Planet Fitness Franchisees Prepare to Close Underperforming Locations Ahead of 2026

Industry Pulse News Desk · 2026-10-22

Rising operational expenses and slowing membership growth prompt select Planet Fitness club closures ahead of 2026.

Planet Fitness franchise operators are preparing to close a select number of club locations ahead of 2026 as rising operational expenses and decelerating membership growth compress profit margins for club owners across several regional markets.

Franchisees across the country are grappling with escalating costs across major operational categories, including commercial rent increases, higher utility rates, and rising labor expenses. The financial burden has created significant headwinds for lower-performing facilities operating on narrow profit margins.

Compounding the cost pressures is a period of sluggish membership acquisition in specific territories. Although consumer demand for low-cost gym memberships remains relatively stable nationwide, individual clubs that rely on high member volume have struggled to offset rising fixed overhead costs.

The impending closures reflect a broader strategy among franchise groups to streamline local footprints and reallocate capital toward higher-yielding locations. Under the company's business model, individual franchisees own and operate the vast majority of Planet Fitness clubs, leaving site-level real estate decisions to localized owner groups.

Industry metrics indicate that budget health clubs are increasingly evaluating physical real estate portfolios to adapt to changing economic conditions. Operators are expected to finalize location adjustments and lease non-renewals over the coming months as financial reviews continue ahead of 2026.