Pilates AddictionFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Pilates Addiction franchise requires a total initial investment of $304K – $699K, including a $65K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $452K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $304K – $699K
- 59th pct Health & Fitn…
- Avg gross sales
- $452K
- 22nd pct Health & Fitn…
- Royalty
- 8.0%
- 55th pct Health & Fitn…
- Units
- 11
- 39th pct Health & Fitn…
- SBA default
- N/A
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
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
Franchised units fell from 9 to 7 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $304K – $699K including a $65K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $452K/year (median $374K).
- Verdict A (Top Quintile) with a risk score of 36/100.
- Emerging franchise: only 1 year of franchising with 11 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Pilates Addiction Franchisor LLC
- Parent company
- Sequel Brands, LLC
- CEO title
- Chief Executive Officer
- Sarah Luna
- Incorporated in
- DE
- HQ
- 4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660
- Auditor
- Moss Adams LLP
- Audited financials
Overview
About
Pilates Addiction franchisees operate boutique Pilates studios offering reformer and mat classes, personal training, and membership packages. Day-to-day operations include scheduling instructors, managing class capacity, maintaining equipment, handling member billing/retention, and overseeing sales/marketing to drive new membership acquisition.
- CEO
- Sarah Luna
- Headquarters
- CA
- Founded
- 2025
- FDD year
- 2025
- States available
- 4
FDD Item 7 · 2025 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Feenot refundable | $65K | $65K | |
| Initial FF&E Packagenot refundable | $28K | $40K | |
| Presale Kitnot refundable | $6K | $9K | |
| Initial Retail Inventory Kitnot refundable | $6K | $9K | |
| Travel and Related Expenses During Initial Trainingnot refundable | $1K | $6K | |
| Security Deposits for Utilitiesnot refundable | $900 | $6K | |
| Rent and Security Depositnot refundable | $13K | $68K | |
| Net Leasehold Improvementsnot refundable | $48K | $286K | |
| Signagenot refundable | $12K | $25K | |
| Supplies and Accessoriesnot refundable | $500 | $2K | |
| Technology Systemnot refundable | $3K | $4K | |
| Technology-Related Feesnot refundable | $4K | $4K | |
| Business Licensesnot refundable | $750 | $9K | |
| Professional Feesnot refundable | $13K | $15K | |
| Insurance Deposit and Initial Premiumsnot refundable | $1K | $4K | |
| Grand Opening Marketingnot refundable | $15K | $15K | |
| Instructor Onboarding Fees and Related Costsnot refundable | $12K | $32K | |
| Additional Funds, 3 monthsnot refundable | $10K | $50K | |
| Total initial investment | $239K | $647K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
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
$126K
28.0% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $304K – $699K
- Near category avg vs category
- Liquid capital req'd
- $10K – $50K
- Better than avg vs category
- Franchise fee
- $45K – $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 | $850 |
| Training fee | $500 |
| Transfer fee | $16K |
| Renewal fee | $16K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $452K
- Per unit, per year
- Median gross sales
- $374K
- Item 19 type
- gross_sales
- Sample size
- 11 units
- vs category median 11
- Range (low → high)
- $205K→$1.0M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 180 Health & Fitness brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Health & Fitness averages
How Pilates Addiction Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 11
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 9
- Corporate units in the system
- % franchised
- 18%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
High-risk investment with a financially unstable franchisor, litigation-plagued leadership from failed Xponential Fitness venture, undisclosed profitability data, and a micro-system of 11 units with unknown growth.
Litigation (Item 3)
Two pending lawsuits filed in Orange County, California Superior Court involving current executives (Sarah Luna - President; Anthony Geisler - CEO of Sequel Brands) who previously served at Xponential. Case 1: AKT Lawsuit (filed 8/30/2023) - former AKT franchisees alleging violations of franchise disclosure laws (CA, FL, MI), fraud, breach of covenant, and unfair practices; seeking rescission, damages, attorneys' fees. Case 2: Yoga Six Lawsuit (filed 11/22/2023) - two Yoga Six franchisees alleging violations of CA franchise disclosure law, fraud, breach of covenant, and unfair practices; seeking injunctive relief and damages. Both cases name the franchisor entities and multiple individual defendants. Note: FDD states these cases involve Xponential (not the current franchisor) and current officers in their prior capacities.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Moss Adams LLP
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 36 / 100 rating
- 01HIGHPending litigation involving both founder/officers (Sarah Luna and Anthony Geisler) alleging fraud, disclosure violations, and franchisee disputes from their previous Xponential Fitness roles creates credibility and legal risk
- 02HIGHGoing Concern status is FALSE — indicates financial instability and potential solvency questions at corporate level
- 03MEDNet Income not disclosed despite $451,547 average revenue — inability or unwillingness to provide profitability data is a major transparency red flag
- 04MEDOnly 11 units with unknown growth trajectory — extremely small system suggests limited brand traction and high failure risk
- 05MEDHigh investment range ($303K-$699K) paired with undisclosed profitability creates asymmetric risk for franchisees
- 06MED8% royalty on gross sales (not net) combined with non-disclosed net income means franchisees cannot model true ROI
- 07HIGHLitigation involving disclosure violations and fraud allegations directly undermines Item 23 (litigation disclosures) credibility
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius/Population |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Territory population | 50,000 |
| Online sales rights | Restricted |
| 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 |
| Mandatory arbitration | Yes |
| Arbitration location | Newport Beach, California |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 7 |
View Item 3 litigation summary
Two pending lawsuits filed in Orange County, California Superior Court involving current executives (Sarah Luna - President; Anthony Geisler - CEO of Sequel Brands) who previously served at Xponential. Case 1: AKT Lawsuit (filed 8/30/2023) - former AKT franchisees alleging violations of franchise disclosure laws (CA, FL, MI), fraud, breach of covenant, and unfair practices; seeking rescission, damages, attorneys' fees. Case 2: Yoga Six Lawsuit (filed 11/22/2023) - two Yoga Six franchisees alleging violations of CA franchise disclosure law, fraud, breach of covenant, and unfair practices; seeking injunctive relief and damages. Both cases name the franchisor entities and multiple individual defendants. Note: FDD states these cases involve Xponential (not the current franchisor) and current officers in their prior capacities.
Items 10, 11
Training & Operations
- Classroom training
- 56 hrs
- On-the-job training
- 60 hrs
- Training location
- On-site at franchisee's restaurant
- POS system
- MindBody
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MindBody
Item 20 · call current owners
Franchisee Contacts
32 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Pilates Addiction · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pilates Addiction franchise?
The total investment to open a Pilates Addiction franchise ranges from $304K – $699K, 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 Pilates Addiction franchise owners earn?
According to Item 19 of the Pilates Addiction FDD, the average gross sales per unit is $452K. The median is $374K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Pilates Addiction's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Pilates Addiction (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Pilates Addiction franchise locations are there?
As of their most recent FDD filing, Pilates Addiction has 11 total units in the United States, including 9 franchised units and 9 company-owned units. 1 new units were opened in the latest reporting year.
Is Pilates Addiction a good franchise to buy?
FranchiseVerdict rates Pilates Addiction as a A-grade franchise with a risk score of 36 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.