CLUB PILATES

Franchise agreement

Franchisee agrees to record all of its receipts, expenses, invoices, member lists, class schedules and other business information required by Franchisor from time to time promptly in the computer system and use the software that Franchisor specifies or otherwise approves.

Item 11

The system is designed to enable us to have immediate, independent access to the information monitored by the system, and there is no contractual limitation on our independent access or use of the information we obtain.

Franchise agreement

Franchisor and certain of its affiliates are (or may at any time in future become) an approved, designated, or sole supplier for certain Pilates/fitness equipment, other equipment, products, logo items, signage and artwork, and other items and services used or sold in Club Pilates Studios

Item 11

System franchisees elect or appoint 3 members to the MFC to serve for a one-year term corresponding to the calendar year and we select 3 members to serve for a one- year term corresponding to the calendar year.

Franchise agreement

Franchisor reserves the right to revoke its approval of a previously authorized supplier, product, class or service when Franchisor determines in its discretion that such supplier, product, class or service is not meeting the specifications and standards established by Franchisor.

Item 8

In fiscal year 2025, we did not receive any revenue from the sale of goods and services to franchisees, but our Predecessor received $34,002,506 from such sales to franchisees, which constituted 82.6% of the Predecessor’s total revenue of $41,161,731 during the year.

Item 8

We and/or our affiliate(s) may receive payments or other compensation from Approved Suppliers or any other suppliers on account of these suppliers’ dealings with us, you, or other Studios in the System, such as rebates, commissions or other forms of compensation (including convention sponsorships), which may comprise…

Item 8

about 73% to 88% of your purchases to continue the operation of the Studio.

Item 8

You must pay us our then-current non-approved product or supplier evaluation fee when submitting your request, as well as cover our costs incurred in evaluating your request.

Item 8

We may, but are not obligated to, grant your request to: (i) offer any products or services in connection with your Studio that are not Approved Products and Approved Services; or (ii) purchase any item or service we require you to purchase from an Approved Supplier from an alternative supplier.

Franchise agreement

Franchisee acknowledges and agrees that Franchisor may from time to time share Franchisee’s and/or its owners’ names as well as personal and business addresses, telephone numbers, and e-mail addresses with Franchisor’s affiliates and third-parties.

Franchise agreement

Franchisor reserves the right, at any reasonable time and without prior notice, and subject to Applicable Laws, to inspect and assess all aspects of the Studio’s appearance and operations

Franchise agreement

Franchisor will have sole discretion to accept or reject any proposed site.

Item 11

In addition to the Local Advertising Requirement, you will be required to spend a minimum of $15,000 in connection with pre-opening sales activities and other initial launch promotional activities designed to increase visibility of your Studio within your Designated Territory.

Item 11

you must spend the greater of (a) $1,500 or (b) two percent (2%) of Gross Sales each month on marketing and advertising materials (excluding agency and vendor fees) that we approve in connection with the promotion of your Studio within your Designated Territory (your “Local Advertising Requirement”).

Item 11

If one or more Co-Ops (local, regional and/or national) are formed covering your Authorized Location, then you must join and actively participate.

Franchise agreement

Franchisee agrees to purchase all such items only from approved or designated suppliers and maintain all such items according to manufacturer or Franchisor specifications.

Franchise agreement

Equipment, furnishings, fixtures, décor, and signs for the Studio shall be purchased from suppliers approved or designated by Franchisor.

Franchise agreement

Currently all such amounts (including fees, interest, and other payments required under this Agreement) must be paid via automatic debit from Franchisee’s point-of-sale operating account administered by the designated supplier of point-of-sale services on a weekly basis throughout the Term, subject to modification on…

Item 15

Your Studio must, at all times, be managed by and staffed with at least one (1) individual who has successfully completed the Designated Manager Training Module of our Initial Training Program.

Franchise agreement

Franchisee further agrees to install at its expense and use the membership accounting, cost control, point-of-sale system and inventory control systems (the “POS/Inventory System”) through the supplier Franchisor designates.

Item 11

The system is designed to enable us to have immediate, independent access to the information monitored by the system, and there is no contractual limitation on our independent access or use of the information we obtain.

Franchise agreement

Franchisor may require Franchisee and its designated trainees to pay Franchisor its then-current Training Fee in connection with attending Remedial Training.