Risk Score
Pending analysis
Investment Range
$318,106 - $630,026
Franchise Fee
$30,000
Total US Locations
2
Business Summary
The Daily Pilates operates fitness businesses that provide Pilates reformer classes and related wellness services. Franchisees manage studios under The Daily Pilates brand, utilizing its specific business system and trademarks to offer these services to the general public.
Corporate History
The Daily Pilates LLC was formed as a Georgia limited liability company in August 2020. The company itself has never owned or operated any studios. However, an affiliate, LC Fitness, LLC, has operated a Daily Pilates studio since September 2015. The Daily Pilates began offering franchises for its studios in March 2021, and its main business is to sell and service these franchises.
Financial Overview
Investment Range
$318,106 - $630,026
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$195,000
Equipment Costs (High)
$410,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Daily Pilates' financial statements show an improvement in net income and member's equity for the fiscal year ended December 31, 2023. The company had a net loss of $5,868 in 2022, which turned into a net income of $74,148.42 in 2023. Member's equity also increased from a negative balance in 2022 to a positive $68,280.42 by the end of 2023. The auditors issued an unqualified opinion on the financial statements, indicating no significant concerns about The Daily Pilates' ability to continue operations.
Financing Details
The Daily Pilates does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own loans, mortgages, or leases. The franchisor also does not guarantee any of a franchisee's financial obligations.
Performance Metrics
Total US Locations
2
Franchised Units
1
Corporate Units
1
Avg Square Footage
1,750
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Daily Pilates has no litigation to report. The FDD states that no litigation is required to be disclosed for the franchisor, its affiliates, or key management.
Bankruptcy History
The Daily Pilates has no bankruptcy history to report. The FDD states that no bankruptcy information is required to be disclosed for the franchisor, its affiliates, or key management.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, The Daily Pilates franchisees must provide written notice between 90 and 180 days before the current term ends. They need to be in full compliance with all System Standards and all agreements with The Daily Pilates or its affiliates, including meeting all monetary obligations. Franchisees must also have the right to remain in possession of their studio premises and meet all current requirements for new franchisees. They will be required to pay a successor franchise fee, sign the then-current form of franchise agreement (which may have different terms), and execute a general legal release. Additionally, franchisees must comply with current qualifications and training requirements. Renewal is only possible if The Daily Pilates is actively offering franchises in the state where the studio is located at the time of renewal notice.
Training & Support Program
Franchisor Assistance
The Daily Pilates provides various types of assistance to its franchisees. Before opening, The Daily Pilates offers construction management services, reviews and approves proposed sites and leases, provides prototypical plans, and helps with purchasing necessary equipment, signs, fixtures, and initial inventory. They also conduct an Initial Training Program for the Managing Owner and Operations Manager, as well as an Authorized Instructor Training Program. The Daily Pilates assists with grand opening promotional and advertising activities for the first two studios and grants access to an Operations Manual. Once the studio is open, The Daily Pilates continues to provide access to the Operations Manual, a list of authorized vendors, System Standards, and assistance with advertising and marketing materials. The franchisor also maintains and administers a Marketing Fund to promote the brand and studios generally. Franchisees may also request additional training or assistance, subject to additional fees and reimbursement of expenses.
Initial Training Hours
61
Training Location
Corporate studio in Atlanta, Georgia (or virtually), with on-site training at the franchisee's studio.
Ongoing Support
After opening, The Daily Pilates franchisees receive ongoing support through continued access to the electronic Operations Manual. The franchisor provides a list of authorized vendors and suppliers and updates System Standards. The Daily Pilates assists with advertising and marketing materials and programs and administers a Marketing Fund. The franchisor may also provide additional training if requested and agreed upon, including for additional or replacement Authorized Instructors or Required Trainees. Annual franchise conferences and mandatory training programs on new topics or as refreshers may also be implemented from time to time.
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
full-time
Territory Type
protected
Staff Count
10
Territory Size Requirements
The Daily Pilates will typically define the boundaries of a protected territory in its discretion, either as boundaries on a map or as a circle with the Studio at its center and a specified radius. The size will be determined based on relevant factors such as demographics, population density, traffic patterns, and the character of nearby businesses and residences. There is no minimum protected territory size.
Staffing Notes
The Daily Pilates requires each studio to have at least one Pilates-certified instructor (an 'Authorized Instructor') at all times, which can be the Managing Owner or Operations Manager. The Daily Pilates expects most studios to engage between 8 to 12 Authorized Instructors. Each studio must also have an Operations Manager who is primarily responsible for day-to-day management on a full-time basis, devoting their best efforts to the studio. This Operations Manager must meet The Daily Pilates' educational and business experience criteria and satisfactorily complete the Initial Training Program. All employees must pass a training program to The Daily Pilates' satisfaction before providing services.