trade and brand names    
Intangible Assets, Net (Including Goodwill) [Abstract]    
Indefinite-lived intangible assets 146,600 146,600
Customer relationships    
Finite-Lived Intangible Assets, Net [Abstract]    
Gross carrying amount 199,043 198,813
Accumulated amortization (169,155) (153,243)
Net carrying Amount 29,888 45,570
Reacquired franchise rights    
Finite-Lived Intangible Assets, Net [Abstract]    
Gross carrying amount 274,708 268,058
Accumulated amortization (78,689) (43,161)
Net carrying Amount $ 196,019 $ 224,897
v3.24.0.1
Goodwill and intangible assets - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]      
Amortization of intangible assets $ 51,482 $ 40,294 $ 16,677
Customer relationships      
Finite-Lived Intangible Assets [Line Items]      
Weighted-average amortization period 10 years 7 months 6 days    
Reacquired franchise rights      
Finite-Lived Intangible Assets [Line Items]      
Weighted-average amortization period 10 years 8 months 12 days    
v3.24.0.1
Goodwill and intangible assets - Summary of Amortization expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
2024 $ 49,190  
2025 36,713  
2026 32,079  
2027 27,956  
2028 27,300  
Thereafter 52,669  
Net carrying Amount $ 225,907 $ 270,467
v3.24.0.1
Long-term debt - Schedule of Long-term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs $ 2,004,438 $ 2,025,187
Deferred financing costs, net of accumulated amortization (20,814) (26,306)
Total debt, net 1,983,624 1,998,881
Current portion of long-term debt 20,750 20,750
Long-term debt and borrowings under Variable Funding Notes, net of current portion 1,962,874 1,978,131
Senior Notes | 2018-1 Class A-2-II notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs 592,187 598,438
Senior Notes | 2019-1 Class A-2 notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs 528,000 533,500
Senior Notes | 2022-1 Class A-2-I notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs 417,563 421,812
Senior Notes | 2022-1 Class A-2-II notes    
Debt Instrument [Line Items]    
Total debt, excluding deferred financing costs $ 466,688 $ 471,437
v3.24.0.1
Long-term debt - Schedule of Future Annual Payments of Long-term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Debt Disclosure [Abstract]    
2024 $ 20,750  
2025 600,438  
2026 419,313  
2027 10,250  
2028 10,250  
Thereafter 943,437  
Total $ 2,004,438 $ 2,025,187
v3.24.0.1
Long-term debt - Additional Information (Details)
 12 Months Ended
May 09, 2022
USD ($)
Feb. 10, 2022
USD ($)
extension
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 03, 2019
USD ($)
Aug. 01, 2018
USD ($)
Debt Instrument [Line Items]              
Proceeds from issuance of Variable Funding Notes     $ 0 $ 75,000,000 $ 0    
Debt issuance costs   $ 16,193,000       $ 10,577,000 $ 27,133,000
Restricted Cash     46,279,000        
2018-1 Class A-2-I | 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
Variable Funding Note Facility | Revolving Credit Facility              
Debt Instrument [Line Items]              
Maximum borrowing capacity             $ 75,000,000
2019-1 Class A-2 notes | Senior Notes              
Debt Instrument [Line Items]              
Interest rate           3.858%  
Principal amount           $ 550,000,000  
3.251% Fixed Rate Class A-2-I Senior Secured Notes              
Debt Instrument [Line Items]              
Loss on extinguishment of debt     1,583,000        
3.251% Fixed Rate Class A-2-I Senior Secured Notes | Senior Notes              
Debt Instrument [Line Items]              
Interest rate   3.251%          
Principal amount   $ 425,000          
4.008% Fixed Rate Class A-2-II Senior Secured Notes | Senior Notes              
Debt Instrument [Line Items]              
Interest rate   4.008%          
Principal amount   $ 475,000          
2022 Variable Funding Notes | Revolving Credit Facility              
Debt Instrument [Line Items]              
Maximum borrowing capacity   75,000          
Proceeds from issuance of Variable Funding Notes   $ 75,000          
Repayment of long-term debt and Variable Funding Notes $ 75,000            
Commitment fee percentage   0.50%          
Number of additional extensions | extension   2          
Term of extension (in years)   1 year          
Interest rate during period   5.00%          
Securitized Senior Notes | Securitized Senior Notes              
Debt Instrument [Line Items]              
Cap on non-securitized indebtedness     $ 50,000,000        
Leverage ratio cap     7.0        
v3.24.0.1
Revenue from contract with customers - Schedule of Contract Liabilities (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Contract liabilities  
Beginning Balance $ 86,911
Revenue recognized that was included in the contract liability at the beginning of the year (53,825)
Increase, excluding amounts recognized as revenue during the period 58,552
Ending Balance $ 91,638
v3.24.0.1
Revenue from contract with customers - Remaining Performance Obligation (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 91,638
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 59,591
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 5,486
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 3,990
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 3,498
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 3,037
Remaining performance obligation, expected timing of satisfaction 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Remaining performance obligation $ 16,036
Remaining performance obligation, expected timing of satisfaction
v3.24.0.1
Revenue from contract with customers - Schedule of Deferred Revenue (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue [Line Items]    
Total deferred revenue $ 91,638 $ 86,911
Long-term portion of deferred revenue 32,047 33,152
Deferred revenue, current 59,591 53,759
Prepaid membership fees    
Disaggregation of Revenue [Line Items]    
Total deferred revenue 15,983 14,160
Enrollment fees    
Disaggregation of Revenue [Line Items]    
Total deferred revenue 4,222 3,806
Equipment discount    
Disaggregation of Revenue [Line Items]    
Total deferred revenue 3,296 5,256
Annual membership fees    
Disaggregation of Revenue [Line Items]    
Total deferred revenue 32,233 26,848
Area development and franchise fees    
Disaggregation of Revenue [Line Items]    
Total deferred revenue $ 35,904 $ 36,841
v3.24.0.1
Revenue from contract with customers - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]    
Equipment deposits $ 4,506 $ 8,443
Deferred revenue expected recognition period (in months) 12 months  
v3.24.0.1
Related party transactions - Schedule of Related Party Transactions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Related Party Transaction [Line Items]      
Total revenue $ 1,071,326 $ 936,772 $ 587,023
Related party      
Related Party Transaction [Line Items]      
Total revenue 13,408 5,983 5,137
Related party | Franchise revenue      
Related Party Transaction [Line Items]      
Total revenue 2,204 866 702
Related party | Franchise revenue | CEO      
Related Party Transaction [Line Items]      
Total revenue 3,909 3,208 2,809
Related party | Equipment revenue      
Related Party Transaction [Line Items]      
Total revenue 3,655 0 0
Related party | Equipment revenue | CEO      
Related Party Transaction [Line Items]      
Total revenue $ 3,640 $ 1,909 $ 1,626
v3.24.0.1
Related party transactions - Additional Information (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2023
USD ($)
store
Dec. 31, 2023
USD ($)
store
Dec. 31, 2022
USD ($)
store
Dec. 31, 2021
USD ($)
store
Dec. 31, 2020
store
Related Party Transaction [Line Items]          
Accounts receivable $ 41,890 $ 41,890 $ 46,242    
Deferred revenue 91,638 91,638 86,911    
Accounts payable $ 23,788 23,788 20,578    
Total revenue   $ 1,071,326 $ 936,772 $ 587,023  
Number of stores | store 2,575 2,575 2,410 2,254 2,124
Selling, general and administrative   $ 124,930 $ 114,853 $ 94,540  
Franchisee-owned stores:          
Related Party Transaction [Line Items]          
Number of stores | store 2,319 2,319 2,176 2,142 2,021
Corporate-owned stores:          
Related Party Transaction [Line Items]          
Number of stores | store 256 256 234 112 103
Equipment revenue          
Related Party Transaction [Line Items]          
Total revenue   $ 234,101 $ 227,745 $ 129,094  
Amenity tracking compliance software | Director and Interim CEO | Franchisee-owned stores:          
Related Party Transaction [Line Items]          
Number of stores | store 730 730 672    
Amenity tracking compliance software | Director and Interim CEO | Corporate-owned stores:          
Related Party Transaction [Line Items]          
Number of stores | store 220 220 192    
Related party          
Related Party Transaction [Line Items]          
Total revenue   $ 13,408 $ 5,983 5,137  
Related party | Administrative Service          
Related Party Transaction [Line Items]          
Total revenue $ 3,746   2,437 1,997  
Related party | Equipment revenue          
Related Party Transaction [Line Items]          
Accounts receivable 2,916 2,916      
Total revenue   3,655 0 0  
Related party | Equipment revenue | Director and Interim CEO          
Related Party Transaction [Line Items]          
Total revenue   3,640 1,909 1,626  
Related party | Deferred ADA and franchise agreement revenue          
Related Party Transaction [Line Items]          
Deferred revenue 719 719 467    
Related party | Deferred ADA and franchise agreement revenue | Director and Interim CEO          
Related Party Transaction [Line Items]          
Deferred revenue 142 142 138    
Related party | Tax benefit arrangements          
Related Party Transaction [Line Items]          
Accounts payable $ 98,494 98,494 80,717    
Related party | Amenity tracking compliance software | Director and Interim CEO          
Related Party Transaction [Line Items]          
Purchases from related party   $ 390 272 220  
Related party | Amenity tracking compliance software | Director and Interim CEO | Amenity Tracking Compliance Software Company          
Related Party Transaction [Line Items]          
Ownership percentage 10.50% 10.50%      
Affiliated entity | Corporate travel          
Related Party Transaction [Line Items]          
Selling, general and administrative   $ 487 $ 378 $ 173  
v3.24.0.1
Stockholders’ equity (Details) - USD ($)
 12 Months Ended
Feb. 10, 2022
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Nov. 04, 2022
Nov. 05, 2019
Class of Stock [Line Items]            
Repurchase and retirement of common stock   $ 126,079,000 $ 94,315,000      
Share repurchase excise tax   $ 1,048,000        
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      
2019 ASR Agreement            
Class of Stock [Line Items]            
Share repurchase program, authorized amount           $ 500,000,000
2022 Share Repurchase Program            
Class of Stock [Line Items]            
Share repurchase program, authorized amount         $ 500,000,000  
Remaining authorized amount   $ 374,970,000        
Pla-Fit Holdings, LLC            
Class of Stock [Line Items]            
Stock received during period (in shares)   4,748,555 548,175 622,979    
Economic interest   1.60%        
Investor | Secondary Offering And Exchange | Pla-Fit Holdings, LLC            
Class of Stock [Line Items]            
Percentage of economic interest   98.40%        
Continuing LLC Owners | Secondary Offering And Exchange            
Class of Stock [Line Items]            
Number of units held by owners (in shares)   1,397,167        
Continuing LLC Owners | Secondary Offering And Exchange | Pla-Fit Holdings, LLC            
Class of Stock [Line Items]            
Percentage of economic interest   1.60%        
Holdings Units            
Class of Stock [Line Items]            
Shares exchanged for Class A common stock   1        
Number of shares exchanged (in shares)   4,748,555 548,175 622,979    
Holdings Units | Sunshine Fitness            
Class of Stock [Line Items]            
Equity consideration (in share) 3,637,678   3,637,678      
Class B common stock            
Class of Stock [Line Items]            
Shares exchanged for Class A common stock   1        
Number of shares exchanged (in shares)   4,748,555 548,175 622,979    
Class B common stock | Continuing LLC Owners | Secondary Offering And Exchange            
Class of Stock [Line Items]            
Number of units held by owners (in shares)   1,397,167        
Class B common stock | Continuing LLC Owners | Secondary Offering And Exchange | Pla-Fit Holdings, LLC | Continuing LLC Owners            
Class of Stock [Line Items]            
Economic interest   1.60%        
Class A common stock            
Class of Stock [Line Items]            
Exchanges of Class A common stock, shares (in shares)   4,748,555 548,175 622,979    
Class A common stock | Sunshine Fitness            
Class of Stock [Line Items]            
Equity consideration (in share) 517,348   517,348      
Class A common stock | 2019 ASR Agreement            
Class of Stock [Line Items]            
Stock repurchased (in shares)     1,528,720      
Repurchase and retirement of common stock     $ 94,315,000      
Class A common stock | 2022 Share Repurchase Program            
Class of Stock [Line Items]            
Stock repurchased (in shares)   1,698,753        
Repurchase and retirement of common stock   $ 125,030,000        
Class A common stock | Continuing LLC Owners            
Class of Stock [Line Items]            
Number of shares exchanged (in shares)   4,748,555 548,175      
Class A common stock | Investor | Secondary Offering And Exchange            
Class of Stock [Line Items]            
Number of units held by owners (in shares)   86,760,768        
Class A common stock | Investor | Secondary Offering And Exchange | Pla-Fit Holdings, LLC | Common Stockholders            
Class of Stock [Line Items]            
Economic interest   98.40%        
v3.24.0.1
Equity-based compensation - Summary of Equity-based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Equity-based compensation $ 7,906 $ 8,066 $ 8,805
Stock options      
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Equity-based compensation 1,004 2,947 3,915
RSUs      
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Equity-based compensation 5,699 4,202 4,568
PSUs      
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Equity-based compensation 795 540 0
ESPP      
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Equity-based compensation $ 408 $ 377 $ 322
v3.24.0.1
Equity-based compensation - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Aug. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Options and awards authorized (in shares)       7,896,800
Weighted-average grant date fair value of stock options granted (in usd per share) $ 29.31 $ 37.51    
Exercised $ 8,776 $ 435 $ 20,805  
Total unrecognized compensation expense related to unvested stock options. $ 563      
Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Contractual term 10 years      
Stock options, expected recognition, weighted-average period (in years) 1 year 6 months      
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]        
Stock options, expected recognition, weighted-average period (in years) 1 year 4 months 24 days      
Total fair value vested $ 3,997 $ 4,333 $ 2,226  
Unrecognized compensation expense related to unvested RSUs, including an estimate for pre-vesting forfeitures $ 3,468      
Granted (in usd per share) $ 75.71 $ 82.42 $ 78.26  
RSUs | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share based compensation, vest equally over a period (in years) 3 years      
RSUs | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share based compensation, vest equally over a period (in years) 4 years      
PSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Share based compensation, vest equally over a period (in years) 3 years      
Stock options, expected recognition, weighted-average period (in years) 2 years      
Unrecognized compensation expense related to unvested RSUs, including an estimate for pre-vesting forfeitures $ 2,451      
Share based compensation, performance period (in years) 3 years      
Granted (in usd per share) $ 75.28 $ 90.21    
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]        
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) 14,682      
v3.24.0.1
Equity-based compensation - Fair Value of Stock Option Awards Determined on Grant Date Using Black-Scholes Valuation Model (Details)
 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expected term (years)   6 years 3 months
Expected volatility, Minimum (percentage) 28.00% 48.80%
Expected volatility, Maximum (percentage) 55.50% 49.40%
Risk-free interest rate, Minimum (percentage) 0.65% 1.05%
Risk-free interest rate, Maximum (percentage) 4.20% 1.21%
Dividend yield (percentage) 0.00% 0.00%
Minimum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expected term (years) 3 months  
Maximum    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Expected term (years) 6 years 3 months  
v3.24.0.1
Equity-based compensation - Summary of Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Stock Options      
Outstanding at beginning of period (in shares) 869,939    
Granted (in shares) 0    
Exercised (in shares) (212,320)    
Forfeited (in shares) (47,647)    
Outstanding at end of period (in shares) 609,972 869,939  
Vested or expected to vest (in shares) 609,972    
Exercisable (in shares) 515,792    
Weighted average fair value      
Outstanding at beginning of period (usd per share) $ 45.85    
Granted (usd per share) 0    
Exercised (usd per share) 37.94    
Forfeited (usd per share) 76.95    
Outstanding at end of period (usd per share) 46.00 $ 45.85  
Vested or expected to vest (usd per share) 46.00    
Exercisable (usd per share) $ 40.37    
Weighted average remaining contractual term (years)      
Outstanding 4 years 4 months 24 days    
Vested or expected to vest 4 years 4 months 24 days    
Exercisable 4 years 4 months 24 days    
Aggregate intrinsic value      
Exercised $ 8,776 $ 435 $ 20,805
Outstanding 17,509    
Vested or expected to vest 17,509    
Exercisable $ 17,355    
v3.24.0.1
Equity-based compensation - Summary of Restricted Stock Units Activity and Performance Share Units Activity (Details) - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
RSUs      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Unvested outstanding at beginning of period (in shares) 105,364    
Granted (in shares) 150,685    
Vested (in shares) (53,469)    
Forfeited (in shares) (69,824)    
Unvested outstanding at end of period (in shares) 132,756 105,364  
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Unvested outstanding at beginning of period (in usd per share) $ 77.47    
Granted (in usd per share) 75.71 $ 82.42 $ 78.26
Vested (usd per share) 74.74    
Forfeited (in usd per share) 77.37    
Unvested outstanding at end of period (in usd per share) $ 76.62 $ 77.47  
PSUs      
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]      
Unvested outstanding at beginning of period (in shares) 28,944    
Granted (in shares) 66,053    
Vested (in shares) 0    
Forfeited (in shares) (46,609)    
Unvested outstanding at end of period (in shares) 48,388 28,944  
Expected to vest (in shares) 49,179    
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]      
Unvested outstanding at beginning of period (in usd per share) $ 82.61    
Granted (in usd per share) 75.28 $ 90.21  
Vested (usd per share) 0    
Forfeited (in usd per share) 78.03    
Unvested outstanding at end of period (in usd per share) 77.02 $ 82.61  
Expected to vest (usd per share) $ 76.99    
v3.24.0.1
Earnings per share - Additional Information (Details)
 12 Months Ended
Dec. 31, 2023
shares
Holdings Units  
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  
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]  
Shares exchanged for Class A common stock 1
v3.24.0.1
Earnings per share - Reconciliation of Numerators and Denominators Used to Compute Basic and Diluted Earnings per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Numerator      
Net income $ 147,035 $ 110,456 $ 46,122
Less: net income attributable to non-controlling interests 8,722 11,054 3,348
Net income (loss) attributable to Planet Fitness, Inc. - basic 138,313 99,402 42,774
Net income (loss) attributable to Planet Fitness, Inc. - diluted $ 138,313 $ 99,402 $ 42,774
Stock options      
Effect of dilutive securities:      
Weighted-average shares outstanding adjustment (shares) 232,630 351,200 540,381
Restricted stock units      
Effect of dilutive securities:      
Weighted-average shares outstanding adjustment (shares) 44,785 54,864 58,188
Performance stock units      
Effect of dilutive securities:      
Weighted-average shares outstanding adjustment (shares) 11,106 1,215 0
Class A common stock      
Denominator      
Weighted-average shares of Class A common stock outstanding - basic (in shares) 84,896,397 84,136,819 83,295,580
Effect of dilutive securities:      
Weighted-average shares of Class A common stock outstanding - diluted (in shares) 85,184,918 84,544,098 83,894,149
Earnings (loss) per share of Class A common stock - basic (in usd per share) $ 1.63 $ 1.18 $ 0.51
Earnings (loss) per share of Class A common stock - diluted (in usd per share) $ 1.62 $ 1.18 $ 0.51
v3.24.0.1
Earnings per share - Common Stock Equivalents Excluded From The Computation Of Diluted Net Income Per Share (Details) - shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total 3,989,283 6,125,056 3,484,346
Class B common stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total 3,735,109 5,867,367 3,323,399
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total 248,647 244,660 160,833
Restricted stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total 4,251 11,963 114
Performance stock units      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Total 1,276 1,066 0
v3.24.0.1
Income taxes - Schedule of Income (Loss) Before Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Domestic $ 205,890 $ 158,345 $ 52,425
Foreign 1,651 3,093 (465)
Income before income taxes $ 207,541 $ 161,438 $ 51,960
v3.24.0.1
Income taxes - Schedule of Provision (Benefit) for Income Taxes Expenses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current:      
Federal $ 2,338 $ 0 $ (314)
State 3,853 842 4,197
Foreign 1,132 1,055 248
Total current tax expense 7,323 1,897 4,131
Deferred:      
Federal 41,010 27,401 11,079
State 10,136 21,049 (9,750)
Foreign 43 168 199
Total deferred tax expense 51,189 48,618 1,528
Provision for income taxes $ 58,512 $ 50,515 $ 5,659
v3.24.0.1
Income taxes - Schedule of Reconciliation of U.S. Statutory Income Tax Rate to Company's Effective Tax Rate (Details)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
U.S. statutory tax rate 21.00% 21.00% 21.00%
State and local taxes, net of federal benefit 4.20% 4.00% 6.60%
State rate change impact on deferred taxes 1.40% 8.60% (22.70%)
Tax benefit arrangement liability adjustment (0.20%) (1.80%) 4.70%
Foreign tax rate differential 0.10% 0.20% 0.70%
Withholding taxes and other 0.80% 0.30% 0.60%
Colorado store sale 0.00% 0.90% 0.00%
Change in valuation allowance 0.30% (0.40%) 8.60%
Equity-based compensation (0.10%) (0.20%) (7.40%)
Non-deductible executive compensation 1.60% 0.00% 0.00%
Income attributable to non-controlling interests (0.90%) (1.30%) (1.20%)
Effective tax rate 28.20% 31.30% 10.90%
v3.24.0.1
Income taxes - Additional information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Tax Credit Carryforward [Line Items]      
Net deferred tax asset $ 502,544 $ 453,094  
Valuation allowance 4,940 4,037  
Other income (expense) reflecting change in tax benefit obligation 1,964 13,831 $ 11,737
Deferred tax asset 641,082 563,875  
Deferred tax liability $ 133,598 106,744  
Applicable tax savings (in percentage) 85.00%    
Tax benefit obligation $ 495,662 494,465  
Continuing LLC Owners      
Tax Credit Carryforward [Line Items]      
Increase (decrease) in deferred tax assets (5,316) (2,000)  
Deferred tax asset 106,313 16,326  
Deferred tax liability $ 37,995 $ 0  
Continuing LLC Owners | Class A common stock      
Tax Credit Carryforward [Line Items]      
Number of shares exchanged (in shares) 4,748,555 548,175  
Domestic Tax Authority      
Tax Credit Carryforward [Line Items]      
Net operating loss carryforwards $ 169,180    
State and Local Jurisdiction      
Tax Credit Carryforward [Line Items]      
Net operating loss carryforwards 211,646    
Net operating loss carryforwards various expirations 207,241    
Indefinite net operating loss carryforwards $ 4,405    
v3.24.0.1
Income taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets:    
Deferred revenue $ 4,773 $ 5,277
Goodwill and intangible assets 473,088 401,438
Net operating loss 42,631 53,370
Lease liabilities 106,848 91,205
Equity-based compensation 2,442 4,066
Equity method investment 3,562 0
Allowance for current expected credit loss 4,427 3,540
Other 3,311 4,979
Deferred tax assets 641,082 563,875
Valuation allowance (4,940) (4,037)
Deferred tax assets, net of valuation allowance 636,142 559,838
Deferred tax liabilities:    
Prepaid expenses 0 (952)
Property and equipment (39,086) (23,718)
Right of use assets (94,512) (82,074)
Total deferred tax liabilities (133,598) (106,744)
Total deferred tax assets and liabilities 502,544 453,094
Reported as:    
Deferred income taxes - non-current assets 504,188 454,565
Deferred income taxes - non-current liabilities (1,644) (1,471)
Total deferred tax assets and liabilities $ 502,544 $ 453,094
v3.24.0.1
Income taxes - Summary Of Changes In Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]    
Balance at beginning of year $ 328 $ 420
Decrease related to prior year tax positions (55) (92)
Balance at end of year $ 273 $ 328
v3.24.0.1
Income taxes - Schedule of Future Payments Under Tax Benefit Arrangements (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]    
2024 $ 41,294  
2025 50,502  
2026 52,932  
2027 47,729  
2028 41,705  
Thereafter 261,500  
Total $ 495,662 $ 494,465
v3.24.0.1
Commitments and contingencies (Details)
 3 Months Ended 12 Months Ended
Dec. 28, 2023
USD ($)
store
Oct. 20, 2023
USD ($)
store
Dec. 31, 2022
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Commitment And Contingencies [Line Items]          
Guarantor obligations, maximum period       10 years  
Maximum obligation of guarantees of leases and debt     $ 5,942,000 $ 5,215,000 $ 5,942,000
Accrued potential obligation recorded under guaranty arrangement     0 0 0
Advertising purchase commitments          
Commitment And Contingencies [Line Items]          
Purchase commitments       74,165,000  
Open purchase orders          
Commitment And Contingencies [Line Items]          
Purchase commitments       15,266,000  
Civil Action Brought By Former Employee | Final judgement          
Commitment And Contingencies [Line Items]          
Paid     3,414,000    
Indemnification receivable increase         1,189,000
Loss contingency reserve         1,189,000
Mexico Acquisition | Planet Fitmex, LLC          
Commitment And Contingencies [Line Items]          
Loss contingency reserve       $ 6,250,000  
Legal settlement reserve     $ 8,550,000   $ 8,550,000
Settlement   $ 31,619,000      
Stores acquired from the Company | store   5      
Mexico Acquisition | Planet Fitmex, LLC | Held for sale          
Commitment And Contingencies [Line Items]          
Stores sold | store   5      
Mexico Acquisition | Planet Fitmex, LLC | Sale          
Commitment And Contingencies [Line Items]          
Stores sold | store 5        
Consideration in exchange for an equity interest $ 17,000,000        
v3.24.0.1
Retirement plan (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Retirement Benefits [Abstract]      
Percentage of employer matching contribution 100.00%    
Maximum percentage of employee contribution 4.00%    
Total employer matching contributions expense $ 1,370 $ 1,123 $ 846
v3.24.0.1
Segments - Additional Information (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
segment
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | segment 3    
Number of operating segments | segment 3    
Total revenue $ 1,071,326 $ 936,772 $ 587,023
Franchise      
Segment Reporting Information [Line Items]      
Total revenue 387,929 329,634 290,710
Franchise | International      
Segment Reporting Information [Line Items]      
Total revenue 11,402 8,572 4,427
Franchise | Placement services      
Segment Reporting Information [Line Items]      
Total revenue 19,798 17,125 9,968
Corporate-owned stores      
Segment Reporting Information [Line Items]      
Total revenue 449,296 379,393 167,219
Corporate-owned stores | International      
Segment Reporting Information [Line Items]      
Total revenue 4,572 4,018 $ 1,786
Long-lived assets $ 3,609 $ 916  
v3.24.0.1
Segments - Summary of Financial Information for the Company's Reportable Segments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Segment Reporting Information [Line Items]      
Total revenue $ 1,071,326 $ 936,772 $ 587,023
Total Segment EBITDA 423,795 368,616 194,914
Corporate and other(1)      
Segment Reporting Information [Line Items]      
Total Segment EBITDA (70,497) (49,366) (78,265)
Franchise      
Segment Reporting Information [Line Items]      
Total revenue 387,929 329,634 290,710
Franchise | Operating segments      
Segment Reporting Information [Line Items]      
Total Segment EBITDA 266,727 216,817 194,303
Franchise | US      
Segment Reporting Information [Line Items]      
Total revenue 376,527 321,062 286,283
Franchise | International      
Segment Reporting Information [Line Items]      
Total revenue 11,402 8,572 4,427
Corporate-owned stores      
Segment Reporting Information [Line Items]      
Total revenue 449,296 379,393 167,219
Corporate-owned stores | Operating segments      
Segment Reporting Information [Line Items]      
Total Segment EBITDA 171,518 142,083 49,196
Corporate-owned stores | US      
Segment Reporting Information [Line Items]      
Total revenue 444,724 375,375 165,433
Corporate-owned stores | International      
Segment Reporting Information [Line Items]      
Total revenue 4,572 4,018 1,786
Equipment      
Segment Reporting Information [Line Items]      
Total revenue 234,101 227,745 129,094
Equipment | Operating segments      
Segment Reporting Information [Line Items]      
Total Segment EBITDA 56,047 59,082 29,680
Equipment | US      
Segment Reporting Information [Line Items]      
Total revenue 221,533 212,269 125,023
Equipment | International      
Segment Reporting Information [Line Items]      
Total revenue $ 12,568 $ 15,476 $ 4,071
v3.24.0.1
Segments - Reconciliation of Total Segment EBITDA to Income Before Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Segment Reporting [Abstract]      
Total Segment EBITDA $ 423,795 $ 368,616 $ 194,914
Depreciation and amortization 149,413 124,022 62,800
Other income (expense) 3,512 14,983 (11,102)
Equity earnings (losses) of unconsolidated entities, net (1,994) (467) (179)
Income from operations 272,864 230,078 143,395
Interest expense, net (68,835) (83,623) (80,333)
Other income (expense) 3,512 14,983 (11,102)
Income before income taxes $ 207,541 $ 161,438 $ 51,960
v3.24.0.1
Segments - Summary of Company's Assets by Reportable Segment (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets $ 2,969,693 $ 2,854,589
Operating segments | Franchise    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets 169,836 161,355
Operating segments | Corporate-owned stores    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets 1,637,146 1,559,985
Operating segments | Equipment    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets 176,249 200,020
Unallocated    
Segment Reporting, Asset Reconciling Item [Line Items]    
Total consolidated assets $ 986,462 $ 933,229
v3.24.0.1
Segments - Summary of Company's Goodwill by Reportable Segment (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting, Other Significant Reconciling Item [Line Items]    
Total consolidated goodwill $ 717,502 $ 702,690
Franchise    
Segment Reporting, Other Significant Reconciling Item [Line Items]    
Total consolidated goodwill 16,938 16,938
Corporate-owned stores    
Segment Reporting, Other Significant Reconciling Item [Line Items]    
Total consolidated goodwill 607,898 593,086
Equipment    
Segment Reporting, Other Significant Reconciling Item [Line Items]    
Total consolidated goodwill $ 92,666 $ 92,666
v3.24.0.1
Corporate-owned and franchisee-owned stores - Schedule of Changes in Corporate-owned and Franchisee-owned Stores (Details) - store
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Number Of Stores [Roll Forward]      
Stores operated at beginning of period 2,410 2,254 2,124
New stores opened 165 158 132
Stores debranded, sold or consolidated 0 (2) (2)
Stores operated at end of period 2,575 2,410 2,254
Franchisee-owned stores:      
Number Of Stores [Roll Forward]      
Stores operated at beginning of period 2,176 2,142 2,021
New stores opened 147 144 125
Stores acquired from the Company 5 6 0
Stores debranded, sold or consolidated (9) (116) (4)
Stores operated at end of period 2,319 2,176 2,142
Corporate-owned stores:      
Number Of Stores [Roll Forward]      
Stores operated at beginning of period 234 112 103
New stores opened 18 14 7
Stores sold to franchisees (5) (6) 0
Stores acquired from franchisees 9 114 2
Stores operated at end of period 256 234 112
v3.24.0.1
Valuation and Qualifying Accounts (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
SEC Schedule, 12-09, Allowance, Credit Loss      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period $ 0 $ 0 $ 7
Provision for (recovery of) doubtful accounts, net 0 0 10
Write-offs and other 0 0 (17)
Balance at End of Period 0 0 0
SEC Schedule, 12-09, Allowance, Loss on Finance Receivable      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 14,957 17,462 0
Provision for (recovery of) doubtful accounts, net 2,732 (2,505) 17,462
Write-offs and other 0 0 0
Balance at End of Period 17,689 14,957 17,462
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Period 4,037 4,630 0
Provision for (recovery of) doubtful accounts, net 903 (593) 4,630
Write-offs and other 0 0 0
Balance at End of Period $ 4,940 $ 4,037 $ 4,630