Pilates Addiction Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Pilates Addiction is a boutique fitness franchise offering reformer and mat Pilates classes and personal training. Franchisees run the studios, managing instructors, class scheduling, and memberships.
FranchiseVerdict summary · 2026
A Pilates Addiction franchise requires a total initial investment of $239K – $647K, including a $65K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $481K[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $239K – $647K
- 45th pct Health & Fitn…
- Avg gross sales
- $481K
- Incl. company outlets16th pct Health & Fitn…
- Royalty
- 8.0%
- 59th pct Health & Fitn…
- Units
- 11
- 36th pct Health & Fitn…
- SBA charge-off
- N/A
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 $239K – $647K including a $65K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $481K/year (median $424K) (includes company-owned outlets).
- RISKVerdict C (Average), verdict score 43/100 (higher is better).
- EARLYEmerging 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
Corporate structure & franchisor financials
- Legal entity
- Pilates Addiction Franchisor LLC
- Parent company
- Sequel Brands, LLC
- Predecessor
- WundaBar Franchising Inc.
- Prior franchisor entity
- 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
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
- CEO
- Sarah Luna
- Headquarters
- CA
- Founded
- 2025
- FDD year
- 2025
- States available
- 4
Can you afford it, and what does the money buy?
Entry cost runs 23% below the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown18 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $239K – $647K
- Middle of category vs category
- Liquid capital req'd
- $10K – $50K
- 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 | $850 |
| Training fee | $500 |
| Transfer fee | $0 |
| Renewal fee | $0 |
| Inventory (initial) | $6K – $9K |
| Total fee load | 10.0% of rev |
What do units actually make?
Average unit sales run 21% below the health & fitness norm.
Includes company-owned outlets
Source: FDD 2025 · 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
$135K
28.0% margin
Unlevered ROIC
28%
EBITDA / total invested capital
Payback
3.5 yrs
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 Pilates Addiction unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
28%
Below 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 Pilates Addiction units return on equity?
Equity IRR · 5-yr
49.3%
7.41× MOIC
Year-1 DSCR
1.89×
EBITDA ÷ debt service
Equity required
$2.1M
on $10.1M purchase
Total debt
$8.0M
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: 2025 FDD
Financial Performance
Includes company-owned outlets
- Avg gross sales
- $481K
- Per unit, per year
- Median gross sales
- $424K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 9 outlets
- vs category median 12
- Range (low → high)
- $268K→$990K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- 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 $481K/year in gross sales. Revenue-to-investment ratio: 1.1x. Includes company-owned outlets.
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 roughly stable (0.0% 3-year CAGR) with 11 units.
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 Pilates Addiction Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 11
- Opened
- 0
- 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 (3-yr)
- +0.0%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
No litigation required to be disclosed against the franchisor itself. Certain individuals listed in Item 2 (Sarah Luna, Anthony Geisler, Trevor Lucas) are named defendants in multiple lawsuits related to their prior roles at Xponential Fitness. Those cases involve AKT, Yoga Six, CycleBar, and BFT franchisees and securities holders, not Pilates Addiction.
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 43 / 100 verdict
- 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
- 03MEDOnly 11 units with unknown growth trajectory — extremely small system suggests limited brand traction and high failure risk
- 04MED8% royalty on gross sales (not net) combined with non-disclosed net income means franchisees cannot model true ROI
- 05HIGHLitigation involving disclosure violations and fraud allegations directly undermines Item 23 (litigation disclosures) credibility
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 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| 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 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Newport Beach, California |
| Jury trial waiver | Yes |
| Governing law | DE |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed against the franchisor itself. Certain individuals listed in Item 2 (Sarah Luna, Anthony Geisler, Trevor Lucas) are named defendants in multiple lawsuits related to their prior roles at Xponential Fitness. Those cases involve AKT, Yoga Six, CycleBar, and BFT franchisees and securities holders, not Pilates Addiction.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 60 hrs
- Training location
- Newport Beach, California (classroom); designated Studio (OJT)
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee selects within Site Selection Area; franchisor must approve
- Franchisor financing
- Not offered
- Item 10
- POS system
- MindBody
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MindBody
Item 20 · call current owners
Franchisee Contacts
11 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 $239K – $647K, 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 $481K. The median is $424K. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Pilates Addiction 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 Pilates Addiction FDD and qualifies whose outlets they describe.
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 2 franchised units and 9 company-owned units.
Is Pilates Addiction a good franchise to buy?
FranchiseVerdict rates Pilates Addiction as a C-grade franchise with a verdict score of 43 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
Are you the franchisor?
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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.