Cover Page
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 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Boston, Massachusetts |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
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 |
Consolidated Balance Sheets (Pa
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 |
Consolidated Statements of Oper
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 |
Consolidated Statements of Comp
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 |
Consolidated Statements of Cash
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 |
Consolidated Statements of Chan
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) |
Business organization
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. |
Summary of significant accounti
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, 2023 2022 2021 Vendor A 72% 71% 70% Vendor B 21% 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, 2023 2022 2021 Vendor A 38% * * Vendor B 24% * * 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 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 improvements Shorter 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, 2023 December 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 allowan |
Variable interest entities
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: Assets Liabilities PF Melville $ 2,204 $ — MMR 1,884 — 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. 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, 2023 December 31, 2022 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 |
National advertising fund
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: Assets Liabilities PF Melville $ 2,204 $ — MMR 1,884 — 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. 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, 2023 December 31, 2022 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 |
Acquisition
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 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) 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 value Useful 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, 2022 2021 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 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) 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 value Useful 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. |
Sale of corporate-owned stores
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. |
Property and equipment
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, 2023 December 31, 2022 Land $ 1,341 $ 1,341 Equipment 176,524 140,160 Leasehold improvements 342,725 272,360 Buildings and improvements 2,572 8,589 Furniture & fixtures 73,872 59,015 Information technology and systems assets 99,734 78,330 Other 3,065 2,920 Construction in progress 13,530 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. |
Investments
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 Cost Unrealized Gains Unrealized Losses Fair Value (1) Level 1 Level 2 Cash equivalents Money market funds $ 761 $ — $ — $ 761 $ 761 $ — U.S. treasury securities 2,997 1 — 2,998 — 2,998 Total cash equivalents 3,758 1 — 3,759 761 2,998 Short-term marketable securities Commercial paper 37,063 24 — 37,087 — 37,087 Corporate debt securities 34,632 — (38) 34,594 — 34,594 U.S. government agency securities 3,210 10 — 3,220 — 3,220 Total short-term marketable securities 74,905 34 (38) 74,901 — 74,901 Long-term marketable securities Corporate debt securities 47,388 328 — 47,716 — 47,716 U.S. government agency securities 3,151 19 — 3,170 — 3,170 Total long-term marketable securities 50,539 347 — 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, 2023 2022 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) 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. |
Leases
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: Leases Balance Sheet Classification December 31, 2023 December 31, 2022 Assets Operating Right of use asset, net $ 381,010 $ 346,937 Finance Property and equipment, net 179 370 Total lease assets $ 381,189 $ 347,307 Liabilities Current: Operating Other current liabilities $ 33,849 $ 33,233 Finance Other current liabilities 125 — Noncurrent: Operating Lease liabilities, net of current portion 381,589 341,843 Finance Other liabilities 63 380 Total lease liabilities $ 415,626 $ 375,456 Weighted-average remaining lease term - operating leases 8.0 years 8.1 years Weighted-average discount rate - operating leases 5.4% 4.7% The components of lease cost were as follows: Years Ended December 31, 2023 2022 2021 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 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, 2023 2022 2021 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 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 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: Leases Balance Sheet Classification December 31, 2023 December 31, 2022 Assets Operating Right of use asset, net $ 381,010 $ 346,937 Finance Property and equipment, net 179 370 Total lease assets $ 381,189 $ 347,307 Liabilities Current: Operating Other current liabilities $ 33,849 $ 33,233 Finance Other current liabilities 125 — Noncurrent: Operating Lease liabilities, net of current portion 381,589 341,843 Finance Other liabilities 63 380 Total lease liabilities $ 415,626 $ 375,456 Weighted-average remaining lease term - operating leases 8.0 years 8.1 years Weighted-average discount rate - operating leases 5.4% 4.7% The components of lease cost were as follows: Years Ended December 31, 2023 2022 2021 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 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, 2023 2022 2021 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 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 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. |
Goodwill and intangible assets
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, 2023 December 31, 2022 Gross Accumulated Net carrying Gross Accumulated Net carrying Finite-lived intangible assets: Customer relationships $ 199,043 $ (169,155) $ 29,888 $ 198,813 $ (153,243) $ 45,570 Reacquired franchise rights 274,708 (78,689) 196,019 268,058 (43,161) 224,897 Total finite-lived intangible assets 473,751 (247,844) 225,907 466,871 (196,404) 270,467 Indefinite-lived intangible assets: Trade and brand names 146,600 — 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 2025 36,713 2026 32,079 2027 27,956 2028 27,300 Thereafter 52,669 Total $ 225,907 |
Long-term debt
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, 2023 December 31, 2022 2018-1 Class A-2-II notes $ 592,187 $ 598,438 2019-1 Class A-2 notes 528,000 533,500 2022-1 Class A-2-I notes 417,563 421,812 2022-1 Class A-2-II notes 466,688 471,437 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 Future annual principal payments of long-term debt as of December 31, 2023 are as follows: Amount 2024 $ 20,750 2025 600,438 2026 419,313 2027 10,250 2028 10,250 Thereafter 943,437 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. |
Revenue from contract with cust
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 period 58,552 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 2025 5,486 2026 3,990 2027 3,498 2028 3,037 Thereafter 16,036 Total $ 91,638 The summary set forth below represents the balances in deferred revenue: December 31, 2023 December 31, 2022 Prepaid membership fees $ 15,983 $ 14,160 Enrollment fees 4,222 3,806 Equipment discount 3,296 5,256 Annual membership fees 32,233 26,848 Area development and franchise fees 35,904 36,841 Total deferred revenue 91,638 86,911 Long-term portion of deferred revenue 32,047 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. |
Related party transactions
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, 2023 2022 2021 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. |
Stockholders_ equity
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. |
Equity-based compensation
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, 2023 2022 2021 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, 2022 2021 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 Options Weighted average 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 Restricted stock units Weighted average Unvested outstanding at January 1, 2023 105,364 $ 77.47 Granted 150,685 $ 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 units Weighted average Unvested outstanding at January 1, 2023 28,944 $ 82.61 Granted 66,053 $ 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. |
Earnings per share
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, 2023 2022 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 attributable to Planet Fitness, Inc. - basic & diluted $ 138,313 $ 99,402 $ 42,774 Denominator Weighted-average shares of Class A common stock outstanding - basic 84,896,397 84,136,819 83,295,580 Effect of dilutive securities: Stock options 232,630 351,200 540,381 Restricted stock units 44,785 54,864 58,188 Performance stock units 11,106 1,215 — Weighted-average shares of Class A common stock outstanding - diluted 85,184,918 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, 2023 2022 2021 Class B common stock 3,735,109 5,867,367 3,323,399 Stock options 248,647 244,660 160,833 Restricted stock units 4,251 11,963 114 Performance stock units 1,276 1,066 0 Total 3,989,283 6,125,056 3,484,346 |
Income taxes
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, 2023 2022 2021 Domestic $ 205,890 $ 158,345 $ 52,425 Foreign 1,651 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, 2023 2022 2021 Current: Federal $ 2,338 $ — $ (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 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, 2023 2022 2021 U.S. statutory tax rate 21.0 % 21.0 % 21.0 % State and local taxes, net of federal benefit 4.2 % 4.0 % 6.6 % State rate change impact on deferred taxes 1.4 % 8.6 % (22.7) % Tax benefit arrangement liability adjustment (0.2) % (1.8) % 4.7 % Foreign tax rate differential 0.1 % 0.2 % 0.7 % Withholding taxes and other 0.8 % 0.3 % 0.6 % Colorado store sale — % 0.9 % — % Change in valuation allowance 0.3 % (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 rate 28.2 % 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, 2023 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 — 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 — (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, 2023 2022 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 2025 50,502 2026 52,932 2027 47,729 2028 41,705 Thereafter 261,500 Total $ 495,662 |
Commitments and contingencies
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 |
Retirement plan
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. |
Segments
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, 2023 2022 2021 Revenue Franchise segment revenue - U.S. $ 376,527 $ 321,062 $ 286,283 Franchise segment revenue - International 11,402 8,572 4,427 Franchise segment total 387,929 329,634 290,710 Corporate-owned stores segment - U.S. 444,724 375,375 165,433 Corporate-owned stores segment - International 4,572 4,018 1,786 Corporate-owned stores segment total 449,296 379,393 167,219 Equipment segment - U.S. 221,533 212,269 125,023 Equipment segment - International 12,568 15,476 4,071 Equipment segment total 234,101 227,745 129,094 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, 2023 2022 2021 Segment EBITDA Franchise $ 266,727 $ 216,817 $ 194,303 Corporate-owned stores 171,518 142,083 49,196 Equipment 56,047 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, 2023 2022 2021 Total Segment EBITDA $ 423,795 $ 368,616 $ 194,914 Less: Depreciation and amortization 149,413 124,022 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 operations 272,864 230,078 143,395 Interest expense, net (68,835) (83,623) (80,333) Other income (expense), net 3,512 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, 2023 December 31, 2022 Franchise $ 169,836 $ 161,355 Corporate-owned stores 1,637,146 1,559,985 Equipment 176,249 200,020 Unallocated 986,462 933,229 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, 2023 December 31, 2022 Franchise $ 16,938 $ 16,938 Corporate-owned stores 607,898 593,086 Equipment 92,666 92,666 Total consolidated goodwill $ 717,502 $ 702,690 |
Corporate-owned and franchisee-
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, 2023 2022 2021 Franchisee-owned stores: 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 — 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 period 234 112 103 New stores opened 18 14 7 Stores sold to franchisees (5) (6) — Stores acquired from franchisees 9 114 2 Stores operated at end of period 256 234 112 Total stores: Stores operated at beginning of period 2,410 2,254 2,124 New stores opened 165 158 132 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. |
Valuation and Qualifying Accoun
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 Period Provision for (recovery of) doubtful accounts, net Write-offs and other Balance 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 investment Write-offs and other Balance 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 allowance Utilization of allowance Balance 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 |
Pay vs Performance Disclosure
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 |
Insider Trading Arrangements
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 |
Summary of significant accoun_2
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. 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 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. |
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. |
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 |
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. |
Summary of significant accoun_3
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, 2023 2022 2021 Vendor A 72% 71% 70% Vendor B 21% 22% 28% Years Ended December 31, 2023 2022 2021 Vendor A 38% * * Vendor B 24% * * 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 improvements Shorter of useful life of asset or lease term Property and equipment consists of the following: December 31, 2023 December 31, 2022 Land $ 1,341 $ 1,341 Equipment 176,524 140,160 Leasehold improvements 342,725 272,360 Buildings and improvements 2,572 8,589 Furniture & fixtures 73,872 59,015 Information technology and systems assets 99,734 78,330 Other 3,065 2,920 Construction in progress 13,530 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, 2023 December 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. |
Variable interest entities (Tab
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: Assets Liabilities PF Melville $ 2,204 $ — MMR 1,884 — 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, 2023 December 31, 2022 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 |
National advertising fund (Tabl
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: Assets Liabilities PF Melville $ 2,204 $ — MMR 1,884 — 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, 2023 December 31, 2022 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 |
Acquisition (Tables)
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 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) Total $ 823,427 The allocation of the purchase consideration was as follows: Amount 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) 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 value Useful 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 value Useful 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, 2022 2021 Total revenues $ 957,222 $ 731,606 Income before taxes $ 161,284 $ 41,041 Net income $ 110,340 $ 37,911 |
Property and equipment (Tables)
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 improvements Shorter of useful life of asset or lease term Property and equipment consists of the following: December 31, 2023 December 31, 2022 Land $ 1,341 $ 1,341 Equipment 176,524 140,160 Leasehold improvements 342,725 272,360 Buildings and improvements 2,572 8,589 Furniture & fixtures 73,872 59,015 Information technology and systems assets 99,734 78,330 Other 3,065 2,920 Construction in progress 13,530 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 |
Investments (Tables)
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 Cost Unrealized Gains Unrealized Losses Fair Value (1) Level 1 Level 2 Cash equivalents Money market funds $ 761 $ — $ — $ 761 $ 761 $ — U.S. treasury securities 2,997 1 — 2,998 — 2,998 Total cash equivalents 3,758 1 — 3,759 761 2,998 Short-term marketable securities Commercial paper 37,063 24 — 37,087 — 37,087 Corporate debt securities 34,632 — (38) 34,594 — 34,594 U.S. government agency securities 3,210 10 — 3,220 — 3,220 Total short-term marketable securities 74,905 34 (38) 74,901 — 74,901 Long-term marketable securities Corporate debt securities 47,388 328 — 47,716 — 47,716 U.S. government agency securities 3,151 19 — 3,170 — 3,170 Total long-term marketable securities 50,539 347 — 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, 2023 2022 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) Write-offs, net of recoveries — — Ending allowance for expected credit losses $ 17,689 $ 14,957 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Balance Sheet Classification of Lease Assets and Liabilities | Leases Balance Sheet Classification December 31, 2023 December 31, 2022 Assets Operating Right of use asset, net $ 381,010 $ 346,937 Finance Property and equipment, net 179 370 Total lease assets $ 381,189 $ 347,307 Liabilities Current: Operating Other current liabilities $ 33,849 $ 33,233 Finance Other current liabilities 125 — Noncurrent: Operating Lease liabilities, net of current portion 381,589 341,843 Finance Other liabilities 63 380 Total lease liabilities $ 415,626 $ 375,456 Weighted-average remaining lease term - operating leases 8.0 years 8.1 years Weighted-average discount rate - operating leases 5.4% 4.7% |
Schedule of Components of Lease Cost | The components of lease cost were as follows: Years Ended December 31, 2023 2022 2021 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 Supplemental disclosures of cash flow information related to leases were as follows: Years Ended December 31, 2023 2022 2021 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, 2023 2022 2021 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 Supplemental disclosures of cash flow information related to leases were as follows: Years Ended December 31, 2023 2022 2021 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 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 |
Schedule of Maturities of Lease Liabilities | aturities of lease liabilities as of December 31, 2023 were as follows: Amount 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 |
Goodwill and intangible assets
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, 2023 December 31, 2022 Franchise $ 16,938 $ 16,938 Corporate-owned stores 607,898 593,086 Equipment 92,666 92,666 Total consolidated goodwill $ 717,502 $ 702,690 |
Schedule of Intangible Assets | A summary of intangible assets is as follows: December 31, 2023 December 31, 2022 Gross Accumulated Net carrying Gross Accumulated Net carrying Finite-lived intangible assets: Customer relationships $ 199,043 $ (169,155) $ 29,888 $ 198,813 $ (153,243) $ 45,570 Reacquired franchise rights 274,708 (78,689) 196,019 268,058 (43,161) 224,897 Total finite-lived intangible assets 473,751 (247,844) 225,907 466,871 (196,404) 270,467 Indefinite-lived intangible assets: Trade and brand names 146,600 — 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 2025 36,713 2026 32,079 2027 27,956 2028 27,300 Thereafter 52,669 Total $ 225,907 |
Long-term debt (Tables)
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, 2023 December 31, 2022 2018-1 Class A-2-II notes $ 592,187 $ 598,438 2019-1 Class A-2 notes 528,000 533,500 2022-1 Class A-2-I notes 417,563 421,812 2022-1 Class A-2-II notes 466,688 471,437 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 |
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 2025 600,438 2026 419,313 2027 10,250 2028 10,250 Thereafter 943,437 Total $ 2,004,438 |
Revenue from contract with cu_2
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 period 58,552 Balance at December 31, 2023 $ 91,638 The summary set forth below represents the balances in deferred revenue: December 31, 2023 December 31, 2022 Prepaid membership fees $ 15,983 $ 14,160 Enrollment fees 4,222 3,806 Equipment discount 3,296 5,256 Annual membership fees 32,233 26,848 Area development and franchise fees 35,904 36,841 Total deferred revenue 91,638 86,911 Long-term portion of deferred revenue 32,047 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 2025 5,486 2026 3,990 2027 3,498 2028 3,037 Thereafter 16,036 Total $ 91,638 |
Related party transactions (Tab
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, 2023 2022 2021 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 |
Equity-based compensation (Tabl
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, 2023 2022 2021 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, 2022 2021 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 Options Weighted average 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 units Weighted average Unvested outstanding at January 1, 2023 105,364 $ 77.47 Granted 150,685 $ 75.71 Vested (53,469) $ 74.74 Forfeited (69,824) $ 77.37 Unvested outstanding at December 31, 2023 132,756 $ 76.62 Performance share units Weighted average Unvested outstanding at January 1, 2023 28,944 $ 82.61 Granted 66,053 $ 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 |
Earnings per share (Tables)
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, 2023 2022 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 attributable to Planet Fitness, Inc. - basic & diluted $ 138,313 $ 99,402 $ 42,774 Denominator Weighted-average shares of Class A common stock outstanding - basic 84,896,397 84,136,819 83,295,580 Effect of dilutive securities: Stock options 232,630 351,200 540,381 Restricted stock units 44,785 54,864 58,188 Performance stock units 11,106 1,215 — Weighted-average shares of Class A common stock outstanding - diluted 85,184,918 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, 2023 2022 2021 Class B common stock 3,735,109 5,867,367 3,323,399 Stock options 248,647 244,660 160,833 Restricted stock units 4,251 11,963 114 Performance stock units 1,276 1,066 0 Total 3,989,283 6,125,056 3,484,346 |
Income taxes (Tables)
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, 2023 2022 2021 Domestic $ 205,890 $ 158,345 $ 52,425 Foreign 1,651 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, 2023 2022 2021 Current: Federal $ 2,338 $ — $ (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 |
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, 2023 2022 2021 U.S. statutory tax rate 21.0 % 21.0 % 21.0 % State and local taxes, net of federal benefit 4.2 % 4.0 % 6.6 % State rate change impact on deferred taxes 1.4 % 8.6 % (22.7) % Tax benefit arrangement liability adjustment (0.2) % (1.8) % 4.7 % Foreign tax rate differential 0.1 % 0.2 % 0.7 % Withholding taxes and other 0.8 % 0.3 % 0.6 % Colorado store sale — % 0.9 % — % Change in valuation allowance 0.3 % (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 rate 28.2 % 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, 2023 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 — 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 — (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, 2023 2022 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 2025 50,502 2026 52,932 2027 47,729 2028 41,705 Thereafter 261,500 Total $ 495,662 |
Segments (Tables)
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, 2023 2022 2021 Revenue Franchise segment revenue - U.S. $ 376,527 $ 321,062 $ 286,283 Franchise segment revenue - International 11,402 8,572 4,427 Franchise segment total 387,929 329,634 290,710 Corporate-owned stores segment - U.S. 444,724 375,375 165,433 Corporate-owned stores segment - International 4,572 4,018 1,786 Corporate-owned stores segment total 449,296 379,393 167,219 Equipment segment - U.S. 221,533 212,269 125,023 Equipment segment - International 12,568 15,476 4,071 Equipment segment total 234,101 227,745 129,094 Total revenue $ 1,071,326 $ 936,772 $ 587,023 Year Ended December 31, 2023 2022 2021 Segment EBITDA Franchise $ 266,727 $ 216,817 $ 194,303 Corporate-owned stores 171,518 142,083 49,196 Equipment 56,047 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, 2023 2022 2021 Total Segment EBITDA $ 423,795 $ 368,616 $ 194,914 Less: Depreciation and amortization 149,413 124,022 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 operations 272,864 230,078 143,395 Interest expense, net (68,835) (83,623) (80,333) Other income (expense), net 3,512 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, 2023 December 31, 2022 Franchise $ 169,836 $ 161,355 Corporate-owned stores 1,637,146 1,559,985 Equipment 176,249 200,020 Unallocated 986,462 933,229 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, 2023 December 31, 2022 Franchise $ 16,938 $ 16,938 Corporate-owned stores 607,898 593,086 Equipment 92,666 92,666 Total consolidated goodwill $ 717,502 $ 702,690 |
Corporate-owned and franchise_2
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, 2023 2022 2021 Franchisee-owned stores: 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 — 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 period 234 112 103 New stores opened 18 14 7 Stores sold to franchisees (5) (6) — Stores acquired from franchisees 9 114 2 Stores operated at end of period 256 234 112 Total stores: Stores operated at beginning of period 2,410 2,254 2,124 New stores opened 165 158 132 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. |
Business organization (Details)
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% | 100% | |||
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% | ||||
Planet Fitness Holdings, LLC | Planet Intermediate, LLC | |||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Percentage of ownership (in percentage) | 100% |
Summary of significant accoun_4
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% | ||
Percentage of remaining tax savings (in percentage) | 15% | ||
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% |
Summary of significant accoun_5
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% | 71% | 70% |
Equipment purchases | Vendor B | |||
Property, Plant and Equipment [Line Items] | |||
Percentage of purchases | 21% | 22% | 28% |
Advertising services | Vendor A | |||
Property, Plant and Equipment [Line Items] | |||
Percentage of purchases | 38% | ||
Advertising services | Vendor B | |||
Property, Plant and Equipment [Line Items] | |||
Percentage of purchases | 24% | ||
Advertising services | Vendor C | |||
Property, Plant and Equipment [Line Items] | |||
Percentage of purchases | 18% | 41% | |
Advertising services | Vendor D | |||
Property, Plant and Equipment [Line Items] | |||
Percentage of purchases | 77% |
Summary of significant accoun_6
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 |
Summary of significant accoun_7
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 |
Variable interest entities - Sc
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 |
National advertising fund - Add
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% | ||
Corporate-owned stores: | |||
Related Party Transaction [Line Items] | |||
Percentage of franchise membership billing revenue | 2% |
National advertising fund - Sch
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 |
Acquisition - Narrative (Detail
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% | |||||
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 |
Acquisition - Schedule of Purch
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 |
Acquisition - Components of Ide
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 |
Acquisition - Schedule of Reven
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 |
Acquisition - Schedule of Pro F
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 |
Sale of corporate-owned stores
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 |
Property and equipment - Schedu
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 |
Property and equipment - Additi
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 |
Investments - Narrative (Detail
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% | 21.80% | 21.80% | 21% | |||
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 |
Investments - Amortized Cost, G
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 |
Investments - Rollforward of Al
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 |
Leases - Balance Sheet Classifi
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% |
Leases - Components of Lease Co
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 |
Leases - Supplemental Disclosur
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 |
Leases - Maturities of Lease Li
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 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
Lease payments for leases signed but not yet commenced | $ 48,010 |
Goodwill and intangible asset_2
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 |
Goodwill and intangible asset_3
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 |
Goodwill and intangible asset_4
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 |
Goodwill and intangible asset_5
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 |
Long-term debt - Schedule of Lo
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 |
Long-term debt - Schedule of Fu
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 |
Long-term debt - Additional Inf
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% | ||||||
Securitized Senior Notes | Securitized Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Cap on non-securitized indebtedness | $ 50,000,000 | ||||||
Leverage ratio cap | 7 |
Revenue from contract with cu_3
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 |
Revenue from contract with cu_4
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 |
Revenue from contract with cu_5
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 |
Revenue from contract with cu_6
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 |
Related party transactions - Sc
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 |
Related party transactions - Ad
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 |
Stockholders_ equity (Details)
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% |
Equity-based compensation - Sum
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 |
Equity-based compensation - Add
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% | |||
PSUs | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Adjustment of quantity of awards earned for performance metrics, percent | 200% | |||
ESPP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payroll deduction for ESPP, percent | 10% | |||
ESPP offering period (in months) | 6 months | |||
ESPP purchase discount, percent | 85% | |||
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 |
Equity-based compensation - Fai
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% | 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% | 0% |
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 |
Equity-based compensation - S_2
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 | $ 45.85 | |
Vested or expected to vest (usd per share) | 46 | ||
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 |
Equity-based compensation - S_3
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 |
Earnings per share - Additional
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 |
Earnings per share - Reconcilia
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 |
Earnings per share - Common Sto
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 |
Income taxes - Schedule of Inco
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 |
Income taxes - Schedule of Prov
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 |
Income taxes - Schedule of Reco
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% | 21% | 21% |
State and local taxes, net of federal benefit | 4.20% | 4% | 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% | 0.90% | 0% |
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% | 0% |
Income attributable to non-controlling interests | (0.90%) | (1.30%) | (1.20%) |
Effective tax rate | 28.20% | 31.30% | 10.90% |
Income taxes - Additional infor
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% | ||
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 |
Income taxes - Schedule of Defe
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 |
Income taxes - Summary Of Chang
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 |
Income taxes - Schedule of Futu
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 |
Commitments and contingencies (
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 |
Retirement plan (Details)
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% | ||
Maximum percentage of employee contribution | 4% | ||
Total employer matching contributions expense | $ 1,370 | $ 1,123 | $ 846 |
Segments - Additional Informati
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 |
Segments - Summary of Financial
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 |
Segments - Reconciliation of To
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 |
Segments - Summary of Company's
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 |
Segments - Summary of Company_2
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 |
Corporate-owned and franchise_3
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 |
Valuation and Qualifying Acco_2
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 |