About CycleBar Franchise
CycleBar is a premium indoor cycling franchise that delivers high energy, music driven group fitness classes in a boutique studio setting.
The brand has built a loyal following by combining top tier audio and visual technology with motivating instructors and performance tracking.
CycleBar began franchising in 2015 under CycleBar Holdco, LLC, and has become one of the leading names in the boutique fitness industry.
CycleBar Franchise Cost & Fees
Minimum Investment
$347K
Average Investment
$417K
Maximum Investment
$488K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $60,000 | One-time payment upon signing |
| Royalty Fee | The greater of (i) 7% of your Gross Sales of your franchised Studio, or (ii) $1,000 per month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently, your contribution to the Fund shall be an amount equal to 2% of the Gross Sales of your franchised Studio (your “Fund Contribution”) | National brand fund |
| Total Investment Range | $346,910 – $487,910 | Includes build-out, inventory, working capital |
The investment range of $347K–$488K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of (i) 7% of your Gross Sales of your franchised Studio, or (ii) $1,000 per month) and marketing fee (Currently, your contribution to the Fund shall be an amount equal to 2% of the Gross Sales of your franchised Studio (your “Fund Contribution”)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $60,000 | $60,000 |
| Initial Training Fee | $0 | $0 |
| Travel Expenses to Training | $500 | $2,500 |
| Real Estate / Lease | $14,000 | $48,000 |
| Net Leasehold Improvements | $112,000 | $189,000 |
| Furniture, Fixtures and Equipment Payments for 3 Months | $11,000 | $21,000 |
| Signage and Graphics | $18,000 | $23,000 |
| Supplies and Accessories | $10,000 | $10,000 |
| Retail Inventory Package for Presale and Soft Opening | $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 4 months | $2,860 | $2,860 |
| Insurance for 3 months | $1,050 | $2,550 |
| Grand Opening Marketing Budget | $15,000 | $15,000 |
| Instructor Boot Camp | $5,000 | $5,000 |
| Additional Funds, 3 months | $12,000 | $23,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Franchise Agreement: $10,000; Development Agreement: $10,000 per undeveloped franchise |
| Renewal Fee | $10,000 |
| Technology Fee | Currently, $715 per month, but subject to change upon written notice to you. |
| Audit Fee | Costs we incur in connection with audit (Currently, we estimate these costs to be between $500 and $2,500) |
| Relocation Fee | $5,000 |
| Local Advertising Requirement | Minimum of $1,750 per month |
| Authorized Instructor Video Review Fee | Currently, $300 per trainee and, if required, $75 for any re-attendance for a given individual |
| Other Royalty and Licensing Fees | Actual cost of licensing and royalty payments |
| Instructor Bootcamp Tuition (for prospective Authorized Instructors) | Currently, $5,000/day per session, including the costs and expenses our Master Trainer incurs in connection with providing all such training (or $3,500 for truncated Bootcamp) |
| Training Fee (all other Training) | Currently, $500/day per trainer; $30,000 to be paid by a franchisee that acquires and assumes a franchise from another System franchisee |
| Alternative Supplier Approval | $500 per day for personnel engaged in evaluating a supplier |
| Insurance Policies - Reimbursement | Reimbursement of any premiums or other amounts that we incur in connection with acquiring or maintaining required insurance coverage |
| Mystery Shopper Program Other Quality Control Programs | Currently, our Approved Supplier charges a fee amounting to $500/year |
| Late Fees | The greater of the highest applicable legal rate for open account business credit, or 1.5% per month |
| Penalty Fee | Currently, $100 for each day of non-compliance |
| Indemnification | All costs including attorneys’ fees |
| Cost of Enforcement or Defense | All costs including attorneys’ fees |
| Regional Cooperative | As the Cooperative determines |
| Manual Access Violation Fee | $10,000 |
| Early Termination Damages | The applicable Early Termination Fee, as further defined in the Remarks |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Owner/Operator Module: 22.5 hours classroom, 0 hours on-the-job. Designated Manager Training Module: 20 hours classroom, 1.5 hours on-the-job. Instructor Bootcamp: 10 hours classroom (auditions), 16.5 hours on-the-job (online). |
| Classroom Training | Owner/Operator Module: 22.5 hours; Designated Manager Module: 20 hours; Instructor Bootcamp: 10 hours (auditions) |
| On-the-Job Training | Designated Manager Module: 1.5 hours; Instructor Bootcamp: 16.5 hours (online) |
| Training Location | Our corporate headquarters in Irvine, CA for Owner/Operator and Designated Manager Modules. Instructor Bootcamp may be online/remote or at a corporate/franchisee studio. |
| Additional Training | Franchisor may provide, and require attendance at, up to five days of additional training each year at a designated facility (no training fee). Remedial training may be required for defaults, with a training fee. Franchisees can request additional/refresher training, subject to a training fee. Master Trainer training is available for Authorized Instructors to provide Instructor Bootcamp, also subject to a training fee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | May contain up to 50,000 people, typically comprised of a geographic area within a radius of two blocks to two miles around the Studio location, depending on population density, demographics, and existing territorial rights. |
| Description | Franchisees operate from an approved Authorized Location and receive a Designated Territory where the franchisor and its affiliates will not open or authorize another CycleBar Studio. The size and boundaries (zip codes, streets, landmarks, county lines) vary based on demographics and existing studios. The territory may be modified at renewal or transfer if the population exceeds 50,000. Franchisees cannot actively solicit clients or advertise outside their Designated Territory without prior written consent. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two, consecutive 5-year periods |
| Renewal Fee | $10,000 |
| Renewal Conditions | Franchisee must have complied with all Franchise Agreement provisions, not be in default, brought the Studio into compliance with current standards, given 90-180 days' notice, signed a then-current form of Franchise Agreement (which may have materially different terms), signed a general release, and paid the $10,000 renewal fee. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Franchisor approval is required and not unreasonably withheld if the transferee meets character, reputation, credit, experience, and financial standards. Conditions include: franchisee in compliance with all agreements, payment of $10,000 transfer fee (or administrative fee), signing a general release, transferee executing current franchise agreement or assuming obligations, transferee meeting current requirements and completing training, and the Studio being upgraded/repaired to current standards. |
| Termination for Cause | Franchisor may terminate immediately for non-curable defaults (e.g., material misrepresentation, insolvency, abandonment, felony conviction, unauthorized transfer, falsifying financial reports, misuse of Marks, health/safety violations, failure to open within 6 months, lease default, non-compete violation, repeated unauthorized product sales). For curable defaults (e.g., failure to comply with performance standards, late payments, other agreement violations), a 10 or 30-day cure period is provided. |
| Non-Compete Period | During term: Prohibited from involvement in any Competing Business. After term: 2 years. |
| Non-Compete Details | During the term, franchisee and Restricted Parties (principals, owners, guarantors, immediate family) cannot be involved with any Competing Business (fitness/exercise business, marketing/consulting business, or similar services, or franchising such businesses). They also cannot divert customers or solicit employees from franchisor or other franchisees. After termination/expiration/transfer, for 2 years, Restricted Parties cannot be involved with any business that franchises/licenses Competing Businesses (nationally) or operates a Competing Business at the Authorized Location or within a 10-mile radius of any CycleBar Studio. They also cannot solicit former customers, contact suppliers for competitive purposes, or solicit employees of the franchisor or affiliates. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisor recommends that the franchisee (or Designated Operator) personally supervise the Studio. However, a franchisor-approved Designated Manager may be appointed to manage daily operations. If no Designated Manager is appointed, the franchisee or Operating Principal must be on-site during normal business hours. All owners with 10% or greater interest, and the Designated Operator, must sign a personal guarantee. The franchisor is not an employer or joint employer. |
| Required Suppliers | Currently, we have Approved Suppliers for the following items and/or services you must purchase in connection with the establishment and/or ongoing operation of your franchised Studio: (i) Pre-Sale and Soft Opening Retail Inventory Package, as well as related shipping and transportation services; (ii) Initial FFE Package (which our standard franchise offering assumes you will lease); (iii) the Instructor Bootcamp that your instructors must complete to become Authorized Instructors (and related materials); (iv) the Bike Equipment Package (which our standard franchise offering assumes you will lease) for use in connection with the provision of Approved Services from your Studio; (v) interior and exterior signage package, as well as certain other interior graphics; (vi) audio-visual equipment package; (vii) certain other supplies, appliances and equipment needed to provide the authorized services; (viii) training materials (including the video review associated with Instructor Bootcamp); (ix) the System Management Software and related computer system components for point-of-sale activities (the “POS System”); (x) certain then-current software we require you to use in connection with that POS System and your Studio; (xi) advisory services in connection with the locating and/or negotiating of a lease for, the approved premises of your Studio; and (xii) insurance. We and our affiliates are the only Approved Supplier of: (i) the Initial FFE Package, Pre-Sale and Soft Opening Retail Package and Studio Management System that you must lease or purchase to buildout your Studio prior to opening; (ii) the technology services that we provide as part of the Technology Fee you must pay to us under your Franchise Agreement; and (iii) the Instructor Bootcamp training that your personnel must attend and complete in order to become an Authorized Instructor that is able to provide Approved Services at your Studio. |
| Supply Restrictions | You may only market, offer, sell and provide the Approved Services, as well as any related merchandise and other products that Franchisor authorizes for sale in conjunction with the Approved Services at your Franchised Business in a manner that meets our System standards and specifications. You must operate all aspects of your Franchised Business in strict conformance with the methods, standards and specifications of our System. We have the right to require you to purchase any items or services necessary to operate your Franchised Business from a supplier that we approve or designate (each, an “Approved Supplier”), which may include us or our affiliate(s). |
| Franchisor Revenue from Suppliers | In our past fiscal year ending December 31, 2021, we derived $8,722,375 on account of our System franchisee’s required purchases, or 42% of the total revenue we generated over our past fiscal year amounting to $20,966,772. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | CycleBar offers indirect financing through third-party providers (Amerifund, MacroLease, Navitas) for certain initial purchases like the Pre-Sales and Soft Opening Retail Inventory Package, Fitness Equipment, and Other FFE Package. These loans range from $177,000 to $180,000, with terms of 1 to 5 years and interest rates from 5.9% to 18%. Down payments vary from 0% to 20% or first/last months' payments. Prepayment penalties may apply. Security typically includes a lien on financed equipment and may require personal guarantees or liens on the business/personal assets. The franchisor does not guarantee these obligations. |
CycleBar Franchise Earnings — Item 19
Average Revenue
$30K
Median Revenue
$27K
Revenue Range
$-79 – $110K
Sample Size
200 units
Past financial performance does not guarantee future results. Individual results will vary.
CycleBar Litigation & Risk Flags
Clean Litigation RecordCycleBar has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
CycleBar System Growth
Total Units
239
Franchised
234
Company-Owned
5
CycleBar currently operates 234 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 41 | 0 | 193 |
| 2020 | 20 | 0 | 213 |
| 2021 | 26 | 0 | 239 |
Transfers: 19 | Closures: 0
State Registrations
Registered in 21 states: CA, CT, FL, HI, IL, IN, IA, MD, MI, MN, NE, NY, TX, ND, OR, RI, SD, UT, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$21.0M
Net Income
$2.3M
Total Assets
$31.4M
CycleBar Franchise — FAQ
The total investment to open a CycleBar franchise ranges from $346,910 to $487,910, per their Franchise Disclosure Document. This includes the initial franchise fee of $60,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
CycleBar charges a royalty fee of The greater of (i) 7% of your Gross Sales of your franchised Studio, or (ii) $1,000 per month of gross sales, plus a Currently, your contribution to the Fund shall be an amount equal to 2% of the Gross Sales of your franchised Studio (your “Fund Contribution”) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the CycleBar Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from CycleBar to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, CycleBar franchise owners report average revenue of $30K and median revenue of $27K. This is based on a sample of 200 units. Past performance does not guarantee future results.
CycleBar has been franchising since 2015. The FDD shows an investment range of $346,910-$487,910, a The greater of (i) 7% of your Gross Sales of your franchised Studio, or (ii) $1,000 per month royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $60,000 and the total investment ranges from $346,910 to $487,910 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from CycleBar and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with CycleBar or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com