Bottom line
- Total investment $463K – $859K including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $769K/year (median $707K). Estimated payback in 2.9 years.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
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 The Daily Pilates unit return on the cash you put in?
Unlevered ROIC · per unit
32%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Daily Pilates units return on equity?
Equity IRR · 5-yr
31.9%
4.00× MOIC
Year-1 DSCR
2.53×
EBITDA ÷ debt service
Equity required
$6.8M
on $16.9M purchase
Total debt
$10.1M
SBA $5.0M + senior + seller note
Overview
About
The Daily Pilates franchisees operate boutique pilates studios offering classes (group and private), membership programs, and potentially retail/merchandise sales. Day-to-day operations include scheduling instructors, managing class capacity, client retention/billing, and studio maintenance in a protected territory.
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 · 9 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
The Daily Pilates presents CAUTION-to-HIGH RISK due to unresolved litigation alleging disclosure failures and inadequate support, no Item 19 financial verification, questionable going concern status, and a tiny unit base with potentially inflated growth metrics.
Score breakdown · what drove the 65 / 100 rating
- 01HIGHActive litigation with co-franchisees alleging FDD non-disclosure and lack of support, settled only in principle (January 2026) with royalty reductions required—indicates systemic operational/disclosure issues
- 02HIGHGoing Concern status is FALSE—franchisor may face financial instability or operational viability questions that weren't disclosed upfront
- 03MINOROnly 8 units with 133.3% YoY growth appears inflated; unclear if this reflects net new units or acquisition of failed locations; small sample size makes metrics unreliable
- 04MINORAverage net income of $225,974.50 against $463,057–$858,996 investment yields 26–49% ROI, but no Item 19 financial performance representation means these are unverified and may not reflect typical franchisee experience
- 05HIGH7% royalty on $769,360.75 average revenue = ~$53,855 annual royalty; high initial investment coupled with litigation history and lack of Item 19 support creates profitability uncertainty
- 06HIGHLitigation centered on 'failure to disclose FDD' and 'lack of support' directly undermines trust in franchisor's transparency and operational support claims going forward
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
21 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Daily Pilates · FDD (2026) PDF