CycleBarFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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 $425K[2]. SBA 7(a) loans show a 11.0% charge-off rate across 143 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $411K – $1.1M
- 27th pct Recreation & …
- Avg gross sales
- $425K
- 7th pct Recreation & …
- Royalty
- 7.0%
- 18th pct Recreation & …
- Units
- 189
- 40th pct Recreation & …
- SBA default
- 11.0%
- system-wide median varies by category
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = >15% above Recreation & Entertainment avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.6x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
The system contracted 13% year-over-year. Investigate why units are closing.
12 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $411K – $1.1M including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $425K/year (median $407K).
- Verdict F (Bottom Quintile) with a risk score of 100/100. SBA loan charge-off rate of 11.0% across 143 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- CycleBar Franchising SPV, LLC
- Parent company
- XPOF Assetco, LLC
- Ultimate parent
- Xponential Fitness, LLC
- Predecessor
- also
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 17877 Von Karman Ave., Suite 100, Irvine, California 92614
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $521K
- vs $204.6M 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).
Overview
About
CycleBar franchisees operate indoor cycling studios offering high-energy stationary bike classes in a group fitness setting. Daily operations include managing instructors, scheduling classes, managing memberships and retail sales, maintaining equipment, and creating branded fitness experiences with music-synchronized cycling workouts.
- CEO
- Mark King
- Headquarters
- CA
- Founded
- 2023
- FDD year
- 2025
- States available
- 36
FDD Item 7 · 2025 filing · 17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$60K
14.0% margin
Unlevered ROIC
7%
EBITDA / total invested capital
Payback
13.6 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $411K – $1.1M
- Better than avg vs category
- Liquid capital req'd
- $25K – $67K
- Better than avg vs category
- Franchise fee
- $40K – $60K
- Better than avg vs category
- Royalty
- 7.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $715 |
| Training fee | $5K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $425K
- Per unit, per year
- Median gross sales
- $407K
- Item 19 type
- Qualified Studios quartiles
- Sample size
- 184 units
- vs category median 5 · large
- Range (low → high)
- $29K→$1.3M
- Cohort dispersion (min → max)
- Quartile band
- $192K→$707K
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 176 Recreation & Entertainment brands
Revenue is only 0.6x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Recreation & Entertainment averages
How CycleBar Compares
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
- 17.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -12.9%
- Net unit change last year
- 3-yr CAGR
- -23.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 10
- Reacquired (3yr)
- 11
- Franchisor bought back
- 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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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).
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).
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.
- Total loans
- 143
- Loan volume
- $67.7M
- Median loan
- $492K
- 50th percentile
- Charge-off rate
- 11.0%
- 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
Vintage analysis
CycleBar charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into CycleBar's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 10-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
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.
Litigation (Item 3)
One pending action filed by former AKT franchisees against AKT Franchise and related entities alleging violations of franchise disclosure laws in multiple states, fraudulent inducement, and breach of good faith covenant.
Bankruptcy (Item 4)
Disclosed in last 7 years
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 100 / 100 rating
- 01MINORDeclining unit count of 12.5% YoY indicates system contraction and potential franchisee dissatisfaction
- 02HIGHMultiple pending and completed litigation actions involving franchisor, including pre-sale disclosure violations and securities claims, suggesting compliance issues
- 03MEDNo average net income disclosed despite $425k average revenue — lack of transparency on actual profitability
- 04MINORHigh initial investment ($410k-$1.1M) with 7% royalty on gross sales creates significant financial risk in contracting system
- 05MINORCalifornia Consent Order and administrative penalty indicates regulatory enforcement action by state authorities
- 06HIGHGoing Concern status = False suggests potential financial instability at franchisor level
- 07MED10-year term commitment in declining market segment (indoor cycling) with limited exit clarity
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population-based |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 15,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 4 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Arbitration location | Irvine, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 12 |
View Item 3 litigation summary
One pending action filed by former AKT franchisees against AKT Franchise and related entities alleging violations of franchise disclosure laws in multiple states, fraudulent inducement, and breach of good faith covenant.
Items 10, 11
Training & Operations
- Classroom training
- 84 hrs
- On-the-job training
- 19 hrs
- Training location
- On-site and corporate
- POS system
- ClubReady
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ClubReady
Item 20 · call current owners
Franchisee Contacts
81 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
CycleBar · FDD (2025) PDF
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 $425K. The median is $407K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 F-grade franchise with a risk score of 100 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
For franchisors
Are you the franchisor?
If you represent CycleBar, you can request corrections or provide updated information.
Claim this brandOther Recreation & Entertainment franchises
Compare similar franchise opportunities in the Recreation & Entertainment category
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.