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 2021 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 2021 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 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

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

• 2020 average, median, highest, and lowest gross revenues for the top 10%, middle 80%, bottom 10%, and all 99 franchised Burn Boot Camp outlets open more than 3 years as of December 31, 2020 (“Mature Outlets”)

• 2020 average, median, highest, and lowest gross revenues for the top 10%, middle 80%, bottom 10%, and all 71 franchised Burn Boot Camp outlets open at least 2 years, but less than 3 years, as of December 31, 2020 (“2-Year Outlets”)

• 2020 average, median, highest, and lowest gross revenues for the top 10%, middle 80%, bottom 10%, and all 58 franchised Burn Boot Camp outlets open at least 1 year, but less than 2 years, as of December 31, 2020 (“1-Year Outlets”)

• 2020 average, median, highest, and lowest gross revenues for the top 10%, middle 80%, bottom 10%, and all 228 franchised Burn Boot Camp outlets open at least 1 year as of December 31, 2020 (“All Outlets”)

Section I – Background Information

15 Things You Need to Know About the Burn Boot Camp Franchise

Hits Milestone with 300th Location Opening

1.  In late May 2021, Burn Boot Camp reached a major milestone in its national expansion strategy when it celebrated its 300th gym opening in Kingwood, Texas on Monday, May 24. Located just outside of Houston, the state-of-the-art facility joins Burn Boot Camp’s roster of 13 existing gyms in the state as the brand continues to seek out growth opportunities in Texas cities like Dallas, Fort Worth, and Austin.

2.  The Kingwood Burn Boot Camp is owned and operated by Rebecca and Eric Parsons, a husband-and-wife team that are local to the area and both passionate about fitness. As part of the brand’s commitment to the health and safety of its teams and members, this location will be one of the first to feature a ventilation system complete with sanitizing UV lights via its supplier partnership with Big Ass Fans.

3.  Rebecca Parsons, who will run day-to-day operations at the Kingwood gym, said, “The timing of this opening couldn’t be more perfect as many people have already started to attend more in-person fitness camps. Our team is incredibly excited to build a strong community here in Kingwood – one that’s rooted in inclusivity, health and wellness. We encourage anyone that’s interested in checking us out to drop by for a tour.”

4.  Even after one of the most challenging years the fitness industry has faced due to the pandemic, Burn Boot Camp continues to experience incredible growth, including a freshly signed area development deal to join its robust list of 30 gyms secured thus far in 2021. While COVID-19 restricted in-person activities, Burn Boot Camp innovated to engage its member base via live streamed work outs, mobile app enhancements, and more.

5.  In addition to its milestone 300th opening, the brand recently signed multiple franchise agreements to open locations in its 39th state, New Mexico, which is all part of an overarching expansion plan to have 400 gyms open and operating by the end of 2021.

6.  Devan Kline, co-founder and CEO of Burn Boot Camp, said, “Now, perhaps more than ever, people want and need the support of a community. And, that community is what allowed our brand to further its momentum. The pandemic hit plenty of industries hard, including fitness, but our dedicated membership base continued to show up, paving the way for growth in the midst of a challenging year. Even as we hit this incredible milestone, our team remains committed to innovating and adapting while also strengthening our Burn Boot Camp community – we’re already planning for the next 300 franchises.”

Ends Year with Entrance into 40th State

7.  In mid-December 2021, Burn Boot Camp said that it was projected to wrap up 2021 with over 60 signed agreements and a break into its 40th state by bringing a location to Eagle, Idaho. At the time, Burn Boot Camp had 300 gyms open and operating. It continued the momentum with a robust roster in Q1, including its first location in the greater New York City area slated to open in January 2022.

8.  The recent growth and success has been recognized by the franchise industry as Burn Boot Camp recently landed on Franchise Times’ Top 400 List. Named as the only fitness concept to experience growth in the past year, the brand jumped 48 spots on its annual ranking of the largest U.S.-based franchise systems. This impressive ranking is a result of an aggressive growth phase that has led to celebrating milestone openings – like its 300th ribbon cutting earlier in 2021 – and entrance into new states, such as New Mexico.

9.  Part of the company’s recent success comes with a continued emphasis on internal development, as well as creating new revenue generating opportunities, like the November release of the first-ever Afterburn Protein Bar which is available for purchase online and in locations nationwide.

10.  Burn Boot Camp’s multi-layered strategic expansion plan is all part of an overarching goal to have 500 gyms open or in development by 2023, with international development also planned for Canada, along with continuing to grow its hard and soft goods product line. Even with this goal, the brand places a stronger focus on getting better versus getting bigger.

11.  Devan Kline, founder and CEO of Burn Boot Camp, said, “Our mission has never wavered which is why we’ve been able to adapt and perform in spite of factors outside our control. We consistently show up for our dedicated Members and Franchise Partners, which has allowed us to grow a very strong network that’s filled with collaboration and support. Our franchise network has been resilient, motivated and all around incredible during a challenging time, which is no doubt why we’ve been able to come out ahead. On behalf of the entire network and team, we’re grateful to be recognized as a stand-out brand and are excited about what the future holds for Burn Boot Camp.”

12.  In addition to advancing its rank on the Franchise Times Top 400 List, Burn Boot Camp was also named on the 2021 Inc. 5000 for the second consecutive year, after debuting in 2020 at No. 410. The brand also appeared in the top 100 on Entrepreneur’s highly sought-after Franchise 500 – each of these prestigious lists tracks the growth of the best and most innovative brands.

Company History

13.  Burn Boot Camp was founded in 2012 by husband-and-wife team Devan and Morgan Kline in Charlotte, North Carolina. Both of the Klines had always enjoyed health and fitness and they had entrepreneurial dreams. After college, Devan Kline played professional football with the San Francisco Giants. He only played for three seasons, and tried to enter the traditional workforce afterward. However, Kline decided to pursue his passion for helping others reach their fitness goals. He developed a women’s boot camp program called Lightning 900 in Florida.

14.  Meanwhile, Morgan Kline moved to North Carolina to pursue her dream career with The Kellogg Company. Devan eventually followed Morgan to North Carolina and he decided to run Lightning 900 full-time. He changed the program’s name to Burn Boot Camp and continued to refine the concept. In 2015, the Klines began franchising Burn Boot Camp and the franchise has grown quickly around the United States.

Entrepreneur’s Franchise 500

15.  Burn Boot Camp ranked No. 132 on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Burn Boot Camp 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 Burn Boot Camp’s 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:  99
• Outlets at the End of the Year:  174
• Net Change:  +75

2019

• Outlets at the Start of the Year:  174
• Outlets at the End of the Year:  234
• Net Change:  +60

2020

• Outlets at the Start of the Year:  234
• Outlets at the End of the Year:  273
• Net Change:  +39

Company-Owned

2018

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  5
• Net Change:  +1

2019

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  4
• Net Change:  -1

2020

• 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, 2021 FDD) and Analysis

• This financial performance representation (“FPR”) includes 2020 Gross Revenues data for the 228 franchised Burn Boot Camp businesses described below.

• Each Burn Boot Camp business is referred to as an “outlet”. Burn Boot Camp has only provided data for outlets that were open the entire 2020 calendar year (other than temporary closures related to the COVID-19 pandemic).

• Burn Boot Camp separately presented data for the following 3 categories of outlets based on length of operation:

• Outlets open at least 1 year, but less than 2 years, as of December 31, 2020 (“1-Year Outlets”);
• Outlets open at least 2 years, but less than 3 years, as of December 31, 2020 (“2-Year Outlets”); and
• Outlets open more than 3 years as of December 31, 2020 (“Mature Outlets”).

• Within each of the 3 categories described above, Burn Boot Camp has broken down the data between:

• The top 10% of outlets (based on total annual Gross Revenues);
• The middle 80% of outlets (based on total annual Gross Revenues); and
• The bottom 10% of outlets (based on total annual Gross Revenues).

• Within each subset, Burn Boot Camp has disclosed the highest, lowest, median, and average Gross Revenues, as well as the number and percentage of outlets within each subset achieving or exceeding the stated average Gross Revenues.

• Burn Boot Camp has only included data for franchised outlets. Therefore, it has excluded data from any outlet that was owned by an affiliate at any point during 2020 (including any franchised outlet reacquired by an affiliate, and any affiliate-owned outlet sold to a franchisee, at any point during 2020).

• There were no outlets that converted from franchisee-owned to affiliate-owned, or vice versa, during 2020. There were a total of 4 outlets owned by Burn Boot Camp’s affiliates during 2020, all of which have been excluded from this FPR.

• Burn Boot Camp has also excluded data from any franchised outlet that: (i) opened during 2020; (ii) closed during 2020 (including as a result of termination, non-renewal, or closure for other reasons); or (iii) both opened and closed during 2020.

Part 1 – 2020 Statistics for Franchised Outlets

• The table below summarizes statistical data relating to all franchised outlets that were open at any point during 2020, including outlets included in the FPR and outlets excluded from the FPR.

• Number of Outlets Open as of January 1, 2020:  234
• Number of Outlets Open as of December 31, 2020:  273
• Number of Outlets Opened in 2020 (Excluded):  45
• Number of Outlets Closed in 2020 (Excluded):  6
• Number of Outlets Opened and Closed in 2020 (Excluded):  0
• Number of Outlets Included:  228

Part 2 – 2020 Annual Gross Revenues

A.  Mature Outlets

Top 10%

• Number of Outlets:  10
• Highest Gross Revenues:  $912,915
• Lowest Gross Revenues:  $655,496
• Median Gross Revenues:  $696,157
• Average Gross Revenues:  $738,948
• Number and Percentage Achieving Average:  3 of 10 (30.0%)

Middle 80%

• Number of Outlets:  79
• Highest Gross Revenues:  $632,378
• Lowest Gross Revenues:  $220,366
• Median Gross Revenues:  $404,647
• Average Gross Revenues:  $423,367
• Number and Percentage Achieving Average:  37 of 79 (46.8%)

Bottom 10%

• Number of Outlets:  10
• Highest Gross Revenues:  $214,476
• Lowest Gross Revenues:  $155,972
• Median Gross Revenues:  $184,773
• Average Gross Revenues:  $185,231
• Number and Percentage Achieving Average:  4 of 10 (40.0%)

All in Subset

• Number of Outlets:  99
• Highest Gross Revenues:  $912,915
• Lowest Gross Revenues:  $155,972
• Median Gross Revenues:  $401,315
• Average Gross Revenues:  $429,526
• Number and Percentage Achieving Average:  46 of 99 (46.5%)

B.  2-Year Outlets

Top 10%

• Number of Outlets:  7
• Highest Gross Revenues:  $889,279
• Lowest Gross Revenues:  $619,550
• Median Gross Revenues:  $724,421
• Average Gross Revenues:  $728,607
• Number and Percentage Achieving Average:  3 of 7 (42.9%)

Middle 80%

• Number of Outlets:  57
• Highest Gross Revenues:  $614,778
• Lowest Gross Revenues:  $194,221
• Median Gross Revenues:  $364,832
• Average Gross Revenues:  $382,064
• Number and Percentage Achieving Average:  27 of 57 (47.4%)

Bottom 10%

• Number of Outlets:  7
• Highest Gross Revenues:  $189,985
• Lowest Gross Revenues:  $101,292
• Median Gross Revenues:  $173,360
• Average Gross Revenues:  $160,720
• Number and Percentage Achieving Average:  4 of 7 (57.1%)

All in Subset

• Number of Outlets:  71
• Highest Gross Revenues:  $889,279
• Lowest Gross Revenues:  $101,292
• Median Gross Revenues:  $364,832
• Average Gross Revenues:  $394,408
• Number and Percentage Achieving Average:  34 of 71 (47.9%)

C.  1-Year Outlets

Top 10%

• Number of Outlets:  6
• Highest Gross Revenues:  $925,505
• Lowest Gross Revenues:  $574,256
• Median Gross Revenues:  $638,611
• Average Gross Revenues:  $689,034
• Number and Percentage Achieving Average:  2 of 6 (33.3%)

Middle 80%

• Number of Outlets:  46
• Highest Gross Revenues:  $548,521
• Lowest Gross Revenues:  $192,570
• Median Gross Revenues:  $320,193
• Average Gross Revenues:  $340,191
• Number and Percentage Achieving Average:  17 of 46 (37.0%)

Bottom 10%

• Number of Outlets:  6
• Highest Gross Revenues:  $190,293
• Lowest Gross Revenues:  $103,491
• Median Gross Revenues:  $179,790
• Average Gross Revenues:  $168,497
• Number and Percentage Achieving Average:  5 of 6 (83.3%)

All in Subset

• Number of Outlets:  58
• Highest Gross Revenues:  $925,505
• Lowest Gross Revenues:  $103,491
• Median Gross Revenues:  $320,193
• Average Gross Revenues:  $358,517
• Number and Percentage Achieving Average:  23 of 58 (39.7%)

D.  All Outlets

Top 10%

• Number of Outlets:  23
• Highest Gross Revenues:  $925,505
• Lowest Gross Revenues:  $623,675
• Median Gross Revenues:  $694,987
• Average Gross Revenues:  $727,327
• Number and Percentage Achieving Average:  8 of 23 (34.8%)

Middle 80%

• Number of Outlets:  182
• Highest Gross Revenues:  $619,550
• Lowest Gross Revenues:  $194,893
• Median Gross Revenues:  $368,729
• Average Gross Revenues:  $388,236
• Number and Percentage Achieving Average:  85 of 182 (46.7%)

Bottom 10%

• Number of Outlets:  23
• Highest Gross Revenues:  $194,221
• Lowest Gross Revenues:  $101,292
• Median Gross Revenues:  $179,394
• Average Gross Revenues:  $170,984
• Number and Percentage Achieving Average:  16 of 23 (69.6%)

All in Subset

• Number of Outlets:  228
• Highest Gross Revenues:  $925,505
• Lowest Gross Revenues:  $101,292
• Median Gross Revenues:  $368,729
• Average Gross Revenues:  $400,526
• Number and Percentage Achieving Average:  100 of 228 (43.9%)

• For purposes of this FPR, “Gross Revenues” means the gross amount, in money or other forms of consideration, earned or received from any source related to, or in connection with, the operation of the Business, whether on or off the Business premises.

• This includes all membership-related fees (such as initiation fees, termination fees, enrollment fees, processing fees, paid-in-full dues, renewal fees; monthly, semi-annual, or yearly dues; and all revenues generated and derived during any presale of memberships).

• Gross Revenue also includes the fair market value for any service or product received in barter or exchange for the services or products offered by the Business and all insurance proceeds that the Business receives for the loss of the business due to a casualty to or similar event at the Business.

• Gross Revenues excludes only gratuities paid by members to employees of the Business, service fees for credit card transactions, sales tax receipts that the Business must by law collect or pay, and any member refunds of previous payments actually made, and certain charitable donations specifically authorized in the Manuals.

• In making the above FPR, Burn Boot Camp relied upon Gross Revenues figures generated by the point-of-sale and computer systems utilized by its franchisees. Neither Burn Boot Camp nor any independent certified public accountant has independently audited or verified the information.

• The FPR does not reflect the operating costs and expenses that you will incur in operating your Business, such as royalties, technology fees, system brand fees, local marketing expenses, rent, payroll, insurance, utilities, inventory replenishment, etc.

• As a result of the COVID-19 pandemic, substantially all of the outlets whose data has been presented ceased operating for some period between mid-March and mid-June 2020. As of June 15, 2020, substantially all of these outlets resumed operations, although many remained subject to ongoing COVID-19-related restrictions for an additional period of time after resuming operations (such as limited hours of operation and occupancy restrictions to ensure proper social distancing).

• Some outlets have earned this amount. Your individual results may differ. There is no assurance you will earn as much.

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