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CycleBar Franchise ProfileFitness Franchises > Specialty Fitness Classes |
What Are the Initial Investment Requirements for a CycleBar Franchise?
To open a CycleBar franchise, the initial investment ranges from $337,720 to $511,455. This includes a franchise fee of $60,000. It's important to have cash readily available within this range, as well as a net worth between $500,000 and $1,000,000. Understanding these financial commitments is crucial for prospective franchisees to ensure they are prepared for the investment required to launch their CycleBar location.
What Are the Ongoing Fees Associated with a CycleBar Franchise?
CycleBar franchisees are subject to a royalty fee of 7% on gross sales, along with a marketing fee of 2%. These ongoing fees are essential for maintaining brand standards and supporting marketing efforts that drive customer traffic to your studio. Franchisees should factor these costs into their financial projections to better understand the overall profitability of their investment.
What Is the Average Revenue Potential for a CycleBar Franchise?
CycleBar units have shown an average annual revenue of $34,345, with a median annual revenue of $31,825. Revenue can vary significantly, with the lowest annual revenue reported at $4,250 and the highest at $131,224. This range highlights the importance of location, management, and local market conditions in determining a franchise's financial success.
What Is the Expected Return on Investment for a CycleBar Franchise?
Franchisees can expect to break even within approximately 12 months and achieve an investment payback period of around 18 months. With a gross profit margin of 59.3%, understanding these timelines can help prospective owners gauge the financial viability of their CycleBar franchise and plan for future growth and expansion.
CycleBar Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
CycleBar Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 213 | 245 | 219 |
| Net Change YoY | 32 | -26 | |
| Franchised Units | 208 | 234 | 218 |
| Net Change YoY | 26 | -16 | |
| Corporate Units | 5 | 11 | 1 |
| Net Change YoY | 6 | -10 |
Investment Overview
The CycleBar franchise offers a low to moderate initial investment, ranging from $337,720 to $511,455. The initial franchise fee is set at $60,000, with ongoing royalties of 7% and a marketing fee of 2%. Prospective franchisees should have a net worth between $500,000 and $1,000,000 to qualify for this opportunity.
Financial Performance
CycleBar units demonstrate promising financial metrics, with an average annual revenue of $34,345 and a median revenue of $31,825 per unit. The breakeven time is estimated at 12 months, and franchisees can expect to recoup their investment within 18 months. However, revenue can vary significantly, with the lowest reported annual revenue at $4,250 and the highest at $131,224.
Franchise Growth
The CycleBar franchise has shown consistent growth over recent years. In 2021, there were 208 franchised units, which increased to 234 in 2022. However, the number of franchised units declined slightly to 218 in 2023. The total number of units across all years reflects a strong presence in the fitness market.
Corporate Structure
CycleBar is a part of the Xponential Fitness brand, which specializes in boutique fitness franchises. The corporate entity oversees the franchise operations and provides support to franchisees, ensuring adherence to brand standards and operational excellence.
Operating Expenses
Average annual operating expenses for a CycleBar franchise are estimated at $237,000. Key expenses include rent and utilities at $60,000, marketing and advertising at $15,000, and management and administrative salaries totaling $120,000. These costs are critical for franchisees to manage effectively to maintain profitability.
Brand Mission
CycleBar's mission is to create a high-energy, community-focused atmosphere that promotes fitness and well-being. The brand aims to inspire riders through engaging classes led by passionate instructors, fostering a culture of inclusivity and motivation. CycleBar is dedicated to making fitness accessible and enjoyable for all, encouraging members to achieve their personal health goals.
Frequently Asked Questions
The initial investment for a CycleBar franchise ranges from $337,720 to $511,455, which includes the franchise fee of $60,000 and other startup costs.