Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Our Latest Views on the Historical Actual Results of Club Pilates Studios Operated by Franchisees (2014 FDD)

by Franchise Chatter on March 8, 2015

in Fitness Franchises, Franchise Earnings



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Club Pilates Photo from detroit.cityvoter.com

Highlights of the Item 19 Financial Performance Representations of Club Pilates (2014 FDD) – Part 2 of 3

  • Club Pilates offers for sale a franchise to operate a distinctive Club Pilates Studio. The Studio is typically located in an office building or retail shopping center. Club Pilates may, however, consider alternative sites on a case-by-case basis.
  • If you own an existing fitness facility and meet Club Pilates’s qualifications, you may convert your existing business to a Club Pilates Studio. A converted Studio will likely encounter lower investment requirements than those of a start-up Studio.
  • Each Studio will offer Pilates and other exercise programs through live instructional group and individual classes, including, but not limited to, Pilates Reformer exercises; exercises using a Pilates Ballet Bar, Spring Board, EXO Chair, and other Pilates apparatuses; strength training; stretching exercises; and a teacher training program.
  • All classes will be paid for and scheduled online via the Internet, and taught by highly trained instructors who have completed a minimum of 500 hours of customized instructor training.
  • The typical Studio will be at least 880 square feet and be in a rectangular shape of 22 feet by 40 feet. Alternatively, you may choose to establish and operate a smaller Studio with a maximum occupancy of no more than 6 members per class (a “Half-Size Studio”) at a lower cost.
  • Part 2 contains a chart showing the average number of monthly client visits for franchise units that have been opened for all or substantially all of 2013.
  • Club Pilates does not provide monthly rent, average gross monthly revenue, teacher expense, marketing expense, or additional monthly expenses for franchise units because it does not currently receive this information from franchisees.
  • ┬áTo protect the privacy of its franchisees, units are not listed by name.
  • “Length of Time Opened” are as of December 31, 2013. One Studio had been opened at least one full year; three Studios opened in February 2013 providing 11 full months of data, which, in Club Pilates’s experience, provides a sufficient basis of data to report here.
  • An additional six franchise units opened in mid or late 2013 which Club Pilates feels does not provide a sufficient operating basis to be included here.
  • There is no guarantee that any Club Pilates Studio that a franchisee operates will achieve the results reflected in this Item 19, either during its initial months or years of operation or afterward.
  • A new franchisee’s individual financial results may differ from the results stated in Item 19. Written substantiation of all information presented in Item 19 will be made available to you upon reasonable request.


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