Risk Score
Pending analysis
Investment Range
$385,048 - $839,058
Franchise Fee
$48,750
Total US Locations
1,029
Business Summary
Club Pilates operates fitness studios that offer Pilates and other specialized exercise classes using designated equipment. The studios provide live instructional group and individual classes, including Pilates Reformer exercises, mat Pilates, and classes using various Pilates apparatuses. Club Pilates also offers a Teacher Training Program for aspiring instructors.
Corporate History
Club Pilates Franchise SPV, LLC, the current franchisor, was formed in March 2023. The Club Pilates brand itself began offering franchises in September 2012 through Club Pilates Global, LLC. In March 2015, Club Pilates Franchise, LLC (a predecessor to the current franchisor) acquired all rights to the Club Pilates franchise system. As part of an internal reorganization in March 2023, Club Pilates Franchise SPV, LLC acquired the brand's trademarks and intellectual property and began selling franchises as of April 4, 2023. The current franchisor is a subsidiary of Xponential Fitness, LLC, which is controlled by Xponential Fitness, Inc. (XFI), a publicly traded company.
Financial Overview
Investment Range
$385,048 - $839,058
Franchise Fee (Low)
$48,750
Franchise Fee (High)
$65,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$145,200
Equipment Costs (High)
$179,000
Working Capital
$28,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The auditors have issued an unqualified opinion on XPOF Assetco, LLC's financial statements, but included an emphasis of matter regarding the company's significant transactions and relationships with its parent, Xponential Fitness LLC, and its affiliates. This indicates that the financial statements may not reflect what the results of operations would be if the company operated independently. The company relies on resources from its parent for centralized cash management and support functions. A notable financial point is that related party transactions resulted in net advances to the Member (Xponential Fitness LLC) of $155,034 (in thousands) as of December 31, 2024, which is recorded as a reduction to Member's equity because the Member has no plan to return these amounts to the company in the foreseeable future. All assets of the company collateralize the existing debt of the Member. While the company believes ongoing litigation will not have a material adverse effect, it acknowledges that an unfavorable resolution of matters or contingencies could materially affect its business, results of operations, liquidity, or financial condition in a future reporting period.
Financing Details
Club Pilates does not offer any direct or indirect financing to franchisees and does not guarantee any notes, leases, or other obligations. While third-party lenders, such as Amerifund and Navitas, have sponsored Club Pilates' conventions in the past and may do so in the future, Club Pilates is unaware of the specific terms of any financing that franchisees might obtain from these or other lenders.
Performance Metrics
Total US Locations
1,029
Franchised Units
1,029
Corporate Units
0
Avg Square Footage
1,650
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
11
Litigation Summary
Club Pilates and its affiliates are involved in several recent and ongoing legal matters. Multiple lawsuits and arbitrations were filed between August 2023 and February 2025. These include actions by former franchisees of AKT (an affiliate brand) and Yoga Six (another affiliate brand), alleging pre-sale disclosure violations, fraudulent inducement, breach of contract, and unfair trade practices. Specific lawsuits name various Club Pilates entities, its parent company Xponential Fitness, Inc. (XFI), and certain officers/directors as defendants. There are also multiple pending securities-related class action and shareholder derivative lawsuits against XFI and its current/former officers, alleging omissions and misstatements in public documents, breach of fiduciary duties, and mismanagement. Additionally, in November 2024, Club Pilates and its affiliates entered into a consent order with the California Department of Financial Protection and Innovation to resolve an investigation into compliance with the California Franchise Investment Law, agreeing to desist from certain violations and pay a $450,000 administrative penalty. Other states, including New York, Maryland, and Minnesota, have also made inquiries regarding compliance with franchise laws.
Bankruptcy History
Xponential's Chief Operating Officer of North America, Timothy Weiderhoft, and his wife filed a personal Chapter 7 bankruptcy petition in August 2023. This was due to an unrelated restaurant venture that failed during the COVID-19 pandemic. The bankruptcy was discharged in December 2023.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To qualify for a successor franchise, Club Pilates franchisees must execute the then-current franchise agreement (which may have different terms), maintain possession of an approved location or secure an alternative, remodel the Studio to current standards, have substantially complied with the previous agreement, be in compliance with all agreements with Club Pilates, pay a $10,000 successor franchise fee, give 90-180 days' notice of their desire to acquire a successor term, and sign a general release.
Training & Support Program
Franchisor Assistance
Before a Studio's soft opening, Club Pilates provides initial training for the owner/operator and designated manager, and a Bridge Training Program for initial Authorized Instructors. It offers guidance on site selection (assigning a Designated Market Area if needed), provides access to its confidential online Learning Management System with mandatory standards, and supplies specifications for studio layout, design, equipment, and Approved Suppliers. Club Pilates also licenses the use of its trademarks and consults on establishing pre-sales activities and an Opening Support Program. Post-opening, Club Pilates specifies or approves equipment and suppliers, offers additional training upon request (for a fee), and provides continuing advisory assistance. It also administers the Brand Development Fund for marketing and may set fixed maximum or minimum prices for products/services.
Initial Training Hours
22
Training Location
Corporate headquarters (Irvine, CA) or other designated training facility (most likely in California)
Ongoing Support
After opening, Club Pilates provides continuing advisory assistance and information for the development and operation of the Studio, as deemed appropriate by the franchisor. This may include additional or refresher training for franchisees and management personnel (up to five days annually, with no training fee if required by Club Pilates). Franchisees can also request additional training, for which a fee may be charged. The Instructor Bridge Training Program is required for all new instructors hired over time. Club Pilates (or its affiliates) also maintains and administers the Brand Development Fund. Discretionary on-site assistance for the Soft Opening may also be provided.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
Club Pilates' Designated Territories are generally areas with a population of at least 15,000 people, based on data from the U.S. Census Bureau or other governmental/commercial sources. The specific size and shape of a Designated Territory will vary based on the location and demographics surrounding the Studio. The boundaries may be defined using zip codes, streets, natural or man-made landmarks, or county lines, and are delineated on a map.
Staffing Notes
Club Pilates recommends, but does not require, that the franchisee (or its Operating Principal) personally supervise the Studio; however, they may appoint an approved Designated Manager for daily operations. The Studio must always be managed by and staffed with at least one individual who has successfully completed the Designated Manager Training Module. Franchisees are solely responsible for all hiring, disciplining, and setting employment terms for their staff, ensuring compliance with all applicable laws. All instructors must meet specific Instructor Eligibility Criteria (including at least 450 hours of Pilates instruction) and complete Club Pilates' Bridge Training Program before providing Approved Services. The Studio must have at least one Authorized Instructor on-site whenever Approved Services are provided.