CycleBar Franchise Costs $185K – $502K (+ 2024 Profits)

CycleBar, established in 2014, has rapidly risen to prominence as the leading indoor cycling brand. It’s celebrated for fostering a strong sense of community through its energetic, low-impact cycling sessions suitable for all fitness levels.

CycleBar distinguishes itself with its unique “CycleTheaters,” offering an immersive cycling experience led by expertly trained instructors, accompanied by the brand’s proprietary “CycleBeats” playlists and “CycleStat” performance tracking, creating a personalized and engaging workout environment. 

Headquartered in  Irvine, CA, CycleBar’s substantial growth and presence in the franchise sector highlight its successful expansion strategy. Recognized for its significant achievements, CycleBar has been featured in Entrepreneur Magazine’s Franchise 500 for five consecutive years, showcasing its prominence and innovation within the indoor cycling and fitness franchise industry​.

Type of Expenditure	Amount (Traditional Studio)
Initial Franchise Fee	$60,000 – $60,000
On-Site Grand Opening Assistance	$0 – $3,000
Travel & Living Expenses While Training	$0 – $3,000
Real Estate/Lease and Professional Fees	$17,000 – $47,000
Net Leasehold Improvements	$112,000 – $200,000
Lease Payments in Connection with Exercise Bike Package and Initial FFE Package	$13,000 – $22,000
Signage and Graphics	$18,000 – $23,000
Supplies and Accessories	$10,000 – $10,000
Pre-Sale and Soft Opening Retail Inventory Package	$12,000 – $12,000
Studio Management System	$18,000 – $18,000
Audio Visual Equipment	$55,000 – $55,000
Business Licenses	$500 – $1,000
Technology Fee for 5 months	$4,000 – $4,000
Insurance	$1,000 – $3,000
Grand Opening Marketing Budget	$15,000 – $15,000
Total	$351,000 – $502,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

You must pay a lump sum initial franchise fee of $60,000 to establish a single Studio under a Franchise Agreement. This fee is fully earned upon payment and is non-refundable.

Royalty fee

The royalty fee for operating a CycleBar studio is 7% of the Gross Sales generated by your Studio over the relevant reporting period. This fee is payable weekly via electronic funds transfer (EFT) based on the Gross Sales of your Studio during the preceding business week.

Instructor Bootcamp Fee

For your initial staff of Authorized Instructors, you must pay a program tuition fee of $5,000 for the Instructor Bootcamp training, which is non-refundable.

On-Site Grand Opening Assistance

If provided, you will pay a $2,500 training fee for on-site grand opening assistance, which is non-refundable.

Pre-Sale and Soft Opening Retail Inventory Package

You must purchase an initial inventory kit for $12,000, which includes pre-sale merchandise and other apparel. This amount is non-refundable.

Technology Fee

You will be required to start paying a monthly Technology Fee of $715 during your Pre-Sales Phase, estimated at $3,575 for the initial months, which is non-refundable.

Franchise Pros and Cons

The Pros:

• Training program: The franchisor offers its franchisees a comprehensive training program to educate them about the business concept and establish their studios smoothly. Franchisees get a 3-day training at the brand’s headquarters as well as an annual franchise convention and ongoing training to drive sales and success.
• Marketing and advertising strategy: The brand has a qualified and dedicated marketing team to help franchisees establish web traffic and memberships to drive up sales. Franchisees can utilize its national and regional advertising media, social media, and personalized local studio promotional campaigns.
• Financing: Through third-party partnerships, the brand helps its franchisees with loan applications and SBA loans. Franchisees get funded for the franchise fees, payroll, equipment, and inventory.
• Expert and extensive support: The CycleBar team offers its franchisees the resources and network needed to establish and build successful businesses. Franchisees get professional guidance, monthly updates via webinars and seminars, one-on-one support, and field operations.
• Site selection and construction: CycleBar helps its franchisees with the site selection, layout designs, and construction of their CycleBar gyms. It also assists them with equipment selection, onsite security, music, and technology.
• Exclusive territory protection: The brand grants the franchisees the right to operate in an exclusive development market. Under the agreement, the franchisor does not license any other franchises or operate rival units in the agreed-upon area.

The Cons:

• Not a home-based business opportunity: The CycleBar franchise cannot be operated from home or a mobile unit. Franchisees are required to have office spaces, retail facilities, or warehouses.
• Not a passive business opportunity: The franchise does not allow for absentee ownership. Franchisees must be actively involved in all decision-making and the running of their clubs.
• Not a part-time business. The business cannot be run on a part-time basis or as a side business investment.
• Strong competition from other premium fitness chains such as Club Pilates, Pure Barre or Burn Boot Camp to name a few.

How to open a CycleBar franchise

Opening a CycleBar franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a CycleBar franchise.

1. Research CycleBar and the Fitness Franchise Industry

• Understand the Brand: Dive into CycleBar’s history, mission, and what sets it apart in the indoor cycling and broader fitness industry.
• Market Analysis: Assess the demand for boutique fitness studios and specifically indoor cycling in your desired location.
• Competitive Landscape: Look at local competition and how CycleBar fits into the mix.

2. Review Franchise Requirements and Costs

• Initial Investment: Examine the required initial investment, which typically includes a franchise fee, equipment costs, leasehold improvements, and operational expenses.
• Financial Requirements: Understand the liquid capital, net worth, and ongoing royalty fees required to maintain the franchise.
• Franchise Disclosure Document (FDD): Request and review CycleBar’s FDD for detailed information on the franchise operation, obligations, and financial performance representations.

3. Develop a Business Plan

• Market Strategy: Outline how you plan to attract and retain customers in your local area.
• Financial Projections: Create detailed financial projections including startup costs, operating expenses, revenue streams, and break-even analysis.
• Location Plan: Decide on the location based on market research, visibility, and accessibility.

4. Secure Financing

• Funding Options: Explore financing options such as personal savings, bank loans, SBA loans, or potential investors.
• Business Plan Presentation: Use your business plan to secure financing, showcasing the viability and profitability of your CycleBar franchise.

5. Submit Franchise Application

• Application Process: Complete and submit the CycleBar franchise application with all required documentation.
• Initial Interviews: Participate in interviews with the CycleBar franchise team to discuss your application, background, and business plan.

6. Site Selection and Lease Negotiation

• Location Approval: Work with CycleBar’s real estate team to identify and approve a suitable location based on their criteria.
• Lease Negotiation: Negotiate the terms of your lease with the assistance of legal and real estate professionals experienced in commercial leases.

7. Complete Training Program

• Franchisee Training: Attend CycleBar’s franchise training program to understand the operational, marketing, and administrative aspects of running your studio.
• Staff Training: Recruit and train your staff, including managers, instructors, and front desk personnel, based on the training and standards provided by CycleBar.

Disclaimer

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