Start a CycleBar Franchise in 2024

2024 Franchise 500 Rank: #411 Ranked #370 last year

Initial investment: $338K - $511K

Units as of 2024: 218 5% over 3 years

CycleBar Franchise

Want to run a business focused on low-impact physical fitness and full-body cardio cycling experiences? You can do just that by starting a CycleBar franchise.

It’s much easier, cheaper and more likely to succeed than trying to bootstrap an indoor gym franchise from scratch.

Of course, there’s a lot you need to know about CycleBar before starting one of these franchises. Starting a franchise requires a lot of startup capital and dedication. Let’s take a closer look at what it takes to start a CycleBar franchise of your very own.

Why should you start a CycleBar franchise?

CycleBar is a franchise company based around multi-unit indoor cycling studios. At the time of this writing, there are over 200 locations scattered throughout the US and many international studios.

But each franchise location has the same focus: providing multisensory fitness experiences using personalized and expert instruction from certified staff members.

CycleBar was initially founded in 2014 by Bill Pryor and Alex Klemmer. Each CycleBar franchise location uses music playlists (called “CycleBeats”), video graphics and individual member performance data to motivate riders and help them understand their fitness journeys over time.

The company combines fitness and fun in equal measure, making it an excellent choice for future franchise owners who want to get into the fitness industry.

Some other great reasons to start a CycleBar franchise include:

You get to join the world's largest network of indoor cycling studios. As a result, there is a lot of territorial availability across big markets, so odds are you’ll be able to open a studio at a great location.
The franchise is growing quickly overall. More importantly, CycleBar’s customer base is growing, too — if you open a location soon, you can take advantage of this built-in market.
CycleBar runs on an executive model for revenue. This franchise opportunity provides workoutreal estate to a growing audience, giving a franchise business many chances to take advantage of its unique business model.
CycleBar franchise locations are very scalable. You can leverage developing costs and vendor relationships to launch a studio of your very own, even if you don’t have all of the franchise fees personally just yet.

While these benefits are essential, absentee ownership is not allowed. In other words, you must be a full-time CycleBar studio manager to succeed with this partnership.

The franchisor does not allow you to run your studio location from home or as a mobile unit. As a result, you’ll also need to consider commute times and the location of your primary residence when building your CycleBar studio.

Each premium indoor cycling studio needs about 15 employees and can’t be run part-time, according to Xponential Fitness, the parent company. On the plus side, CycleBar does provide new franchisees with exclusive territories.

As a result, you will need to worry about competing with other CycleBar franchisees for the same limited customer base.

Still, this business opportunity allows you to boost your fitness levels and wellness while also acting as a business owner. As a CycleBar franchise owner, you’ll be physically and financially healthy.

What support resources does CycleBar offer franchisees?

This franchisor offers a variety of support resources to support new franchisees. These start with comprehensive training: a three-day course at corporate headquarters in California, to be specific.

Once you complete the training program, you'll be well-equipped and ready to launch a CycleBar franchise location and thrive almost immediately.

That’s not all CycleBar brings to the table in terms of support resources. All franchisees get access to an annual franchise convention, plus ongoing weekly support from corporate staff members and advisors. Each of your staff members will have sales training to help you drive success.

Regarding staff members, CycleBar assists you in hiring qualified instructors, sales team members and general managers. This is a significant component of CycleBar’s fitness-and-fun-focused approach and an excellent support resource.

If you don’t have a lot of sales experience, don’t worry. CycleBar provides ongoing sales training, including monthly calls and expert guidance that starts before your grand opening and well into the future.

That way, you’ll know how to start selling to customers initially and how to keep indoor fitness fans coming back over time.

That’s crucial, as CycleBar relies on repeat subscriptions and recurring customers for each studio to thrive. With this support, you’ll get the hang of the business model quickly, even if you have not previously managed a subscription business or any business.

Choosing your location

CycleBar goes above and beyond when it comes to supporting franchisees like you. First and foremost, CycleBar’s corporate team will help you choose the right location for your new indoor cycling studio. This extends to site selection and lease negotiation, allowing you to pick the perfect studio spot to minimize competition.

After you sign the lease agreement, CycleBar will assist with marketing right from the get-go. CycleBar provides personalized support to all new franchisees so you can generate website traffic and memberships from the beginning.

CycleBar even assists with the build-out process, from approving your studio layout to helping with general construction, interior design and technology integration.

Online assistance

As you grow your CycleBar franchise location, CycleBar will provide additional online assistance resources.

This includes SEO marketing assistance, email marketing assistance and regional advertising assistance. The regional advertising assistance will help you draw people from your local area to your studio.

Your CycleBar location will need to have a website. CycleBar provides developers and web development resources to build a good website from scratch.

Then, once your website is up and running, you’ll get access to the proprietary loyalty program and app. With the loyalty program, you’ll increase visitor retention and brand loyalty in no time.

How much does starting a CycleBar franchise cost?

Of course, building an indoor cycling franchise will cost some money upfront. To start a CycleBar franchise, you must pay an initial franchise fee of $60,000.

You’ll require an initial investment of between $350,000 and $490,000, plus a net worth of between $500,000 and $5 million.

Regarding cash, be prepared to front a minimum $100,000 total investment. That's cheaper than many other franchises' start-up cost requirements, but still it is worth thinking about. As will be laid out in the Franchise Disclosure Document (FDD), royalty fees clock in at about 7% and ad royalty fees are another 2% on top of that.

Fortunately, each term of agreement is 10 years, and your franchise terms are renewable if you enjoy working with CycleBar.

Does CycleBar provide financial assistance?

Yes, though it is through indirect third-party sources. CycleBar’s vendor and financing resources will help you cover franchise fees, startup costs and equipment.

This way, starting a CycleBar franchise may be affordable even if you don’t have the above numbers in your bank account.

What training is required to start a CycleBar franchise?

CycleBar sets a high bar for training to ensure you run your studio location successfully and ensure that your certified staff members can provide good fitness education to your future patrons.

It starts with 22.5 hours of pre-sale classroom training, which you’ll attend at the CycleBar corporate location. The classroom training extends to on-site training up to your grand opening.

This will show you the ropes of business ownership and how to use the CycleBar corporate software and platforms.

CycleBar provides all the training resources you need to ensure your staff members are up to speed regarding rules, regulations and training methods for patrons.

CycleBar uses proprietary software for all its training purposes, so it’s straightforward to point new hires to training modules they must complete before hitting the fitness floor.

Start a CycleBar franchise today

Starting a CycleBar franchise could be a great decision, especially if you’re interested in the indoor gym industry. Keep the above information in mind before applying, and you’ll be on your way to success.

Check out Entrepreneur’s other articles for more information about CycleBar and other franchise opportunities.

Company Overview

About CycleBar

Industry	Health & Wellness
Related Categories	Fitness , Sports, Cycling Fitness
Founded	2014
Parent Company	Xponential Fitness
Leadership	Mark King, CEO
Corporate Address	17877 Von Karman Ave., #100 Irvine, CA 92614
Social	Facebook, LinkedIn, Instagram, YouTube

Business Overview

Franchising Since	2015 (9 years)
# of employees at HQ	28
Where seeking	This company is offering new franchises throughout the US. This company is offering new franchises in the following international regions: Asia, Middle East, Europe (Eastern), Europe (Western), Central America, Canada, South America, Mexico
# of Units	218 (as of 2024)

Information for Franchisees

Here's what you need to know if you're interested in opening a CycleBar franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Definition: The initial fee paid to a franchisor to join their system What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.	$60,000
Initial Investment Definition: The total amount necessary to begin operation of the franchise What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.	$337,720 - $511,455
Net Worth Requirement Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.	$500,000 - $5,000,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$100,000
Royalty Fee Definition: A ongoing fee paid to the franchisor on a regular basis. What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.	7%
Ad Royalty Fee Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.	2%
Term of Agreement Definition: The length of time your franchise agreement will last. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.	10 years
Is franchise term renewable?	Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing	CycleBar has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training	2 hours
Classroom Training	22.5 hours
Ongoing Support	Purchasing Co-ops Newsletter Meetings & Conventions Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	No
Can this franchise be run from home/mobile unit? Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.	No
Can this franchise be run part time? Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.	No
# of employees required to run	15
Are exclusive territories available? Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened. What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.	Yes