Planet Fitness Franchisee Secures $58.75 Million In Expansion Financing From GE Capital
Posted: March 2, 2015 in Chains
Planet Fitness
SCOTTSDALE, AZ – GE Capital’s Franchise Finance business announced 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 8 – 10 additional locations per year. In November 2014, PFGP received $35 million in financing from Alaris Royalty, 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.”
