Club Pilates will open another two of its own centers in 2023 and aims for Andalusia and the Basque Country in 2024
Club Pilates maintains its offensive in Spain. The chain owned by the listed Xponential Fitness and which operates through a master franchise led by the brothers Fernando and Horacio Rosentgberg together with a group of investors, will open two more of its own centers in the country. This way, The chain expects to end the year with between eight and ten operating centers between franchised and owned gyms.
The openings of its own centers will take place in Barcelona and Madrid, as explained by Fernando Rosentgberg to Palco23. On the other hand, in 2024, the year in which it plans to open another five gyms, the chain hopes to land in the Andalusian cities of Seville, Málaga and Córdoba, as well as the Basque cities Bilbao and San Sebastián. Likewise, it also plans to make the leap to Galicia.
“The expansion outside of Madrid and Barcelona will be, for now, through franchises; however, we are also contemplating a mixed model with a 50% stake”, says the manager. Despite this context, for this course, the chain has chosen not to “actively seek” franchisees, since it is focused on consolidating itself in the territory, although it does not rule out signing new agreements this course. “We have improved the web and the processes, with a lot of internal work; we are changing the CRM (customer relationship management) in our six centers”, he details.
Club Pilates will launch the instructor training school
Another novelty will be start-up of the instructor training school in the short term, with courses lasting between nine months and one year, which represents more than 500 hours of training. The courses will have a maximum of ten people per class.
The master franchise, which already touches a gross operating result (ebitda) of 30% of billing in its own centersadds more than 200 subscribers in each gym, which represents having reached break even.
Currently, the channel’s audience is mostly female, representing between 85% and 90% of the total, and between 25 and 65 years of age; In addition, the company has a high exposure to the international public residing in Spain, as is the case of its Eixample center in Barcelona.
The chain calculates that the break-even point is reached with 200 subscribers, although it estimates that it will be able to reach a figure of between 300 subscribers and 400 subscribers per center. Each center, between 150 square meters and 200 square meters, has ten employees including instructors, and the expected turnover is around half a million euros per year.
The investment to open a company center is 300,000 euros
The investment is around 300,000 euros. In the case of franchisees, they have to pay a fees of 30,000 euros, while the master franchise charges 7% of the turnover and 2% for marketing, which has a return.
Founded in 2007, Club Pilates has more than 2,000 centers. The chain portfolio of the US parent company, the listed Xponential Fitness, includes brands such as Club Pilates, CycleBar, StretchLab, Row House, AKT, Body Fit Training, Rumble and Yoga Six. Based in Irvine (California), the company made the leap to the stock market in July of last year on the New York Stock Exchange.
Club Pilates offers a regular and constant practice through three types of memberships: unlimited, eight classes per month (two per week) and four monthly sessions (one weekly). Classes can be both individual and group, with a maximum of twelve people.
Xponential Fitness closed 2022 with a profit of $2.9 million, compared to a loss of $51.4 million a year earlier. For his part, the gross operating result (ebitda) was 29.9 million dollars, compared to the red numbers of 16.9 million. The black numbers occurred after increasing its income by 58%, up to 254 million dollars. By franchises, the company entered 115.3 million, while, by equipment, another 43.5 million. income from merchandising represented 27.1 million dollars.
In the period, it sold 1,026 franchises and opened 511 new studios. By 2023, the goal is to open between 540 gyms and 560 gyms and increase its business volume in North America to 1,350 million dollars.
