CycleBar

CycleBar's total investment of $411K to $1.11M is driven primarily by studio buildout — cycling-specific flooring, ventilation systems, and 40-60 Stages or Schwinn bikes at $3K-$5K each represent a mandatory capital commitment before any member walks in. The franchise fee is $60,000 — higher than most boutique fitness brands of comparable size.

The royalty is 7% of weekly gross sales plus 2% to the Brand Development Fund — 9% combined. On median revenues of $406K, that's $36,540 annually to the franchisor. On top-quartile revenues of $709K, it's $63,810. For reference, the bottom quartile averages $264K — paying $23,760 in fees on revenue that's unlikely to cover fixed costs in most markets.

CycleBar is owned by Xponential Fitness, which also operates Club Pilates, Pure Barre, StretchLab, Row House, Rumble, and several other boutique fitness brands. Being part of the Xponential portfolio means shared corporate infrastructure but also means your franchisor has divided attention across nine brands simultaneously.

CycleBar's Item 19 covers 183 qualified studios open for the full 2024 measurement period (out of 189 total U.S. studios). The quartile data: top quartile (45 studios) averaged $709,117 with a median of $656,617; second quartile (46 studios) averaged $472,797; third quartile averaged $311,834; bottom quartile (46 studios) averaged $263,619.

The overall median of $406,514 tells the most important story. A studio at median revenue pays 9% to the franchisor ($36,600), roughly $3,000-$5,000/month in rent, $8K-$12K/month in instructor and front desk labor, plus insurance, equipment maintenance, and cleaning. The path to profitability requires either top-quartile revenue (which depends heavily on location and community building) or unusually low occupancy costs.

For context: CycleBar's median of $406K compares unfavorably to Rumble Boxing's median of $400K (a newer brand with only 85 studios) and Row House's disclosed revenue of $761K from a single 2019 studio.

CycleBar's decline is the sharpest trajectory in the Xponential Fitness portfolio. From 259 studios in 2022 to 217 in 2023 to 189 in 2024 — a loss of 70 studios in two years, or 27% of the system. The decline correlates with the post-pandemic normalization of indoor fitness demand, increasing competition from other boutique formats, and the economic pressure on $30-$40 per-class pricing in markets where consumers re-evaluated discretionary spending after 2022.

By contrast, Crunch (full-service, lower price point) grew by 95 units in the same period. The boutique high-price cycling model is under structural pressure that CycleBar has not yet reversed.

The combination of a 27% unit count decline, 9% fee burden, and a $406K median revenue creates a difficult investment thesis. Surviving studios are concentrated in top-performing locations — opening a new studio today means competing in the market segments that proved most viable, which are typically the highest-cost real estate markets.

Xponential Fitness had financial difficulties in 2024, disclosing going-concern warnings related to debt obligations at the corporate level. While this doesn't directly affect individual franchise agreements, it warrants monitoring — if the franchisor's corporate stability is uncertain, brand investment and support quality may be affected. Review the litigation section of the FDD carefully for any pending regulatory or franchisee actions.