Planet Fitness, the budget gym franchise, filed for an initial public offering on Monday.

While the company didn’t specify number of shares and price, Planet Fitness' prospectus detailed an approximate offering size of $100 million. The company applied to list on the New York Stock Exchange under the ticker "PLNT."

In its filing, Planet Fitness claims to be the largest U.S. fitness center operator by members, with over 7 million subscribers. The gym currently has close to 1,000 locations, 919 of which are franchised.

“Their whole business model is a franchise model,” says Yahoo Finance Senior Columnist Michael Santoli. “They talk about being in the exercise or health business, but they're not. They are a franchiser of retail locations that take $10 from people and don't particularly care if those people come to the gym or not."



Santoli adds that Planet Fitness has strong numbers in terms of same store sales, cash flow, and profits. Last year the company generated profits of $37.3 million on revenue totaling $279.8 million.



"Planet Fitness is a 20,000 square foot storefront gyms, with no frills whatsoever," Santoli says. "[It has] an average of 7,200 members for a 20,000 foot gym. I don't think many of those people are going twice a week for the $10 a month. That's a pretty good business model, as long as people don't get so disenchanted with the brand."

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Planet Fitness follows last week’s larger-than-expected IPO of Fitbit (FIT). The wearable fitness device maker raised $732 million, approximately 50% more than its original estimates. Santoli notes that market conditions for IPOs are strong.

"The market seems picked over, so if you have a decent story, the financial trends are good. Fitbit is certainly in that category," he says. "I don't think it represents overheated conditions of the IPO market just yet. There are some relatively modest size deals, and there are many that are not doing all that well after the offering. It's obviously mixed. But if you do have a profitable business that has some level of maturity, like Planet Fitness, it's probably a good time to go."

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JPMorgan Chase (JPM) and Bank of America (BAC) are the lead underwriters of the offering.

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