GE Capital Finances Expansion of Planet Fitness Franchisee PF Growth Partners
OREANDA-NEWS. GE Capital’s Franchise Finance business announced today that it is administrative agent on a \\$58.75 million credit facility for PF Growth Partners, LLC (PFGP), one of the largest franchisees of Planet Fitness® clubs. The funds will be used to refinance PFGP’s existing debt and fund its growth plans. GE Capital Markets served as sole lead arranger and sole bookrunner on the facility.
Based in Timonium, MD, PFGP operates 28 clubs in Maryland, Tennessee and Florida, and has plans to open eight to 10 additional locations per year. In November 2014, PFGP received \\$35 million in financing from Alaris Royalty Corp., a Calgary-based private equity firm.
“This new facility with GE Capital improves our capital structure and positions us to significantly expand our presence across our development territories,” said Victor Brick, CEO of PFGP.
Founded in 2008 by Victor and Lynne Brick, PFGP has grown to become one of the largest franchise groups in the Planet Fitness® system, with more than 450 employees. PFGP was named the 2013 Franchisee of the Year, 2014 Developer of the Year for opening the most clubs in a single year, and the 2014 Brand Excellence Review winner for having the highest-rated clubs in the system.
“As one of the largest lenders to franchise operators, particularly in the restaurant space, we’re in a great position to extend our expertise to support growing fitness club franchisees,” said Bill Kraus, a senior managing director with GE Capital, Franchise Finance. “We’ve also worked through our GE Antares Capital colleagues to build a strong relationship with Alaris, which helped us provide a solution that works for all parties involved.”
Founded in 1992 in Dover, N.H., Planet Fitness has more than 900 locations and is known for its combination of extremely low membership rates and friendly, non-intimidating environment called the Judgement Free Zone®. Planet Fitness® is also a national brand partner of NBC's The Biggest Loser®.