Bottom line
- Total investment $510K – $874K including a $50K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $889K/year (median $963K).
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 38 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Studio Pilates International unit return on the cash you put in?
Unlevered ROIC · per unit
35%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Studio Pilates International units return on equity?
Equity IRR · 5-yr
30.4%
3.77× MOIC
Year-1 DSCR
2.65×
EBITDA ÷ debt service
Equity required
$8.1M
on $18.7M purchase
Total debt
$10.6M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate boutique pilates studios offering reformer and mat pilates classes, typically in 2,000–3,500 sq ft leased spaces. Day-to-day operations include scheduling classes, managing instructors, marketing to local members, handling recurring membership billing, and maintaining equipment. Revenue is primarily membership-based with ancillary income from retail and private sessions.
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 · 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Studio Pilates International presents moderate-to-elevated risk due to undisclosed profitability metrics, explosive but potentially unsustainable unit growth, and a small system competing in a crowded boutique fitness category.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNet income not disclosed in FDD despite $888,774 average revenue — unable to validate actual profitability or ROI timeline
- 02MINORExtreme unit growth of 140% YoY (from ~5 to 12 units) suggests either aggressive expansion or recent refranchising; sustainability unclear
- 03MEDHigh investment range ($510K-$874K) against undisclosed net income creates opacity on payback period and break-even analysis
- 04MINORPilates boutique market is saturated with established competitors (Reformer Pilates, Club Pilates, Pure Barre); differentiation strategy not evident
- 05MED12-unit system remains very small; limited brand recognition and marketing leverage compared to competitors with 200+ locations
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
22 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Studio Pilates International · FDD (2025) PDF