CycleBar Franchise Cost, Revenue & Review 2026
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: F (Weakest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $411K – $1.1M
- 30th pct Recreation & …
- Avg gross sales
- $424K
- 5th pct Recreation & …
- Royalty
- 7.0%
- 24th 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
Green = favorable by >10% vs Recreation & Entertainment avg · 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 F (Weakest tier), verdict score 28/100 (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).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- CycleBar Franchising SPV, LLC
- Parent company
- XPOF Assetco, LLC
- Ultimate parent
- Xponential Fitness, Inc. (NYSE: XPOF)
- 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).
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 43% below the typical recreation & entertainment franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown17 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.
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
- Middle of category vs category
- Royalty
- 7.0%
- percentage · 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 |
| Inventory (initial) | $14K – $18K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 57% below the recreation & entertainment norm.
Source: FDD 2025 · Item 19
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
$59K
14.0% margin
Unlevered ROIC
7%
EBITDA / total invested capital
Payback
13.6 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real 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?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
7%
Below the 30–60% attractive-franchise band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 CycleBar units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$594K
on $3.0M purchase
Total debt
$2.4M
SBA $1.5M + senior + seller note
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
- vs category median 5 · large
- Range (low → high)
- $29K→$1.3M
- 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
Compared against 166 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.
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 average).
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 averages
How CycleBar Compares
Is the system healthy?
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
- 58.2%
- 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
3-year detail · Item 20
- Opened (3yr)
- 10
- Closed (3yr)
- 31
- Terminated (3yr)
- 6
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 10
- Reacquired (3yr)
- 0
- 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 · 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).
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
- 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
Top lenders financing CycleBar franchisees
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.
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.
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.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
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.
Largest disclosed settlement: $450,000
Bankruptcy (Item 4)
Disclosed in last 7 years
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)
Franchisor entity revenue (not unit-level)
ⓘ 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 28 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 15,000 |
| Online sales rightsℹ | 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 | 12 |
| Mandatory arbitration | Yes |
| Arbitration location | Within 50 miles of Franchisor's then-current principal place of business (currently Irvine, California) |
| Jury trial waiver | No |
| Governing law | CA |
| Litigation count | 13 |
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
Technology: ClubReady
Item 20 · call current owners
Franchisee Contacts
188 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 $424K. The median is $407K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 F-grade franchise with a verdict score of 28 out of 100 (higher is better), 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
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If you represent CycleBar, you can request corrections or provide updated information.
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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.