The fitness industry is a massive industry with many subbranches underneath it. One of the subbranches, pilates, has become extremely famous in the last couple of years, bringing good business opportunities.
Owning a pilates club that provides anything related to pilates, like pilates classes, is a part of this increasing opportunity pool.
Club Pilates is one of the biggest Pilates studio networks that has been in service since 2007.
They started to franchise in 2012 and grew extremely quickly, even becoming the fastest-growing franchise in 2017, chosen by Inc Magazine. You can also become a part of their network through franchising.
This article will explore Club Pilates’ franchising opportunities.
About Club Pilates and Club Pilates History
Club Pilates is a fitness and pilates studio offering a variety of classes for all ages with professional instructors.
They offer many more different experiences in various studios in addition to pilates in more than 800 locations in the United States.
The company was founded in 2007 but started to franchise in 2012 in the hopes of expanding its reach faster and more efficiently. Based in San Diego, the company offers millions of workouts yearly with a growing user base.
Their strong franchise model has attracted hundreds of franchisees since they started to franchise and show great potential.
Club Pilates Franchise Model Table
| Cost Or Fee | Amount |
|---|---|
| Initial Investment | $193,600-$407,000 |
| Franchise | YES |
| Franchising Since | 2012 |
| Franchise-Fee | $60,000 |
| Royalty-Fee | 8% |
| Liquidity | $100,000 |
| Estimated Outlets | 855 |
How Much Does It Cost To Open A Club Pilates Franchise?
The total expected initial investment to open a Club Pilates franchise is between $193,600 and $407,000. This cost includes all kinds of start-up costs like equipment, property fees, inventory, insurance, IT systems, and the franchise fee. They vary based on location, size of the store, and other factors.
Franchise Requirements Of Club Pilate’s
To become a Club Pilates franchisee, you don’t need a background in the industry as a mandatory requirement. You need to have at least $500,000 net worth and $100,000 liquid cash as mandatory requirements.
Any experience as a manager or in the industry is a plus in getting accepted to the Club Pilates franchise system.
Club Pilate’s Profit & Revenue
There is no actual information on the company’s profit and revenue numbers. However, we know the average sales and profit numbers a franchised Club Pilates store makes.
By estimating from those, Club Pilates’ annual revenue is over $1 billion. The estimated profit margin is around 20%, so the annual profits are about $200 million.
Overall Sales Of Club Pilates
An average Club Pilates franchise store makes $752,000 annually in overall sales. This is the average number out of all the franchised stores in the Club Pilates network.
On a monthly basis, this corresponds to about $60,000 to $70,000 in overall sales.
How Much Does A Club Pilates Franchise Owner Make?
The estimation is that an average Club Pilates franchise makes $244,000 in annual profits. This is the amount the owner or the owner’s pocket at the end of the year when we deduct the expenses. If you are the sole owner, your salary as a franchise owner will be about $244,000 annually.
Payback Period Of Club Pilates Franchise
Based on the average initial investment numbers and the average annual profit, the estimation for the payback period is between 3 and 5 years. This is an extremely short period of time compared to other franchises.
Failure Rate Of Club Pilates
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 379 | 553 | +174 |
| 2020 | 553 | 601 | +48 |
| 2021 | 601 | 667 | +66 |
For the Franchised outlets:
- In 2019, the growth rate was (174)/379×100≈45.91%
- In 2020, the growth rate was (48)/553×100≈8.67%
- In 2021, the growth rate was (66)/601×100≈10.98%
According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.
We can see that the franchised outlets for Club Pilates grew from 2019 to 2021, showing a growth rate between 45.91% and10.98%.
Training and Support
Before the opening of the store, either the franchisee or the designated manager of the franchisee must complete the initial training program. This program lasts 2 to 3 days at a training facility, generally at the franchisor’s headquarters.
Also, one or more individuals working at the franchised store must participate in the orientation program that is provided online.
Once the store is open, the franchisor will send some representatives to support the operations. They will provide assistance, give recommendations, and oversee the daily operations.
Terms of Agreement and Renewal
The length of the initial franchise agreement with Club Pilates is 10 years. Once the initial period is over, the franchisees have the option for renewal.
You can only do this if both sides are satisfied with each other and the franchisor approves it. The renewal is for two consecutive five-year periods.
Obligations and Restrictions
The owner of the franchise store is not required to be present for the operations full-time. They can designate a manager to take over this task to oversee the daily operations. The appointed manager is obligated to successfully complete the initial training.
The franchisee is obligated to sell any product or service that the franchisor asks of them only from the suppliers approved by the franchisor.
Additionally, the franchisee is restricted from selling any kind of product that the franchisor didn’t approve beforehand. The franchisee is also restricted from changing anything in the store before getting approval from the franchisor.
Financial Assistance
Club Pilates do not offer direct financial assistance to their franchisees. However, they work with third-party financial providers to provide indirect financial assistance. The exact details of the assistance depend on the provider and the franchisee’s financial situation.
Club Pilates Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Orangetheory Fitness | $42,500-$49,500 | 8% | $488,405 – $994,360 |
| Pure Barre | $60,000 | 7% | $217,845-$487,495 |
| Club Pilates | $60,000 | 8% | $193,600-$407,000 |
Conclusion
Club Pilates is one of the biggest Pilates studio companies in the United States, with over $1 billion in annual revenue as a company. It is no doubt that it presents an amazing opportunity for those who want to franchise with them.
Per the franchised store, the average overall sales is $752,000 annually and $244,000 annually in net profits.
This is much higher than many franchise brands, and you only need $100,000 in liquid cash and a minimum $500,000 net worth, and no industry experience. If you are thinking about owning a Club Pilates franchise, it is obvious that it is a very lucrative opportunity.
FAQs
What is the franchise fee for Club Pilates?
The franchise fee is $60,000 for a Club Pilates franchise store. This fee is paid upfront in a lump sum before signing the agreement.
Is Club Pilates a franchise?
Yes, Club Pilates is a franchise. They have been franchising directly since 2012 with an established franchise program.
How much does a Club Pilates franchise store make?
On average, a Club Pilates franchised store makes $752,000 annually in overall sales and $244,000 annually in net profits.
Who founded Club Pilates?
Allison Beardsley founded Club Pilates franchised it to over a hundred sold territories, and 40 opened and sold her companies.
Where is Club Pilates Headqaurtered?
The headquarters of Club Pilates is located in Irvine, 17877 Von Karman Ave, United States.
Who owns Club Pilates?
Club Pilates is a part of the Xponential Fitness family of brands, the largest global franchisor of boutique fitness brands.
How many locations does Club Pilates have?
Club Pilates is the largest Pilate brand, with more than 800 studios across the globe spanning 4 continents.
Sources: https://www.clubpilates.com/about