In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Burn Boot Camp franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Burn Boot Camp franchise, based on Item 7 of the company’s 2020 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Burn Boot Camp franchise, based on Items 5 and 6 of the company’s 2020 FDD
- Section IV – Number of franchised and company-owned Burn Boot Camp outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of Burn Boot Camp’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- 2019 average and median gross revenue and number of members as of December 31, 2019 for the top third, middle third, bottom third, and all 46 franchised Burn Boot Camp Outlets that were open and in operation for 36 months or longer as of December 31, 2019
- 2019 average and median gross revenue and number of members as of December 31, 2019 for the top third, middle third, bottom third, and all 54 franchised Burn Boot Camp Outlets that were open and in operation for more than 24 months but less than 36 months as of December 31, 2019
- 2019 average and median gross revenue and number of members as of December 31, 2019 for the top third, middle third, bottom third, and all 73 franchised Burn Boot Camp Outlets that were open and in operation for more than 12 months but less than 24 months as of December 31, 2019
- average and median number of members 30 days after opening for the 62 franchised Burn Boot Camp Outlets that were opened in 2019
Section I – Background Information
16 Things You Need to Know About the Burn Boot Camp Franchise
Breaks the Top 100 on Entrepreneur’s Franchise 500 List
1. In mid-February 2021, Burn Boot Camp made the prestigious Entrepreneur Franchise 500 list for the 3rd year in a row, rising to No. 90. After debuting on the list in 2019 at No. 424, Burn Boot Camp jumped more than 200 spots to No. 212 in 2020 before breaking into the Top 100 this year.
2. Founded by Morgan and Devan Kline in 2012, Burn Boot Camp quickly skyrocketed to success. The business formally became a franchise in 2015 and in 2017, it opened its 100th location. By 2020, Burn Boot Camp surpassed 250 locations, and this year it is primed to become one of the most sought-after franchises to watch.
3. Devan Kline said, “When we started Burn Boot Camp, it was with a mind to bring community support, health, and fitness together in a way that would really impact and help to change people’s lives. Now, we are not only impacting people’s wellness journey but their business and entrepreneurial dreams as well. We’ve seen so many members in Burn Nation that believe in our mission become Franchise Partners, and to see this brand continue to evolve even in the toughest of times really makes both Morgan and myself proud.”
4. Despite challenges in 2020, Burn Boot Camp continued to expand, opening 45 new gyms throughout the year. With a community mindset, it was important to the team to meet their members wherever they were. At the start of the pandemic, Devan and Morgan began streaming their signature high-intensity strength and cardio workouts, along with rejuvenating yoga sessions, kids camps, and additions like hip-hop dance and kempo-style kickboxing to members at home. In total, Burn Boot Camp’s virtual workouts have amassed over 3 million views.
5. Local franchise partners also pivoted by offering their own at-home programming to provide members with local training online. Gyms also went to great lengths to support members in nontraditional ways, from livestreaming arts and crafts for parents and their kids, to providing drive-up orders at the gym, knowing that creating flexibility was key to each member’s complete wellness journey.
6. In 2020, Burn Boot Camp was also awarded No. 1 Fastest Growing Franchise by Franchise Gator, No. 3 on the Franchise Times Fast & Serious List, and No. 3 on Entrepreneur’s Top New Franchises.
Plans to Expand in Metro Birmingham
7. In mid-July 2020, Burn Boot Camp franchisee Jim Safron announced that he was planning to open five Burn Boot Camp gyms in the metro Birmingham, Alabama area, starting in Homewood. The franchisee first opened a location in Hoover at 5401 Stadium Trace Parkway. He was gearing up to open another in October in Homewood after signing a long-term lease for 1045 Broadway Park off Green Springs Highway.
8. Safron said he recently sold his franchise location in Atlanta to focus on metro Birmingham. The multi-unit franchisee said he has leased space in Meadow Brook and is actively looking in Liberty Park with plans to target Mountain Brook at some point. Safron said he liked the Homewood location with its good demographics. “Finding 5,000 square feet in Homewood with adequate parking is a challenge,” he said. “So, the spot was really what sold us on it. It’s a beautiful building.”
9. Burn Boot Camp is an all-women’s gym that offers 45-minute high-intensity interval training workouts or “camps.” Sessions start as early as 5 a.m. and as late as 6:30 p.m. to end at 7:30 p.m. The fitness center features dumbbells, kettlebells, slam balls, and a TRX system as well as a patented floor. The gym also offers complimentary childcare and focus meetings to review goals, diet, and nutritional needs.
CEO Discusses How COVID-19 Has Affected Business
10. In October 2020, Devan Kline, co-founder and CEO of Burn Boot Camp, did an interview with franchising.com to discuss how COVID-19 has affected business. Kline stated, “We are feeling extremely optimistic about the future of our company. Being 100% family-owned, we were able to make short-term decisions that didn’t undermine long-term initiatives. We shut down our gyms on March 17 and now are back to 91% open. The vast majority of our membership continued with us despite our being closed. Times of greatest uncertainty form the strongest bonds. The strength and fortitude of our community afforded us the opportunity to award 25 new units and open 32 gyms, despite the pandemic.”
11. When asked what Burn Boot Camp was doing to help its franchisees through the pandemic, Kline said, “During COVID-19, like most brands, we pivoted early and often. We had an in-flight digital offering, ‘Burn On Demand,’ that we flipped into our core offering during the shutdown. It was slated for early 2021, and within 48 hours we went fully digital. Some of our top trainers and I live-broadcast camps daily at 9 a.m. Eastern time. This has been very popular for members at home on quarantine orders. We started creating Kids Camps, hip-hop dancing, kickboxing workouts, live yoga sessions, and many others. We also created a Partner Rewards Program and began attributing equipment, retail, and nutrition sales online to our franchise partners’ POS system.”
12. Kline added, “Our franchise partners went to great lengths to serve their members. From drive-by and pick-up orders at the gym to livestreaming arts and crafts for our clients’ children to give mom a break, we did it all. We approved our locations to run an additional layer of livestreaming that would allow their communities to see each other and be together on Zoom, met our clients outdoors, at local high schools, etc. We even had a client who is battling cancer tune in and livestream her workout from her hospital bed! Our system went all out…and we weren’t going to be the ones to stand in their way. At Burn, the best ideas win regardless of who they come from.”
13. When talking about the future of Burn Boot Camp, post-COVID-19, Kline said, “COVID forced acceleration of what was already coming. Digital fitness will have lasting effects on the fitness industry, and is here in 2020 in the form of what I thought might be 2025–2027. Training is a service business, and no number of screens will replace human connection, compassion, and a good ol’ high-five. Digital fitness has been around since far before the Internet. I think those who think ‘digital is everything’ or ‘digital is a fad’ will be sadly mistaken either way. The future of the fitness industry is both: having a brick-and-mortar presence where human connections can be forged, as well as a tie-in digitally so clients can take their favorite gym on the road.”
14. Burn Boot Camp was founded in 2012 by husband and wife team Devan and Morgan Kline in Charlotte, North Carolina. The Klines had met each other when they were 12 years old and grew up together. Devan Kline had always been athletic and had an entrepreneurial spirit. After college, Kline was drafted by the San Francisco Giants, but only played for three seasons. He tried to make it work in the traditional workforce, but he felt like he had to do what he loved, which was fitness, nutrition, mindset, health mentoring, and coaching. This led Kline to create a women’s boot camp program called Lightning 900 in Florida. Meanwhile, Morgan Kline moved to North Carolina to pursue her dream career with The Kellogg Company.
15. Devan stayed behind in Florida to learn how to run a business in the fitness industry and eventually followed Morgan to North Carolina. After moving to be with Morgan, Devan turned Lighting 900 into Burn Boot Camp. While finding clients was initially difficult, by the end of the first year, Burn Boot Camp had 800 clients. Over the next few years, the Klines continued to refine the Burn Boot Camp concept and they started franchising in 2015. Within a few short years, Burn Boot Camp has opened several hundred locations around the United States.
Entrepreneur’s Franchise 500
16. Burn Boot Camp ranked No. 90 on Entrepreneur’s 2021 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Burn Boot Camp franchise costs, based on Item 7 of the company’s 2020 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Burn Boot Camp’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 45
- Outlets at the End of the Year: 98
- Net Change: +53
- Outlets at the Start of the Year: 98
- Outlets at the End of the Year: 179
- Net Change: +81
- Outlets at the Start of the Year: 179
- Outlets at the End of the Year: 238
- Net Change: +59
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 4
- Net Change: -1
- Outlets at the Start of the Year: 4
- Outlets at the End of the Year: 4
- Net Change: 0
- Outlets at the Start of the Year: 4
- Outlets at the End of the Year: 4
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- Burn Boot Camp obtained the gross revenue and membership figures below from the point-of-sale and other computer systems utilized by its franchisees. Neither Burn Boot Camp nor an independent accountant has independently audited or verified the information.
- This information may not be representative of the Burn Boot Camp Outlets in any other years. Gross revenue and membership figures for any new Burn Boot Camp Outlet may be substantially lower during the first year of operations.
- The following information shows the 2019 average annual gross revenue and membership numbers for franchised Burn Boot Camp Outlets that were open and in operation for either (a) 36 months or longer as of December 31, (b) more than 24 months but less than 36 months as of December 31, or (c) more than 12 months but less than 24 months as of December 31.
- Outlets that were in operation for less than 12 full months during 2019, are not included in this financial performance representation.
- As of December 31, 2019, there were 242 Burn Boot Camp Outlets in operation, which includes 4 affiliate-owned Outlets and 238 franchised Outlets.
- Of the 238 franchised Burn Boot Camp Outlets in operation at the end of 2019: (a) 46 of them were open at least 36 months as of December 31; (b) 54 of them were open more than 24 months but less than 36 months as of December 31; and (c) 73 of them were open more than 12 months but less than 24 months as of December 31.
- The remaining franchised Outlets were open and operating less than 12 full months as of December 31, 2019 and, thus, are not included in the 2019 charts that appear below.
- “Gross Revenue” means all revenue accrued from the performance of services and sales of all products in, at, upon, about, through, or from the Outlet, whether for cash or credit and regardless of collection in the case of credit, and income of every kind and nature related to the business.
- This includes all membership-related programs and/or fees (such as initiation fees, enrollment fees, processing fees, paid-in-full fees, renewal fees, monthly dues, annual membership fees, and all revenues generated and derived during any presale membership programs) regardless of the amount of monthly membership fees that you collect.
- Gross Revenue also includes fair market value for any service or product you receive in barter or exchange for services and products in addition to all insurance proceeds and/or condemnation awards for loss of sales, profits, or business.
- However, Gross Revenue shall not include: (i) service fees for credit card transactions; (ii) revenues from any sales taxes or other add on taxes collected from members by you for transmittal to the appropriate taxing authority; (iii) gratuities paid by members to your employees; or (iv) the amount of cash refunds you in good faith provide to members.
- The sale and delivery of all products and performance of services away from the Outlet (such as off-site events) are included in computing Gross Revenue.
Part 1 – Franchised Outlets in Operation at Least 36 Months as of December 31, 2019
- This includes 46 Outlets that were open for at least 36 full months as of December 31, 2019.