put architects ’ plans on hold for two months during the closure ,” said PLNTF Holdings Chief Development Officer Michele Dodd .
PLNTF Holdings is not alone . PF Michigan Group halted new clubs and leases , equipment orders and deals that were in the pipeline while also adjusting construction schedules according to the timetable of each project . PF Development similarly put a total stop to all deals except for those under construction .
For United PF and Impact Fitness , positioning now is integral to future development . “ We have taken the approach that , assuming we get all clubs open , we will resume development as soon as financially possible ,” said Impact Fitness CEO Adam Willaeys . “ We feel new opportunities will present themselves over the next six months , so we want to be ready to take a look at those .”
“ We are in a wait-and-see on where EFT levels out and the unit economics for new builds , including the possibility of not adding new clubs in 2020 ,” added Cullen Barbato , United PF chief administrative officer . “ We are building out systems and processes for the potential to accelerate growth after COVID ’ s impact settles out and unit economics warrant new clubs .”
ECP-PF also began making plans further out , including the possibility a second wave of COVID-19 forces additional closures . The company negotiated agreements with several landlords to provide flexibility on deferring openings for clubs where leases had been signed . “ With almost 40 % of our clubs closed longer than expected in New York and Arizona , we were challenged in our ability to make new lease commitments . Many landlords are
“ PFGP plans to continue an aggressive build schedule in 2021 , along with three more clubs opening in 2020 .”
– Josh Beyer Chief Development Officer
under extreme financial duress and are unable to follow through with their commitments . In other cases , landlords or lenders are reevaluating the gym business generally , and our financial status in particular , before making new lease commitment ,” said Chief Development Officer Bernie Schachter .
Planet Fitness Growth Partners ( PFGP ) added the one thing money can ’ t buy to its development plans following coronavirus : time . “ We have more time to pick the best locations . We have more time to negotiate the best deals . We have more time to focus resources on getting our current clubs back to pre-COVID form ,” said Chief Development Officer Josh Beyer . “ PFGP plans to continue an aggressive build schedule in 2021 , along with three more clubs opening in 2020 .”
While there is no doubt franchisees may be able to take advantage of real estate opportunities , questions remain . How can
Continued on page 42
Exclusive Financing Options for Planet Fitness ®
• Fixed rates
• Up to 12 months of deferred payments
• Include tenant improvements
• Up to 72-month terms
Call Carolyn or Terri to discuss your financing needs and see why Planet Fitness ® franchisees choose Hitachi as their lending partner .
• No debt service coverage ratios
• No quarterly reporting
• No down payments
• No blanket liens filed
Carolyn Collins 251-974-3703 ccollins @ hcavs . com
APPROVED LENDING PARTNER FOR PF
Terri Grider 612-968-0651 tgrider @ hcavs . com
GearedUp | 2020 Issue 3
41