For a brand that may soon change hands, Club Pilates isn’t missing a beat.
The boutique fitness franchise, widely considered the crown jewel of Xponential Fitness’ five-brand portfolio, just signed the largest multi-unit deal in Xponential’s history while also planting its flag in Southeast Asia.
It is, to put it mildly, an eventful moment.
Xponential’s board recently announced it is exploring a sale, hiring Jefferies to evaluate strategic alternatives, including a potential merger, after mounting pressure from two of its shareholders.
Voss Capital, a Houston-based investment firm that controls 19.3% of Xponential’s outstanding shares, described Club Pilates as a “generational fitness franchise asset,” in an open letter last month, pointing to the brand’s 1,414 global studios and nearly $1 million in average unit volumes.
In addition to Club Pilates, the boutique fitness franchisor operates Pure Barre, YogaSix, BFT and StretchLab, down from 11 brands around two years ago.
Behind the record deal is Fortress Investment Group-backed Riser Fitness, which has secured the remaining territories across six states (California, Idaho, Minnesota, Nevada, Oregon and Washington) and will open 127 Club Pilates studios over the next five years.
Riser Fitness operates more than 110 open studios and inked a deal last year to open 40 Club Pilates locations across Australia’s major capital cities. The group is also behind the brand’s recent entry into Mexico City, under a master franchise agreement that will scale Club Pilates to more than 60 studios.
“Riser Fitness has been an exceptional franchisee group and operator for Club Pilates and Xponential Fitness, bringing Pilates to so many communities that can benefit from the practice, and contributing to the brand’s place as a leader in the booming Pilates industry,” Xponential Fitness CEO Mike Nuzzo said.
Club Pilates also announced a master franchise agreement with DM Active Wellness Inc. to open 30 studios across the Philippines over the next decade, adding another market to a growing international footprint that now includes Thailand and Belgium.
“The Philippines is a great market for Club Pilates,” said Bob Kaufman, president of international at Xponential Fitness. “Health & wellness and personal image are high priorities for the Philippine consumer.”
It’s a market worth watching. The Global Wellness Institute recently pegged the Philippines’ wellness economy at $47.3 billion, a 31% jump since 2019, placing the country among the fastest-growing wellness markets in the world.
