The Planet Fitness boycott gained significant media coverage, involving an incident at a Planet Fitness location in Fairbanks, Alaska. The controversy began when a gym revoked a woman’s membership after objections to the gym’s policy allowing individuals to use locker rooms that align with their self-reported gender identity. This incident has reverberated through social media and news outlets, with discussions focusing on topics such as women’s rights, transgender policies, and the gym chain’s “Judgment Free Zone”.
Here, you’ll find a well-sourced, comprehensive overview of the Planet Fitness boycott. At Business2Community, we’ll give you a detailed account to ensure you’re thoroughly informed about Planet Fitness’ membership policies, the broader implications for their stock price, and the public’s reactions.
Planet Fitness Boycott – Key Facts
- The controversy began when Planet Fitness terminated a membership of a patron objecting to a transgender woman using the women’s locker room.
- The objection was raised by an Alaska woman, whose membership was subsequently revoked, amplifying the public outcry.
- The company faced financial losses and intense media scrutiny, but ultimately retained its policy and hired a new CEO to focus on diversity, equity, and inclusion initiatives.
The Story Behind the Planet Fitness Boycott
The Planet Fitness boycott stems from the policy that gym has implemented permitting gym members to access locker rooms that correspond with their gender identity. This decision sparked controversy among some individuals and triggered conversations on social media.
Incident in Fairbanks, Alaska
In March 2024, the Planet Fitness in Fairbanks, Alaska became the center of controversy when a transgender customer was seen shaving in the women’s locker room.
This incident was captured on camera and posted on social media by Patricia Silva, who accused the company of allowing men in a space she believed should be exclusive to cisgender women.
To the New York Post, Silva expressed:
It is my hope that throughout the globe Planet Fitness members will continue canceling their membership until this woke organization ‘chooses’ to care enough about women’s rights and for children and remove men from a women’s locker room.
Silva also claimed a 12-year-old girl who was in the locker room was also uncomfortable with the biological male’s presence.
Media Firestorm and Membership Decline
The social media uproar over Planet Fitness’s transgender policy led to a significant drop in membership sign-ups.
The company’s Chief Financial Officer Tom Fitzgerald commented that its performance was notably impacted in the latter half of March, with joins decreasing and cancellations increasing.
The controversy also drew comments from Elon Musk, who described Planet Fitness as a “creepy place”.
Planet Fitness sounds like a creepy place
— Elon Musk (@elonmusk) March 18, 2024
Financial Implications and Price Hike
Due to the backlash, Planet Fitness adjusted its financial forecasts, anticipating lower-than-expected revenue and profit growth for the year.
The chain saw a $400 million dive in valuation from $5.3 billion to $4.9 billion following the incident.
To counteract the losses, the company decided to raise its membership fees from $10 to $15, starting in the summer of 2024.
The company’s stock price fell from $66 to about $56 over the course of 12 days, reflecting the financial hit.
Policy Defense and Corporate Response
Planet Fitness defended its policy of allowing members to use facilities matching their gender identity, similar to other gyms like the YMCA.
Despite the backlash and financial hit, the company stood by its stance, even assigning an employee to accompany the transgender customer in question to the locker room.
Silva’s membership was revoked for violating the gym’s policy on taking photos or videos in the locker room.
Social Media Campaigns and Public Reaction
Critics of Planet Fitness, including the conservative X account Libs of TikTok, called for a boycott, urging the fitness chain to receive the “Bud Light” treatment.
This reference draws parallels to the 2019 boycott of Bud Light by conservatives, who alleged that the beer company had capitulated to “woke culture” after featuring a same-sex wedding in an ad campaign and partnering with a transgender influencer, Dylan Mulvaney.
Libs of TikTok continuously urged gym-goers to boycott the chain and blasted the company for creating unsafe spaces for women.
Their campaign gained momentum on social media platforms, with hashtags like #CancelPlanetFitness trending across X and Instagram. Celebrities and influencers joined the fray, amplifying the debate on gender identity rights and corporate responsibility.
Holy shlit! This is an actual Planet Fitness commercial. They really don’t know which locker room men and women are supposed to use. They make a mockery of women. It’s a joke to them.
WOMEN ARE NOT SAFE AT PLANET FITNESS!!
Their own policies even proudly state that men can use… pic.twitter.com/e6bGn8sWrj
— Libs of TikTok (@libsoftiktok) March 21, 2024
Near the end of the video, Libs of TikTok claimed there had been “mass cancellations” at Planet Fitness following the controversy, but that has not been confirmed (and she isn’t exactly the most reliable source).
More photos of the transgender woman have been taken and circulated, further fueling the outrage.
The backlash escalated with more than 40 Planet Fitness locations across the country receiving bomb threats after the conservative movement against the gym’s trans-inclusive locker room policy went viral online.
Leadership Changes and Future Outlook
Amid the controversy, Planet Fitness announced a change in leadership, with Colleen Keating who replaced interim CEO Craig Benson in June 2024.
The company hopes to stabilize and recover from the incident, despite ongoing membership challenges and market value declines. The appointment of Colleen Keating as CEO marks a strategic shift towards bolstering diversity and operational excellence amidst ongoing market turbulence.
Planet Fitness aims to rebuild trust and navigate the fallout from recent controversies, emphasizing continuity in its commitment to inclusive policies and community engagement.
Founder’s Perspective and Allegations
Michael Grondahl, the founder of Planet Fitness, expressed his dismay over the recent controversies. In an interview with Libs of TikTok, Grondahl stated:
Planet Fitness was like another child for me. And I put my heart and soul into building that company, and it’s been pretty much destroyed in, you know, it’s lost all respect within the country within the last couple of weeks.
He criticized the company’s current policies and alleged a history of widespread abuses and financial misrepresentation following his departure.
Grondahl did not support the company’s response to the incident and described the situation as “devastating”.
Membership Cancellation Challenges
Canceling a Planet Fitness membership became a challenging process for many. At the time, the company did not allow cancellations to be completed online, over the phone, via email, or through an app.
Members had to cancel in person or send a letter with the reasoning of their decision included.
This difficult cancellation process led to a surge in Google searches on how to cancel a Planet Fitness membership, marking it as a “breakout” trend.
Company’s Response to Allegations
In response to the backlash, Planet Fitness reiterated its commitment to creating an inclusive environment.
Planet Fitness’s “Judgement Free Zone” signifies a commitment to offering a welcoming and non-intimidating atmosphere for all members. It means that everyone, regardless of their fitness level or background, can feel comfortable and supported in their fitness journey without fear of criticism or discrimination.
Chief corporate affairs officer McCall Gosselin stated:
As the home of the Judgement Free Zone, Planet Fitness is committed to creating an inclusive environment. Our gender identity non-discrimination policy states that members and guests may use the gym facilities that best align with their sincere, self-reported gender identity.
Despite the controversies, the company continues to uphold its policies and values, aiming to recover from the recent setbacks.
The Consequences of the Planet Fitness Boycott
The backlash against Planet Fitness had widespread ramifications, reaching far beyond the initial controversy. Planet Fitness shares continued to drop, although the stock price in July 2024 is at its highest in 18 months.
In Alaska, a woman’s Planet Fitness membership was revoked after she voiced concerns about the gym’s transgender locker room policy. Her story quickly gained traction on social media platforms, sparking further debate and division.
Under the new CEO Colleen Keating, Planet Fitness implemented several changes to calm the situation. It reassured the public that the Planet Fitness policy of allowing members to use facilities matching their gender identity would remain steadfast.
Fox News Digital covered the fallout extensively, turning the Planet Fitness boycott into a national story. The attention kept the issue at the forefront of public discourse, influencing Planet Fitness’s sales and marketing strategies.
A video featuring a towel-wrapped individual in the locker room was circulated online, reigniting the controversy and leading to renewed calls for policy revisions. Despite the tumult, Planet Fitness stood by its “Judgement Free Zone” mantra.
Overall, the incident underscores the complexities of navigating social media-driven controversies and their impact on corporate policies and financial health.
What Can We Learn From the Planet Fitness Controversy?
The Planet Fitness controversy provides several key lessons for business leaders navigating today’s social and digital landscapes. Firstly, the situation demonstrates the importance of evaluating and clearly communicating company policies.
Planet Fitness’s transgender locker room policy was intended to foster inclusivity, but it resulted in divisive public reactions, amplified by right-wing social media figures. This highlights the necessity for companies to anticipate potential backlash and develop robust communication strategies to articulate their policies and values effectively.
Secondly, the incident highlights the critical impact of social media on corporate reputation and stability. The controversy was fueled by viral content and intense online discourse, showing how quickly an issue can escalate and influence public perception. Businesses must remain vigilant and responsive to social media trends to mitigate negative repercussions.
Thirdly, the Planet Fitness stock price fluctuations and membership cancellation difficulties reflect the financial and operational consequences of public controversies. Investors and consumers closely monitor how companies handle contentious issues, which can directly affect market value and customer loyalty. A transparent and prompt response is essential to maintaining trust and stabilizing the business.
The Planet Fitness controversy serves as a case study for businesses on the importance of proactive communication, social media awareness, adaptability to public and market responses, and the holistic evaluation of policy impacts. By learning from this situation, business leaders can better navigate similar challenges and foster a supportive, transparent, and resilient organizational environment.