Club Pilates franchise
A franchisee operates a Club Pilates studio in leased retail space, selling memberships for live instructional group and private Pilates classes taught on designated reformer and related equipment, plus related retail products and an optional teacher training course.
Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — Club Pilates Franchise SPV, LLC
- Document
- FDD 2026, issued 2026-04-17, amended 2026-08-07
- Item
- Item 15
- Page
- PDF p. 62
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641077
we recommend, but do not require, that you (or, if you are an entity, the Operating Principal) personally supervise the Studio
Item 15 recommends but does not require that the franchisee or, for an entity, the Operating Principal personally supervise the studio. A Designated Manager the franchisor approves may handle day-to-day supervision and need not hold any ownership interest, provided that person has completed the Designated Manager Training Module and, if delivering classes, the Instructor Bridge Training Program. The studio must at all times be managed and staffed by at least one person who has completed the Designated Manager Training Module. Separately, every direct or indirect owner of 10% or more — and each of their spouses — must sign a Guarantee.
What stands out
- Flat $65,000 initial franchise fee; total initial investment of $413,289 to $1,029,811 for a leased 1,500–1,800 sq ft studio, with the Item 7 line items footing exactly to both ends of the range.
- Continuing fees are 8% of Gross Sales royalty plus 2% brand development fund plus local advertising of the greater of $1,500 a month or 2%, capped in aggregate for marketing at 7%; Item 6 discloses some existing franchisees pay 6% or 7% royalty.
- Item 19 discloses revenue but no costs: 1,005 franchised studios open all of 2025 averaged $987,810 in Gross Revenue, median $978,332, range $146,258 to $2,301,954, with 48% at or above the average.
7 more observations
- New studios opened in 2025 averaged $25,338 in month one and peaked at $72,433 in month four; by month twelve the average was $63,630 across the 18 studios that had reached it.
- The system grew from 753 to 1,179 franchised outlets over 2023–2025 on 435 openings with only 4 terminations, and became wholly franchised when the last 8 company studios closed in 2024.
- Transfers between franchisees jumped from 59 in 2024 to 133 in 2025 — over 11% of year-end outlets — and 123 signed agreements had not yet opened at December 31, 2025.
- Territory is non-exclusive with a Designated Territory of roughly 15,000 population, and keeping it requires trailing 12-month average monthly Gross Sales of $25,000 by year one and $40,000 by year two.
- Every owner of 10% or more, and their spouse, must sign a guarantee; the FDD cover carries a state-required spousal liability warning.
- Item 3 lists 28 matters, none involving a Club Pilates franchisee, but including franchisee suits across affiliated Xponential brands, five securities and derivative actions against the listed parent, and six regulatory settlements — among them a $17 million FTC redress order and a New York Assurance of Discontinuance naming this franchisor.
- No minimum liquid capital or net worth requirement is disclosed anywhere in the reviewed document.
Things to verify
- Ask for a full operating cost model — rent, instructor pay, general manager salary, marketing, insurance — since Item 19 discloses revenue only and gives no basis for estimating owner earnings.
- Ask the franchisor to reconcile 'Gross Revenue' in Item 19 with 'Gross Sales' in the Franchise Agreement, since royalty and fund contributions are charged on the latter and the FDD says the two definitions differ.
- Ask what happened to the three studios that ceased operating in 2025 and are excluded from every Item 19 table, and to the four terminated in 2024.
7 more questions
- Ask why transfers more than doubled to 133 in 2025 and how many of those were distressed sales rather than planned exits.
- Test the minimum sales quota against the Item 19 data: $40,000 a month is $480,000 a year, and the lowest quartile averaged $685,540, so ask how many studios have been put through corrective training or lost territory rights.
- Ask how the 123 signed but unopened agreements are progressing and what the average time from signing to soft opening has been, given the 13-month contractual deadline and the state-required risk warning about opening delays.
- Ask for the current status and potential exposure of the FTC stipulated order, the New York Assurance of Discontinuance naming this franchisor, and the other four regulatory consent orders, and how disclosure practices have changed since.
- Confirm the total build-out cost with a contractor in the target market, since leasehold improvements alone range from $123,056 to $519,381.
- Confirm that a spouse with no ownership interest is genuinely required to guarantee all financial obligations, and take legal advice on that before signing.
- Speak with current and former franchisees while noting Item 20's disclosure that franchisees have signed confidentiality agreements restricting what they can say.
Category cost placeholders, not a forecast. This snapshot uses the default inputs; the calculator below updates when you edit them.
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
A Club Pilates franchisee runs a single boutique fitness studio, typically 1,500 to 1,800 square feet in a retail shopping centre, selling memberships for group and private Pilates classes taught on 12 reformer stations and related apparatus. The business is membership-driven: Item 19 reports that 87% of studio revenue comes from memberships, and the average studio carried 438 active members while losing 6.4% of them each month. The studio must always have at least one instructor who has completed 450 hours of third-party Pilates training plus the franchisor's bridge course, but the owner need not work in the business — Item 15 only recommends personal supervision and allows an approved Designated Manager to run day-to-day operations.
The initial franchise fee is a flat $65,000 and Item 7 puts the total initial investment at $413,289 to $1,029,811, with the line items footing exactly to both ends of that range. The estimate covers a leased site — no land or building purchase — the roughly five-month pre-sales phase and only the first three months of trading. Leasehold improvements at $123,056 to $519,381 drive most of the spread, and the fitness equipment and FF&E package bought from the franchisor adds $128,986 to $170,034. Ongoing payments are high by franchising standards: 8% of Gross Sales in royalty, 2% to the brand development fund, and a local advertising requirement of the greater of $1,500 a month or 2%, plus $550 a month in technology fees and a further $203 software fee. Item 6 notes some existing franchisees pay only 6% or 7% royalty. No minimum liquid capital or net worth requirement is disclosed in the reviewed source.
Item 19 is unusually detailed on revenue and silent on cost. The 1,005 franchised studios operated for all of 2025 averaged $987,810 in Gross Revenue with a median of $978,332, ranging from $146,258 to $2,301,954, and only 48% reached the average; quartile averages run from $1,309,242 down to $685,540. New studios opened in 2025 averaged $25,338 in their first month, peaked at $72,433 in month four and were at $63,630 by month twelve, though only 18 studios had reached that month. The item discloses no rent, payroll, instructor pay, marketing or other expense, so it says nothing about owner earnings, and the franchisor warns that its 'Gross Revenue' measure is defined differently from the 'Gross Sales' royalties are charged on. The three studios that closed during 2025 are excluded from every table.
Item 20 shows fast growth: franchised outlets rose from 753 to 1,179 over three years on 435 openings, against only 4 terminations and 5 outlets ceasing operations for other reasons. The remaining eight company-owned studios were closed in 2024, leaving a wholly franchised system, and 123 signed agreements had not yet opened at year-end with 144 openings projected for 2026. Transfers between franchisees more than doubled to 133 in 2025, over 11% of the outlet count. The main risk disclosures sit above the brand rather than inside it: Item 3 lists 28 matters, none involving a Club Pilates franchisee, but a long series of franchisee suits against affiliated Xponential brands over pre-sale disclosure and financial performance representations, five securities and derivative actions against the listed parent, and six regulatory settlements including a $17 million FTC redress order and a New York Assurance of Discontinuance naming this franchisor. Buyers should also weigh the minimum sales quota that can cost them their territory or franchise, the spousal guarantee requirement, and California-only dispute resolution.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 753 → 1179 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $987,810 (disclosed) ÷ midpoint investment $721,550 = 1.37×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 85% of franchised units, clearly described (+1)
- Multi-year or cohort data (+1)
- Franchisor Track Record
- Franchising 14 years (since 2012) · 1,179 outlets · Item 3: 28 matter(s) disclosed · Item 4: none disclosed
- Multi-Unit Scalability
- Qualified buyers may sign a Multi-Unit Agreement granting development rights in a Development Area, typically committing to open at least three studios on an… · Manager-run permitted
- Operational Intensity
- Manager-run permitted
Initial investment
FDD Items 5 and 7Format shown: One Club Pilates studio under a single Franchise Agreement, in leased commercial space typically 1,500 to 1,800 square feet, covering the development period, an approximately five-month pre-sales phase and the first three months after the soft opening
$413,289–$1,029,811 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $65,000 Disclosed
Flat standard fee for a single Studio under a Franchise Agreement. VetFran ($48,750), 2nd-unit ($55,000), and 2025 Multi-Unit ($45,000) reduced fees are discounts, excluded from the standard rate per instructions. |
|---|---|
| Other required initial payments to the franchisor (Item 5) |
|
| Total Item 5 payments to franchisor/affiliates | $197,901 Derived
$241,189 Derived
|
| Total initial investment — low | $413,289 Disclosed
The Table A line items sum exactly to the printed total of $413,289. The same range appears on the FDD cover page. |
| Total initial investment — high | $1,029,811 Disclosed
The Table A line items sum exactly to the printed total of $1,029,811. The same range appears on the FDD cover page. |
| Midpoint of range | $721,550 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Club Pilates Franchise SPV, LLC; we do not fill gaps with estimates or third-party figures. No minimum liquid-capital requirement is stated on the cover pages or anywhere in Items 1 through 22 of the reviewed document. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Club Pilates Franchise SPV, LLC; we do not fill gaps with estimates or third-party figures. No minimum net-worth requirement is stated in the reviewed document. The only reference to net worth is in the Michigan state notice on the cover pages, which concerns the franchisor's own financial statements rather than a franchisee qualification. |
Table A covers a single new studio on a leased site of roughly 1,500 to 1,800 square feet and excludes any purchase of land or buildings; the real estate line is rent, deposit and professional fees only. The franchisor states the figures cover the development period, the roughly five-month pre-sales phase and the first three months of operation after the soft opening, and that all estimates exclude tax. The additional-funds line is explicitly net of estimated studio revenue during that period, so it is not a gross operating-cost estimate. Of the total, the cover page states $197,901 to $241,189 is payable to the franchisor or its affiliates. The franchisor offers no direct or indirect financing. Table B, for a Multi-Unit Agreement to develop three studios, adds a $20,000 development fee ($10,000 for each studio after the first) and a sourcing fee of $0 to $50,000 to Table A, giving $433,289 to $1,099,811 — which covers only the first studio, not the cost of opening the other two.
Item 7 line items (14)
| Expenditure | Low | High |
|---|---|---|
| Initial franchise fee — Flat fee for a single studio; reductions for veterans and existing franchisees are described in Item 5. | $65,000 | $65,000 |
| Sourcing fee — Payable only by an existing franchisee acquiring an additional franchise where a broker is owed a commission on a prior introduction. | $0 | $28,000 |
| Travel and living expenses while training — The franchisor charges no tuition for the Initial Training Program; this covers transportation, meals and lodging. | $1,000 | $3,000 |
| Real estate/lease and professional fees — Three months of base rent plus one month estimated as a security deposit, plus legal and professional fees for securing the premises. | $19,000 | $63,600 |
| Leasehold improvements — Largest and widest line item; includes architect and sound consultant fees and permitting, and assumes no landlord tenant-improvement allowance. | $123,056 | $519,381 |
| Signage — Permanent signage and graphics only. | $6,000 | $26,500 |
| Insurance — One annual premium for the minimum required coverage through a required or approved vendor. | $3,823 | $21,172 |
| Fitness equipment and initial FF&E package — Purchased from the franchisor or its designated affiliate; includes 12 reformer stations, a private training room and the studio fixture package, with installation and shipping. | $128,986 | $170,034 |
| Pre-sales and soft opening retail inventory kit — Branded merchandise, apparel and accessories from approved suppliers, with some items bought directly from the franchisor. | $16,400 | $17,900 |
| Computer system, A/V equipment and related components — POS system, inventory control, local network with dedicated server, tablets and at least one surveillance camera. | $5,500 | $19,000 |
| Initial marketing and advertising spend — Covers the pre-sales phase and first three months after soft opening; the contractual minimum initial marketing requirement is $15,000. | $33,300 | $46,600 |
| Initial instructor training fee — $200 per instructor for Instructor Bridge Training, payable to the franchisor. | $200 | $1,600 |
| Technology and software fees — Eight months of payments: five pre-sales months at a reduced technology fee of $150 plus the software fee, then three months at $550 technology fee plus $203 software fee. | $4,024 | $4,024 |
| Additional funds — 3 months — Business expenses for the pre-sales phase and first three months after soft opening, including wages for a general manager, a front desk/sales associate and seven instructors; stated to be net of estimated studio revenue in the period. | $7,000 | $44,000 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — Club Pilates Franchise SPV, LLC (table begins PDF p. 34) — rows inherit the table's citation rather than carrying fifteen identical ones.
Other formats disclosed in Item 7 (1)
| Format | Low | High | Fee |
|---|---|---|---|
| Multi-Unit Agreement for three studios (covers only the first studio's opening costs) | $433,289 | $1,099,811 | — |
Ongoing fees
FDD Item 6Royalty
8% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Club Pilates Franchise SPV, LLC
- Document
- FDD 2026, issued 2026-04-17, amended 2026-08-07
- Item
- Item 6 — Other Fees table — Royalty
- Page
- PDF p. 26
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641077
8% of Gross Sales generated by your Studio over the relevant reporting period
8% of Gross Sales, collected weekly by electronic funds transfer on the prior week's sales, beginning when the studio starts collecting revenue; the franchisor may switch to another interval. Item 6 notes that certain existing franchisees pay 6% or 7%, so new franchisees pay the highest rate in the system. Gross Sales is defined as total studio revenue whether or not received, excluding sales taxes, good-faith client allowances and Teacher Training Program revenue.
Brand advertising fund
2% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Club Pilates Franchise SPV, LLC
- Document
- FDD 2026, issued 2026-04-17, amended 2026-08-07
- Item
- Item 6 — Other Fees table — Contributions to Brand Development Fund
- Page
- PDF p. 26
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641077
Currently 2% of Gross Sales to the Brand Development Fund, paid weekly with the royalty. The franchisor may raise the rate on notice, subject only to the 7% aggregate Marketing Expenditure Cap, and has sole discretion over how the fund is spent.
Local marketing
2% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Club Pilates Franchise SPV, LLC
- Document
- FDD 2026, issued 2026-04-17, amended 2026-08-07
- Item
- Item 6 — Other Fees table — Local Advertising Requirement
- Page
- PDF p. 26
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641077
The requirement is the greater of $1,500 per month or 2% of the prior month's Gross Sales, so it acts as a fixed floor for lower-volume studios: at 2% the floor binds until monthly Gross Sales exceed $75,000. It is a spending requirement, but the franchisor reserves the right to require the money be paid to it instead. The separate $15,000 initial marketing requirement before opening does not count toward it.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 8% of gross sales Disclosed
8% of Gross Sales, collected weekly by electronic funds transfer on the prior week's sales, beginning when the studio starts collecting revenue; the franchisor may switch to another interval. Item 6 notes that certain existing franchisees pay 6% or 7%, so new franchisees pay the highest rate in the system. Gross Sales is defined as total studio revenue whether or not received, excluding sales taxes, good-faith client allowances and Teacher Training Program revenue. 8% of Gross Sales, collected weekly by electronic funds transfer on the prior week's sales, beginning when the studio starts collecting revenue; the franchisor may switch to another interval. Item 6 notes that certain existing franchisees pay 6% or 7%, so new franchisees pay the highest rate in the system. Gross Sales is defined as total studio revenue whether or not received, excluding sales taxes, good-faith client allowances and Teacher Training Program revenue. |
|---|---|
| Advertising / brand fund | 2% of gross sales Disclosed
Currently 2% of Gross Sales to the Brand Development Fund, paid weekly with the royalty. The franchisor may raise the rate on notice, subject only to the 7% aggregate Marketing Expenditure Cap, and has sole discretion over how the fund is spent. Currently 2% of Gross Sales to the Brand Development Fund, paid weekly with the royalty. The franchisor may raise the rate on notice, subject only to the 7% aggregate Marketing Expenditure Cap, and has sole discretion over how the fund is spent. |
| Required local marketing | 2% of gross sales Disclosed
The requirement is the greater of $1,500 per month or 2% of the prior month's Gross Sales, so it acts as a fixed floor for lower-volume studios: at 2% the floor binds until monthly Gross Sales exceed $75,000. It is a spending requirement, but the franchisor reserves the right to require the money be paid to it instead. The separate $15,000 initial marketing requirement before opening does not count toward it. The requirement is the greater of $1,500 per month or 2% of the prior month's Gross Sales, so it acts as a fixed floor for lower-volume studios: at 2% the floor binds until monthly Gross Sales exceed $75,000. It is a spending requirement, but the franchisor reserves the right to require the money be paid to it instead. The separate $15,000 initial marketing requirement before opening does not count toward it. |
| Technology / software | $550/month Disclosed
Currently $550 per month, payable monthly with the royalty; the franchisor may increase it by 10% a year. A reduced fee of $150 per month applies during the pre-sales phase. Item 7 and Item 11 disclose a further Software Fee of $203 per month charged by an approved supplier, which does not appear as a line in the Item 6 table. Currently $550 per month, payable monthly with the royalty; the franchisor may increase it by 10% a year. A reduced fee of $150 per month applies during the pre-sales phase. Item 7 and Item 11 disclose a further Software Fee of $203 per month charged by an approved supplier, which does not appear as a line in the Item 6 table. |
| Advertising cooperative | Varies (see note) Disclosed
No cooperative contribution is currently charged. If the franchisor establishes a co-op covering the studio's area, participation is mandatory and the contribution is whatever the co-op determines, subject to the 7% aggregate Marketing Expenditure Cap. No cooperative contribution is currently charged. If the franchisor establishes a co-op covering the studio's area, participation is mandatory and the contribution is whatever the co-op determines, subject to the 7% aggregate Marketing Expenditure Cap. |
| Transfer fee | $10,000 one-time Disclosed
$10,000 on requesting consent to a transfer. Reduced administrative fees apply instead in two cases: $750 where an individual franchisee assigns to an entity it wholly owns, and $1,500 for an assignment to an immediate family member. $10,000 on requesting consent to a transfer. Reduced administrative fees apply instead in two cases: $750 where an individual franchisee assigns to an entity it wholly owns, and $1,500 for an assignment to an immediate family member. |
| Renewal fee | $10,000 one-time Disclosed
Successor Franchise Fee of $10,000, payable before the initial term expires; the studio must also be renovated and modernised at the franchisee's expense to the then-current standards. Successor Franchise Fee of $10,000, payable before the initial term expires; the studio must also be renovated and modernised at the franchisee's expense to the then-current standards. |
| Royalty + ad fund (% of sales) | 10% Derived
|
Fee schedule (24 fees; 13 verified against the source, 11 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Royalty | 8% of gross sales | weekly | Yes | verified (2-pass) | Item 6, p. 26 | Begins once the Studio starts collecting revenue from operations. |
| Contributions to Brand Development Fund | 2% of gross sales | weekly | Yes | verified (2-pass) | Item 6, p. 26 | Franchisor may raise the rate on notice, subject to the Marketing Expenditure Cap. |
| Regional or Local Advertising Co-Op | $0 | varies | No | verified (tie-break) | Item 6, p. 26 | Only if the franchisor establishes a Co-Op covering the Studio's area; participation and contribution are then required in the amount the Co-Op determines. |
| Local Advertising Requirement | $2 (min $1,500/monthly) | monthly | Yes | verified (2-pass) | Item 6, p. 26 | |
| Initial Instructor Training Fee (Instructor Bridge Training Program) | $200 | per event | Yes | verified (2-pass) | Item 6, p. 27 | Franchisor may increase the fee 10% annually. |
| Teacher Training Program Fee | $4,995 | per event | No | verified (tie-break) | Item 6, p. 27 | Only for an individual who does not already meet the Instructor Eligibility Criteria and wishes to obtain the instruction needed to meet them; requires an approved Master Instructor at the Studio. |
| Training Fee (additional/ongoing training) | $500 | per event | No | verified (tie-break) | Item 6, p. 28 | Charged only for training the franchisee requests or that the franchisor must provide on-site; never for training required at the franchisor's facility, nor for minor day-to-day remote assistance. Franchisee always bears its own travel and personnel costs. |
| Successor Franchise Fee | $10,000 | one time | Yes | single-pass | Item 6, p. 28 | Payable prior to expiration of the initial term when a successor franchise is granted. [Listed by one verification pass only (A); not independently confirmed.] |
| Transfer Fee | $10,000 | one time | No | single-pass | Item 6, p. 28 | Due upon request for franchisor's consent to a proposed transfer. [Listed by one verification pass only (A); not independently confirmed.] |
| Technology Fee | $550 | monthly | Yes | verified (2-pass) | Item 6, p. 29 | Franchisor may increase the fee 10% annually. |
| Software Fee (Approved Supplier studio-management software) | $203 | monthly | Yes | verified (2-pass) | Item 7, p. 37 | Recurring mandatory software subscription required per Item 11, not itemized as a separate Item 6 table row. |
| Relocation Fee | $5,000 | one time | No | single-pass | Item 6, p. 29 | Assessed upon submission of a proposal to relocate the Studio. [Listed by one verification pass only (A); not independently confirmed.] |
| Music Licensing Fee | Not stated | varies | Yes | verified (2-pass) | Item 6, p. 29 | |
| Insurance Policies (franchisor-obtained coverage upon franchisee lapse) | Not stated | varies | No | single-pass | Item 6, p. 29 | Payable only if franchisee fails to maintain required insurance coverage and franchisor elects to obtain it. [Listed by one verification pass only (A); not independently confirmed.] |
| Mystery Shopper and Other Quality Control Programs | $500 | annual | No | verified (tie-break) | Item 6, p. 29 | Payable only if the franchisor establishes a mystery shopper program or other quality-control mechanism; none is disclosed as active at the issuance date. |
| Audit Fees | $500–$2,500 | per event | No | single-pass | Item 6, p. 30 | Payable only if an audit/review shows a Gross Sales understatement of 2%+ or is conducted due to franchisee's failure to timely report. [Listed by one verification pass only (A); not independently confirmed.] |
| Late Fees | $2 | varies | No | single-pass | Item 6, p. 30 | Applies to all amounts not paid when due. [Listed by one verification pass only (A); not independently confirmed.] |
| Non-Compliance Fee | $100 | varies | No | verified (tie-break) | Item 6, p. 30 | Payable only on failure to comply with material obligations under the Franchise Agreement. |
| Cost of Enforcement or Defense | Not stated | varies | No | single-pass | Item 6, p. 30 | Upon settlement or conclusion of a claim or action. [Listed by one verification pass only (A); not independently confirmed.] |
| Indemnification | Not stated | varies | No | single-pass | Item 6, p. 30 | [Listed by one verification pass only (A); not independently confirmed.] |
| Alternative Supplier Approval | $1,500 | per event | No | single-pass | Item 6, p. 30 | Only if franchisee requests approval of an alternative item/product/service/supplier. [Listed by one verification pass only (A); not independently confirmed.] |
| Management Fee (franchisor takeover of operations) | Not stated | varies | No | single-pass | Item 6, p. 31 | Only if franchisor takes over operations. [Listed by one verification pass only (A); not independently confirmed.] |
| Lost Revenue Damages | Not stated | one time | No | single-pass | Item 6, p. 31 | Only upon early termination without cause (by franchisee) or for franchisee's breach (by franchisor). [Listed by one verification pass only (A); not independently confirmed.] |
| Insurance (required coverage) | $3,823–$21,172 | annual | Yes | verified (tie-break) | Item 7, p. 34 | Coverage is mandatory; the premium varies with studio size, location, deductibles and carrier experience. Paid to a third-party approved supplier. |
The stacked continuing burden on Gross Sales is 8% royalty plus 2% brand development fund plus a local advertising requirement of the greater of $1,500 a month or 2%, with a Marketing Expenditure Cap limiting fund, co-op and local advertising together to 7% of Gross Sales a month in the aggregate. Item 6 states fees are non-refundable, that the franchisor may waive some in cases it considers appropriate, and that the Technology Fee and Initial Instructor Training Fee may each rise 10% a year. Item 6 also discloses Lost Revenue Damages: if the franchisee terminates without cause or the franchisor terminates for breach, the franchisee owes the present value of the lesser of 36 or the remaining months of the term, multiplied by the royalty plus fund percentages, multiplied by average monthly Gross Sales over the preceding 24 months, less the franchisor's cost savings.
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: Part A covers 1,005 'Qualified Studios' — franchised studios owned and operated by a franchisee for the whole of calendar 2025 — out of 1,179 franchised studios open at December 31, 2025. Excluded are 153 studios that began operating during 2025, 2 studios at non-traditional sites, 19 'Expanded Studios' that used more than 12 reformers (reported separately), and 3 studios that ceased operating during 2025, each of which had traded for more than 12 months. There were no company-owned studios in 2025, so the population is entirely franchised. Part B reports monthly figures for the 141 studios that held a soft opening during 2025, with the cohort shrinking to 18 studios by month 12 because only studios that had reached that month are counted. The revenue measure is 'Gross Revenue', which the franchisor states is defined differently from the 'Gross Sales' used as the royalty base, and excludes sales tax and Teacher Training Program revenue.
Qualifications: The item reports revenue and membership activity only. It discloses no rent, payroll, instructor pay, royalty, marketing, cost of goods, margin, EBITDA or net income figure, so nothing in it indicates what an owner keeps. The data were collected by polling franchisees' studio management software and profit and loss reports, are the franchisees' own data, and are not stated to be audited. The revenue measure is 'Gross Revenue', which the franchisor expressly says is defined differently from the 'Gross Sales' that royalties and fund contributions are calculated on, and it warns that royalties may therefore differ from what these figures imply. The Part A population excludes the 153 studios that opened during 2025, the 2 non-traditional-site studios, the 19 Expanded Studios and the 3 studios that ceased operating during the year — the last exclusion means closures are not represented in the averages even though each had traded more than 12 months. The spread is wide: the lowest Qualified Studio recorded $146,258 against a high of $2,301,954, and only 48% of studios reached the average. The Part B new-studio table thins from 141 studios in month 1 to 18 in month 12, so later months describe only the earliest 2025 openers, and its monthly averages peak in month 4 and decline thereafter. Expanded Studios show higher revenue but need more than 12 reformers, which is beyond the build-out the Item 7 estimate assumes.
View full Item 19 disclosure and tables
Item 19 is a historical revenue and membership representation with no cost or profit content. For calendar 2025 the 1,005 franchised studios that a franchisee operated for the full year averaged $987,810 in Gross Revenue with a median of $978,332; 48% of them reached the average. Quartile averages, ranked from strongest to weakest, run $1,309,242, $1,057,384, $897,796 and $685,540, and the whole population spans $146,258 to $2,301,954. Nineteen larger 'Expanded Studios' running more than 12 reformers averaged $1,419,539. Behind the revenue, the average studio carried 438 monthly active members, signed 38 new memberships a month, lost 6.4% of its members each month, and drew 87% of revenue from memberships. For ramp-up, Part B follows the 141 studios that opened in 2025: month 1 averaged $25,338, rising to a peak of $72,433 in month 4 and then easing to $63,630 by month 12 — though only 18 studios had reached that twelfth month. What the item does not show is any expense figure, so the gap between roughly $988,000 of revenue and an owner's earnings is undisclosed, and the reader must apply the 8% royalty, 2% brand fund and local advertising requirement from Item 6 separately. Three studios that closed during 2025 are excluded from every table.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Gross Revenue — all Qualified Studios (franchised, open all of 2025) 48% of units met or exceeded 487 of 1,005 studios met or exceeded the average. | All Qualified Studios Average | $987,810 | 1,005 | CY2025 | FDD p.75 |
| Gross Revenue — all Qualified Studios (franchised, open all of 2025) | All Qualified Studios Median | $978,332 | 1,005 | CY2025 | FDD p.75 |
| Gross Revenue — lowest Qualified Studio, 2025 | All Qualified Studios Low | $146,258 | 1,005 | CY2025 | FDD p.75 |
| Gross Revenue — highest Qualified Studio, 2025 | All Qualified Studios High | $2,301,954 | 1,005 | CY2025 | FDD p.75 |
| Gross Revenue — 1st quartile (highest-revenue quarter of Qualified Studios) 37% of units met or exceeded Studios were ranked highest to lowest, so the 1st quartile is the top performers. Quartile median $1,267,356; range $1,138,055 to $2,301,954. | 1st quartile — highest 251 studios Quartile avg. | $1,309,242 | 251 | CY2025 | FDD p.75 |
| Gross Revenue — 2nd quartile of Qualified Studios 50% of units met or exceeded Quartile median $1,057,571; range $978,332 to $1,137,745. | 2nd quartile — 252 studios Quartile avg. | $1,057,384 | 252 | CY2025 | FDD p.75 |
| Gross Revenue — 3rd quartile of Qualified Studios 51% of units met or exceeded Quartile median $901,753; range $814,123 to $977,776. | 3rd quartile — 251 studios Quartile avg. | $897,796 | 251 | CY2025 | FDD p.75 |
| Gross Revenue — 4th quartile (lowest-revenue quarter of Qualified Studios) 56% of units met or exceeded Quartile median $701,036; range $146,258 to $813,309. | 4th quartile — lowest 251 studios Quartile avg. | $685,540 | 251 | CY2025 | FDD p.75 |
| Gross Revenue — Expanded Studios (more than 12 reformers, open all of 2025) 37% of units met or exceeded Only 19 studios. Median $1,336,024; range $539,413 to $2,258,596. These studios are excluded from the 1,005 Qualified Studios and require a larger build-out than the standard 12-reformer studio the Item 7 estimate assumes. | Expanded Studios Average | $1,419,539 | 19 | CY2025 | FDD p.75 |
| Monthly Active Members per Qualified Studio 49% of units met or exceeded Average across the twelve months of 2025. Median 432; range 135 to 838. Quartile averages run from 569 down to 311. | All Qualified Studios Average | 438 | 1,005 | CY2025 | FDD p.75 |
| Monthly new memberships signed per Qualified Studio 45% of units met or exceeded Median 37; range 7 to 100. Quartile averages run from 54 down to 25. | All Qualified Studios Average | 38 | 1,005 | CY2025 | FDD p.76 |
| Monthly membership attrition rate — Qualified Studios 46.7% of units met or exceeded Cancelled memberships in a month divided by members at the end of the prior month, weighted by membership base. Median 6.3%; range 3.4% to 13.7%. The comparable figure for Expanded Studios is 6.5%. | All Qualified Studios Average | 6.4% | 1,005 | CY2025 | FDD p.80 |
| Gross Revenue in the first calendar month after soft opening — studios opened in 2025 44% of units met or exceeded Median $24,002; range $1,965 to $68,068. Month 1 counts only revenue earned after the soft opening date and excludes pre-opening membership sales. | New Studios, month 1 Average | $25,338 | 141 | Month 1 after soft opening (2025) | FDD p.78 |
| Gross Revenue in the fourth calendar month after soft opening — studios opened in 2025 50% of units met or exceeded The highest monthly average in the Part B ramp; median $72,518. Monthly averages then drift down through month 12. | New Studios, month 4 Average | $72,433 | 111 | Month 4 after soft opening (2025) | FDD p.78 |
| Gross Revenue in the twelfth calendar month after soft opening — studios opened in 2025 50% of units met or exceeded Only 18 of the 141 studios had reached month 12 within the reporting window, so this figure covers the earliest openers of 2025 rather than the whole cohort. Median $61,560; range $33,603 to $97,223. | New Studios, month 12 Average | $63,630 | 18 | Month 12 after soft opening (2025) | FDD p.78 |
| Share of Gross Revenue from memberships — Qualified Studios 56% of units met or exceeded The remaining revenue averages 8% services, 3% products and 2% fees. Median 87%; range 74% to 94%. | All Qualified Studios Average | 87% | 1,005 | CY2025 | FDD p.81 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 753 | 116 | 0 | 0 | 0 | 1 | 868 | 78 | 8 |
| 2024 | 868 | 166 | 4 | 0 | 0 | 1 | 1,029 | 59 | 0 |
| 2025 | 1,029 | 153 | 0 | 0 | 0 | 3 | 1,179 | 133 | 0 |
Disclosed 2026 Franchise Disclosure Document — Club Pilates Franchise SPV, LLC, Item 20, Tables 1–3 (PDF p. 83). Tables 1, 3 and 4 foot to their stated totals in every year and agree with each other, with one exception noted below. Franchised outlets grew from 753 to 1,179 over three years — a net gain of 426 — on 435 openings against 4 terminations, no non-renewals, no reacquisitions and 5 outlets recorded as ceasing operations for other reasons. Growth in openings peaked in 2024 (166) and eased to 153 in 2025. All eight company-owned studios, which were at non-traditional sites, were closed in 2024, leaving a wholly franchised system. Transfers between franchisees more than doubled from 59 in 2024 to 133 in 2025, against 78 in 2023 — the 2025 figure is over 11% of the year-end outlet count, concentrated in North Carolina (24), Georgia (19), New Jersey (11) and California (10). One inconsistency: in Table 4 the California row for 2025 shows 7 company-owned outlets at both the start and end of the year, which contradicts the same table's 2025 Total row (0 and 0), the 2024 California row that ends at 0, and Table 1. We used the Total row. Several state rows in Table 3 also carry footnote digits printed against the outlet counts (for example South Carolina 2024 reads '52' where 5 plus footnote 2 makes the row foot), and a few state rows do not carry forward from one year's end to the next; the Totals rows are internally consistent and were used throughout. Item 20 discloses that franchisees have signed confidentiality agreements in the last three fiscal years that restrict what they can say about the system.
Source data notes (13) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [A/minor] Table 3 2023: Alabama FY2023 'Outlets Opened' extracts from the PDF text layer as 11, breaking the row (5 + 11 != 6). Raised by both passes. — Extraction artifact. The page image (PDF p. 87, printed 79) shows '1' with a superscript footnote 1 ('This studio ceased operations as of December 31, 2020, but then relocated and reopened in 2023') that pdftotext concatenated onto the digit. Correct value: AL 2023 opened = 1; the row then feet exactly (5 + 1 = 6). Printed TOTAL row unaffected.
- [A/minor] Table 3 2024: South Carolina FY2024 'Outlets Opened' extracts as 52 (15 + 52 != 20). Raised by Pass A. — Same footnote-superscript artifact: the printed value is '5' with superscript footnote 2 (a studio temporarily relocated from North Carolina to South Carolina in 2024 and back in 2025). Correct value: SC 2024 opened = 5; the row feet (15 + 5 = 20). Corroborated arithmetically: with SC = 5 the FY2024 state 'Outlets Opened' column sums to exactly the printed total of 166.
- [C/minor] Table 3 2025: Alabama ends FY2024 with 9 outlets but starts FY2025 with 6 - a 3-outlet carry-forward gap with no terminations, non-renewals, reacquisitions or other cessations recorded. Raised by Pass B. — Genuine printed inconsistency, not an artifact: the page image (PDF p. 87) shows AL 2024 = 6/3/.../9 and AL 2025 = 6/0/.../6. The TOTAL row is the corroborated side - FY2025 total start 1,029 equals FY2024 total end 1,029 and equals Table 1's franchised row, and FY2025 ends at 1,179 (= Item 19's 1,179 U.S. Studios) - so the AL FY2025 row understates that state by 3 while the totals the site uses are unaffected. Every other state row in Table 3 feet and carries forward.
- [C/minor] Table 3: New in this pass: after correcting the two footnote artifacts, the printed state rows do not add up to the printed TOTAL rows. State sums are 752 start / 115 opened / 866 end for 2023, 866 / 166 / 1,027 for 2024 and 1,024 / 152 / 1,173 for 2025, against printed totals of 753 / 116 / 868, 868 / 166 / 1,029 and 1,029 / 153 / 1,179. — The residual after the Alabama gap (3 units in 2025) is 1-3 outlets a year that belong to no listed state: the table lists 48 jurisdictions, from AL through WI, with no AK, WV or WY row (first and last table pages verified on the images, PDF pp. 87 and 91). The TOTAL rows are internally consistent (753 + 116 - 1 = 868; 868 + 166 - 4 - 1 = 1,029; 1,029 + 153 - 3 = 1,179), carry forward year to year, and are corroborated by Table 1 (p. 83) and Item 19 (1,179 U.S. Studios), so the totals stand and only the state detail is short.
- [C/minor] Table 4 2025: Table 4 (Status of Company-Owned Outlets) does not carry forward or foot for FY2025: the California row shows 7 at the start and 7 at the end of 2025 although the same row ends FY2024 at 0 (7 closed), while Table 4's own FY2025 Total row shows 0 start, 0 opened and 0 end. Raised by Pass B. — Confirmed on the page image (PDF p. 92), so it is printed, not an extraction artifact. The Total row is the corroborated side, so the California FY2025 row is the error; company-owned outlets are 0 at both ends of 2025.
- [C/minor] Table 4 2025: The same California FY2025 row contradicts Table 1 (company-owned 0 at start and end of 2025) and Item 19 (all 1,179 U.S. Studios open at December 31, 2025 were franchisee-owned). Raised by Pass B. — Table 1 (p. 83), Item 19 (p. 75) and Table 4's own FY2025 Total row all agree on 0 company-owned outlets, three independent corroborations against one state row, so the site should carry 0 company-owned units for 2025 and ignore the California row.
- [D/minor] Table 4 2024: Table 4's asterisk footnote reads '8 Studios (7 in California and 1 in New York) are located at Non-Traditional Sites' and is attached to the FY2024 'Outlets Closed' figure of 8 - present tense for outlets the table says closed during 2024. Raised by Pass B. — Definitional/footnote wording only: the note describes the site type of the 8 company-owned studios (7 CA, 1 NY), which matches the FY2023 state detail exactly, and carries no number that changes any column. Verified on the page image (PDF p. 92).
- [D/minor] Table 3: Pass B observation that Table 3's TOTAL rows foot exactly for all three years and reconcile with Table 1's franchised row. — Confirmed, no discrepancy: 753 + 116 - 1 = 868, 868 + 166 - 4 - 1 = 1,029, 1,029 + 153 - 3 = 1,179, matching Table 1 exactly. This is the corroboration that keeps the state-level issues above at minor severity.
- [D/minor] Table 2: Table 2 is titled 'Transfer of Outlets from Franchisees to New Owners' but its total row is labelled 'TOTAL OUTLETS' rather than total transfers; transfers were 78 (2023), 59 (2024) and 133 (2025), with large single-state jumps in NC, GA and NJ. Raised by Pass B. — Label wording, not a numeric error: the state figures sum to the printed totals 78 / 59 / 133 (2024 and 2025 totals verified in the source text), and the column plainly counts outlets transferred during each year. Site should label the metric 'outlets transferred', and the FY2025 spike is real.
- [D/minor] Table 5 2025: 123 franchise agreements signed with outlets not yet open, but 144 projected new franchised openings in the next fiscal year - projections exceed the signed backlog by 21. Raised by Pass B. — Legitimate table-definition difference: Item 20 projections are not limited to agreements already signed, so they may include agreements the franchisor expects to sign. No printed figure is wrong; the point is disclosure colour (cover-page Special Risk 7 flags the unopened backlog separately), not a data defect.
- [D/minor] Item 19 vs Table 3 2025: Pass B observation that Item 19 cross-checks to Item 20 exactly. — Confirmed, no discrepancy: Item 19's 153 Studios excluded because they commenced operations in 2025 equals Table 3's FY2025 'Outlets Opened' of 153, and its 3 franchised Studios that ceased operations equals Table 3's FY2025 'Ceased Operations - Other Reasons' of 3.
- [D/minor] Table 3 2025: Definitional quirk: Table 3's asterisk footnote says 2 of the 1,179 outlets open at December 31, 2025 were at Non-Traditional Sites (1 CA, 1 GA), matching Item 19's 2 excluded Studios; Item 20 footnote 1/2 also note the tables count outlets as of December 31 while XFI's 10-K uses a 'no sales for nine consecutive months' test. Raised by Pass B. — Definitional, and disclosed as such by the FDD itself. No table figure is affected; the site should simply not expect FDD unit counts to equal the parent's publicly filed counts.
- [D/minor] Item 20 (all tables): No U.S./international split in Item 20 - all tables are U.S. only, with international and Canadian franchising done by separate affiliates per Item 1. Raised by Pass B. — Correct by design under the FTC Rule; the TOTAL rows are U.S. totals. The site should label unit counts as U.S. and not present 1,179 as a worldwide figure.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 8 | 0 | 0 | 0 | 0 | 8 |
| 2024 | 8 | 0 | 0 | 8 | 0 | 0 |
| 2025 | 0 | 0 | 0 | 0 | 0 | 0 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — Club Pilates Franchise SPV, LLC
- Document
- FDD 2026, issued 2026-04-17, amended 2026-08-07
- Item
- Item 15
- Page
- PDF p. 62
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641077
we recommend, but do not require, that you (or, if you are an entity, the Operating Principal) personally supervise the Studio
Item 15 recommends but does not require that the franchisee or, for an entity, the Operating Principal personally supervise the studio. A Designated Manager the franchisor approves may handle day-to-day supervision and need not hold any ownership interest, provided that person has completed the Designated Manager Training Module and, if delivering classes, the Instructor Bridge Training Program. The studio must at all times be managed and staffed by at least one person who has completed the Designated Manager Training Module. Separately, every direct or indirect owner of 10% or more — and each of their spouses — must sign a Guarantee.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Manager-run permitted Disclosed
Item 15 recommends but does not require that the franchisee or, for an entity, the Operating Principal personally supervise the studio. A Designated Manager the franchisor approves may handle day-to-day supervision and need not hold any ownership interest, provided that person has completed the Designated Manager Training Module and, if delivering classes, the Instructor Bridge Training Program. The studio must at all times be managed and staffed by at least one person who has completed the Designated Manager Training Module. Separately, every direct or indirect owner of 10% or more — and each of their spouses — must sign a Guarantee. Item 15 recommends but does not require that the franchisee or, for an entity, the Operating Principal personally supervise the studio. A Designated Manager the franchisor approves may handle day-to-day supervision and need not hold any ownership interest, provided that person has completed the Designated Manager Training Module and, if delivering classes, the Instructor Bridge Training Program. The studio must at all times be managed and staffed by at least one person who has completed the Designated Manager Training Module. Separately, every direct or indirect owner of 10% or more — and each of their spouses — must sign a Guarantee. |
|---|---|
| Initial training | The franchisee or, for an entity, the Operating Principal must complete the Initial Training Program (the 'Owner/Operator Module') before the studio's soft opening. Item 11 sets it at 9 hours of classroom instruction and no on-the-job hours, delivered over what the franchisor says will typically be 2 to 3 business days at its Irvine, California headquarters or another facility it designates, most likely in California. The modules cover the general manager role, studio sales, member onboarding and management, marketing, retail, hiring and daily operations. No tuition is charged provided all attendees come at the same time, but travel, meals and lodging are the franchisee's cost, estimated at $1,000 to $3,000 in Item 7. Any Designated Manager must separately complete the 20-hour Designated Manager Training Program, offered at headquarters or virtually. The initial instructors must complete the Instructor Bridge Training Program, an online course of an estimated 9 to 12 hours costing $200 per instructor; the franchise offering assumes instructors already meet the Instructor Eligibility Criteria, which include at least 450 hours of Pilates instruction from a third-party institution. The franchisor may send representatives on site for 1 to 2 business days around the soft opening at the franchisee's cost, and may require up to five days of additional training a year. Disclosed
Training is managed by the brand president. The franchisor states it may change the content and duration of the programs, so the hours shown are current rather than contractual. |
| Multi-unit / development options | Qualified buyers may sign a Multi-Unit Agreement granting development rights in a Development Area, typically committing to open at least three studios on an agreed Development Schedule. The development fee is $10,000 for each studio beyond the first — $20,000 for a three-studio commitment — payable in a lump sum at signing, non-refundable, and credited in $10,000 increments against the initial franchise fee for each subsequent Franchise Agreement. The first Franchise Agreement is signed at the same time as the Multi-Unit Agreement; each later studio is opened under the franchisor's then-current form, which may differ. A franchisee that already owns a Club Pilates studio pays a reduced initial franchise fee of $55,000 for a second or subsequent franchise, provided it is in compliance with all its agreements. Development rights are lost if the Development Schedule is missed, subject to one extension of up to 90 days where a lease has already been signed; the developer has no right to transfer the Multi-Unit Agreement. Disclosed
Drawn from Item 1, Item 5, Item 7 Table B and Items 12 and 17. |
| Territory (Item 12) | The FDD states plainly that the franchisee does not receive an exclusive territory and may face competition from other franchisees, franchisor-owned outlets and other channels or competitive brands the franchisor controls. Once a site is approved, the franchisor designates a Designated Territory around it, generally an area with a population of at least 15,000, with boundaries set by zip codes, streets, landmarks, county lines, a radius or a map, and varying between franchisees. Within that territory the franchisor will not itself operate or license a third party to operate a Club Pilates studio while the franchisee is in compliance. Protection stops there: the franchisor reserves the right to sell similar services under other marks anywhere, to use alternative channels including the internet and streaming, to acquire or franchise competing businesses, and to open studios at non-traditional sites inside the territory. The franchisee may not solicit clients or advertise outside its territory without consent. Continued rights depend on performance: unless waived, the franchisee must reach and hold trailing 12-month average monthly Gross Sales of $25,000 by the first anniversary of the soft opening and $40,000 by the second and each later anniversary, failing which the franchisor may impose mandatory corrective training and, if the quota is missed across any trailing 36-month period, may terminate. The territory may also be resized at renewal or on a proposed assignment if its population has grown above 15,000. Disclosed
Four affiliated fitness brands — BFT, Pure Barre, Stretch Lab and Yoga Six — are franchised by sister companies, and Item 12 states there is no mechanism for resolving conflicts between studios of different Xponential brands. |
| Initial term | 10 years Disclosed
Ten years running from the date the Franchise Agreement is signed, not from opening — and the agreement allows up to 13 months between signing and the soft opening, so part of the term can be consumed before the studio trades. |
| Renewal | One consecutive 10-year successor term. To qualify the franchisee must sign the franchisor's then-current form of franchise agreement, which may differ materially from the original; keep possession of the authorized location or secure an approved alternative; remodel the studio to the current System Standards at its own cost; have substantially complied with the agreement throughout the term and be in compliance with it and every other agreement with the franchisor; pay the $10,000 successor franchise fee; give between 90 and 180 days' notice; and sign a general release, subject to state law. Disclosed
|
| Staffing | The studio must at all times engage at least one Authorized Instructor and be managed and staffed by at least one person who has completed the Designated Manager Training Module. The Item 7 additional-funds line is built on wages for a general manager, a front desk or sales associate and seven instructors, which is the closest the reviewed items come to a staffing model. Authorized Instructors must already meet the Instructor Eligibility Criteria — at least 450 hours of Pilates instruction certified by a recognised third-party institution — before completing the franchisor's Instructor Bridge Training. Item 1 notes some states require a person certified in CPR or similar training to be present during all operating hours. Required hours of operation are not stated in the reviewed items. Disclosed
Headcount is inferred only from the assumptions the franchisor lists behind the additional-funds estimate; the FDD does not state a required staffing level. |
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: 28 matter(s) disclosed Disclosed · Bankruptcy: None disclosed Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | 28 matter(s) disclosed Disclosed Item 3 lists 28 matters. None involves a Club Pilates franchisee; nearly all concern the parent Xponential Fitness and its affiliated or divested brands, and are disclosed because those entities are parents or affiliates of this franchisor. Twelve pending actions involve a parent, predecessor or affiliate. Most were brought by current or former franchisees of AKT, Yoga Six, BFT, CycleBar, Pure Barre, Row House, Rumble, Lindora or Stretch Lab, repeating a common set of allegations: pre-sale disclosure violations under state franchise investment laws, untrue or unauthorised financial performance representations, fraudulent inducement and breach of the implied covenant. Disclosed resolutions include a partial settlement in principle of $242,000 and $100,000 to two AKT plaintiffs and a $200,000 settlement of the Nickle Acquisition claim; a Yoga Six trial set for October 2026, a Pure Barre arbitration set for February 2027 and a Canadian Stretch Lab arbitration seeking CAD $3,000,000 remain pending. The group also includes a Fair Labor Standards Act class action by employees of a former multi-brand franchisee that the Xponential defendants agreed to settle for $2,150,000, a contract dispute with the Australian owner of the BFT brand seeking over $1 million, a dispute with the buyers of the CycleBar and Rumble systems, and a third-party complaint by Rumble franchise owners in a lender's collection suit. Two concluded matters are disclosed: an action the predecessor brought against the original Stretch Lab operator, resolved by a $6.5 million asset purchase, and a Yoga Six franchisee arbitration settled in November 2025 with a $304,000 payment to a landlord. Five securities and shareholder-derivative suits against Xponential Fitness, Inc. and its officers and directors are pending, two consolidated as the lead securities case and three as a stayed derivative action. Six regulatory matters are disclosed, all resolved without admission of wrongdoing: a California DFPI consent order with a $450,000 penalty; a Washington consent order reimbursing $5,400 of costs; an FTC stipulated order approved in April 2026 under which the company agreed to pay $17 million in redress to certain franchisees; a Virginia consent agreement with a $20,000 penalty and $1,200 of costs; a Maryland consent order with a $75,000 penalty plus offers to refund fees to certain unopened franchisees; and a New York Assurance of Discontinuance — to which this franchisor is itself a party — under which the group agreed to pay $2,700,000 in restitution, a $300,000 civil penalty and $971,250 in returned franchise fees. Several regulators found the brands' disclosure documents contained material misrepresentations or omissions, in the New York matter about the timeline for opening a franchise. Three further matters concern an unrelated company, Shoals Technologies Group, where the franchisor's interim CFO previously served as a director. |
|---|---|
| Bankruptcy (Item 4) | None disclosed Disclosed Item 4 states that no bankruptcy information is required to be disclosed. |
| Personal guaranty | Required Disclosed
Item 1 requires every person who directly or indirectly owns 10% or more of an entity franchisee to sign the franchisor's then-current Guarantee, Indemnification and Acknowledgment, with one designated as Operating Principal. Item 15 extends this to each such owner's spouse. The FDD cover page carries a state-required 'Spousal Liability' risk warning stating that a spouse with no ownership interest must sign a document making them liable for all financial obligations, putting marital and personal assets at risk. |
| Non-compete | During the term the franchisee, its principals, owners, guarantors and their immediate family members may not be directly or indirectly involved in any Competing Business, or in any business that franchises or licenses one, anywhere — the in-term restriction is global. 'Competing Business' is defined broadly as any fitness or exercise business, any fitness or exercise marketing or consulting business, any business offering similar products, or any business franchising such operations. Diverting or attempting to divert customers, and soliciting other studios' members, are also prohibited. After termination or expiry the same restrictions run for two years; the prohibition on franchising activities remains unlimited in area for those two years, while the prohibition on operating a Competing Business applies at the authorized location and within a 10-mile radius of the authorized location or of any Club Pilates studio. For two years the franchisee also may not solicit former customers of its studio or approach the franchisor's suppliers for any competitive purpose. Under a Multi-Unit Agreement the post-term restriction covers the Development Area, 10 miles beyond its boundaries, and 10 miles around any studio open, leased or under development at expiry. All of these are stated to be subject to applicable state law. Disclosed
Because the radius is measured from any Club Pilates studio, not only the franchisee's own, the post-term restriction can cover a large area in a market with many studios. |
| Transfer restrictions | Any transfer needs the franchisor's prior written consent. 'Transfer' is defined broadly to cover voluntary or involuntary, direct or indirect assignment, sale, gift, encumbrance, pledge or delegation of the Franchise Agreement, of ownership interests, of control of the studio, of the studio lease or of the studio's assets. Conditions include being in compliance with all agreements and System Standards; the transferee either signing the franchisor's then-current form of franchise agreement, which may contain materially different terms, or assuming the existing obligations at the franchisor's option; the transferee meeting current requirements and completing the training program for new franchisees with any applicable fees; a signed general release; and payment of the $10,000 transfer fee, reduced to $750 for an individual assigning to a wholly owned entity and $1,500 for a transfer to an immediate family member. The franchisor holds a right of first refusal over any bona fide offer for an interest in the franchisee, the agreement or the studio. On death or disability all interests must be transferred within six months, and the franchisor may immediately appoint a manager and run the studio at the franchisee's cost in the meantime. A developer has no right at all to transfer a Multi-Unit Agreement. Disclosed
Item 20 records 133 transfers in 2025, more than double the 59 recorded in 2024. |
| Termination / non-renewal | The Franchise Agreement gives the franchisee no termination right other than under state law, and does not allow the franchisor to terminate without cause. Curable defaults carry a 30-day cure period, subject to state law, and include failure to obtain a required consent, failure to keep books and records, failure to supervise or manage the studio appropriately, non-payment to the franchisor, its affiliates or any third party, failure to obtain adequate financing, failure to maintain insurance, marketing failures, use of unauthorised suppliers, and failure to meet the System Standards or the Minimum Monthly Gross Sales Quota. Non-curable defaults include material misrepresentation, insolvency or bankruptcy, a felony or reputationally damaging conviction, unauthorised transfer, falsified reports, misuse of confidential information or the marks, abandoning the business for two consecutive days, health or safety violations, failure to sign an approved lease within six months of signing or to hold a soft opening within 13 months, loss of the premises, breach of the non-compete, and repeated defaults — three failures to pay or comply in any 12 months, or the same provision breached twice within six months even if cured. Cross-default is express: a default under any other agreement between the franchisee or its affiliates and the franchisor or its affiliates is a default under this one, a point the cover page flags as a special risk. On termination the franchisee must cease operating, de-identify, return manuals and signage, assign phone numbers and internet addresses, pay all outstanding sums and the franchisor's enforcement costs, and, at the franchisor's option, sell it the studio's assets and assign the lease — with the purchase price set at the lower of depreciated cost or fair market value. Item 6 adds Lost Revenue Damages of up to 36 months of royalty and fund contributions on trailing average sales. Disclosed
The minimum sales quota is a termination trigger: trailing 12-month average monthly Gross Sales of $25,000 by year one and $40,000 by year two and each anniversary after, with termination available if the quota is missed across any trailing 36-month period. |
| Supplier restrictions (Item 8) | The franchisor may require any item or service needed to operate the studio to be bought from a supplier it approves or designates, which may be itself or an affiliate, and may change that list at will. Current required-source categories are the pre-sales and soft opening retail inventory kit and ongoing retail inventory, the fitness equipment and initial FF&E package and certain other equipment, insurance, shipping and installation, training materials, the water filtration system, and the POS system and required software. The franchisor states that required purchases will be roughly 44% to 73% of total purchases to establish the studio and roughly 73% to 88% of purchases to keep it running, excluding lease payments. It may develop private-label products and require franchisees to buy them from it. An alternative supplier may be proposed but needs written approval, an evaluation fee of $1,500 per day plus expenses, and can have approval revoked at any time. On revenue: in fiscal 2025 the franchisor itself received no revenue from selling goods and services to franchisees, but its predecessor received $34,002,506 from such sales, which was 82.6% of the predecessor's total revenue of $41,161,731. The franchisor separately received $6,853,859 in allowances, rebates and other consideration from vendors on franchisee purchases, 5.5% of its total revenue of $125,206,634; the predecessor received $4,901,667 in similar consideration and Xponential received $8,217,592 across all its brands. No purchasing or distribution cooperatives have been formed. Disclosed
The single largest required purchase from the franchisor is the fitness equipment and initial FF&E package at $128,986 to $170,034, roughly a third of the low-end initial investment. |
| Dispute resolution | The parties must first attempt informal resolution, then mediate before JAMS, then arbitrate under JAMS Comprehensive Arbitration Rules. Both mediation and arbitration take place at, or within 50 miles of, the franchisor's principal place of business, currently Irvine, California, or by videoconference if both agree. The franchisor keeps the right to seek injunctive relief in any court of competent jurisdiction, and any litigation must be brought in the court nearest its principal place of business. California law governs, except for the U.S. Trademark Act, the Federal Arbitration Act and other federal law, and non-compete disputes, which are governed by the law of the state where the studio is located. All of this is stated to be subject to state law, and the FDD cover page carries a required out-of-state dispute resolution risk warning. The Multi-Unit Agreement contains the same provisions. Disclosed
Mediation costs are split; each side otherwise bears its own costs. Item 17 does not disclose a jury-trial waiver or a claims limitation period in the summary table. |
- The FDD cover page carries seven state-required special risk warnings: out-of-state dispute resolution in California, spousal liability, required minimum sales performance, short operating history, mandatory minimum payments, cross-defaults across agreements, and a significant number of signed franchise agreements whose outlets have not opened (123 at December 31, 2025).
- The franchising entity was formed on March 6, 2023 and began selling franchises on April 4, 2023, taking over agreements signed by its predecessor as of December 31, 2023; the FDD itself flags the resulting limited operating history as a special risk even though the Club Pilates brand has been franchised since 2012.
- Territorial rights and the franchise itself depend on a minimum sales quota: trailing 12-month average monthly Gross Sales of $25,000 by the first anniversary of the soft opening and $40,000 by the second and each later anniversary.
- Continuing payments on Gross Sales are among the higher in franchising: an 8% royalty plus a 2% brand development fund plus a local advertising requirement of the greater of $1,500 a month or 2%, with the franchisor able to raise the marketing components up to a 7% aggregate cap. Item 6 discloses that some existing franchisees pay only 6% or 7% royalty.
- The franchisor may raise the Technology Fee and the Initial Instructor Training Fee by 10% each year, and a $203 monthly software fee disclosed in Items 7 and 11 does not appear in the Item 6 fee table.
- Item 1 anticipates a future financing transaction under which the franchisor and its parent would guarantee obligations of newly created indirect parents, increasing the group's debt to adjusted EBITDA leverage by an amount the FDD says is not determinable.
- Four sister brands — BFT, Pure Barre, Stretch Lab and Yoga Six — are franchised by affiliates, and Item 12 states there is no mechanism for resolving conflicts between studios of different Xponential brands.
- Item 3 discloses six regulatory settlements involving the franchisor group over franchise disclosure, including a $17 million FTC redress order approved in April 2026 and a New York Assurance of Discontinuance to which this franchisor is itself a party.
- Item 20 states that franchisees have entered into confidentiality agreements in the last three fiscal years that restrict their ability to speak openly about the system.
- On termination the franchisor may buy the studio's assets at the lower of depreciated cost or fair market value, and Item 6 provides for Lost Revenue Damages of up to 36 months of royalty and fund contributions based on trailing average sales.
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateModel estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology.
| Line (annual) | Downside | Base | Upside |
|---|---|---|---|
| Revenue (AUV basis) | $685,540 | $987,810 | $1,135,982 |
| − Cost of goods / supplies assumption | $34,277 | $49,391 | $56,799 |
| − Payroll (excl. owner) assumption | $239,939 | $345,734 | $397,594 |
| − Occupancy assumption | $123,397 | $177,806 | $204,477 |
| − Other operating expenses assumption | $95,976 | $138,293 | $159,037 |
| − Royalty disclosed 8% of gross sales = $79,025 |
$54,843 | $79,025 | $90,879 |
| − Contributions to Brand Development Fund disclosed 2% of gross sales = $19,756 |
$13,711 | $19,756 | $22,720 |
| − Local Advertising Requirement disclosed 2% of gross sales = $19,756 |
$18,000 | $19,756 | $22,720 |
| − Technology Fee disclosed $550/month × 12 = $6,600 |
$6,600 | $6,600 | $6,600 |
| − Software Fee (Approved Supplier studio-management software) disclosed $203/month × 12 = $2,436 |
$2,436 | $2,436 | $2,436 |
| = Modeled operating result before the items below (EBITDA-style) | $96,361 | $149,014 | $172,721 |
| − Manager compensation assumption | $60,000 | $60,000 | $60,000 |
| = Modeled result after manager compensation | $36,361 | $89,014 | $112,721 |
| − Illustrative debt service assumption | $81,784 | $81,784 | $81,784 |
| = Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees | −$45,423 | $7,229 | $30,937 |
| Modeled operating margin | 14.1% | 15.1% | 15.2% |
This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit); and 3 mandatory fee(s) whose amounts the FDD does not state (listed below — real outflows are higher by these amounts). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.
Mandatory fees disclosed but not quantified — not included in the modeled result: the FDD requires these but states no amount (e.g. billed at "then-current" rates). They are never modeled as $0. If you have a quote or estimate, enter an annual amount to include it as your own assumption:
- Initial Instructor Training Fee (Instructor Bridge Training Program) (Item 6, p. 27) — Item 7 estimates $200-$1,600 depending on number of instructors trained pre-opening; ongoing amount depends on instructor turnover/hiring pace.
- Music Licensing Fee (Item 6, p. 29) — amount not stated in the FDD (e.g. “then-current fee”)
- Insurance (required coverage) (Item 7, p. 34) — Wide disclosed range $3,823-$21,172 per year (Item 7 note 7, p. 34); midpoint about $12,500/year.
Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — Club Pilates Franchise SPV, LLC · issued 2026-04-17 · amended 2026-08-07. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — Club Pilates Franchise SPV, LLC Registry file 641077 · 344 pages Cover page reads 'ISSUANCE DATE: April 17, 2026, amended August 7, 2026'; the running footer reads '2026_08 FDD'. Wisconsin registration effective 4/20/2026 and shown as Registered; this is the newest document available in that registry. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-04-17; amended 2026-08-07 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-05. AI-assisted extraction independently machine-verified against the cited source document (2026-09-02): two independent AI reading passes plus tie-break re-inspection of every disagreement; 74 of 77 material fields confirmed (29 with the exact page citation re-confirmed), 0 corrected, 0 unresolved, 3 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 31, 2025). See how we use AI and verify data.
Fields flagged as uncertain (6)
- franchisor.business_since
- item19.population_share_of_system
- risk.litigation.franchisee_initiated_count
- risk.litigation.franchisor_initiated_count
- fees.local_marketing.value
- operations.staffing_note
Extraction notes (21)
- franchisor.business_since is null. Item 1 states only that Club Pilates franchises were first offered in September 2012 by Club Pilates Global, LLC; it does not say when the first studio began operating, so no year for the start of the business itself is recorded. franchising_since is 2012 on the strength of that same sentence.
- The current franchising entity, Club Pilates Franchise SPV, LLC, was formed on March 6, 2023 and began selling franchises on April 4, 2023 after an internal reorganisation; agreements signed by its predecessor Club Pilates Franchise, LLC were assigned to it as of December 31, 2023. The FDD cover accordingly carries a 'Short Operating History' risk warning even though the brand has been franchised since 2012.
- Item 7 Table A foots exactly at both ends: the 14 line items sum to $413,289 low and $1,029,811 high, matching the printed total and the figures on the FDD cover page. Table B for a three-studio Multi-Unit Agreement also foots ($413,289 + $20,000 development fee = $433,289 low; $1,029,811 + $20,000 + $50,000 sourcing fee = $1,099,811 high).
- item19.population_share_of_system is our arithmetic: 1,005 Qualified Studios divided by 1,179 franchised outlets at December 31, 2025, giving 85.2%. The two counts are measured on slightly different bases — operated by a franchisee for the whole year versus open at year end — and the FDD does not state this percentage.
- Item 19 quartiles are ranked highest to lowest, so the 1st quartile holds the top performers and the 4th the weakest. The metric subsets say so explicitly to avoid the opposite reading.
- The Item 19 revenue measure is 'Gross Revenue', which the franchisor states is defined differently from the 'Gross Sales' used for royalties and fund contributions. Values are recorded at face value with that conflict flagged in the caveats.
- Item 20 Table 4 contains an internal inconsistency: the California row for 2025 shows 7 company-owned outlets at both the start and end of the year, contradicting the same table's 2025 Total row (0 and 0), the 2024 California row that ends at 0, and Table 1, which shows zero company-owned outlets throughout 2025. The Total row was used. Several Table 3 state rows also print footnote digits against outlet counts (for example South Carolina 2024 shows '52' where 5 openings plus footnote 2 makes the row foot) and a few state rows do not carry forward year to year, but every Totals row foots and agrees with Table 1.
- Litigation initiation counts are our classification from the case captions and descriptions in Item 3, not a franchisor statement. Eleven matters were brought by current or former franchisees, master franchisees or their owners against the franchisor group (including one third-party complaint within a lender's collection suit and one concluded arbitration); one was brought by the predecessor franchisor against a former operator. The remaining sixteen are securities and derivative actions against the listed parent, regulatory matters, an employee wage class action, a dispute with the buyers of two divested brands, and three matters involving an unrelated company where the interim CFO was a director. No matter in Item 3 involves a Club Pilates franchisee.
- fees.local_marketing is recorded as 2% of Gross Sales because the requirement is the greater of $1,500 a month or 2% of the prior month's Gross Sales. The fixed floor binds until monthly Gross Sales exceed $75,000, so at the studio revenue levels shown in Item 19 the percentage generally governs; the dual basis is set out in the note.
- fees.technology records the $550 monthly Technology Fee from the Item 6 table. A further Software Fee of $203 a month is disclosed in Item 7 note 13 and Item 11 but is charged by an approved supplier rather than the franchisor and has no row in the Item 6 table; it is recorded under other_recurring.
- fees.cooperative is recorded as 0 because Item 6 states the regional or local advertising co-op amount is 'as the Co-Op determines (not currently charged)'. Zero is the amount currently charged, not a statement that no co-op can arise: if the franchisor establishes one covering the studio's area, participation is mandatory at whatever rate the co-op sets, subject to the 7% aggregate marketing cap.
- No minimum liquid capital or net worth requirement appears on the cover pages or anywhere in Items 1 through 22. The only mention of net worth is in the Michigan state notice, which concerns the franchisor's own financial statements.
- operations.staffing_note draws its headcount detail from the assumptions listed behind the Item 7 additional-funds estimate (a general manager, a front desk or sales associate and seven instructors). The FDD does not state a required staffing level or operating hours, so this is illustrative of the franchisor's cost assumption rather than a contractual requirement.
- Item 20 counts are U.S. only, broken out by state and the District of Columbia, and Item 19 confirms all 1,179 studios open at December 31, 2025 were in the United States. Table 5 lists one projected opening in Puerto Rico. Item 1 states affiliates franchise Club Pilates studios in Canada and internationally; those are outside these tables and are not counted here.
- Item 23 (receipts), the Exhibit C financial statements and the form agreements in Exhibits A and K were not parsed in detail. The December 31 fiscal year end comes from Item 21.
- Verification 2026-09-02: fix_page /investment/franchise_fee_high 34 → 33
- Verification 2026-09-02: fix_page /item20/projected_openings_next_year 92 → 93
- Verification 2026-09-02: fix_page /item20/signed_not_open 92 → 93
- Verification 2026-09-02: fix_page /operations/multi_unit 24 → 25
- Verification 2026-09-02: fix_page /risk/personal_guaranty 62 → 63
- Verification 2026-09-02: fix_page /risk/noncompete 66 → 67
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