About StarCycle Franchise
StarCycle is a boutique indoor cycling franchise that has been offering franchise opportunities since 2014.
The brand delivers high energy, music driven cycling classes in a motivating studio environment.
StarCycle classes are designed to challenge riders of all fitness levels through a combination of interval training, resistance climbs, and choreographed movements set to curated playlists.
StarCycle Franchise Cost & Fees
Minimum Investment
$239K
Average Investment
$350K
Maximum Investment
$462K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | The greater of 5% of Gross Revenue or $500 per month of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenue | National brand fund |
| Total Investment Range | $238,525 – $462,400 | Includes build-out, inventory, working capital |
The investment range of $239K–$462K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of 5% of Gross Revenue or $500 per month) and marketing fee (2% of Gross Revenue) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $40,000 |
| Pre-opening training Expenses | $1,025 | $15,000 |
| Real Estate Lease and Security Deposit | $0 | $0 |
| Permits | $3,000 | $5,000 |
| Construction and Remodeling (including Architect & Engineering Expenses) | $137,000 | $250,000 |
| Signage (Interior/Exterior, and Mural) | $8,000 | $13,000 |
| Computer Hardware and Software | $2,500 | $4,500 |
| Bikes | $3,000 | $40,000 |
| Other Equipment/Furnishings/Fixtures | $20,000 | $30,000 |
| Initial Inventory | $6,000 | $10,000 |
| Your Grand Opening Marketing | $12,500 | $12,500 |
| Grand Opening Marketing Support Fee | $2,500 | $2,500 |
| Insurance - Initial Deposits | $1,500 | $2,500 |
| Business Licenses/Permits/Incorporation Fees | $1,500 | $2,400 |
| Additional Funds (3 months) | $20,000 | $35,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $300 transfer application fee plus 50% of the then-current Initial Franchise Fee (for full transfer); $500 (for minority interest transfer) |
| Renewal Fee | 25% of the then-current Initial Franchise Fee |
| Technology Fee | currently $149 per month |
| Audit Fee | Amount due plus Costs of audit. Costs may range from $1,000 - $8,000. |
| Marketing Cooperative Contributions | Established by cooperative members |
| Relocation Fee | $5,000 |
| Additional Instructor Training Fee | currently $400 per additional instructor to be trained at our facility in Lake Oswego, Oregon, or $800 per additional instructor to be trained at your Studio. |
| New Product or Service Fee/Supplier Testing Fee | Our reasonable expenses, which may vary |
| Annual Meetings, Conference or Mandatory Training | $250 - $1,000 |
| Remedial Training/Re-Certification/Re-Training/New Training | The then-current training fee plus all travel expenses. See row entitled “Additional Training Fee,” above, for current training fees. |
| Late Fees and Interest | $200 plus interest on late amounts at the lesser of (i) 18% or (ii) the highest legal rate. |
| Returned Check Fee | $200.00 for each returned check. |
| Reimbursement of monies paid by us on your behalf | Varies with circumstances. |
| Gross-Up Fees | Varies with circumstances. |
| Interim Management Fee | $500 per day, plus all costs of operating the StarCycle Studio and the costs we incur related to transportation, lodging, and meals. |
| Audit by Franchisor | Amount due plus Costs of audit. Costs may range from $1,000 - $8,000. |
| Costs and Attorneys’ Fees | Varies with circumstances. |
| Indemnification | Varies with circumstances. |
| Inspection Costs/Reimbursement | Varies with circumstances. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 16.5 hours classroom, 11.5-25.5 hours on-the-job |
| Classroom Training | 16.5 |
| On-the-Job Training | 11.5 – 25.5 |
| Training Location | The city in which our headquarters is located (currently Lake Oswego, Oregon) |
| Additional Training | Franchisor may require franchisees and their instructors to take additional training or retraining courses throughout the term; the content of these programs may include new techniques, sequencing or other fitness programs. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive (for StarCycle Studio using StarCycle Marks) |
| Exclusive Territory | Yes |
| Territory Size | Currently, in a suburban or rural area the typical minimum number of qualified households is 7,500 but may be smaller in an urban market. |
| Description | The geographic scope and shape of your Territory will depend on the specific market variables of your location, including demographics, psychographics, density, market trends, traffic flow, natural and man-made boundaries, character of the neighborhood, competition from other businesses providing similar services within the area and our current general territory profile criteria, such as minimum population, minimum number of qualified households and age range of core customers. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 25% of the then-current Initial Franchise Fee |
| Renewal Conditions | You must have complied with your obligations during the Term; not be in default under the Franchise Agreement or any other agreements; must, at our request, renovate or modernize your Studio to comply with our then-current standards for a new StarCycle Studio; comply with the then-current training requirements; must sign our then-current form of Franchise Agreement; pay a renewal fee; and must sign a general release. You may be asked to sign a Franchise Agreement with materially different terms than your original Franchise Agreement. |
| Transfer Fee | $300 transfer application fee plus 50% of the then-current Initial Franchise Fee (for full transfer); $500 (for minority interest transfer) |
| Transfer Conditions | You must be in compliance with the Franchise Agreement and all other agreements, sign a transfer application and pay a nonrefundable transfer application fee; transferee must: qualify, complete training, have adequate financial resources to meet all of our criteria, sign a new Franchise Agreement on our then-current form (provided, that the term of the new Franchise Agreement will be the remaining term of the existing Franchise Agreement. You must sign a guarantee of the transferee’s payment and performance), refurbish the Studio, as needed; sign a guarantee and a general release. If any of the sales price is financed, you must sign a subordination agreement, abide by non-compete provisions in the Franchise Agreement; if location is leased, lessor must consent to sublease, assignment or novation of Lease, additional requirements apply to business entities. We must approve the terms of the transfer. We have a right of first refusal. |
| Termination for Cause | Franchisor can terminate if franchisee materially defaults under the Franchise Agreement or any other agreement between the parties. |
| Non-Compete Period | 2 years after termination or expiration |
| Non-Compete Details | During the term and for two years after termination or expiration, franchisee and covered persons may not have any interest in a competitive business (spinning or indoor cycling exercise business, or substantially similar to StarCycle Studio) located or operating (a) in the Territory or any other franchisee’s territory; (b) within 25 miles of the Territory; or (c) within 25 miles of any Company or Company’s affiliate-owned StarCycle Studio or any other franchisee’s territory. Exceptions apply for ownership of 5% or less of publicly traded stock. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The StarCycle Studio must, at all times, be directly supervised by you or a “Majority Owner” (if you are an entity) acceptable to us, who has management control and at least 51% ownership of the business entity, and who will be principally responsible for communicating with us about business, operational and other ongoing matters concerning your Studio. You or your Majority Owner must actively participate in the business and provide training classes to customers. If a Studio Manager is designated, they must have successfully completed the minimum level of training specified by us and be able to instruct a 45-minute StarCycle class, run day-to-day operations, bookkeeping, front desk, child care (if offered), equipment maintenance, computer operations, sound/tech operations, cleaning and maintenance, and ensure safety of students, staff and employees. |
| Required Suppliers | You must purchase all equipment, supplies, products and services from approved or exclusively designated suppliers, or our specifications as we designate. We and our affiliates may be approved or exclusively designated suppliers. |
| Supply Restrictions | You must purchase, use and offer for sale all of, and only, the StarCycle Products and StarCycle Services we authorize. This restriction limits the types, brands and/or quality of merchandise and products and services you may sell or provide at your StarCycle Studio. |
| Franchisor Revenue from Suppliers | During our fiscal year ending September 30, 2022, our affiliate did not receive such revenue, but we received such revenue in the amount of $126,916, which was 30.1% of our total revenue of $421,559 as reflected on our most recent audited financial statements. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisees of the StarCycle franchise program may be eligible for a Small Business Administration (SBA) loan by following the SBA loan application process and executing the mandatory, non-negotiable SBA Addendum, which is Attachment I to the Franchise Agreement. |
StarCycle Franchise Earnings — Item 19
Average Revenue
$29K
Median Revenue
$26K
Revenue Range
$13K – $55K
Sample Size
8 units
Past financial performance does not guarantee future results. Individual results will vary.
StarCycle Litigation & Risk Flags
Clean Litigation RecordStarCycle has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
StarCycle System Growth
Total Units
12
Franchised
9
Company-Owned
3
StarCycle currently operates 9 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 2 | 0 | 12 |
| 2021 | 0 | 0 | 12 |
| 2022 | 1 | 1 | 12 |
Transfers: 2 | Closures: 1
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$422K
Net Income
$-193,034
Total Assets
$149K
Audited by GeffenMesher for year ending September 30.
StarCycle Franchise — FAQ
The total investment to open a StarCycle franchise ranges from $238,525 to $462,400, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
StarCycle charges a royalty fee of The greater of 5% of Gross Revenue or $500 per month of gross sales, plus a 2% of Gross Revenue contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the StarCycle Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from StarCycle to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, StarCycle franchise owners report average revenue of $29K and median revenue of $26K. This is based on a sample of 8 units. Past performance does not guarantee future results.
StarCycle has been franchising since 2014. The FDD shows an investment range of $238,525-$462,400, a The greater of 5% of Gross Revenue or $500 per month royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $238,525 to $462,400 depending on location size and market. A minimum of $35,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from StarCycle and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with StarCycle or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com