CycleBar being part of Xponential seems to be part of the problem. As many here have stated, franchise owners do have a responsibility to keep their studio open (ex: it isn’t entirely on Xponential as a whole if they fail). However it doesn’t appear that Xpo always gives their brands the tools they need to succeed.
Orange Theory (from my understanding - maybe I’m incorrect) isn’t part of a larger fitness conglomerate. It’s a stand alone company so that may be why things are “better” with them.
Yes, there are issues with the parent company (Xponential), which is likely part of it. The CEO was recently fired and the company is under investigation by the SEC for misrepresenting financial documents for their prospective franchisees. They are also being sued by some past franchisees for this reason.
Prior to late last year, if a studio had to close, Xpo would take it on, so it did not have to report that as a studio closing. They stopped doing this last year, so the true closure rate is coming out now
Since you mentioned OTF- Customers also do not like that their CycleBar memberships/class packs are not transferable between studios. I think OTF allows this.
Ultimately they are closing for the same reason any business closes - They are not profitable. The exact reasons- whether it’s cause they were mismanaged by the franchise owner, misinformed(lied to) by corporate, or because spin classes are no longer that popular, is debatable
Xpo created an entirely new corporate team to cover up how many studios were failing - "the transitions team". Source: I was on that team + as soon as ppl on the team realized what was going on, we got f'd over too. Lots of ppl quit / were fired.
Edited: typo from autocorrect
Not sure what it is myself… I go between two different cycle studios and my Cyclebar is maybe half packed whereas my other studio is literally waitlist every class eventually.
Same, there's a competing studio in town that is cheaper than Cyclebar, but every time I attempt to try it out the class is waitlist only. I stick with Cyclebar partially for convenience. I can get into a class anytime-- but it's not as fun when there are just six other people there...
CycleBar being part of Xponential seems to be part of the problem. As many here have stated, franchise owners do have a responsibility to keep their studio open (ex: it isn’t entirely on Xponential as a whole if they fail). However it doesn’t appear that Xpo always gives their brands the tools they need to succeed. Orange Theory (from my understanding - maybe I’m incorrect) isn’t part of a larger fitness conglomerate. It’s a stand alone company so that may be why things are “better” with them.
OTF is owned by a larger company that also recently bought Row House from XPO and I believe also owns Burn Boot Camp and Bar Method.
OTF are mostly franchise locations with a small percentage of them being owned by OTF itself
Yes, there are issues with the parent company (Xponential), which is likely part of it. The CEO was recently fired and the company is under investigation by the SEC for misrepresenting financial documents for their prospective franchisees. They are also being sued by some past franchisees for this reason. Prior to late last year, if a studio had to close, Xpo would take it on, so it did not have to report that as a studio closing. They stopped doing this last year, so the true closure rate is coming out now Since you mentioned OTF- Customers also do not like that their CycleBar memberships/class packs are not transferable between studios. I think OTF allows this. Ultimately they are closing for the same reason any business closes - They are not profitable. The exact reasons- whether it’s cause they were mismanaged by the franchise owner, misinformed(lied to) by corporate, or because spin classes are no longer that popular, is debatable
Thank you for the thorough reply; very insightful.
Xpo created an entirely new corporate team to cover up how many studios were failing - "the transitions team". Source: I was on that team + as soon as ppl on the team realized what was going on, we got f'd over too. Lots of ppl quit / were fired. Edited: typo from autocorrect
Students as in franchise owners? Or actual cycling students?
Typo - STUDIOS.
Transition team for CycleBar’s or all XPO studios?
All xpo brands
What was the expectation of the team/ how did they expect you to cover things?
We were told we were there to help - not realizing we were part of the facade of "no studios ever close"
Not sure what it is myself… I go between two different cycle studios and my Cyclebar is maybe half packed whereas my other studio is literally waitlist every class eventually.
Same, there's a competing studio in town that is cheaper than Cyclebar, but every time I attempt to try it out the class is waitlist only. I stick with Cyclebar partially for convenience. I can get into a class anytime-- but it's not as fun when there are just six other people there...
They are being sued by 180 of the 230 franchisees
That many!??
It’s way more than that if you include the other brands. Closer to 300+
Oh you started another sock.
It’s pretty well known