Club Pilates Franchise Costs, Fees & FDD

Year Business Began: 2007

Franchising Since: 2012

Headquarters: Irvine, California

Estimated Number of Units: 1,085

Franchise Description: Club Pilates Franchise SPV, LLC is the franchisor. XPOF Assetco, LLC is the franchisor’s direct parent company, whose parent is Xponential Fitness, LLC. The franchise is the right to develop, own and operate, as part of the Club Pilates system, a fitness studio that provides Pilates and other specialized exercise classes using designated equipment. Each studio offers Pilates and other exercise programs through live instructional group and individual classes, including, but not limited to, Pilates Reformer exercises; exercises using a Pilates Ballet Bar, Springboard, EXO Chair, and other Pilates’ apparatuses; strength training; stretching exercises; a teacher training program; and any other services that the franchisor authorizes.
Training Overview: Prior to opening the franchised business, franchisees must ensure that: (i) they (or, if they are an entity, the designated operator) completes the initial training program, which will typically last 2-3 business days at the franchisor’s corporate headquarters or another training facility it designates (most likely in California); and (ii) the designated manager (if one is appointed) attends and completes the designated manager training program. In addition to completing the training program(s) as appropriate, franchisees must ensure that their initial staff of authorized instructors participate in and complete the instructor bridge training program to the franchisor’s satisfaction. For the studio’s soft opening, the franchisor may send one or more representatives to the studio to (a) provide assistance and recommendations regarding the opening and initial operations, and/or (b) provide additional or refresher training associated with any required initial training, as it deems appropriate in its discretion. The franchisor may also provide, and require that franchisees (and their designated operator and designated manager, as appropriate), attend up to five days of additional training each year at its designated training facility.

Territory Granted: Franchisees will operate their studio at the authorized location. Once franchisees have identified their authorized location and the franchisor accepts the proposed site, the franchisor will designate the designated territory around the authorized location within which the franchisee will have certain protected rights. The designated territory will generally be an area with a population of at least 15,000 people, as published by the U.S. Census Bureau or other governmental agencies and commercial sources. The size of the designated territory will vary from the territory granted to other franchisees based on the location and demographics surrounding the studio. As long as franchisees are in compliance with their Franchise Agreement, the franchisor will not operate, or grant a license to a third-party to operate, during the term of the Franchise Agreement, a studio located within the designated territory, subject to the franchisor’s reservation of rights.

Obligations and Restrictions: Under the Franchise Agreement, the franchisor does not require, but does recommend, that franchisees (or the designated operator) personally supervise the studio. Franchisees may appoint a designated manager the franchisor approves to manage daily operations of the studio. The franchisor will not unreasonably withhold its approval of any designated manager franchisees propose, provided the individual has successfully completed the owner/operator module of the initial training program and, if that individual will be providing any approved services, the orientation program (or, if necessary, the full teacher training program). Franchisees must offer for sale and sell, only and all those approved products and services, and deal only with those suppliers, that the franchisor authorizes or requires. Franchisees may not advertise, offer for sale or sell, any products and/or services that the franchisor has not authorized. Franchisees will not make any material alterations to their studio or its appearance as originally approved by the franchisor without its prior written approval. Unless waived by the franchisor due to unique market conditions, franchisees must meet a certain minimum monthly gross revenue quota.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the Franchise Agreement is signed. Franchisees have the option to extend the term for two consecutive five-year periods, if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing or receive consideration from referrals or placement of financing with any third-party lender. The franchisor does not guarantee a franchisee’s note, lease or any other obligation. If franchisees are a veteran of the United States Armed Forces and meet the requirements of the VetFran Program, the initial franchise fee will be reduced to $48,750.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$65,000	$65,000
Sourcing Fee	$0	$28,000
Travel and Living Expenses While Training	$1,000	$3,000
Real Estate/Lease and Professional Fees	$20,500	$47,000
Net Leasehold Improvements	$49,500	$227,500
Signage	$12,000	$25,000
Insurance	$5,177	$11,187
Fitness Equipment & Initial FF&E Package	$139,700	$173,000
Pre-Sales and Soft Opening Retail Inventory Kit	$22,000	$26,000
Computer System, A/V Equipment, and Related Components	$5,500	$6,000
Initial Grand Opening Marketing & Advertising Spend	$33,300	$46,600
Initial Instructor Training Fee	$200	$1,600
Technology and Software Fees	$3,671	$3,671
Additional Funds – 3 months	$10,000	$46,000
ESTIMATED TOTAL	$385,048	$839,058

 
Other Fees

Type of Fee	Amount
Royalty	8% of gross sales.
Contributions to Brand Development Fund	Currently, 2% of gross sales.
Regional or Local Advertising Co-Op	As the Co-Op determines (not currently charged).
Local Advertising Requirement	The greater of (a) $1,500 or (b) 2% of the prior month’s gross sales.
Initial Instructor Training Fee (in connection with the Instructor Bridge Training Program)	Then-current program fee. Currently, $200 per instructor
Teacher Training Program Fee	$4,995 per person.
Training Fee	If charged, up to $500/day per trainer.
Renewal Fee	$10,000
Transfer Fee	$10,000
Technology Fee	Currently, $550/month.
Relocation Fee	$5,000
Music Licensing Fee	Amounts charged by the providers and/or applicable performing rights organizations (PROs) for such music licensing.
Insurance Policies	Amount of unpaid premium.
Mystery Shopper and Other Quality Control Programs	If charged, $500/year.
Audit Fees	Costs incurred by the franchisor in connection with conducting audit. Currently, the franchisor estimates that such costs will typically be between $500 - $2,500 (plus costs of any travel).
Late Fees	The lesser of (a) the highest applicable legal rate for open account business credit, or (b) 1.5% per month.
Non-Compliance Fee	Currently, $100 for each day of non-compliance.
Cost of Enforcement or Defense	All costs including attorneys’ fees.
Indemnification	All costs including attorneys’ fees.
Alternative Supplier Approval	$1,500 per day for personnel engaged in evaluating a supplier.
Management Fee	The reasonable costs/expenses the franchisor incurs in connection with taking over operations, including manager’s salary, room and board, travel expenses, and all other related expenses.
Lost Revenue Damages	The applicable amount of lost revenue damages stemming from the franchisee terminating the Franchise Agreement without cause or the franchisor terminating the Franchise Agreement for the franchisee’s breach.

The above information has been compiled from the FDD of Club Pilates. Year of FDD: 2025.
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