Club Pilates Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$197,000

-

$459,000

LOCATIONS

876

Tanya

Updated

May 2, 2024

Is

Club Pilates

a franchise?

Yes,
Club Pilates
currently
accepts
franchise
applications

Club Pilates is an International chain of fitness boutique studios with its headquarters in Irvine, California.

The company was founded in 2007 by Allison Beardsley in California. It offers a 500-hour online and in-studio training program for its instructors that covers human anatomy, biomechanics, physiology, and applied kinesiology.

Club Pilates began its franchising journey in 2012 and now has more than 800 gyms in the US and globally. The brand is a subsidiary of Xponential Fitness and is known as the largest Pilates brand.

How many

Club Pilates

franchises

are there?

In 2022, there were
876
outlets in
the United
States, of which
868
are franchises, and
8
are corporate-owned.

What are the

Club Pilates

franchise

fees?

Advertising fee

2.00%

Initial Franchise Fee

The initial franchise fee for Club Pilates is Sixty Thousand Dollars ($60,000). This fee is paid upon signing the agreement and grants the franchisee the right to operate the Studio under the terms of the agreement. The initial franchise fee is fully earned upon payment and is non-refundable.

Royalty Fee

Franchisees are required to pay a royalty fee equal to eight percent (8%) of the Gross Sales generated by the Studio over the immediately preceding week. This fee is paid weekly and is based on the Gross Sales of the Studio.

Marketing Fee (Contributions to Brand Development Fund)

Franchisees are obligated to contribute to the Brand Development Fund. The current contribution rate is 2% of Gross Sales. This contribution begins once the Studio starts generating revenue from its business operations. The contribution is typically paid in the same manner and at the same interval as the Royalty Fee.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Club Pilates

franchise?

It costs between
$197,000
and
$459,000
to start a
Club Pilates
franchise.
Type of Expenditure Amount
Initial Franchise Fee $25,000
Training Expenses $1,000 to $5,000
Real Property, whether purchased or leased See Note
Lease deposits $5,000 to $50,000
Leasehold Improvements $400,000 to $1,900,000
Fitness equipment, fixtures, other fixed assets $150,000 to $1,000,000
Opening Inventory $1,000 to $5,000
Site Selection Travel Expenses $500 to $3,000
Security deposits, utility deposits, business licenses bonding (if required) and prepaid expenses $3,000 to $45,000
Professional fees $5,000 to $35,000
Signs $7,500 to $45,000
Office equipment, computer system, furniture graphics package and supplies $25,000 to $35,000
Initial Advertising $15,000 to $45,000
Insurance $5,000 to $20,000
Additional Funds - 3 months of operations $25,000 to $300,000
Totals $668,000 to $3,513,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Club Pilates

provide

training

to its

franchisees?

Yes,
Club Pilates
provides
training

Initial Training Program (or "Owner/Operator Module")

This is the primary initial training program. It covers various subjects including the history and philosophy of Club Pilates, real estate considerations, and more. The training is conducted at the franchise's headquarters in Irvine, CA, or at another designated location. The training can also be completed virtually.

Ongoing/Refresher Training

Franchisees, as well as their management personnel, may be required to attend up to five (5) days of additional training each year at a designated training facility. This training is provided without charging any training fee.

Instructor Bridge Training Program

Instructors hired over time must complete the Instructor Bridge Training Program before they can provide any classes or perform any Approved Services at the franchisee's studio.

Remedial Training

If the franchisor determines that a franchisee is not operating their studio in line with the terms of the agreement or the operations manual, or if there's a material default in the agreement, the franchisor can require the franchisee, their Designated Manager, and/or certain Authorized Instructors to attend up to five (5) additional days of training.

Does

Club Pilates

provides

territory

protection?

The franchise does provide territory protection within the Designated Territory, but it is not an exclusive territory, meaning other Club Pilates studios (whether franchised or company-owned) could potentially operate outside of your specific Designated Territory.

Can a

Club Pilates

franchise

be run as

a passive

investment?

Club Pilates franchise can be run without the direct daily involvement of the franchisee, allowing for the possibility of it being a passive investment, provided a Designated Manager is appointed and approved to manage the Studio's operations.

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