Bottom line
- Total investment $385K – $839K including a $65K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $984K/year (median $969K).
- Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 373 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Club Pilates unit return on the cash you put in?
Unlevered ROIC · per unit
43%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Club Pilates units return on equity?
Equity IRR · 5-yr
29.1%
3.59× MOIC
Year-1 DSCR
2.77×
EBITDA ÷ debt service
Equity required
$9.5M
on $20.7M purchase
Total debt
$11.2M
SBA $5.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 47 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
81 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Club Pilates · FDD (2025) PDF