Bodybar Pilates Franchise Costs: Estimated Initial Investment (Item 7, 2021 FDD)
1. Initial Franchise Fee: $49,500
2. Travel and Living Expenses While Training: $500 to $3,000
- Included in the initial franchisee fee is Bodybar Pilates’ Business Owner Training Program for you (or, if you are an entity, your Designated Operator) and, unless Bodybar Pilates agrees otherwise, your designated Studio Manager or Operations Director; and Bodybar Pilates’ Studio Manager Training Program for you (or, if you are an entity, your Designated Operator) and your designated Studio Manager and/or Operations Director.
- You must attend Bodybar Pilates’ proprietary Business Owner Training Program and the Studio Manager Training Program before you can conduct business.
- You must pay all expenses you and your employees incur in attending these Programs, like travel, lodging, meals, and wages. These costs will vary depending upon your selection of salary levels, lodging and dining facilities, and mode and distance of transportation.
3. Bodybar Pilates Instructor Training Program: $1,500
- You and/or your lead instructor must complete Bodybar Pilates’ Initial Instructor Training program prior to commencing operations. The cost of the Initial Instructor Training program is $1,500 for the first session plus travel and living expenses during the training.
- You can bring as many trainees as you desire with you to this Initial Instructor Training. Any additional sessions of the Initial Instructor Training program will cost $1,500 per person.
4. Real Estate/Lease: $10,000 to $40,000
- A Studio will typically be located in a retail shopping center with at least 2,000 to 2,400 square feet of space. Bodybar Pilates may, however, consider alternative sites, on a case-by-case basis.
- The estimates above are based on a typical landlord’s requirement that a lessee pay the first month’s rent, the last month’s rent, and/or a security deposit equal to one month of rent upon execution of the lease.
- Real estate costs vary considerably according to real estate values in your area, your real estate interest (leasehold or ownership), location, size of the site, code requirements, and other factors.
- The high estimate assumes that you utilize a real estate service and construction management company for assistance in negotiating the lease.
5. Leasehold Improvements: $40,000 to $105,996
- The premises for Studios are generally leased. The amounts assume that you will lease the premises and do not include costs of land acquisition and construction of a building.
- The leasehold improvements estimate is based on the cost of adapting Bodybar Pilates’ prototypical architectural and design plans (including any architect, construction management, and general contracting fees) to a facility containing approximately 2,000 to 2,400 square feet.
- The low figure assumes that you will be converting an existing Pilates studio to a Franchise facility. The high figure assumes that you will be a first-generation tenant and that you will be responsible for providing connections to adequate electrical, gas, water, and sewage services. This figure also assumes that you will utilize an architect or construction management company to develop necessary plans as well as management of the overall construction.
- The above amounts assume a tenant improvement allowance of approximately $44.25 per sq. ft., which was the systemwide average during the 2020 calendar year, or $88,500 to $106,200. If you are unable to secure a tenant improvement allowance, the figures above will likely increase by these amounts.
6. Pilates Equipment Package: $70,000 to $90,500
- The initial required amount of Pilates and other exercise equipment for a Studio includes 14 Pilates Reformers with springs, 14 jump boards, 14 Allegro II Towers, and 14 EXO Chairs. Smaller pieces of related exercise equipment (e.g. Pilates balls, weights, etc.) are optional.
- Financing for the equipment may be available.
- Currently, the Pilates Equipment Package must be purchased from Bodybar Pilates’ designated vendor, but Bodybar Pilates will facilitate the sale and collect the payment from you and remit the same to the vendor.
- The low range assumes a lease-to-own for a portion of the equipment package.
7. Millwork, Audio, and Visual Items: $20,300
- This amount reflects the cost of Bodybar Pilates’ required millwork, including cubbies, as well as the required audio and visual items, including speakers and one surveillance camera you must install at the Studio. The camera(s) must be web accessible.
- You will use the camera to monitor instructor performance, quality assurance, and safety. Bodybar Pilates has an absolute right to also review and monitor the camera(s) for the same purposes as you, and to ensure compliance with the Bodybar Pilates System. You are responsible for ensuring customer consent and for any failure to obtain such consent.
- Currently, you must purchase such furniture, fixtures, and equipment directly from Bodybar Pilates’ designated vendor. Bodybar Pilates reserves the right to facilitate the sale and collect the payment from you and remit the same to the vendor.
- Both the low-end and the high-end numbers represent a straight purchase of all furniture, fixtures, and related supplies (rather than leasing or making installment payments for these items).
8. Signage: $13,000 to $17,000
- You will need to purchase appropriate signage for your Studio that Bodybar Pilates approves. The cost of your signage may be more or less than this estimate, and depends on the size, type, and method of installation you choose. Each landlord has different restrictions it places and exterior signage that may affect your costs.
- You may purchase your signage with installation from an Approved Supplier.
9. Computer System and Equipment: $1,000 to $5,000
- You must acquire a personal computer and a Point of Sale system (“POS”) for use in the operation of the Studio. Your computer system must be equipped with a high-speed connection to the Internet and must include a local area network with a dedicated server.
- Bodybar Pilates will make available to you a certain business management software program specific for the Studio to be loaded on to your system. You will pay the third-party vendor directly for all fees associated with the use of the software.
- You can expect initial cash outlays to be lower if the items can be leased rather than purchased.
- In addition, this estimate includes certain related equipment (e.g. tablets, etc.) recommended for use in your Studio.
10. Initial Inventory Kit: $15,000
- Prior to opening your Bodybar Pilates Studio, you must purchase from Bodybar Pilates its proprietary Initial Inventory Kit, which includes Bodybar Pilates apparel, including t-shirts, yoga pants, toe socks, and related accessories. You will sell and give away this retail during pre-opening events to bolster brand recognition and sell memberships.
- The cost of the Initial Inventory Kit is $15,000 and is not refundable upon payment under any circumstances.
11. Advertising/Marketing (including Grand Opening Program costs): $15,000
- You will be required to spend a minimum of $15,000 on advertising and promoting prior to the grand opening of your Studio.
- Bodybar Pilates may require that you expend all or some portion of these funds on materials or services that are provided by Bodybar Pilates’ then-current Approved Supplier(s) for the Opening Support Program components and/or any other advertising or marketing, and Bodybar Pilates expects that you will typically expend these amounts primarily in the month(s) immediately preceding and following the soft opening of your Studio.
- You may spend more than the $15,000 minimum.
12. Insurance: $500 to $1,000
- This amount represents an estimated down payment of your annual insurance premiums, equal to one month’s payment. You must obtain the insurance coverage described in the Agreements.
- Bodybar Pilates must be named as an additional insured on these policies.
- Your cost of insurance may vary depending on the insurer, the location of your Franchise, your claims history, and other factors.
13. Shipping: $3,000 to $8,000
- Bodybar Pilates reserves the right to arrange for the shipping of all of your equipment and furniture/fixtures, which will be paid to the supplier. These amounts will vary based upon your Studio’s location.
14. Professional Fees: $1,000 to $10,000
- You may incur certain professional fees as you seek legal, financial, real estate, or other advice in the process of opening your studio.
15. Additional Funds: $10,000 to $20,000
- You will need additional funds during the start-up phase of your business to pay employees, purchase supplies, and other expenses. Bodybar Pilates estimates the start-up phase to be three months from the date you open for business.
- This total amount is based upon Bodybar Pilates’ experience in offering and selling franchises since 2015 and information provided to Bodybar Pilates by its franchisees.
16. Total Estimated Initial Investment: $250,300 to $401,796
The post How Much Is a Bodybar Pilates Franchise? (Detailed Franchise Costs) appeared first on Franchise Chatter.
