Bottom line
- Total investment $430K – $600K including a $45K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $1.3M/year (median $1.0M).
- Rated MODERATE with a risk score of 63/100.
- Emerging franchise — only 2 years of franchising with 5 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Natural Pilates unit return on the cash you put in?
Unlevered ROIC · per unit
63%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Natural Pilates units return on equity?
Equity IRR · 5-yr
26.1%
3.18× MOIC
Year-1 DSCR
3.18×
EBITDA ÷ debt service
Equity required
$15.2M
on $28.9M purchase
Total debt
$13.7M
SBA $5.0M + senior + seller note
Overview
About
Natural Pilates franchisees operate boutique pilates studios offering mat and equipment-based classes, personal training, and wellness services to local members. Day-to-day operations include instructor scheduling, class management, membership sales/retention, facility maintenance, and adherence to brand standards. Revenue derives from class memberships, drop-in fees, private sessions, and retail product sales.
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 · 15 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Natural Pilates presents significant caution-level risk due to franchisor going concern issues, micro-unit count, undisclosed profitability metrics, and high capital requirements relative to system maturity.
Score breakdown · what drove the 63 / 100 rating
- 01HIGHGoing Concern status is False — indicates potential financial instability at franchisor level
- 02MINOROnly 5 units system-wide with unknown growth trajectory — extremely small and unproven franchise model
- 03MEDNet Income not disclosed — inability to validate profitability claims or ROI potential
- 04MINORHigh initial investment ($429,600-$600,000) relative to system size creates concentration risk
- 05MINORAverage revenue of $1.26M may not support 7% royalty + operating costs + loan service on $515K investment
- 06MED10-year term locks franchisee into potentially failing system with limited exit options
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Natural Pilates · FDD (2025) PDF