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

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.

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.

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.

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