Overview: Can a Planet Fitness Franchise Buy Equipment From a Closed Location?

In a franchise network as large as Planet Fitness, the question of whether one location can acquire equipment from a closed site hinges on a blend of corporate policy, franchise agreements, and practical considerations. While there isn’t a universal public rule that applies identically to every market, most networks manage asset transfers through formal procedures to protect brand standards, ensure safety, and minimize liabilities. For a prospective buyer within the same brand, the most reliable path is to engage through the franchise support office or the regional operations team to understand eligibility, timing, and transfer conditions.

Key drivers include the ownership of equipment, the status of the closed location, and the anticipated use at the purchasing site. In some cases, equipment might be owned by the corporate entity or by the individual franchisee who previously operated the location. If the equipment is part of a closed store’s assets, the brand may require refurbishments to meet current safety and branding standards before relocation. Conversely, some corporate-owned assets may be liquidated through controlled channels, auctions, or dedicated liquidation vendors with approved buyers. For a franchisee, the advantage of securing used equipment is lower upfront costs, faster gym ramp-up, and the ability to refresh a facility without the expense of new units. But benefits must be weighed against risks such as warranties, compatibility with current machines, and safety certifications.

Regulatory and Franchise Agreement Considerations

Regulatory and contract considerations are the most critical gatekeepers in any equipment transfer scenario. Franchise agreements often contain clauses about asset transfers that require prior written approval from the franchisor or a designated governance body. These approvals ensure that the equipment aligns with brand specifications, safety standards, and liability guidelines. Common requirements include a formal transfer request, a due diligence window, a documented inspection protocol, and a clear plan for installation, re-certification, and maintenance. Some agreements may restrict the use of certain brands or models to preserve uniformity in user experience across locations. Additionally, liability for pre-existing wear and tear, potential recalls, and warranty status must be clarified before any transport occurs. A prudent approach is to secure written authorization early, document condition assessments, and obtain any necessary waivers or indemnities to minimize post-transfer disputes. A failure to secure approval can result in penalties or the invalidation of the transfer, even if the equipment already sits on a moving truck.

Common Equipment Types and Their Value in Secondary Markets

Understanding what equipment is typically available and how it depreciates in a secondary market helps frame realistic budgets and expected return on investment. Cardio equipment tends to fetch higher resale values when it is well-maintained and has functional control panels. Treadmills and ellipticals in the 3–6 year range can often be sourced for roughly 40–60% of their new price, depending on warranty status and condition. Stationary bikes may command 25–50% of new prices if pedals, consoles, and resistance systems are intact. Strength training machines and racks range widely by model; benches and selectorized machines can often be acquired for 20–60% off new costs, with maintenance records boosting buyer confidence. Free weights and small accessories (adjustable benches, kettlebells, mats) typically retain value better on a per-item basis due to lower maintenance needs and higher turnover. The key to value is not only the unit price but the cost of refurbishment, potential warranty transfers, and compatibility with current facility layouts. Case studies show that a well-documented, inspected package of 8–14 cardio units plus 2–3 strength zones can deliver a compelling ROI when deployed in a mid-sized floor plan.

Step-by-Step Acquisition Process

When pursuing equipment from a closed Planet Fitness location, a structured process reduces risk and accelerates installation. The following steps provide a practical framework that mirrors industry best practices for franchise asset transfers.

1. Clarify ownership and approvals: Confirm who owns the assets and secure written approval from the franchisor or regional governance body.
2. Conduct due diligence: Obtain equipment inventories, serial numbers, maintenance logs, and any recall notices; assess condition and upgrade needs.
3. Inspect and document: Schedule on-site inspections or remote assessments by qualified technicians; photograph components and note wear levels.
4. Evaluate logistics: Plan transport, storage, and delivery timelines; evaluate access, loading constraints, and installation scheduling at the target site.
5. Estimate refurbishment costs: Budget for parts, service calls, calibration, and re-certification if required for functional safety standards.
6. Obtain warranties or guarantees: Seek transferable warranties or manufacturer support where possible; document limitations for used equipment.
7. Negotiate pricing and terms: Establish a clear price, payment terms, and any contingencies based on inspection results.
8. Arrange installation and integration: Coordinate network settings, control updates, and alignment with existing floor plans and safety protocols.
9. Ensure compliance: Verify electrical, plumbing, and safety compliance; confirm insurance coverage for relocation and ongoing use.
10. Audit depreciation and tax treatment: Consult with a tax advisor to optimize depreciation schedules and potential deductions related to gym equipment purchases.

Practical tips include requesting a contingency reserve for unexpected restoration costs, prioritizing equipment with readily available replacement parts, and aligning new acquisitions with planned renovations or rebranding cycles to maximize uptime and guest satisfaction. A real-world approach combines due diligence with transparent vendor relationships and a documented project plan to minimize downtime during the transfer and installation phases.

Risks, Maintenance, and Long-Term Sustainability

Even with approvals, risks exist. Used equipment can suffer from hidden issues such as motor wear, misalignment, or degraded bearings that raise maintenance costs after relocation. Warranties, if available, may be limited or non-transferable, which shifts the cost burden to the purchasing franchise. Maintenance requires a clear schedule: routine inspections every 3–6 months, calibration checks for cardio units, and safety inspections for strength zones. Long-term sustainability depends on a robust refurbishment plan, spare-part access, and a service provider network with experience in commercial gym equipment. Invest in preventative maintenance agreements and keep a parts reserve to reduce the risk of downtime. Documentation should include service histories, part numbers, and operator manuals to support future troubleshooting and staff training. For a franchise, integrating the new assets into the existing service and safety standards is essential to maintain brand consistency and guest trust.

FAQs

Frequently Asked Questions about Buying Closed Planet Fitness Equipment

1. Is it legal for a Planet Fitness franchise to buy equipment from a closed location? In most cases, yes, provided the transfer is approved by the franchisor and complies with the franchise agreement, safety regulations, and local laws. Always obtain written consent to avoid contractual disputes.

2. How can I locate closed locations with sellable equipment? Work with the franchisor’s operations team, regional brokers, and approved liquidation partners. Monitor official liquidation notices and auction platforms used by the brand, and maintain relationships with nearby facility managers who may know of upcoming closures.

3. Who approves transfers within a franchise network? Typically a designated franchisee relations or operations committee, often the franchisor’s market director, must approve asset transfers to ensure brand standards and safety compliance.

4. Which equipment tends to have the highest resale value? Cardio equipment in good working condition, well-maintained strength machines, and complete sets of benches and racks with transferable warranties generally retain higher value than miscellaneous accessories.

5. What inspection steps are essential before purchase? Inspect motor drive units, control panels, electrical wiring, frame integrity, lubrication needs, and safety guards. Request maintenance logs and confirm recall status for all units.

6. Are warranties transferable on used gym equipment? Warranties are often not fully transferable; some manufacturers offer limited transferability or extended service plans that can be retained with proper documentation.

7. How are transportation and installation typically handled? The buyer and seller coordinate logistics; some franchises use approved vendors for transport and on-site installation to ensure alignment with safety standards and floor plan layouts.

8. What are typical cost savings versus buying new? Savings vary by model and condition but expect 40–60% off for well-maintained cardio units and 20–60% for strength equipment. Refurbishment costs can offset some savings.

9. How does depreciation work for tax purposes? Used gym equipment can be depreciated over its useful life; consult a tax advisor to determine the optimal depreciation schedule and any applicable incentives or codes.

10. Can you share a real-world example of a successful transfer? A mid-market franchise acquired 8 cardio units and 2 benches from a closed location, invested in calibration and safety checks, and deployed them within 60 days, resulting in a 15–20% reduction in initial capex compared to buying new equipment.