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CycleBar Franchise Cost, Revenue & Review 2026

Recreation & EntertainmentCAFranchising since 2015
CAverageAverage40/100Editorial grade from public filings; not investment advice.
Investment
$411K – $1.1M
Disclosed sales
$424K
gross sales, not profit
SBA charge-off
11.0%
on 143 loans

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-00691FDD 2025Data QualityExcellent95%
Manager-run OKYes: Protected territory

Data from FDD filing + SBA 7(a) records

Analysis by FranchiseVerdict Research · Methodology

CycleBar is a boutique-fitness franchise offering high-energy, rhythm-based indoor cycling classes, part of the Xponential Fitness family. Franchisees run studios built on recurring memberships and class packages, staffing instructors.

FranchiseVerdict summary · 2026

A CycleBar franchise requires a total initial investment of $411K – $1.1M, including a $60K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $424K[2]. SBA 7(a) loans show a 11.0% charge-off rate across 143 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →

Sources, dates and evidence

FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file

Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.

Overview

Investment
$411K – $1.1M
29th pct Recreation & …
Avg gross sales
$424K
4th pct Recreation & …
Royalty
7.0%
26th pct Recreation & …
Units
189
49th pct Recreation & …
SBA charge-off
11.0%
% of SBA 7(a) loans not repaid · median varies by category

Quick verdict · Recreation & Entertainment · color = vs category peers

Total Investment
$411K – $1.1M
Median $560K
above median ↑, worse than category
Franchise Fee
$60K – $60K
Median $49K
above median ↑, worse than category
Liquid Capital Req'd
$25K – $67K
Median $40K
above median ↑, worse than category
Avg Revenue
$424K
Median $794K
below median ↓, worse than category
Royalty Rate
7.0%
Median 7.0%
near median
Ongoing Fees
9.0% of rev
Median 8.0%
above median ↑, worse than category
SBA Charge-Off Rate
11.0%
143 loans · Median 12.5%
below median ↓, better than category
System Size
189 units
Median 11 units
above median ↑, better than category
Turnover Rate
19.6%
Median 0.0%
Territory
Protected, not exclusive
Limits on the franchisor opening nearby; not an exclusive zone
Owner-Operator
Optional
Can hire a manager
Litigation
13 cases
Review carefully

Green = favorable by >10% vs Recreation & Entertainment median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)

Data from public FDD filings and SBA records. Not financial advice. Methodology

Bottom line

  • COSTTotal investment $411K – $1.1M including a $60K franchise fee, 7.0% ongoing royalty.
  • RETURNSAverage unit revenue of $424K/year (median $407K).
  • RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 11.0% across 143 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
  • GROWTHNegative: net -27 franchised outlets in the latest year (10 opened, 37 closed) (Item 20).
  • FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.

Item 1 · who you're contracting with

The Franchisor

Corporate structure & franchisor financials
Legal entity
CycleBar Franchising SPV, LLC
Parent company
XPOF Assetco, LLC
FDD Item 1, page 8 of the 2025 FDD
Ultimate parent
Xponential Fitness, Inc. (NYSE: XPOF)
FDD Item 1, page 8 of the 2025 FDD
Predecessor
CycleBar Franchising, LLC
Prior franchisor entity
CEO title
Chief Executive Officer
Mark King
Incorporated in
Delaware
HQ
17877 Von Karman Ave., Suite 100, Irvine, CA 92614
Auditor
Deloitte & Touche LLP
Audited financials
Franchisor revenue
$204.6M
vs $521K prior year

Affiliated brands

  • AKT Franchise SPV
  • and predecessor to BFT SPV
  • and predecessor to RH SPV
  • PB Franchising SPV
  • and predecessor to CP SPV
  • Row House Franchise SPV
  • and predecessor to PB SPV
  • Club Pilates Franchise SPV
  • BFT Franchise SPV

Other brands the franchisor or its parent operates (Item 1).

Same owner · FDD Item 1, page 8

9 other brands on this site name Xponential Fitness, Inc. (NYSE: XPOF) as parent or ultimate parent in their own FDD.

Portfolio: Xponential Fitness

Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.

Overview

About

CEO
Mark King
Headquarters
CA
Founded
2015
FDD year
2025
States available
36

Can you afford it, and what does the money buy?

Entry cost runs 36% above the typical recreation & entertainment franchise.

Total investment (Item 7)$411K – $1.1MCited, not corroborated — printed on page 28 of the 2025 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$60,000Verified — printed on page 18 of the 2025 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty7.0%Cited, not corroborated — printed on page 21 of the 2025 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund2.0%Cited, not corroborated — printed on page 21 of the 2025 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$25K – $67K

Source: FDD 2025 · Items 5–7

Full Item 7 breakdown17 line items

Initial investment breakdown

Item 7 initial investment line items
Line itemLowHigh
Initial Franchise Feenot refundable$60K$60K
Sourcing Feenot refundable$0$28K
On-Site Grand Opening Assistancenot refundable$0$3K
Travel & Living Expenses While Training$0$3K
Real Estate/Lease$28K$47K
Net Leasehold Improvements$49K$539K
Fitness Equipment & Initial FF&E Packagenot refundable$112K$177K
Signage$6K$34K
Additional Operating Supplies and Accessories$10K$10K
Pre-Sales and Soft Opening Retail Inventory Kitnot refundable$14K$18K
Computer System, A/V Equipment, and Related Components$56K$56K
Business Licenses$500$1K
Technology and Software Feesnot refundable$7K$7K
Insurance Policies$4K$9K
Initial Marketing & Advertising Spend$35K$48K
Initial Instructor Training Feenot refundable$5K$5K
Additional Funds - 3 months$25K$67K
Total initial investment$411K$1.1M

Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.

Item 7 · what it costs to open + operate

The Vitals

Total investment
$411K – $1.1M
Top 40% of category vs category
Liquid capital req'd
$25K – $67K
Top 40% of category vs category
Franchise fee
$60K – $60K
Top 40% of category vs category
Royalty
7.0%
typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
9.0%
vs 9–13% typical

Ongoing fees · Item 6

CycleBar: Item 6 recurring fees
FeeAmount
Royalty7.0% of gross sales
Marketing / ad fund2.0% of gross sales
Technology fee$715
Training fee$5K
Transfer fee$10K
Renewal fee$10K
Inventory (initial)$14K – $18K
Total fee load9.0% of rev

What do units actually make?

Average unit sales run 47% below the recreation & entertainment norm.

Avg gross sales$424KCited, not corroborated — printed on page 68 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Median gross sales$407KCited, not corroborated — printed on page 68 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Item 19 typehistorical
Sample size183 outlets

Source: FDD 2025 · Item 19

Single-unit · not modelled

Returns at a glance

An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for CycleBar until someone supplies them — yours, in the models below.

—

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

Total invested capital · disclosed

$807K

Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

What one unit earns on your invested capital

Model A · Single-Unit Return

Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.

Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.

Returns model · single-unit ROIC

What would one CycleBar unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearFDD
FDD Item 19 reports $424,125 per unit
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $411K–$1.1M (midpoint used)
FDD reports $25K–$67K

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$807K
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

What 25 units return when you use SBA financing

Model B · Return on Equity: Debt-Financed Acquisition

Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).

This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.

What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.

These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.

Item 19 · Source: 2025 FDD

Financial Performance

Avg gross sales
$424K
Per unit, per year
Median gross sales
$407K

Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.

Item 19 type
historical
Sample size
183 outlets
vs category median 5 · large
Range (low → high)
$29K→$1.3MCited, not corroborated — printed on page 68 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
Cohort dispersion (min → max)
Quartile band
$192K→$709K
Bottom 25% → top 25%
Reporting year
2024
Fiscal year the figures cover
Source filing
FDD 2025
Disclosed in the 2025 filing, covering 2024
Transparency
4 / 10
vs category median 4 / 10 · typical
Gross sales rank4th
Item 19 reporting methods vary across brands
Investment cost rank29th
Lower investment ranks lower (better)
Royalty rate rank26th
Lower royalty = lower percentile (better)
Unit count rank49th
vs Recreation & Entertainment peers
Risk score rank68th
Lower risk = lower percentile (better)

Compared against 165 Recreation & Entertainment brands

Showing the headline figures — all 115 extracted fields are in the Full FDD Report · $19 →
Revenue insight

Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.

Operator outlook

What the numbers say

Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.

Unit economics

Average unit generates $424K/year in gross sales. Revenue-to-investment ratio: 0.6x.

Fee burden

Total ongoing fee load of 9.0% (near the Recreation & Entertainment median).

Disclosure

Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.

Operator retention

System contracting at -23.8% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.

Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.

vs Recreation & Entertainment medians

How CycleBar Compares

Metric
CycleBar
Category median
vs median
Investment
$761K
$560Kmiddle half $268K–$1.5M · n=91
Above median, worse than category
Revenue
$424K
$794Kmiddle half $424K–$1.6M · n=25
Below median, worse than category
Unit Count
189
11middle half 3–64 · n=91
Above median, better than category

Category median of published Recreation & Entertainment brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units189Verified — printed on page 76 of the 2025 FDD (Item 20), and the table's own arithmetic closes on it three ways.
3-yr growth-23.8% (worth scrutinizing)
Turnover rate19.6% (caution)

Source: FDD 2025 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
189
Opened
10
Last reporting year
Closed
37
Terminated
6
Franchisor ended the franchise (per Item 20)
Non-renewed
0
Term expired, not renewed (per Item 20)
Turnover rate
19.6%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (3-yr)
-23.8%
Net unit change over 3 years
3-yr CAGR
-23.8%
Compounded over last 3 years

Last fiscal year · Item 20 exits and transfers

Terminated
6
Not renewed
0
Transfer rate
5.3%
Owners selling to other franchisees
Continuity rate
83.6%
Units that stayed open
Termination rate
3.2%
Franchisor-initiated terminations
Ceased ops
16.4%
Units that stopped operating
2022
248
Franchised units
2023
216-32
Franchised units
2024
189-27
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 18 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Active operators · 18 states
No contacts on file

States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.

Available to sell in · Item 12

  • Michigan
  • Wisconsin

States where the franchisor is registered to sell new franchises (FDD registration filings).

Where the owners are · Item 20 owner list

188 current owners across 27 states.

  • TE 25
  • CA 23
  • FL 22
  • NE 17
  • CO 10
  • NO 10
  • OH 10
  • PE 9
  • IL 8
  • MI 7
  • AR 6
  • VI 6
  • +15 more states

Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.

Growth insight

A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.

SBA loan performance

Government records

SBA Loan Data

Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.

C
SBA Lending Health
Average SBA lending record · 11.0% charge-off
Total loans
143
Loan volume
$67.7M
Median loan
$492K
50th percentile
Charge-off rate
11.0%
on 143 loans · rates vary by category · see methodology

Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated

Repayment rate (PIF)
89.0%
5-yr charge-off
16.7%
Loans approved 2021+
Active lenders
49
Defaults
9
Typical loan rate
6.5%
avg rate to borrowers
Franchised industry avg
15.8%
brand beats franchise avg ↓
Jobs supported
2,239
3.9 per loan
Lender concentration
13%
top lender's share

Borrower mix: 89% went to startups / new businesses, 11% to established operators

Franchise vs independent — in fitness and recreational sports centers, franchised businesses charge off at 15.8% vs 18.2% for independents — franchising is associated with 13% lower SBA default risk in this category.

Vintage analysis

CycleBar charge-off rate by loan vintage

BrandNational avg
CycleBar charge-off rate by loan vintage. Showing 8 vintages from 2015 to 2022. Rates range from 0.0% to 40.0%.0%5%10%15%20%25%30%35%40%'15'17'19'21'22

Top lenders financing CycleBar franchisees

The Huntington National Bank16 loans10.0%
Stearns Bank National Association14 loans8.3%
Wells Fargo Bank National Association9 loans37.5%

Showing 3 of 49 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Lender network · 7(a) + 504

SBA Lending Report

Full lending analysis for CycleBar from SBA 7(a) FOIA data.

Principal loss rate
4.5%
Avg SBA guarantee
75%
Avg interest rate
6.54%
Avg chargeoff amount
$285K
Lender concentration
13.0%
Job velocity
3.9 per $100K
NAICS benchmark
12.5%
NAICS 713940
Jobs supported
2,239

Top SBA lendersTop lender holds 13% of loans

#LenderLoansVolumeDefault %
1The Huntington National Bank16$5.1M10.0%
2Stearns Bank National Association14$6.0M8.3%
3Wells Fargo Bank National Association9$3.9M37.5%
4Paragon Bank6$2.7M0.0%
5Ameris Bank6$3.9M0.0%
6PNC Bank, National Association5$2.2M0.0%
7Simmons Bank5$2.7M0.0%
8First Federal Bank4$2.0M0.0%
9BayFirst National Bank4$1.7M0.0%
10Glacier Bank3$1.0M0.0%

Geographic failure vector

StateLoansDefaultsRate
CACalifornia16220.0%
FLFlorida14116.7%
OHOhio1400.0%
TXTexas12228.6%
COColorado800.0%
MOMissouri5150.0%
NCNorth Carolina500.0%
NJNew Jersey5120.0%
TNTennessee400.0%
MAMassachusetts300.0%

SBA 7(a) lending trend

2015
4
2016
20
2017
23
2018
18
2019
19
2020
7
2021
16
2022
9
2023
5
2025
2

Borrower profile

Startup62 (83%)
Unanswered5 (7%)
New (< 2 yr)5 (7%)
Existing (2+ yr)2 (3%)
Ownership change1 (1%)

Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict

What could kill this investment?

SBA loans charge off at 11.0% — 31% below the 16.0% national norm, i.e. lower lender-observed risk.

SBA charge-off11.0% · 143 loans
Verdict score40/100 (higher is better)
Litigation13 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

CAverage40Verdict score 40/100

CycleBar presents HIGH RISK due to accelerating unit decline, material litigation involving franchisor compliance violations, undisclosed net profitability, and regulatory enforcement actions — typical indicators of a struggling franchise system.

High confidence±4 pts
3644

Litigation (Item 3)

Subject: the franchisor is a named party (defendant).

Multiple pending actions against Xponential-affiliated brands and officers alleging pre-sale disclosure violations, fraudulent inducement, and breach of franchise agreements (AKT Lawsuit, Yoga Six/Enlightened Armadillo, Nickle Acquisition, 4LMVMT Arbitration, AHC Lawsuit, Zaltsman Arbitration); one completed settlement (Anderson Holdings, ~$28,000 equipment buyout); four pending shareholder securities/derivative lawsuits against parent XFI (Taylor General, Akande, Ayers, WBP Pension Fund, Nelson); and a California DFPI regulatory Consent Order requiring a $450,000 administrative penalty for FDD registration misrepresentations.

Bankruptcy (Item 4)

Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s

Xponential's Chief Operating Officer of North America, Timothy Weiderhoft, and his wife filed a personal Chapter 7 bankruptcy petition on August 9, 2023 (Case No. 2:23-bk-05397-BKM, District of Arizona) after an unrelated restaurant venture failed during COVID-19; discharge granted December 20, 2023.

Audited financials (Item 21)

Yes · Deloitte & Touche LLP

Franchisor revenue (Item 21)

Yr 1: $204.6MYr 2: $0.5MNon-royalty: $11.8M

Franchisor entity revenue (not unit-level)

Item 21 statements are XPOF Assetco, LLC's audited CONSOLIDATED financials (the parent/guarantor), not the named franchisor CycleBar Franchising SPV, LLC, which is a wholly-owned subsidiary of Assetco and provides no separate statements; Assetco unconditionally guarantees the franchisor's obligations. Figures reported in thousands and scaled to whole dollars. Assetco was formed March 6, 2023, so yr2 (521 thousand) covers the partial period March 6, 2023 to Dec 31, 2023. Balance sheet reconciles: total liabilities 111,249 + member's equity 39,141 = total assets 150,390 (thousands). Item 19 figures are annual whole-unit Gross Revenue for 183 Qualified Studios (FY2024).

ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.

Supplier relationship · Items 8 & 16

  • Franchisor sells you products: Yes
  • Kickbacks from required suppliers: No
  • Must buy proprietary products: Yes
  • Restricted to system-approved products: Yes
  • Can negotiate own supplier terms: No

Score breakdown · what drove the 40 / 100 verdict

  1. 01MINORDeclining unit count of 12.5% YoY indicates system contraction and potential franchisee dissatisfaction
  2. 02HIGHMultiple pending and completed litigation actions involving franchisor, including pre-sale disclosure violations and securities claims, suggesting compliance issues
  3. 03MEDNo average net income disclosed despite $425k average revenue — lack of transparency on actual profitability
  4. 04MINORHigh initial investment ($410k-$1.1M) with 7% royalty on gross sales creates significant financial risk in contracting system
  5. 05MINORCalifornia Consent Order and administrative penalty indicates regulatory enforcement action by state authorities
  6. 06MED10-year term commitment in declining market segment (indoor cycling) with limited exit clarity

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 115 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

What are you signing up for?

Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.

Initial term10 yrs
Renewal term10 yrs
TerritoryProtected, not exclusive
Initial training24 hrs

Source: FDD 2025 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term10 years
Renewal term10 years
Allowed renewalsℹ1
Territory typeProtected territory
Protected territoryYes
Exclusive territoryℹNo
Territory population15,000
Online sales rightsℹRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorOptional
Non-compete (years)ℹ2 years
Non-compete (miles)ℹ10 mi
Right of first refusalℹYes
Transfer requires consentYes
Termination notice30 days
Termination groundsℹ4
Curable defaultsℹ12
Mandatory arbitrationYes
Arbitration locationWithin 50 miles of Franchisor's then-current principal place of business (currently Irvine, California)
Jury trial waiverNo
Governing lawCA
Litigation count13
View Item 3 litigation summary

Multiple pending actions against Xponential-affiliated brands and officers alleging pre-sale disclosure violations, fraudulent inducement, and breach of franchise agreements (AKT Lawsuit, Yoga Six/Enlightened Armadillo, Nickle Acquisition, 4LMVMT Arbitration, AHC Lawsuit, Zaltsman Arbitration); one completed settlement (Anderson Holdings, ~$28,000 equipment buyout); four pending shareholder securities/derivative lawsuits against parent XFI (Taylor General, Akande, Ayers, WBP Pension Fund, Nelson); and a California DFPI regulatory Consent Order requiring a $450,000 administrative penalty for FDD registration misrepresentations.

Items 10, 11

Training & Operations

Classroom training
22 hrs
On-the-job training
2 hrs
Training location
Franchisor's corporate headquarters in Irvine, California (or other designated training facility)
Ongoing training
Required
Time to open
18 mo
From signing to launch
Site selection
Franchisee, with Franchisor approval
Franchisor financing
Not offered
Item 10
POS system
ClubReady
Operating tech stack

Items 5 & 11

Franchisor Support

✓Site selection assistance
✓Grand opening support
✗Lease negotiation help

Technology: ClubReady

Item 20 · call current owners

Franchisee Contacts

188 owners to call

Name · phone · city · state. Extracted from FDD Item 20

Unlock 188 contacts · $49
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724-369-••••PE
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928 551-••••AR
405 886-••••OK
224 443-••••IL
703 685-••••VI

Frequently asked questions

Frequently Asked Questions

How much does it cost to open a CycleBar franchise?

The total investment to open a CycleBar franchise ranges from $411K – $1.1M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).

What do CycleBar franchise owners earn?

According to Item 19 of the CycleBar FDD, the average gross sales per unit is $424K. The median is $407K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.

Who owns CycleBar?

CycleBar is franchised by CycleBar Franchising SPV, LLC. Its parent company is XPOF Assetco, LLC. The ultimate parent named in the FDD is Xponential Fitness, Inc. (NYSE: XPOF). Source: FDD Item 1, 2025 filing.

What is Item 19 in the CycleBar FDD?

The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the CycleBar FDD and qualifies whose outlets they describe.

What is CycleBar's franchise failure rate?

Based on SBA 7(a) loan data, CycleBar has a charge-off rate of 11.0% across 143 loans, meaning 11.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.

How many CycleBar franchise locations are there?

As of their most recent FDD filing, CycleBar has 189 total units in the United States, including 189 franchised units and 0 company-owned units. 10 new units were opened in the latest reporting year.

Is CycleBar a good franchise to buy?

FranchiseVerdict rates CycleBar as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.

Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.

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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.