Planet Fitness Headquarters Acquires 6 Franchise Stores in Long Island
HAMPTON, N.H. - Jan. 2, 2018 // PRNewswire // - Planet Fitness, Inc. (NYSE: PLNT), one of the largest and fastest-growing franchisors and operators of fitness centers in the U.S., announced today that it has acquired a franchise group representing 6 franchise stores operating in Suffolk County, New York. Terms of the transaction were not disclosed.
"As we've said before, we'll pursue franchise store acquisitions when it makes economic and geographic sense for Planet Fitness, Inc. The acquisition of the 6 franchised stores on eastern Long Island is a great strategic fit as the western half of the market is currently comprised of company owned stores. We are committed to our asset-light business model and we continue to explore options for returning a portion of our cash to shareholders," said Chris Rondeau, Planet Fitness Chief Executive Officer.
Franchisee John Mahoney is retiring after 11 years of service, through which he has overseen the growth of Planet Fitness in the Suffolk County market. "I am pleased and grateful for my time as a Planet Fitness franchisee and for the opportunity to have been a part of such a phenomenal franchise. I wish the management team, the franchisees and all employees continued success," John Mahoney said.
The acquisition was funded by Planet Fitness' existing cash. As of September 30, 2017, Planet Fitness had 1,432 total stores system-wide.
About Planet Fitness
Founded in 1992 in Dover, N.H., Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers in the United States by number of members and locations. As of September 30, 2017, Planet Fitness had approximately 10.5 million members and 1,432 stores in 49 states, the District of Columbia, Puerto Rico, Canada and the Dominican Republic. The Company's mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgement Free Zone®. More than 95% of Planet Fitness stores are owned and operated by independent business men and women.
This press release contains certain "forward-looking statements," including statements of the Company's intentions with respect to pursuit of franchise store acquisitions, returning cash to shareholders and any other statements, approximations, estimates and projections included in this press release with respect to future events or anticipated future performance. Forward-looking statements are neither historical facts nor assurances of future events or performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of the business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results to differ materially include risks and uncertainties associated with competition in the fitness industry, the Company's and franchisees' ability to attract and retain new members, changes in consumer demand, changes in equipment costs, the Company's ability to expand into new markets, operating costs for the Company and franchisees generally, availability and cost of capital for franchisees, acquisition activity, developments and changes in laws and regulations, our substantial indebtedness, our corporate structure and tax receivable agreements, general economic conditions and the other factors described in the Company's annual report on Form 10-K for the year ended December 31, 2016, and the Company's other filings with the Securities and Exchange Commission. In addition, the Company's capital management plans and activities are subject to the determination of the Company's board of directors, the Company's ability to generate sufficient earnings and cash flows, and other legal and contractual restrictions. Except as required by law, neither the Company nor any of its affiliates or representatives undertake any obligation to provide additional information or to correct or update any information set forth in this press release, whether as a result of new information, future developments or otherwise.
SOURCE Planet Fitness, Inc.