In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Bodybar Pilates franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Bodybar Pilates franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Bodybar Pilates franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Bodybar Pilates outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Bodybar Pilates’ financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2019 and 2020 gross sales, payroll and payroll related costs, costs of goods sold, royalty, advertising, rent and occupancy costs, utilities and other certain operating expenses, and net income, by quarter and full year, for the Bodybar Pilates West 7th studio located in Fort Worth, Texas

Section I – Background Information

14 Things You Need to Know About the Bodybar Pilates Franchise

Strengthens Leadership Team as Company Continues to Grow

1.  In mid-December 2020, Bodybar Pilates announced the appointment of Bill Taylor as vice president of franchise development and operations, and Nancy Baio as director of franchise development.

2.  Matt McCollum, CEO of Bodybar Pilates, said, “Bill and Nancy both possess unique qualities that will help us expand the Bodybar movement in communities across the country. The growth we’ve seen at Bodybar in the last year has been exceptional. Even amid the pandemic, we added seven new franchise partners who have signed on to bring 13 new locations to the system. Bill and Nancy couldn’t be joining our team at a better time, and we look forward to seeing their impact on the brand.”

3.  Taylor brings an extensive background in the fitness franchise industry to Bodybar. Prior to joining the team, he spent nine years as a master franchisee for Anytime Fitness and as a multi-unit franchisee for UFC Gym, eventually becoming the director of operations for UFC. From there, Taylor joined the corporate team at Mayweather Boxing & Fitness as the director of business development and operations. At Mayweather, he helped launch the brand by signing 100 locations in the first year of business.

4.  With an extensive knowledge of operations and franchise development, Taylor will help advance Bodybar’s franchise development strategy and offer sound guidance and advice to new and existing owners. Taylor said, “Over the last 15 years, I’ve had the opportunity to work in nearly every facet of the fitness franchise industry. I know a good opportunity when I see one, and Bodybar is at the point where it is well-positioned for national growth. I look forward to playing a part in that expansion and working with new franchisees to meet their development goals.”

5.  Baio joins Bodybar after a 25-year-long career in the medical sales industry. Throughout her career, Baio worked for companies like Pfizer, Bristol Myers, and Becton Dickenson in addition to several start-ups in the disruptive technology space. Baio has been consistently recognized for resurrecting underdeveloped and underperforming territories and turning them into stable, profitable markets. Her experience of building relationships in such a competitive industry will serve her well as she works with candidates to help them achieve business ownership with Bodybar.

6.  Baio said, “I’ve always had a passion for sales, but this new opportunity with Bodybar is particularly exciting. I truly believe in the business model – each studio creates its own unique community, and you can see how transformative the program is for each member. I am excited to help more people reach their entrepreneurial goals and grow the Bodybar community across the nation.”

Reflects on Growth in First Half of 2021

7.  At the end of June 2021, Bodybar Pilates reflected on the company’s extensive growth in the first six months of 2021. By the time of the press release, Bodybar had become a health and wellness hit in the DFW Metroplex and opened two new studios in Keller, Texas and Alpharetta, Georgia. The Alpharetta location marks the brand’s first studio in Georgia.

8.  Furthering the development of the concept’s expansion are multiple signed agreement deals to expand into additional markets across the U.S. including Atlanta, Georgia; Boston, Massachusetts; Farmington, Utah; Frisco, Texas; Kansas City, Kansas; Lakewood Ranch, Florida; and Prosper, Texas.

9.  According to Matt McCollum, CEO of Bodybar Pilates, “The beginning of the year was still a time of uncertainty for everyone, but we took it as an opportunity to hit the ground running, putting our foot on the gas of Bodybar’s franchise growth strategy. With two new studios opened and several more in the pipeline, we’re eager to keep up the momentum through the end of the year.”

10.  McCollum added, “The Bodybar movement is one we’re proud to lead, and we’re ecstatic about the results we’ve seen thus far. Kamille and I have full faith that this brand is truly transforming bodies – and lives – across the United States. Now is the perfect time to get in on the ground floor of a booming fitness concept, and we look forward to finding more franchise partners who share our passion for Bodybar.”

Company History

11.  Bodybar Pilates was founded in 2011 and is based out of Fort Worth, Texas. The fitness concept offers a modern take on Reformer Pilates. As its name suggests, this type of Pilates uses a reformer machine, which makes the workout more intense and dynamic than mat based Pilates. The reformer machine adds resistance to the Pilates exercises via the use of the springs which form part of the machine. Using core Pilates principles, each Bodybar class is designed to provide a full-body workout that is high intensity, low impact and perfect for increasing flexibility, muscle strength, posture and boosting overall health.

12.  Bodybar began franchising in 2015 and one of the first franchisees was husband and wife team Matt and Kamille McCollum. The McCollums’ location was so successful that the owners of Bodybar asked them if they were interested in taking over executive leadership of Bodybar. In 2019, the McCollums accepted the offer and Matt now serves as CEO, while Kamille serves as COO.

13.  Today, there are Bodybar studios in Texas, Florida, California, Utah, Atlanta, Tennessee, and Massachusetts. Bodybar Pilates is looking for franchisees all across the United States.

Entrepreneur’s Franchise 500

14.  Bodybar Pilates did not rank on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Bodybar Pilates franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Detailed information on Bodybar Pilates’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2019

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  3
• Net Change:  +1

2020

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  4
• Net Change:  +1

Company-Owned

2018

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2019

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  0
• Net Change:  -2

2020

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• As of December 31, 2020, there were 4 open Bodybar Studios located in Dallas, Plano, and 2 in Fort Worth, Texas respectively.

• The Plano and the 2 Fort Worth franchised locations are owned by Bodybar Pilates officers Kamille and Matt McCollum’s entity, Speak Light LLC.  The Dallas franchise outlet is owned by Body Bar LLC, an entity owned by Bodybar Pilates officers Stephen and Laurie Gatlin.

• During the term of the measurement period, the Plano location was sold and subsequently transferred by Body Bar LLC to Speak Light LLC.

• This Item sets forth historical net revenue and cost information provided to Bodybar Pilates by the West 7th studio located in Fort Worth, Texas (the “Included Studio”). The information provided compares the periods from January 1, 2019 through December 31, 2019; and January 1, 2020 through December 31, 2020 (the “Measurement Period”).

• Considering the impact of the COVID-19 pandemic, Bodybar Pilates believes it is meaningful to display both the pre-pandemic numbers and the pandemic numbers for you to draw comparisons as to how a studio might perform during non-pandemic and pandemic circumstances.

• The Included Studio operates with an active Studio Manager and/or Operating Principal and has a total of 12 Pilates Reformers and Chairs. As a new franchisee, your Studio will be required to operate 14 Pilates Reformers and Chairs. Other than the above disclosure, your Studio will be substantially similar to the Included Studio.

• Excluded from this Item 19 are the Dallas, Plano, and second Fort Worth (Tanglewood) studios as these locations were either (a) legacy locations operating under a model that is different than the business offered under the disclosure document; or (b) were not open and under continuous operation by the same Operating Principal for the duration of the Measurement Period. For these reasons, these Studios have been excluded from this Item 19.

Part 1 – Profit and Loss Statements, Quarter by Quarter Comparison

Q1 2019

Gross Sales:  $142,988

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  $37,250
• COGS:  $4,076
• Royalty:  $10,009
• Advertising:  $7,875
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  $35,481
• Total of Disclosed Costs and Expenses Above:  $94,691

Net Income:  $48,297

Q1 2020

Gross Sales:  $137,380

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  $46,211
• COGS:  $997
• Royalty:  $5,140
• Advertising:  $12,783
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  $31,312
• Total of Disclosed Costs and Expenses Above:  $96,443

Net Income:  $40,937

Q1 Percentage Change

Gross Sales:  -4%

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  24%
• COGS:  -76%
• Royalty:  -49%
• Advertising:  62%
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  -12%
• Total of Disclosed Costs and Expenses Above:  2%

Net Income:  -15%

Q2 2019

Gross Sales:  $144,629

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  $46,597
• COGS:  $3,415
• Royalty:  $10,124
• Advertising:  $7,478
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  $39,212
• Total of Disclosed Costs and Expenses Above:  $106,826

Net Income:  $37,803

Q2 2020

Gross Sales:  $68,105

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  $17,552
• COGS:  $303
• Royalty:  $3,620
• Advertising:  $14,769
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  $32,208
• Total of Disclosed Costs and Expenses Above:  $68,452

Net Income:  $(347)

Q2 Percentage Change

Gross Sales:  -53%

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  -62%
• COGS:  -91%
• Royalty:  -64%
• Advertising:  97%
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  -18%
• Total of Disclosed Costs and Expenses Above:  -36%

Net Income:  -101%

Q3 2019

Gross Sales:  $130,688

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  $43,001
• COGS:  $2,974
• Royalty:  $9,148
• Advertising:  $7,227
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  $40,240
• Total of Disclosed Costs and Expenses Above:  $102,590

Net Income:  $28,098

Q3 2020

Gross Sales:  $109,181

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  $54,624
• COGS:  $7,586
• Royalty:  $7,566
• Advertising:  $13,000
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  $23,191
• Total of Disclosed Costs and Expenses Above:  $105,967

Net Income:  $3,214

Q3 Percentage Change

Gross Sales:  -16%

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  27%
• COGS:  155%
• Royalty:  -17%
• Advertising:  80%
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  -42%
• Total of Disclosed Costs and Expenses Above:  3%

Net Income:  -89%

Q4 2019

Gross Sales:  $145,680

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  $35,251
• COGS:  $2,154
• Royalty:  $10,198
• Advertising:  $9,849
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  $36,242
• Total of Disclosed Costs and Expenses Above:  $93,694

Net Income:  $51,986

Q4 2020

Gross Sales:  $116,752

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  $43,909
• COGS:  $1,883
• Royalty:  $8,191
• Advertising:  $7,522
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  $32,143
• Total of Disclosed Costs and Expenses Above:  $93,648

Net Income:  $23,104

Q4 Percentage Change

Gross Sales:  -20%

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  25%
• COGS:  -13%
• Royalty:  -20%
• Advertising:  -24%
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  -11%
• Total of Disclosed Costs and Expenses Above:  0%

Net Income:  -56%

Part 2 – Profit and Loss Statements, Full Year Comparison

Full Year 2019

Gross Sales:  $563,983 (100.0%)

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  $162,099 (28.7%)
• COGS:  $12,619 (2.2%)
• Royalty:  $39,479 (7.0%)
• Advertising:  $32,429 (5.7%)
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  $151,175 (26.8%)
• Total of Disclosed Costs and Expenses Above:  $397,801 (70.5%)

Net Income:  $166,182 (29.5%)

Full Year 2020

Gross Sales:  $431,418 (100.0%)

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  $162,296 (37.6%)
• COGS:  $10,769 (2.5%)
• Royalty:  $24,517 (5.7%)
• Advertising:  $48,074 (11.1%)
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  $118,854 (27.5%)
• Total of Disclosed Costs and Expenses Above:  $364,510 (84.5%)

Net Income:  $66,908 (15.5%)

Full Year Percentage Change

Gross Sales:  -24%

Disclosed Costs and Expenses

• Payroll and Payroll Related Expenses:  0%
• COGS:  -15%
• Royalty:  -38%
• Advertising:  48%
• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses:  -21%
• Total of Disclosed Costs and Expenses Above:  -8%

Net Income:  -60%

• The percentage change represents the increase or decrease between 2020 and 2019.

• Gross Sales includes all revenues collected from memberships, class packs, studio aggregators, late cancel/no show fees, gift card sales, and retail sales.

• Gross Sales does not include the amount of any applicable sales tax imposed by any federal, state, municipal, or other governmental authority if such taxes are stated separately when the customer is charged and franchisee pays such amounts as and when due to the appropriate taxing authority.

• Also excluded from Gross Sales are the amount of any documented refunds, chargebacks, credits, and allowances given to customers in good faith pursuant to Bodybar Pilates’ standard procedures for issuing such refunds.

• Payroll and Payroll Related Costs include all employee and contractor payroll, and fees for processing payroll. Not included is owner pay as Studio Manager, which you may incur as a franchisee.

• Costs of Goods Sold includes all inventory purchased for retail sales and sales tax collected.

• Royalty paid on Gross Sales collected is 7%. During the COVID-19 mandated shutdowns in 2020, Bodybar Franchising abated royalties for a 3-month period. Thus, the actual royalties paid does not equal 7%, which you will have to pay under the Franchise Agreement.

• Advertising includes amounts spent on digital advertisement, local marketing activities, and professional photography. It does not include the grand opening advertising spend. It does, however, include the required minimum local advertising spend of $3,000, which you will incur as a franchisee.

• Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses includes rent, utilities, Software License and subscriptions, telephone and internet, office supplies, equipment repairs and maintenance, insurance, bookkeeping, merchant services fees, security monitoring, utilities, and other miscellaneous office expenses.

• Total of Disclosed Costs and Expenses is defined as the sum of Payroll and Payroll Related Costs, Costs of Goods Sold, Royalty, Advertising, Rent and Occupancy Costs, Utilities, and Other Certain Operating Expenses.

• “Net Income” is defined as Gross Sales less Total of Disclosed Costs and Expenses.

• Speak Light LLC opened the Tanglewood (Fort Worth) location on August 1, 2020 and allowed members of the Included Studio to attend the new location at Tanglewood. This resulted in an increased growth rate of the Tanglewood location and a decrease in the Gross Sales of the Included Studio.

• While the Tangelwood location was not open for the duration of the Measurement Period, it should be noted that the performance of the Included Studio was impacted by its opening.

• The figures above do not include certain costs associated with the establishment and operation of a Studio, including initial franchise fees; build-out and equipment costs; technology and other Studio costs able to be capitalized. The above figures also exclude living expenses. There may be other costs and other expenses not identified in this Item 19.

• Interest expense, interest income, depreciation, amortization, and other income or expenses will vary substantially from business to business, depending on the amount and kind of financing you obtain to establish your Studio.

• Rent will vary significantly depending on the location of your franchised business and the local real estate market. Your rent will also vary depending on the size and condition of the property that you lease.

• Revenues and expenses of your business will be directly affected by many factors, such as: (a) geographic location; (b) competition from other similar studios in your area; (c) advertising effectiveness based on market saturation; (d) whether you operate the business personally or hire a general manager; (e) your product and service; (f) employee salaries and benefits (life and health insurance, etc.) and the employment market in your area; (g) insurance costs; (h) ability to generate customers; and (i) employment conditions in the market.

• Some outlets have earned this amount. Your individual results may vary. There is no assurance you will do as well.

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