Club Pilates Secures One of its Largest Multi-Unit Franchisee Agreements in Company History with Entrepreneur David Schuck

Rhea-AI Summary

Club Pilates, the largest boutique Pilates brand in the U.S., has announced a significant expansion through a franchise agreement with David Schuck. This deal includes the acquisition of 13 existing studios and rights to open 16 new locations across Houston, Dallas, and Central Florida, making it one of the largest franchise deals in the brand's history. Since 2020, Club Pilates has opened over 87 new studios, bringing its total to nearly 650 globally. The brand continues to expand internationally into markets like Australia and Japan.

Positive

• Expansion of Club Pilates brand with 16 new studio licenses, boosting franchisee network.
• Addition of 13 existing studios will increase overall presence in key U.S. markets.
• Established franchisee David Schuck demonstrates strong operational success, having grown from 3 to 20 studios.

Negative

• Risks related to the ongoing impact of the COVID-19 pandemic on franchise operations and market expansion.

 Territory-Spanning Deal Will Bring Studios to Houston, Dallas, and Central Florida with Seasoned Owner

IRVINE, Calif.--(BUSINESS WIRE)-- Club Pilates, the nation’s largest boutique Pilates brand, announced today it has signed a large multi-unit, multi-regional franchise agreement with entrepreneur and existing franchise owner, David Schuck, which will expand the Pilates brand’s presence further in Houston, Dallas, and Central Florida. Through this agreement, Schuck has acquired 13 open Club Pilates studios, along with licenses to open 16 additional studios, marking one of the largest deals made by an individual franchisee in the brand’s history. Club Pilates is the founding and largest brand by number of studios within the portfolio of Xponential Fitness, Inc.

This deal brings Schuck’s total number of open Club Pilates studios to 20, spanning Dallas, Houston, Central Florida, and Greensboro, NC. Targeted areas for additional 16 studios to be developed include Apollo Beach and Hunters Creek in Central Florida and Pearland, Greatwood, and Jersey Village in Texas.

Schuck has a long-standing relationship with Xponential Fitness, having first signed a franchise agreement with Club Pilates in August 2016 followed by the opening of his first studio in March 2017. Prior to business ownership, Schuck played professional basketball in Spain and then explored teaching, coaching, and banking before entering the franchise space.

“We are thrilled to execute this deal with David which will further expand the Club Pilates brand presence across multiple markets,” said Mike Gray, President of Club Pilates. “Initially starting with just three licenses five years ago, Club Pilates has now developed a strong partnership with David - he has proven to be a strong operator and representative of the Club Pilates brand, and we look forward to partnering with him further as he continues to leverage our model to develop and open additional studios in the coming years.”

“Xponential’s systems, integrated platforms, and support are seamless and have proven successful in helping me scale Club Pilates across multiple markets, so there was no question in my mind to keep growing with this incredible brand,” said Schuck. “The passion from Club Pilates employees, instructors, and members has made it easy to stay motivated in growing the business and changing people’s lives.”

This deal with Schuck marks yet another milestone in Club Pilates’ growth after several recent accomplishments. Despite the pandemic, Club Pilates has opened more than 87 new studios since the beginning of 2020 (as of June 30, 2021) and now has almost 650 open studios globally. The brand has also expanded internationally to Australia, Saudi Arabia, Japan, South Korea, the Dominican Republic, and Spain, and has studios currently in development in Germany and Singapore.

Club Pilates was ranked #1 on Franchise Times’ Fast & Serious in both 2019 and 2020, landed at #104 on Entrepreneur Magazine’s 2021 Franchise 500, marking its fifth consecutive year on the list, as well has appeared on Inc. Magazine’s Inc. 5000 list three years running. For more information about owning a Club Pilates franchise or another Xponential Fitness brand, visit www.xponential.com/franchising.

ABOUT CLUB PILATES

Founded in 2007, Club Pilates is the largest Pilates brand by number of studios, designed with the vision of making Pilates more accessible, approachable and welcoming to everyone. Based in Irvine, CA, Club Pilates has appeared in both Entrepreneur Magazine's Franchise 500, Fastest-Growing Franchises, and Inc. Magazine's Inc. 5000 lists five years running. Club Pilates offers extensive training certification for its instructors. Its 500-hour training program includes instruction on Pilates, barre, Triggerpoint, and TRX Suspension Trainers. To learn more about Club Pilates, visit https://www.clubpilates.com.

ABOUT XPONENTIAL FITNESS

Founded in 2017 and headquartered in Irvine, California, Xponential Fitness, Inc., is a curator of leading boutique fitness brands across multiple verticals. Through its mission to make boutique fitness accessible to everyone, the Company has built and curated a diversified platform of nine boutique fitness brands spanning across verticals including Pilates, indoor cycling, barre, stretching, rowing, dancing, boxing, running and yoga. In partnership with its franchisees, Xponential Fitness offers energetic, accessible, and personalized workout experiences led by highly-qualified instructors in studio locations across 48 U.S. states and 10 additional countries as of March 31, 2021. Xponential Fitness' portfolio of brands includes Club Pilates, the nation's largest Pilates brand; CycleBar, the nation's largest indoor cycling brand; StretchLab, a concept offering one-on-one and group stretching services; Row House, a high-energy, low-impact indoor rowing workout; AKT, a dance-based cardio workout combining toning, interval and circuit training; YogaSix, the largest franchised yoga brand; Pure Barre, a total body workout that uses the ballet barre to perform small isometric movements; STRIDE, a treadmill-based cardio and strength training concept; and Rumble, a boxing-inspired full-body workout.

Forward-Looking Statements

This press release contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated financial performance. These forward-looking statements include, without limitation, statements relating to the franchise agreement with David Schuck, the development and opening of new Club Pilates studios, and the growth of the Club Pilates brand. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the impact of COVID-19 pandemic on our business and franchisees; difficulties and challenges in opening studios by franchisees; the ability of franchisees to generate sufficient revenues; risks relating to expansion into international market; and loss or reputation and brand awareness; and other risks as described in the filings of Xponential with the Securities and Exchange Commission. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Xponential undertakes no duty to update such information, except as required under applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211006005377/en/

David Robertson, Fishman Public Relations, drobertson@fishmanpr.com or 847-945-1300

Source: Club Pilates

FAQ

What is the significance of the new franchise agreement with David Schuck for XPOF?

The franchise agreement is a major expansion for Club Pilates, adding 16 new locations and enhancing brand presence in Houston, Dallas, and Central Florida.

How many new studios has Club Pilates opened recently?

Club Pilates has opened more than 87 new studios since the start of 2020, with nearly 650 studios currently in operation globally.

Where are the new Club Pilates studios planned under David Schuck's agreement?

The new studios are planned for locations in Houston, Dallas, and Central Florida, including areas like Apollo Beach and Jersey Village.

What challenges might XPOF face with the new expansion?

XPOF may face challenges related to the ongoing COVID-19 pandemic, which could affect studio openings and franchisee revenues.