Club Pilates Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Club Pilates is a boutique-fitness franchise offering reformer-based and mat Pilates in group classes for all levels. Franchisees run studios built on recurring memberships and class packages, staffing certified instructors.
FranchiseVerdict summary · 2026
A Club Pilates franchise requires a total initial investment of $403K – $1.0M, including a $65K franchise fee and an ongoing 8.0% royalty[2]. Per the 2026 FDD, average unit revenue was $988K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 251 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $403K – $1.0M
- 75th pct Health & Fitn…
- Avg gross sales
- $988K
- 26th pct Health & Fitn…
- Royalty
- 8.0%
- 59th pct Health & Fitn…
- Units
- 1,179
- 97th pct Health & Fitn…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $403K – $1.0M including a $65K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $988K/year (median $978K).
- RISKVerdict A (Strongest tier), verdict score 88/100 (higher is better). SBA loan charge-off rate of 0.0% across 251 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- LEGAL19 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Club Pilates Franchise SPV, LLC
- Parent company
- XPOF Assetco, LLC
- Ultimate parent
- Xponential Fitness, Inc.
- Predecessor
- Club Pilates Franchise, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Michael Nuzzo
- Incorporated in
- DE
- HQ
- 17877 Von Karman Ave., Suite 100, Irvine, CA 92614
- Auditor
- Not identified in extracted text
- Audited financials
- Franchisor revenue
- $204.6M
- vs $227.8M prior year
Overview
About
- CEO
- Michael Nuzzo
- Headquarters
- CA
- Founded
- 2012
- FDD year
- 2026
- States available
- 13
Can you afford it, and what does the money buy?
Entry cost runs 25% above the typical health & fitness franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $65K | $65K |
| Working capital (3–6 mo) | $7K | $44K |
| Equipment, build-out, other | $331K | $921K |
| Total initial investment | $403K | $1.0M |
Source: Club Pilates 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $403K – $1.0M
- Bottom third — review vs category
- Liquid capital req'd
- $7K – $44K
- Top 40% of category vs category
- Franchise fee
- $65K – $65K
- Bottom third — review vs category
- Royalty
- 8.0%
- percentage · 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 |
| Training fee | $500 |
| Transfer fee | $750 |
| Renewal fee | $10K |
| Inventory (initial) | $16K – $18K |
| Total fee load | 10.0% of rev |
What do units actually make?
Average unit sales run 61% above the health & fitness norm.
Source: FDD 2026 · Item 19
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
$277K
28.0% margin
Unlevered ROIC
37%
EBITDA / total invested capital
Payback
32 mo
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Club Pilates unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
37%
Within the 30–60% "attractive franchise" band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Club Pilates units return on equity?
Equity IRR · 5-yr
29.1%
3.58× MOIC
Year-1 DSCR
2.78×
EBITDA ÷ debt service
Equity required
$9.5M
on $20.7M purchase
Total debt
$11.2M
SBA $5.0M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $988K
- Per unit, per year
- Median gross sales
- $978K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- quartile average gross revenue
- Sample size
- 1,005
- vs category median 12 · large
- Range (low → high)
- $146K→$2.3M
- Cohort dispersion (min → max)
- Quartile band
- $686K→$1.3M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 173 Health & Fitness brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $988K/year in gross sales. Revenue-to-investment ratio: 1.4x.
Fee burden
Total ongoing fee load of 10.0% — above the Health & Fitness average of 8.4%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 35.8% CAGR over 3 years across 1,179 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Health & Fitness averages
How Club Pilates Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,179
- Opened
- 153
- Last reporting year
- Closed
- 3
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +35.8%
- Net unit change over 3 years
- 3-yr CAGR
- +35.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 153
- Closed (3yr)
- 3
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 133
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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
- Typical loan rate
- 7.3%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- brand beats franchise avg ↓
- Jobs supported
- 3,016
- 4.4 per loan
- Lender concentration
- 31%
- top lender's share
Borrower mix: 74% went to startups / new businesses, 26% to established operators
Franchise vs independent — in fitness and recreational sports centers, franchised businesses charge off at 15.8% vs 18.2% for independents — franchising is associated with 13% lower SBA default risk in this category.
Vintage analysis
Club Pilates charge-off rate by loan vintage
Top lenders financing Club Pilates franchisees
Showing 3 of 52 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
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.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
Item 3 discloses roughly 19 pending/concluded matters involving Club Pilates and affiliated Xponential Fitness brands, including franchisee disclosure/fraud claims (AKT, EA/Yoga Six, Nickle Acquisition, Zaltsman arbitrations), a Stretch Lab predecessor suit resolved for $6.5M, a class-action wage suit settled for $2.15M, and multiple pending Xponential Fitness Inc. securities/shareholder-derivative lawsuits.
Largest disclosed settlement: $6,500,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Not identified in extracted text
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 88 / 100 verdict
- 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
- 03MED8% royalty on $984k average revenue ($78.7k annually) combined with undisclosed operating costs creates uncertainty on actual franchisee profitability
- 04HIGHGoing 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
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 15,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 27 |
| Curable defaultsℹ | 12 |
| Mandatory arbitration | Yes |
| Arbitration location | Within 50 miles of franchisor's then-current principal place of business (currently Irvine, California), via JAMS Comprehensive Arbitration Rules, or via videoconference if agreed |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 19 |
View Item 3 litigation summary
Item 3 discloses roughly 19 pending/concluded matters involving Club Pilates and affiliated Xponential Fitness brands, including franchisee disclosure/fraud claims (AKT, EA/Yoga Six, Nickle Acquisition, Zaltsman arbitrations), a Stretch Lab predecessor suit resolved for $6.5M, a class-action wage suit settled for $2.15M, and multiple pending Xponential Fitness Inc. securities/shareholder-derivative lawsuits.
Items 10, 11
Training & Operations
- Classroom training
- 29 hrs
- On-the-job training
- 0 hrs
- Training location
- Franchisor's headquarters in Irvine, California (or other designated training facility)
- Ongoing training
- Required
- Time to open
- 13 mo
- From signing to launch
- Site selection
- franchisor_approval_franchisee_locates
- Franchisor financing
- Not offered
- Item 10
- POS system
- Club Ready
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Club Ready
Item 20 · call current owners
Franchisee Contacts
73 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Club Pilates · FDD (2026) 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 $403K – $1.0M, 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 $988K. The median is $978K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Club Pilates FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Club Pilates FDD and qualifies whose outlets they describe.
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 1,179 total units in the United States, including 1,179 franchised units and 0 company-owned units. 153 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 verdict score of 88 out of 100 (higher is better), 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.
For franchisors
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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.