Club Pilates Debuts on Top 200+, Sales Up Triple Digits
Club Pilates added 280 studios in 2017 to close the year with 393 total units.
Fueled by an effective membership model and franchisees doubling down with more territories, Club Pilates debuts at No. 369 on the Franchise Times Top 200+, our exclusive ranking of the 500 largest franchises.
The Irvine, California-based brand led all performers in the fitness segment with its incredible 258.2 percent increase in systemwide sales, to $59 million in 2017, and was second in unit growth, opening 280 studios, behind only Anytime Fitness, which opened 418.
President Shaun Grove attributes the sales growth in part to the opening of all those units last year, but credits Club Pilates’ “fitness membership-based platform” for providing a steady revenue stream and strong unit economics. “I think that’s been the biggest thing versus selling class packages,” said Grove of the monthly membership approach.
Club Pilates is strong on the franchisee support side, noted Grove, “holding their hand” from the signing of the lease through the presale of memberships and both soft and grand openings. Of the presale push, Grove said that’s “the biggest piece in driving unit economics because we’re able to predict how they’re going to perform by their grand opening.”
Each club has a member capacity of between 350 and 400 people, and the average member stays on for more than 18 months. Offering month-to-month agreements is key to Club Pilates’ low attrition rate, which Grove said is 4 percent systemwide.
Club Pilates has also been able to take advantage of the broader fitness trend toward boutique and studio concepts. Kickboxing concept 9Round, for example, grew its sales 99.7 percent to $120 million in 2017, and Orangetheory Fitness continued its torrid growth pace with a 63.7 percent sales increase, as reported in our Top 200+.
“A lot of our members carry more than one membership,” said Grove. “With the boutique member, it’s a lifestyle versus just trying to get a workout.”
Existing franchisees accounted for the bulk of the new studio openings last year and they continue to reinvest in the brand.
“I’ve never been with a concept where we’ve had so many repeat buyers,” said Grove of Club Pilates’ existing franchisees signing for additional territories. “That’s some internal validation for us.”
Club Pilates was acquired by private equity firm TPG in April 2017 and is now part of the firm’s Xponential Fitness group, which also includes brands such as Cyclebar, StretchLab and Yoga Six.
Read more Top 200+ coverage here and in the October issue of Franchise Times.