Planet Fitness ‘An Illegal Billing Operation With Gyms On The Side’: Short Seller

Published

2 years ago

January 20, 2023

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A leading gym operator in the United States is the target of a new short report. The Thursday report from Bear Cave lays out a case that Planet Fitness has issues with overbilling, uncancellable memberships and is lying about the locations of its gyms.

What Happened: With over 2,000 locations in the United States, Planet Fitness PLNT is the leading franchisor of low-cost gyms.

At 40x forward earnings, investors believe the franchise network is healthy and has room to grow. The Bear Cave doesnt, an email report from Bear Cave and author Edwin Dorsey reads.

Dorsey said he used Freedom of Information Act requests to uncover hundreds of complaints against the gym chain by customers. A pattern of cancellation attempts being ignored was among the issues found in the investigation, he said.

Benzinga has contacted Planet Fitness for comment on the allegations in the short report.

Every year millions of Planet Fitness members attempt to cancel their memberships, Dorsey said.

The report says Planet Fitness relies on beginners and could see high cancellations as a result, but doesnt make it easy on customers.

The companys website says the cancellation can not be done online, over the phone, over email or through an app. Instead, customers have to cancel in person or send a letter with the reasons for the cancellation, according to Bear Cave.

Most Planet Fitness gyms require access to checking accounts or debit cards, a move that is done to prevent credit card disputes, according to the report.

The report lays out many complaints over the years and investigations into the practice. Bear Cave also cites a F rating for Planet Fitness from the Better Business Bureau and a 1.3 star rating out of 5 stars on Google reviews.

Another issue raised by the report is the allegation that Planet Fitness created a fake investor presentation slide to obscure franchisee saturation.

The report said that in many markets, the Planet Fitness locations are saturated. A map from the companys investor presentation shows dots of locations spaced out in states, a move that could be done to show room for unit growth to excite investors.

The Bear Cave finds it concerning that Planet Fitness appears to have simply faked its gym location slide in its most recent investor presentation.

The report said market saturation could be important for franchisors and investors.

After reviewing the evidence, The Bear Cave is left wondering whether Planet Fitness is actually a thriving gym franchise or an illegal billing operation with gyms on the side.

Bear Cave highlights a 2014 trademark filing from the company for one of its well-known phrases:Were not a gym. Were Planet Fitness.

Related Link: 10 Analysts Have This To Say About Planet Fitness

Why Its Important: Among the items in the short report from Bear Cave is a tweet from Lina Khan, the chair of the Federal Trade Commission.

The tweet says if you click to subscribe, you should be able to click to cancel and quote tweets a comment about Planet Fitness memberships.

FTC has made clear that to comply with the law, businesses must ensure sign-ups are clear, consensual and easy to cancel, Khan tweeted, with a link provided to file a complaint.

Along with facing competition from people working out at home or other gym locations, Planet Fitness could now see its membership cancellation policies called into question.

PLNT Price Action: Planet Fitness shares are down 4% to $80.08 on Thursday versus a 52-week range of $54.15 to $97.04.

Read Next:Why This Planet Fitness Analyst Says Short Seller's Allegations Of Unethical Business Practices Lack Fundamentals

Photo via Shutterstock.

Entertainment

Tomorrowland: ‘Devastating’ blaze destroys main stage at major festival – two days before it was due to begin

Published

2 hours ago

July 17, 2025

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Tomorrowland: 'Devastating' blaze destroys main stage at major festival - two days before it was due to begin

A huge fire has destroyed the main stage of a major festival in Belgium – two days before it was due to begin.

Tomorrowland is a dance music event as big as Glastonbury – and David Guetta was due to perform.

Footage showed flames and thick plumes of black smoke engulfing the stage and spreading to nearby woodland on Wednesday.

The annual festival in the town of Boom, north of Brussels, is one of the biggest in Europe and attracts about 400,000 people over two consecutive weekends.

It is famous for its immersive and elaborate designs and attracts big names within dance music – including Guetta, best known for tracks When Love Takes Over and Titanium.

Dutch DJs Martin Garrix and Charlotte de Witte were also due to perform, along with the likes of Swedish House Mafia, Eric Prydz and Alok.

The festival’s website described the creative elements which went into the elaborate main stage.

The theme, described as Orbyz, was “set in a magical universe made entirely out of ice” and “full of mythical creatures”.

Organisers said no one was injured in the blaze but confirmed “our beloved main stage has been severely damaged”, adding they were “devastated”.

Spokesperson Debby Wilmsen added: “We received some truly terrible news today. A fire broke out on the Tomorrowland site … and our main stage was essentially destroyed there, which is truly awful.

“That’s a stage that took years to build, with so much love and passion. So I think a lot of people are devastated.”

Despite the fire, Tomorrowland organisers said they were still expecting 38,000 festivalgoers at DreamVille, the event’s campsite.

Politics

PM criticised over ‘appalling’ decision to suspend four Labour MPs

Published

2 hours ago

July 17, 2025

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Starmer suspends four Labour MPs for breaches of party discipline

Sir Keir Starmer has suspended four MPs for repeated breaches of party discipline.

Brian Leishman, Chris Hinchliff, Neil Duncan-Jordan and Rachael Maskell have lost the whip, meaning they are no longer part of Labour’s parliamentary party and will sit as independent MPs.

The suspension is indefinite pending a review.

Three other MPs have had their trade envoy roles removed: Rosena Allin Khan, Bell Ribeiro-Addy and Mohammed Yasin.

Politics latest: Suspended MPs defend their voting record

All seven had voted against the government’s welfare reforms earlier this month. However, it is understood this is not the only reason behind the decision, with sources citing “repeated breaches of party discipline”.

More than 100 MPs had initially rebelled against the plan to cut personal independent payments (PIP). Ultimately, 47 voted against the bill’s third reading, after it was watered down significantly in the face of defeat.

Ms Maskell was one of the lead rebels in the welfare revolt, and has more recently called for a wealth tax to fund the U-turn.

The York Central MP has spoken out against the government on a number of other occasions since the election, including on winter fuel and cuts to overseas aid.

Confirming the suspension, Ms Maskell told Sky News that she “doesn’t see herself as a rebel” but “somebody that is prepared to fulfil (her) role here of holding the executive to account and speaking truth to power”.

She stopped short of criticising the decision, saying: “I hold my hand out to the prime minister and hope he takes that and wants to reach back because I think it’s really important that we work together.”

Ms Maskell was first elected in 2015, while the other suspended MPs were newly elected last year.

Mr Hinchliff, the MP for North East Hertfordshire, has proposed a series of amendments to the flagship planning and infrastructure bill criticising the government’s approach.

Mr Duncan-Jordan, the MP for Poole, led a rebellion against the cut to the winter fuel payments while Alloa and Grangemouth MP Mr Leishman has been critical of the government’s position on Gaza.

Suspended Labour MPs clearly hit a nerve with Starmer

Tamara Cohen

Political correspondent

@tamcohen

After a tricky few weeks for the government, in which backbenchers overturned plans to cut back welfare spending, now a heavy hand to get the party into line.

All four suspended MPs appear to be surprised – and upset.

Three more have lost plum roles as trade envoys – all on the left of the party.

All were active in the rebellion against the government’s welfare reforms, and voted against the changes even after a series of U-turns – but were among 47 Labour MPs who did so.

When MPs were told after the welfare vote that Number 10 was “fully committed to engaging with parliamentarians”, this was not what they were expecting.

We’re told the reasons for these particular suspensions go wider – over “persistent breaches of party discipline” – although most are not high profile.

In the scheme of things, Jeremy Corbyn and John McDonnell rebelled against the Labour whip hundreds of times under New Labour, without being suspended.

But these MPs’ pointed criticism of the Starmer strategy has clearly hit a nerve.

Read Tamara’s analysis in full here

‘Couldn’t support making people poorer’

Mr Duncan-Jordan told Sky News that he understood speaking out against benefit cuts would “come at a cost” but said he “couldn’t support making disabled people poorer”.

Mr Leishman echoed that sentiment, saying: “I firmly believe that it is not my duty as an MP to make people poorer, especially those that have suffered because of austerity and its dire consequences.”

Both said they remain committed to the Labour Party and its values, suggesting they have no plans to join the new party being set up by former Labour leader Jeremy Corbyn and ousted MP Zarah Sultana.

Similarly Mr Hinchliff said in a brief statement: “I remain proud to have been elected as a Labour MP and I hope in time to return to the Labour benches.”

The suspensions will be seen as an attempt to restore discipline ahead of the summer recess following a number of rebellions that has forced the government into U-turns.

As well as watering down the welfare bill, some cuts to the winter fuel payment have been reversed, leaving Chancellor Rachel Reeves with a fiscal blackhole to fill.

However, the move risks creating further divisions with a number of Labour MPs criticising the decision.

Starmer ‘rolling out the carpet to Reform’

Ian Byrne, Labour MP for Liverpool West Derby, said he was “appalled” by the suspensions as he and 44 others voted against welfare cuts.

He said this isn’t the first time the Starmer leadership has “punished MPs for standing up for what’s right”, as he and six others were suspended last year for voting against the two-child benefit cap.

“These decisions don’t show strength. They are damaging Labour’s support and risk rolling out the red carpet for Reform,” he added.

Richard Burgon, who was also temporarily suspended in the two-child benefit cap revolt, said he had hoped the leadership would take a different approach to backbenchers.

“Sadly, it isn’t yet doing so. To help stop a Reform government, it really must do so,” he said.

Jon Trickett, Labour MP for Normanton and Hemsworth, said “it’s not a sin to stand up for the poor and disabled”, adding: “Solidarity with the suspended four.”

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