A new Club Pilates Studio requires an estimated initial investment of $403,289 to $1,029,811 under the 2026 amended Franchise Disclosure Document. That range covers development, the approximately five-month Pre-Sales Phase and the first three months after the Soft Opening. A three-Studio Multi-Unit Agreement has a separate entry range of $423,289 to $1,099,811, but that figure includes the first Studio only—not the cost of building and opening all three Studios.
Estimated Initial Investment for one typical Club Pilates Studio of approximately 1,500 to 1,800 square feet. The 2026 FDD says the total excludes tax and finance charges, interest and debt-service obligations. Source: 2026 FDD, Item 7, pp. 24–29.
What does the Club Pilates startup range include?
The disclosed total is the sum of 14 Item 7 categories for a single Studio. It includes the Initial Franchise Fee, premises costs, Leasehold Improvements, the Fitness Equipment & Initial FF&E Package, launch inventory, technology, opening marketing and Additional Funds. It is not merely the amount paid to the franchisor: the cover states that $187,901 to $241,189 of the total is paid to the franchisor or its affiliates, while the balance is generally paid to landlords, contractors, professionals and Approved Suppliers.
Contract, premises and build-out costs
| Item 7 category | 2026 range | When paid |
|---|---|---|
| Initial Franchise Fee | $55,000–$65,000 | At Franchise Agreement signing |
| Sourcing Fee | $0–$28,000 | At Franchise Agreement signing, if applicable |
| Travel & Living Expenses While Training | $1,000–$3,000 | As incurred |
| Real Estate/Lease and Professional Fees | $19,000–$63,600 | As incurred |
| Leasehold Improvements | $123,056–$519,381 | As incurred |
| Signage | $6,000–$26,500 | As incurred |
| Insurance | $3,823–$21,172 | Before opening |
The Real Estate/Lease estimate includes three months of base rent, an estimated one-month security deposit and professional costs for securing the premises. Build-out includes construction, architect and sound-consultant services, and building-permit costs; the estimate does not subtract a landlord tenant-improvement allowance. Source: 2026 FDD, Item 7, pp. 24, 26–27.
Equipment, launch and early operating costs
| Item 7 category | 2026 range | When paid |
|---|---|---|
| Fitness Equipment & Initial FF&E Package | $128,986–$170,034 | Before opening |
| Pre-Sales and Soft Opening Retail Inventory Kit | $16,400–$17,900 | Before opening |
| Computer System, A/V Equipment and Related Components | $5,500–$19,000 | As arranged |
| Initial Marketing & Advertising Spend | $33,300–$46,600 | During development and launch |
| Initial Instructor Training Fee | $200–$1,600 | Before Soft Opening |
| Technology and Software Fees | $4,024 | Pre-Sales Phase through month three |
| Additional Funds – 3 months | $7,000–$44,000 | As incurred |
The Additional Funds estimate is already included in the official total. It covers business—not personal—expenses, including vendor processing, incorporation and legal costs, music licensing, initial personnel wages, supplies, utilities, recruitment, repairs and maintenance. The estimate is net of estimated revenue generated during the relevant period; owner compensation and personal living expenses are not identified as included. The Initial Marketing Requirement is at least $15,000, although Item 7 estimates a higher $33,300 to $46,600 launch spend.
How Item 5 discounts and pre-opening payments fit the total
The standard first-Studio Initial Franchise Fee is $65,000; a compliant operator’s second or later Studio is $55,000, while the VetFran reduction is $48,750. Item 5 also identifies $2,965 to $3,805 of pre-opening display, covering, flag, signage and décor items, $200 to $1,600 of Instructor Bridge Training fees, and $750 of reduced Technology Fees during five pre-opening months. These amounts are components of the broader Item 7 categories, not additions to the official total. A broker-related resale can instead carry a $30,000 Sourcing Fee in lieu of the Initial Franchise Fee; a qualifying additional single-unit award can carry a $28,000 Sourcing Fee in addition to that fee. Source: 2026 FDD, Item 5, pp. 14–17; Item 7, pp. 24–28.
Each bar starts at the official low amount and ends at the official high amount on one common scale.
Interpretation: Leasehold Improvements create the largest absolute spread, while the equipment package is a large but narrower required purchase. The eight plotted categories have the highest Item 7 maximums; the remaining categories are preserved in the tables above. Labels are official FDD figures; proportional positions are derived solely from those figures. Source: 2026 FDD, Item 7, pp. 24–28.
The disclosed high end is driven primarily by premises and construction. The difference between the low and high Leasehold Improvements estimate is $396,325, a derived calculation from compatible Item 7 endpoints. That does not establish a typical overrun; it shows why site condition, landlord work and local construction requirements must be resolved before relying on the low end.
How does a three-Studio agreement change the initial commitment?
The 2026 FDD estimates $423,289 to $1,099,811 to enter a Multi-Unit Agreement for three Studios and open the first Studio through its first three months. The range adds a $20,000 Development Fee and a possible $50,000 Sourcing Fee to the single-Studio Item 7 range. It expressly excludes the costs of opening Studios two and three.
Both ranges use one common scale. The development range is an entry-and-first-location figure, not the capital required for three completed locations.
Interpretation: the low end adds the disclosed development payment; the high end also includes the conditional broker-related charge. The comparison is derived from the two official ranges. Source: 2026 FDD, Item 7, pp. 28–29.
Do not treat the development entry range as a fully funded three-location program. The disclosure states that each later location requires a then-current single-unit agreement and its own opening investment. A buyer needs a separate capital schedule for every premises, build-out, equipment package, launch period and Additional Funds requirement.
Development Fee ladder for larger commitments
The Development Fee equals $10,000 multiplied by the number of committed Studios less the first Studio. The fee is paid in a lump sum at Multi-Unit Agreement signing and is later applied in $10,000 increments toward the Initial Franchise Fee for each later Franchise Agreement.
Development Fee amounts for four, five, six and ten Studios are direct applications of the FDD’s stated formula. A Sourcing Fee applies only in the circumstances described in Item 5, including an existing franchisee and a broker commission arising from a previous introduction. Source: 2026 FDD, Item 5, pp. 16–17; Item 7, pp. 28–29.
When does a prospective franchisee pay the money?
The cash commitment arrives in stages rather than as one payment. Agreement payments come first, premises and construction costs follow as the site is secured, and launch costs accelerate during pre-selling and immediately before opening. Club Pilates’ official franchise process also places the FDD review before Franchise Agreement signing.
Before signing or paying
The FDD cover and the FTC’s FDD guidance require delivery of the disclosure document at least 14 calendar days before a binding agreement or payment to the franchisor or an affiliate.
At agreement signing
Pay the single-unit agreement fee and any applicable broker-related charge. A developer also pays the development payment and any conditional multi-unit broker charge when the development agreement is signed.
During site control and build-out
Real Estate/Lease and Professional Fees, Leasehold Improvements, Signage, training travel and computer-related expenses are generally paid to landlords, professionals, contractors and Approved Suppliers as incurred or arranged.
During the Pre-Sales Phase and before Soft Opening
The disclosure anticipates approximately five months of pre-selling. The reduced technology charge applies during this phase; launch marketing, the retail inventory kit, insurance, instructor onboarding and the equipment package are paid before or around opening according to supplier terms.
Once the Studio collects revenue
The royalty and national fund contribution begin, generally through weekly electronic funds transfer. Local required spending is measured monthly, and the regular technology charge is paid monthly.
Which Club Pilates fees continue after opening?
The principal continuing obligations are a percentage-based royalty and national fund contribution, required local spending, and monthly technology and software charges. The table states each current basis and timing; the disclosure does not convert percentage fees into annual dollar amounts.
| Continuing obligation | Amount or basis | Timing |
|---|---|---|
| Royalty | 8% of Gross Sales | Normally weekly after revenue begins |
| Brand Development Fund | Currently 2% of Gross Sales | Normally weekly after revenue begins |
| Local Advertising Requirement | Greater of $1,500 or 2% of prior month’s Gross Sales | Monthly with first Royalty payment |
| Regional or Local Advertising Co-Op | As the Co-Op determines; not currently charged | As determined |
| Technology Fee | Currently $550/month | Monthly |
| Software Fee | Currently $203/month, plus applicable card surcharge and processing fees | Under Approved Supplier terms |
| Music Licensing Fee | Provider or performing-rights-organization charges | As invoiced or agreed |
The defined sales base is broad but excludes collected sales taxes paid to government, good-faith customer allowances and revenue from the teacher-training service. The combined fund, cooperative and local spending obligations are subject to a 7% monthly Marketing Expenditure Cap, but written notice is required before reducing local spending. The cap does not cover royalty or platform charges. Source: 2026 FDD, Item 6, pp. 17, 23–24.
The brand’s official franchise fee FAQ displays the same top-line initial, royalty and fund figures, but explicitly points readers to the 2025 disclosure. The 2026 document is the controlling source for the current figures and expanded Item 7 range used here.
Which charges apply only after a trigger event?
Several material costs are not part of ordinary weekly or monthly operations. They arise from renewal, transfer, relocation, extra training, non-compliance, audits or termination. These obligations matter because they can require cash well after the original Item 7 period.
- Successor Franchise Fee and remodel$10,000 before theinitial term expires, plus the franchisee’s cost to renovate and modernize the Studio to then-current System Standards.
- Transfer FeeNormally $10,000 when consent is requested. The FDD states $750 for an individual assigning to a wholly owned entity and $1,500 for a transfer to an immediate family member.
- Relocation Fee$5,000 when a relocation proposal is submitted, subject to prior written approval.
- Teacher Training and additional instructionThe Teacher Training Program is $4,995 per person when an individual does not meet the Instructor Eligibility Criteria: $2,100 goes to the franchisor for materials and $2,895 to the Studio providing in-person instruction. Other requested or on-site training may cost up to $500 per day per trainer, plus attendance and travel expenses.
- Alternative Supplier Approval$1,500 per day for personnel evaluating a proposed supplier, plus travel, accommodation and meal reimbursement.
- Audit and late-payment chargesAudit costs are estimated at $500 to $2,500 plus travel when the stated reporting or 2% understatement triggers apply. Late charges are the lesser of the highest legal rate or 1.5% per month, plus a possible $50 administrative charge for each late payment or report.
- Non-Compliance Fee$100 for each day of material non-compliance, payable on demand.
- Insurance, enforcement and temporary managementIf required coverage lapses and the franchisor obtains insurance, the franchisee owes the unpaid premium. The agreement also shifts applicable enforcement, defense and indemnification costs—and reasonable takeover-management expenses after specified events—to the franchisee. No fixed maximum is disclosed.
- Quality-control programUp to $500 per year if the franchisor establishes a mystery-shopper or other quality-control program.
- Lost Revenue Damages after specified terminationThe formula uses the lesser of 36 months or the remaining term, multiplied by the then-current Royalty plus Fund Contribution percentages and the applicable average monthly Gross Sales measure, less stated cost savings. No fixed dollar amount is disclosed.
Sources for the trigger list: 2026 FDD, Item 6, pp. 18–22; Item 17, pp. 55–58.
Does the 2026 FDD state a liquid-capital or net-worth minimum?
No liquid-capital or net-worth threshold is stated in the 2026 FDD sections reviewed for this cost analysis. The current Xponential Fitness franchising page displays $250,000 in required Liquid Capital and a $500,000 Net Worth minimum for Club Pilates, but the same page footnotes those figures to the 2025 FDD and displays the older $385,048 to $839,058 investment range. Those website amounts should therefore be treated as current public screening language—not as a 2026 Item 7 component—and confirmed in writing before relying on them.
Liquid Capital, Net Worth and Estimated Initial Investment are different measures. The 2026 FDD governs the disclosed startup range. The parent-company page may still govern initial applicant screening, but its footnote is tied to prior-year disclosure data. Ask the franchisor to identify the current qualification standard and whether it differs for a Multi-Unit Agreement.
Item 10 states that the franchisor does not offer direct or indirect financing and does not guarantee a note, lease or obligation. Item 7 says leasing and financing may be available for many expenses and that the franchisor may assist with locating working-capital sources, but approval, pricing, collateral and repayment terms remain third-party matters. Finance charges, interest and debt service are excluded from the Item 7 total. Source: 2026 FDD, Item 7, pp. 25, 28; Item 10, p. 35.
What does the official investment range not settle?
The Item 7 total is an official estimate, not a site-specific construction budget or a statement of cash required at signing. The most important unresolved amounts depend on the lease, premises, supplier quotes, financing and the development path selected.
- Confirm the approved premises economics. Verify base rent, common-area charges, security deposit, landlord work, tenant-improvement allowance and whether the space needs unusually extensive HVAC, electrical, plumbing or sound work.
- Obtain current Approved Supplier quotes. Item 8 estimates Required Purchases at 44% to 73% of establishment purchases and 73% to 88% of ongoing purchases, excluding lease payments. Approved Supplier status does not guarantee the lowest price.
- Separate business working capital from personal reserves. The three-month operating reserve covers business expenses and are net of estimated operating revenue. Personal living costs are not identified as an included category.
- Price future technology changes. Item 11 estimates annual maintenance, upgrades or support at $0 to $800, excluding recurring platform charges, music licensing and future required software. It also permits required hardware or software replacement without a stated cost or frequency limit.
- Reconcile the cover’s minimum-payment warning. The special-risk page states that minimum royalty or advertising-fund payments may apply regardless of sales levels, while the main fee table states percentage-based royalty and fund contributions plus required local spending. Obtain written clarification of the operative minimum and where it appears in the agreements.
- For multi-unit development, budget each later Studio separately. The three-Studio Item 7 example excludes the opening costs for Studios two and three, and development deadlines can create overlapping lease, construction and launch cash needs.
Sources for the verification list: 2026 FDD, Item 7, pp. 24–29; Item 8, pp. 30–32; Item 11, p. 46.
What capital figure should a buyer carry forward?
Carry forward $403,289 to $1,029,811 for one location under the current disclosure, not the older range still shown on some pages. Premises and build-out create the widest variation. The separate development entry figure covers the agreement and first location only, so later openings need their own capital schedules. Keep startup capital distinct from the agreement fee, applicant-screening thresholds and continuing charges.
Official documents and verification tools
FTC Consumer’s Guide to Buying a Franchise explains how to compare FDD costs with the Franchise Agreement. The Minnesota Department of Commerce franchise registration lookup is an official state tool for checking registration status and public filings where available.