FranchiseVerdict
Pilates Addiction logo
FV-01951·CAUTIONExcellent95

Pilates Addiction

Formerly known as The Addiction

Health & FitnessFranchising since 2025Website
Investment
$304K – $699K
58th pct Health & Fitn…
Avg revenue
$452K
21st pct Health & Fitn…
Royalty
8.0%
55th pct Health & Fitn…
Units
11
39th pct Health & Fitn…
SBA default

Bottom line

  • Total investment $304K – $699K including a $65K franchise fee, 8.0% ongoing royalty.
  • Average unit revenue of $452K/year (median $374K).
  • Rated CAUTION with a risk score of 74/100.
  • 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
Incorporated in
Delaware
HQ
4000 MacArthur Blvd., Suite 800, Newport Beach, California 92660
Auditor
Moss Adams LLP
Audited financials

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 Pilates Addiction unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $451,547
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: fitness
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $304K–$699K
Working capital
$
FDD reports $10K–$50K

Unlevered ROIC · per unit

24%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$126K
EBITDA margin
28.0%
Total invested
$532K
Payback
50 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Pilates Addiction units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$1.9M

on $9.5M purchase

Total debt

$7.6M

SBA $4.7M + senior + seller note

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
Founded
2025
FDD year
2025
States available
4

Item 7 · what it costs

The Vitals

Total investment
$304K – $699K
All-in to open one unit
Liquid capital
$10K – $50K
Cash you must have on hand
Franchise fee
$65K
Royalty
8.0%
Gross Sales · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
10.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$452K
Per unit, per year
Median gross sales
$374K
Item 19 type
Historical Gross Sales
Sample size
11 units
vs category median 12
Range (low → high)
$205K$1.0M
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank21th
vs Health & Fitness peers
Investment cost rank58th
Lower investment ranks lower (better)
Royalty rate rank55th
Lower royalty = lower percentile (better)
Unit count rank39th
vs Health & Fitness peers
Risk score rank92th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
11
Opened
1
Last reporting year
Closed
0
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
2023
2+1
Franchised units
2024
2
Franchised units
2025
2
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 17 states
Not registered

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

74
Risk · 0-100
CAUTION74 / 100

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.

Score breakdown · what drove the 74 / 100 rating

  1. 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
  2. 02HIGHGoing Concern status is FALSE — indicates financial instability and potential solvency questions at corporate level
  3. 03MEDNet Income not disclosed despite $451,547 average revenue — inability or unwillingness to provide profitability data is a major transparency red flag
  4. 04MEDOnly 11 units with unknown growth trajectory — extremely small system suggests limited brand traction and high failure risk
  5. 05MEDHigh investment range ($303K-$699K) paired with undisclosed profitability creates asymmetric risk for franchisees
  6. 06MED8% royalty on gross sales (not net) combined with non-disclosed net income means franchisees cannot model true ROI
  7. 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

Territory
Radius/Population
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
7
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Delaware

Item 11

Training & Operations

Classroom training
56 hrs
On-the-job training
60 hrs
POS system
MindBody
Operating tech stack

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

32 numbers

Locked
(213) 576-••••
CA
(701) 328-••••
ND
(845) 999-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

Pilates Addiction · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above