In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a CycleBar franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a CycleBar franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned CycleBar outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the CycleBar franchise opportunity

Section V – Presentation and analysis of CycleBar’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• average gross revenue for each calendar month from February 2023 to January 2024 for the CycleBar studios that were owned and operated by a franchisee for the entire Measurement Period (except for permitted temporary closures) and were in operation for at least 6 calendar months when their results began to be included in the data set and as of the end of the calendar month for which their results were included (“Qualified Studios”)

• average gross revenue for each calendar month from February 2023 to January 2024 for the Qualified Studios that scheduled at least 100 classes during the respective calendar month (“Fully Scheduled Qualified Studios”)

• average gross revenue for each calendar month from February 2023 to January 2024 for the Qualified Studios that scheduled less than 100 classes during the respective calendar month (“Minimally Scheduled Qualified Studios”)

• average gross revenue, active members, leads, and new memberships during of New Studios during their initial 6-month opening phase

• 2023 average, median, maximum, and minimum monthly membership attrition rate for those Studios that were Qualified Studios as of January 31, 2024

• 2023 average revenue mix (memberships, services, fees, products) for those Studios that were Qualified Studios as of January 31, 2024

Section VI – Key ratios, comparables, computations, and analyses for the CycleBar franchise opportunity (exclusive content for Platinum subscribers)

Section I – CycleBar Franchise Costs

• Initial Franchise Fee:  $60,000
• Initial Training Program Fees:  $0
• On-Site Grand Opening Assistance:  $0 to $2,500
• Travel and Living Expenses While Training:  $0 to $2,500
• Real Estate/Lease:  $25,000 to $35,000
• Net Leasehold Improvements:  $129,000 to $244,730
• Payments in Connection with Fitness Equipment & Initial FF&E Package:  $8,600 to $22,700
• Signage:  $11,000 to $26,905
• Additional Operating Supplies and Accessories:  $10,000
• Pre-Sales and Soft Opening Retail Inventory Kit:  $12,000
• Computer System, A/V Equipment, and Related Components:  $44,900
• Business Licenses:  $500 to $1,000
• Technology and Software Fees:  $3,620
• Insurance Policies:  $1,100 to $2,600
• Initial Grand Opening Marketing & Advertising Spend:  $15,000
• Initial Instructor Training Fee:  $5,000
• Additional Funds for 3 Months:  $12,000 to $23,000
• Total Estimated CycleBar Franchise Costs:  $337,720 to $511,455

Section II – CycleBar’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $60,000
• Royalty:  7% of Gross Sales
• Brand Development Fund Contributions:  currently, 2% of Gross Sales
• Regional Co-Op:  as the Co-Op determines

Section III – Number of Franchised and Company-Owned CycleBar Outlets

Franchised

2021

• Outlets at the Start of the Year:  208
• Outlets at the End of the Year:  234
• Net Change:  +26

2022

• Outlets at the Start of the Year:  234
• Outlets at the End of the Year:  258
• Net Change:  +24

2023

• Outlets at the Start of the Year:  258
• Outlets at the End of the Year:  218
• Net Change:  -40

Company-Owned

2021

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  5
• Net Change:  0

2022

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  11
• Net Change:  =6

2023

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  1
• Net Change:  -10

Section IV – News Updates on the CycleBar Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the CycleBar Franchise (Item 19, 2024 FDD)

• The data presented in the charts below is data CycleBar obtained by polling the information directly from the franchisees’ gym management software systems and/or from profit and loss reports provided to CycleBar by franchisees.

• In all cases, the data used was the franchisees’ data. Neither CycleBar nor its affiliates have undertaken an independent investigation to verify the data that CycleBar polled from the franchisees’ gym management software systems or that was provided to it by franchisees. CycleBar does not anticipate the data polled from or provided by current franchisees in this Item 19 will materially differ from that of a new franchisee.

• This Item 19 contains certain historical data related to the operation of certain Studios.

• “Gross Revenue” means the total revenue generated by a given Studio, including all revenue generated from the sale and provision of any and all approved services at, from, or otherwise through, that Studio. Gross Revenue excludes sales tax (that the Studio owner must pay directly to the appropriate taxing authority).

• “Measurement Period” means the period beginning on February 1, 2023 and ending on January 31, 2024. Each month in the Measurement Period is an entire calendar month.

Part 1 – Average Gross Revenue of Qualified Studios

• The below provides the data relevant to Qualified Studios that, as of the particular calendar month, were open and operating for at least six months:

• February 2023 (227 Studios):  $30,970
• March 2023 (228 Studios):  $33,335
• April 2023 (228 Studios):  $33,114
• May 2023 (231 Studios):  $33,004
• June 2023 (245 Studios):  $31,862
• July 2023 (248 Studios):  $31,440
• August 2023 (252 Studios):  $30,610
• September 2023 (254 Studios):  $29,821
• October 2023 (238 Studios):  $29,722
• November 2023 (216 Studios):  $37,209
• December 2023 (208 Studios):  $33,344
• January 2024 (197 Studios):  $34,345

• Total Annual Gross Revenue (February 2023 to January 2024):  $388,776
• Average Monthly Gross Revenue (February 2023 to January 2024):  $32,398

• A “Qualified Studio” means a Studio that was owned and operated by a franchisee for the entire Measurement Period (except for permitted temporary closures) and that was in operation for at least six calendar months when its results began to be included in the data set and as of the end of the calendar month for which its results were included. Qualified Studios do not include Studios that operated at Non-Traditional Sites.

• “Non-Traditional Site” means any location that is situated within or as part of a larger venue or facility and, as a result, is likely to draw the predominance of its customers from those persons who are using or attending events in the larger venue or facility (for example, “big box” gyms and/or fitness facilities, cruise ships, military bases, shopping malls, airports, sports facilities and stadiums, industrial or office complexes, hotels, train stations and other transportation facilities, travel plazas, casinos, hospitals, theme parks, convention centers, colleges/universities, multi-unit residential properties, and other similar captive market locations).

Part 2 – Average Gross Revenue of Fully Scheduled Qualified Studios

• The below provides the data relevant to Fully Scheduled Qualified Studios that, as of the particular calendar month, were open and operating for at least six months.

• February 2023 (101 Studios):  $41,368
• March 2023 (165 Studios):  $38,055
• April 2023 (133 Studios):  $41,496
• May 2023 (158 Studios):  $39,025
• June 2023 (143 Studios):  $39,803
• July 2023 (140 Studios):  $39,599
• August 2023 (171 Studios):  $36,387
• September 2023 (137 Studios):  $38,540
• October 2023 (155 Studios):  $36,236
• November 2023 (127 Studios):  $46,653
• December 2023 (113 Studios):  $41,906
• January 2024 (136 Studios):  $40,463

• Total Annual Gross Revenue (February 2023 to January 2024):  $479,531
• Average Monthly Gross Revenue (February 2023 to January 2024):  $39,961

• “Fully Scheduled” means a Qualified Studio that scheduled at least 100 classes during the respective calendar month.

Part 3 – Average Gross Revenue of Minimally Scheduled Qualified Studios

• The below provides the data relevant to Minimally Scheduled Qualified Studios that, as of the particular calendar month, were open and operating for at least six months.

• February 2023 (126 Studios):  $22,636
• March 2023 (63 Studios):  $20,972
• April 2023 (95 Studios):  $21,378
• May 2023 (73 Studios):  $19,974
• June 2023 (102 Studios):  $20,729
• July 2023 (108 Studios):  $20,863
• August 2023 (81 Studios):  $18,414
• September 2023 (117 Studios):  $19,612
• October 2023 (83 Studios):  $17,558
• November 2023 (89 Studios):  $23,733
• December 2023 (95 Studios):  $23,159
• January 2024 (61 Studios):  $20,706

• Total Annual Gross Revenue (February 2023 to January 2024):  $249,734
• Average Monthly Gross Revenue (February 2023 to January 2024):  $20,811

• “Minimally Scheduled” means a Qualified Studio that scheduled less than 100 classes during the respective calendar month.

Part 4 – Member Information for New Studios

• The chart below provides the data relevant to New Studios as of the particular month after it opened in calendar year 2023

Month 1

• Number of New Studios:  18
• Average Gross Revenue:  $6,489
• Average Active Members:  248
• Average Leads:  566
• Average New Memberships:  87

Month 2

• Number of New Studios:  18
• Average Gross Revenue:  $27,222
• Average Active Members:  295
• Average Leads:  426
• Average New Memberships:  84

Month 3

• Number of New Studios:  18
• Average Gross Revenue:  $32,408
• Average Active Members:  310
• Average Leads:  372
• Average New Memberships:  63

Month 4

• Number of New Studios:  15
• Average Gross Revenue:  $33,791
• Average Active Members:  303
• Average Leads:  346
• Average New Memberships:  46

Month 5

• Number of New Studios:  12
• Average Gross Revenue:  $33,531
• Average Active Members:  306
• Average Leads:  323
• Average New Memberships:  42

Month 6

• Number of New Studios:  12
• Average Gross Revenue:  $32,745
• Average Active Members:  303
• Average Leads:  312
• Average New Memberships:  38

• “Active Members” means Studio members who were party to an effective studio membership agreement with a New Studio at the conclusion of the particular calendar month.

• “Leads” means the total number of prospective Studio members who submitted contact information to New Studios regarding Studio products or services during the particular calendar month.

• “New Memberships” means the total number of new Studio members who signed a studio membership agreement in the particular calendar month. New Memberships are included in the number of Active Members for that particular calendar month.

• A “New Studio” means a Studio that was owned and operated by a franchisee and that opened in calendar year 2023.

• Does not include Studios that operated at Non-Traditional Sites.

• “Month 1” refers to the calendar month in which the Studio launched its soft opening, which refers to when the Studio opened to its members and new prospects. The Gross Revenue data provided in Month 1 only includes the Gross Revenue generated by the New Studio after the soft opening and does not include pre-opening membership sales prior to the New Studio’s soft opening, regardless of when the Studio opened during the particular calendar month.

• “Month 2” refers to the calendar month after Month 1, and the same sequence repeats itself through “Month 6.”

Part 5 – Monthly Membership Attrition Rate

• Average:  9.0%
• Number and Percentage That Met or Exceeded the Average:  94 / 47.7%
• Median:  8.9%
• Maximum:  14.9%
• Minimum:  4.7%

• “Membership Attrition Rate” means the number of cancelled Studio memberships during a particular calendar month divided by the number of Studio members at the end of the prior respective calendar month.

• The chart above reflects the average monthly Membership Attrition Rate during the 2023 calendar year for those Studios that were Qualified Studios as of January 31, 2024. There were 197 Qualified Studios as of January 31, 2024.

Part 6 – Average Revenue Mix

Memberships

• Average:  77%
• Number and Percentage That Met or Exceeded the Average:  130 / 65.9%
• Median:  80%
• Maximum:  92%
• Minimum:  4%

Services

• Average:  19%
• Number and Percentage That Met or Exceeded the Average:  74 / 37.6%
• Median:  17%
• Maximum:  78%
• Minimum:  7%

Fees

• Average:  0%
• Number and Percentage That Met or Exceeded the Average:  60 / 30.5%
• Median:  0%
• Maximum:  3%
• Minimum:  0%

Products

• Average:  4%
• Number and Percentage That Met or Exceeded the Average:  81 / 41.1%
• Median:  3%
• Maximum:  18%
• Minimum:  0%

• “Fees” means Gross Revenue attributed to fees charged by Studios, such as set up fees, cancellation fees, monthly freeze fees, and enhancement fees.

• “Memberships” means Gross Revenue attributed to down payments and recurring dues for Studio memberships and membership add-ons.

• “Products” means Gross Revenue attributed to retail products sold by Studios.

• “Services” means Gross Revenue attributed to services that Studios provide, such as personal training services, drop-in fees, and studio class packages.

• The chart above reflects the average Gross Revenue that is attributed to Memberships, Services, Fees, and Products during the 2023 calendar year for those Studios that were Qualified Studios as of January 31, 2024. There were 197 Qualified Studios as of January 31, 2024.

• Each category (Memberships, Services, Fees, and Products) are exclusive of each other.

• Some Studios have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – CycleBar Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️