Franchise Deep Dive: CycleBar Franchise Costs, Fees, Profit and Data

Propelled by the popularity of indoor cycling during the pandemic, the CycleBar franchise has seen significant growth over the past several years.

By Victoria CampisiStaff Writer

Updated 4:16PM • 03/13/23

LAST UPDATED: 1/2024

FRANCHISE WEBSITE: https://www.cyclebar.com/franchise

NUMBER OF LOCATIONS: 250+

REPORTED COST TO GET IN: $351,475 - $501,875

REPORTED ROI (Item 19): $366,225 (January 2021 to December 2021)

Founded in 2004, CycleBar is the largest indoor cycling brand and offers a variety of low-impact, high-intensity indoor cycling workouts that are inclusive of all fitness levels. The franchise offers an immersive, multi-sensory, community-focused experience in its “CycleTheaters,” led by specially trained instructors, enhanced with “CycleBeats” playlists and tracked using rider-specific “CycleStat” performance metrics.

Since being acquired by Xponential Fitness in 2017, CycleBar has seen tremendous growth, further heightened by a boom in the popularity of indoor cycling during the pandemic. Notably, the brand has received numerous awards in recent years, such as being ranked on Entrepreneur Magazine's Franchise 500 list four years running, a distinction as a Top New Franchise and one of the Fastest-Growing Franchises in 2021.

How Many Locations Are There?

There are more than 250 CycleBar studios around the world. In 2022, the brand opened its 250th studio and secured more than 500 franchise agreements.

What Is the Business Model?

CycleBar's business model is based on franchising indoor cycling studios. Here are key aspects of their business model:

Indoor Cycling Workouts: CycleBar offers low-impact, high-intensity indoor cycling workouts that cater to all fitness levels. The workouts are conducted in state-of-the-art "CycleTheaters" by specially trained instructors.
Community-Focused Experience: The business emphasizes creating a community-focused experience for its members. This includes immersive and multi-sensory workouts, instructor-led classes, and a sense of community within the studio.
Innovative Features: CycleBar incorporates features such as "CycleBeats" playlists to enhance the workout experience and "CycleStat" performance metrics to track individual progress.
Strong National Brand: CycleBar is an award-winning brand with a strong national presence, boasting over 280+ locations in North America.
Smart Investment: The business model attracts a broad range of members, offers a low-cost entry, and follows a recurring revenue model with strong EBITDA margins.
Community-Focused Member Experience: Emphasis on the power of community in fostering a positive member experience.
Scalable Business Model: The franchise model is scalable, allowing franchisees to determine their own success.
Support and Resources: CycleBar provides extensive support to franchisees, including assistance with site selection, lease negotiation, construction, recruiting staff, membership sales, and ongoing training. They also offer regular webinars and one-on-one support.

How Much Can CycleBar Franchise Owners Make?

The below information represents data from CycleBar’s 2022 Franchise Disclosure Document, as reported by Franchise Chatter, in which it discloses the average monthly gross revenue generated in each calendar month comprising the 2021 calendar year amongst the franchised studios that were: (i) owned and operated by a system franchisee over the entirety of the measurement period; and (ii) operating for at least 12 months beyond their soft opening date as of the end of that calendar month (the “Disclosed Studios”).

January 2021 (184 Studios): $24,727
February 2021 (186 Studios): $25,631
March 2021 (186 Studios): $29,731
April 2021 (186 Studios): $30,277
May 2021 (188 Studios): $33,019
June 2021 (191 Studios): $33,399
July 2021 (193 Studios): $34,404
August 2021 (195 Studios): $30,807
September 2021 (196 Studios): $29,507
October 2021 (197 Studios): $29,033
November 2021 (199 Studios): $35,778
December 2021 (200 Studios): $29,912
Total Annual Gross Revenue (January 2021 to December 2021): $366,225
Average Monthly Gross Revenue (January 2021 to December 2021): $30,519

How Much Does It Cost To Open a CycleBar Franchise?

To open a CycleBar franchise, there are financial requirements, cash requirements and ongoing franchise fees associated with business ownership:

Initial franchise fee: $60,000
Initial investment: $351,475 - $501,875
Net worth requirement: $500,000
Cash requirement: $100,000
Royalty fee: 7%
Ad royalty fee: 2%
Term of agreement: 10 years

CycleBar offers in-house financing for candidates and maintains relationships with several third-party funding sources, which offer financing to cover the franchise fee, startup costs, equipment, inventory, accounts receivable and payroll.

What Is the Franchise Fee for CycleBar?

The franchise fee for CycleBar is $60,000.

Who Are the Leaders of CycleBar?

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