StarCycle^®

Health & Wellness • Year: 2024

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What Is StarCycle?

StarCycle is a franchise in the Health & Wellness category that franchises owner-developed and operated exercise studios offering specialized indoor cycling classes. The operational model is brick-and-mortar, with typical StarCycle Studios located in urban storefronts, free-standing buildings and strip malls and operated under the StarCycle System and StarCycle Marks. It serves the general public (B2C), and the core service bundle includes indoor cycling classes using music and choreography, together with retail sales of exercise merchandise, equipment and assorted exercise- and childcare-related services.

StarCycle Franchise: Pros and Cons

A key strength is the low Item 7 minimum training fee of $20,000, well below typical Health and Wellness levels and leaving more cash for setup, but a major risk is the weak Territory Protection Score of 35, meaning limited exclusivity and the franchisor can place competing locations or channels nearby.

Pros

The Item 7 minimum training fee is $20,000, well below what's typical in Health & Wellness, leaving you with more cash on hand for setup and build-out.

Zero outlet terminations, zero non‑renewals, and zero reacquired outlets-an unusually low level of churn for this sector that suggests franchisees are largely sustaining operations.

No disclosed lawsuits, no franchisee‑initiated judgments or settlements, no government penalties, no franchisor‑initiated enforcement, and no fraud allegations-this clean legal and regulatory record reduces potential legal risk.

Cons

Territory Protection Score is 35, well below typical for Health & Wellness, meaning you will not have strong territory protection and the franchisor can place competing locations or channels nearby.

Lawsuits & Legal Risk

100

Excellent

StarCycle reported no material legal proceedings,

Territory Protection

35/100

NORMAL

StarCycle grants a site-specific, protected, non-exclusive geographic Territory based on market density, demographics and site factors and described on Attachment A; franchisor approval is required for site selection and relocation. Territory rights are contingent on meeting performance quotas, and franchisor retains rights to e-commerce/alternative distribution and to develop nearby units.

Training & Support

60/100

NORMAL

The brand provides a Focused 28-hour training curriculum designed to prepare eight staff members for launch. The program includes on-site launch assistance for operational readiness, with franchisees responsible for travel and living expenses and any additional fees associated with on-site support.

Franchisee Stability

44/100

NORMAL

StarCycle receives a Normal Stability Score. Three-year turnover of 10.71% is well above the typical Health & Wellness franchise (around 7%), and sits near the high end of the Health & Wellness range. Out of 3 total exits across the three reported years, ceased operations dominated with 2, alongside 1 franchisor buyback, with no terminations and no non-renewals; this occurred in a system with about 9 franchised outlets in the most recent year.

The dominance of ceased operations points to location-level economics: operators chose to close underperforming locations, not exits driven primarily by franchisor-franchisee friction; this suggests site-level fit or local demand issues rather than systemic problems with franchisor support. This is built on a compact track record (roughly 28 franchisees averaged across three years); continued retention as the system grows would solidify the picture. For prospective franchisees, retention is in line with industry peers.

How Much Does It Cost to Open a StarCycle Franchise?

Opening a StarCycle franchise requires a total initial investment of $240,025 to $464,900, according to the 2024 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.

Minimum Investment

$240,025

Franchise Fee

Real Estate

Equipment & Assets

Reserves

Training

Other

Maximum Investment

$464,900

Minimum Investment Breakdown

Franchise Fee$20,000

Real Estate$137,000

Equipment & Assets$36,500

Reserves$20,000

Training$0

Other$26,525

Maximum Investment Breakdown

Franchise Fee$40,000

Real Estate$250,000

Equipment & Assets$57,500

Reserves$35,000

Training$0

Other$82,400

Investment Analysis

This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.

The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.

How Much Do StarCycle Franchise Owners Make?

StarCycle franchise locations reported average gross sales of $28,089 and median gross sales of $24,600 in 2024, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$28,089

Median Gross Sales:

$24,600

High Gross Sales:

$54,898

Low Gross Sales:

$13,520

Sample Size:

Percent Attaining Average:

37.5%

Audit Status:

Unaudited

Franchise vs Corporate Performance: Franchised studios reported an average monthly revenue of 28,088.83 for FY2023, but no company-owned or affiliate financials were provided, so direct comparison to corporate performance is not possible.

Performance Variability Analysis: Monthly revenues ranged widely from 13,519.83 to 54,897.92 with a median of 24,599.88, indicating substantial variability among studios despite the small sample size.

Data Scope and Limitations: The representation covers only 8 franchised studios in operation at least 12 months, is unaudited, and excludes affiliate-owned outlets, which limits generalizability and independent verification.

Frequently Asked Questions

Is StarCycle a good franchise to own?

Whether StarCycle is a good franchise depends on your goals, experience, and local market. Key factors from the 2024 FDD: StarCycle operates 14 locations, received a legal risk score of 100/100, a training and support score of 60/100. Financial performance data is disclosed in Item 19. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.

Is a StarCycle franchise worth the investment?

The value of a StarCycle franchise investment depends on factors such as location, operator experience, and market demand. The initial investment ranges from $240,025 to $464,900. StarCycle disclosed average gross sales of $28,089 in 2024. Franchise investments carry inherent risk, and prospective buyers should conduct thorough due diligence before committing capital.

How long does it take to break even with a StarCycle franchise?

Break-even timelines for StarCycle franchises are not disclosed in the 2024 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.

Is StarCycle a franchise or a corporate-owned business?

As of the 2024 FDD, StarCycle operates 11 franchised locations and 3 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.

Interested in StarCycle?

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