Club Pilates

Item 7 outlines an initial investment of $385,048 to $839,058, including a $65,000 franchise fee, with ongoing fees at 8% royalty, 2% brand/ad fund, and a $550 monthly technology fee—positioning total ongoing costs at the higher end for health & wellness centers, where royalties often hover 6-7%. Item 19 shines brightly: average gross revenue hits $990,580 across studios, with a median of $969,022, suggesting most locations perform solidly without extreme outliers dragging down the system. For a franchisee targeting $1M in top-line sales, this implies potential profitability after fees, though net margins depend on local operating costs in the $300K-$500K range typical for Pilates studios.

System health shows strength with 1,029 current locations up 23% from 928 in 2023 to 1,137 in 2024, plus 155 projected new units, but tempered by 16 terminations, 4 non-renewals, and 59 transfers—low closure rates signaling operational viability. SBA data flags caution: 278 loans averaging $268,984, but the bankruptcy history points to past financial stress, possibly from parent Xponential Fitness challenges. Overall, robust growth and revenues make Club Pilates compelling for experienced operators in high-demand markets, but vet local competition and SBA defaults closely before committing.