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

INVESTMENT

$271,000

-

$518,000

LOCATIONS

4

Tanya

Updated

April 11, 2024

Is

Studio Pilates

a franchise?

Yes,
Studio Pilates
currently
accepts
franchise
applications

Headquartered in Wilmington, North Carolina, Studio Pilates is a chain of fitness studios that utilizes the Pilates technique to offer fast-paced, 40-minute science-based workouts. Its high-intensity, low-impact workouts improve its members’ mental stamina, help them feel positive and energized, relieve stress, and increase concentration and relaxation.

The brand was first established by Jade Winter in 2002 in Australia. It began franchising in the US only in 2020 and by 2022, it had 4 franchises in the US and a presence in 5 other countries.

With a highly systemized and streamlined business concept, the Studio Pilates franchise continues to help franchisees and clients get better results from their enterprises.

Today, the fitness franchise presents an opportunity for franchise owners to impact their local community with science-backed and comprehensively supportive franchise leadership that is focused on global success and has seen 45% of franchise owners open more than one fitness studio.

How many

Studio Pilates

franchises

are there?

In 2022, there were
4
outlets in
the United
States, of which
4
are franchises, and
0
are corporate-owned.

What are the

Studio Pilates

franchise

fees?

Advertising fee

4.00%

Initial Franchise Fee

The Initial Franchise Fee is $45,000.00, which is structured as follows:

  • A $2,000 refundable holding deposit is payable prior to signing the franchise agreement. This deposit is not paid until after more than 14 days after the franchisee has received the Disclosure Document.
  • The balance of $43,000 is payable upon the execution of the franchise agreement.

Royalty Fee

The Royalty Fee is 8% of Gross Sales, commencing on the Sales Commencement Date. This percentage royalty is calculated weekly on each Monday for the previous week and is payable by close of business on each Wednesday.

Marketing Fund Fee

The Marketing Fund Fee is 2% of Gross Sales, payable monthly within seven (7) days of receiving an invoice from the franchisor.

Additional Fees

Beyond the main fees, there are several other significant fees to consider:

  • Marketing Launch Package Fee: A fee of $10,000 is payable to the franchisor upon signing the letter of intent with the landlord. This fee is used for pre-opening initial promotion expenses.
  • Opening Package Fee: A lump sum of $31,000 covers Initial Instructor Training for up to 6 people, Business Operations Training for sales and administrative staff, basic standard studio design and construction plans, and pre-opening marketing and business operations. This fee is payable upon signing the letter of intent with the landlord.
  • Transfer Fee: If a franchisee decides to sell or transfer the franchise, a Transfer Fee of $20,000.00 is payable on the date of transfer.

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

Studio Pilates

franchise?

It costs between
$271,000
and
$518,000
to start a
Studio Pilates
franchise.
Type of Expenditure Amount
Initial Franchise Fee $45,000
Opening Package Fee $31,000
Marketing Launch Package Fee $10,000
Technology Fee $4,800 (Monthly installments)
Lease Expense $7,100 - $76,500
Utility Deposit $1,000 - $2,000
Leasehold Improvements $90,000 – $209,000
Audio-Visual Equipment (including CCTV) $25,000 - $40,000
Reformer Equipment $7,100 – $11,200
Initial Inventory $5,600 - $7,200
Additional Initial Inventory $8,400 - $10,800
Signage $3,000 - $6,000
Computer Hardware $2,500 - $4,000
Insurance $4,600 - $5,600
Permits & Licenses $1,500 - $3,000
First aid and CPR employee training expenses $100 - $200
Uniforms $500 - $1,500
Professional Fees $4,000 - $10,000
Additional Funds/Working Capital $20,000 - $40,000
Total $271,200 - $517,800

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

Studio Pilates

provide

training

to its

franchisees?

Yes,
Studio Pilates
provides
training

Initial Training Program

The Initial Training Program is mandatory for the franchisee, key people, and applicable staff. This program includes:

  • Business Operations Training: A combination of online learning, video-based tutorials, webinars, and potentially face-to-face training. This training covers the operational aspects of running the franchise and must be completed prior to the studio's opening.
  • Instructor Training Course: This also involves a mix of online learning, video tutorials, webinars, and face-to-face training. It includes modules in anatomy and physiology, customer service protocols, and facilitation of Studio Pilates International classes. A period of shadowing is included to ensure instructors are fully qualified. This training must be completed by each instructor before they start working in the franchised business.

Additional Training

  • On Request: If the franchisee requests Additional Training, the franchisor will provide it, advising on the duration, times, and location.
  • Mandatory: The franchisor may also require additional training if it deems necessary for the franchisee, key people, or staff to maintain standards or improve skills.

Costs of Training

Franchisees are responsible for all costs associated with the Initial Training Program and Additional Training, which includes travel, accommodation, and meals. They must also pay the Opening Package Fee and any Additional Training Costs at the franchisor's then-current training fees before each course begins.

Ongoing Advice and Support

The franchisor provides ongoing advice and support in various operational areas, including marketing, sales techniques, administrative procedures, and general management.

Does

Studio Pilates

provides

territory

protection?

Franchisees will not receive an exclusive territory. While franchisees are granted a location to operate their Studio Pilates franchise, they do not have territorial protection that would prevent the franchisor or other franchisees from opening nearby or competing for the same customer base.

Can a

Studio Pilates

franchise

be run as

a passive

investment?

Studio Pilates International franchise cannot be run as a passive investment.

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