Club PilatesFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Club Pilates franchise requires a total initial investment of $385K – $839K, including a $65K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $984K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 251 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $385K – $839K
- 70th pct Health & Fitn…
- Avg gross sales
- $984K
- 46th pct Health & Fitn…
- Royalty
- 8.0%
- 55th pct Health & Fitn…
- Units
- 1,029
- 97th pct Health & Fitn…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 251 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 1029 to 753 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
14 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $385K – $839K including a $65K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $984K/year (median $969K).
- Verdict A (Top Quintile) with a risk score of 32/100. SBA loan charge-off rate of 0.0% across 251 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Club Pilates Franchise SPV, LLC
- Parent company
- XPOF Assetco, LLC
- Incorporated in
- DE
- HQ
- 17877 Von Karman Ave., Suite 100, Irvine, California 92614
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $521
- vs $205K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Club Pilates franchisees operate boutique fitness studios offering group Pilates classes on reformer and mat equipment. Day-to-day operations include scheduling instructors, managing class capacities, handling membership billing and retention, maintaining studio facilities, and implementing the franchisor's standardized marketing and pricing strategies.
- CEO
- Michael Nuzzo
- Headquarters
- CA
- Founded
- 2012
- FDD year
- 2025
- States available
- 48
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $65K | $65K |
| Working capital (3–6 mo) | $10K | $46K |
| Equipment, build-out, other | $310K | $728K |
| Total initial investment | $385K | $839K |
Source: Club Pilates 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$276K
28.0% margin
Unlevered ROIC
43%
EBITDA / total invested capital
Payback
28 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $385K – $839K
- Below avg, review vs category
- Liquid capital req'd
- $10K – $46K
- Better than avg vs category
- Franchise fee
- $49K – $65K
- Below avg, review vs category
- Royalty
- 8.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $550 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $984K
- Per unit, per year
- Median gross sales
- $969K
- Item 19 type
- Actual
- Sample size
- 849 units
- vs category median 11 · large
- Range (low → high)
- $357K→$2.3M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Club Pilates Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,029
- Opened
- 166
- Last reporting year
- Closed
- 5
- Turnover rate
- 0.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +18.5%
- Net unit change last year
- 3-yr CAGR
- +36.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 59
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 251
- Loan volume
- $68.5M
- Median loan
- $240K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 52
- Defaults
- 0
Vintage analysis
Club Pilates charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Club Pilates's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 11-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 251 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Club Pilates presents a CAUTION-level investment due to active litigation over disclosure practices, absent profitability data, and parent company going concern issues, despite healthy unit growth.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 32 / 100 rating
- 01HIGHActive litigation involving pre-sale disclosure violations and fraudulent inducement allegations suggests potential FDD misrepresentations
- 02HIGHPending securities and derivative litigation against parent company raises governance and financial reporting credibility concerns
- 03MEDAverage net income not disclosed in FDD Item 19, preventing accurate ROI analysis on $385k-$839k investment
- 04MED8% royalty on $984k average revenue ($78.7k annually) combined with undisclosed operating costs creates uncertainty on actual franchisee profitability
- 05HIGHGoing concern status indicates parent company financial instability despite 18.5% YoY unit growth, suggesting aggressive expansion masking underlying problems
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | population |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 14 |
Items 10, 11
Training & Operations
- Classroom training
- 42 hrs
- On-the-job training
- 0 hrs
- POS system
- ClubReady
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ClubReady
Item 20 · call current owners
Franchisee Contacts
81 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Club Pilates · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Club Pilates franchise?
The total investment to open a Club Pilates franchise ranges from $385K – $839K, with an initial franchise fee of $65K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Club Pilates franchise owners earn?
According to Item 19 of the Club Pilates FDD, the average gross sales per unit is $984K. The median is $969K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Club Pilates's franchise failure rate?
Based on SBA 7(a) loan data, Club Pilates has a charge-off rate of 0.0% across 251 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Club Pilates franchise locations are there?
As of their most recent FDD filing, Club Pilates has 1,029 total units in the United States, including 1,029 franchised units and 0 company-owned units. 166 new units were opened in the latest reporting year.
Is Club Pilates a good franchise to buy?
FranchiseVerdict rates Club Pilates as a A-grade franchise with a risk score of 32 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.