Stories from the Covid-19 Front Lines: Bodybar Pilates Works It Out

By: Franchise Update Media | 4,654 Reads | 49 Shares

%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E+Matt+and+Kamille+McCollum%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3ETitle%3A%3C%2Fstrong%3E+CEO+and+President%3C%2Fp%3E%0D%0A%3Cp%3E%3Cstrong%3EBrand%3A%3C%2Fstrong%3E+Bodybar+Pilates%3C%2Fp%3E%0D%0A%3Ch2%3EHow+has+Covid-19+affected+your+brand%3F%3C%2Fh2%3E%0D%0A%3Cp%3EThe+onset+of+Covid-19+provided+us+with+the+opportunity+to+expand+our+value+proposition+to+our+franchise+partners+and+clients+by+offering+Bodybar+Live%21%2C+our+virtual+training+platform.+We+were+able+to+spin+this+up+within+1+week+of+being+shut+down+and+saw+amazing+client+engagement.+By+doing+so%2C+we+also+were+able+to+retain+more+than+70%25+of+our+systemwide+membership+revenue+as+clients+were+less+apt+to+cancel+or+freeze.+That+allowed+us+to+continue+to+support+our+staff%2C+pay+our+rents%2C+and+remain+cashflow-positive%2C+even+in+the+month+of+April+when+no+in-person+classes+occurred.%3C%2Fp%3E%0D%0A%3Cp%3EUnfortunately%2C+we+have+seen+it+make+a+negative+impact+on+development.+Brokers+seem+hesitant+to+show+retail+and+fitness+brands+at+the+moment.+While+we+fully+appreciate+that+sentiment%2C+our+unit+economics+remain+strong.+We+even+had+a+new+location+open+on+August+1%2C+with+more+than+50+memberships+sold+during+pre-sales+at+an+average+annual+value+of+about+%243%2C000+per+year%21+Considering+the+concessions+the+landlord+made+and+the+benefit+of+the+CARES+Act+covering+the+franchise+partner%26rsquo%3Bs+first+6+months+of+SBA+loan+payments+this+level+of+activity+will+provide+the+franchise+partner+positive+cashflow+from+the+first+month%21%3C%2Fp%3E%0D%0A%3Cp%3EWhile+sales+are+down%2C+and+some+employees+are+hesitant+to+return%2C+the+overall+vibe+is+that+the+precautions+our+studios+have+taken+make+our+clients+feel+safe%2C+and+they+continue+to+support+their+favorite+fitness+bar.%3C%2Fp%3E%0D%0A%3Ch2%3EWhat+are+you+doing+to+help+your+franchisees+get+through+this%3F%3C%2Fh2%3E%0D%0A%3Cp%3E1%29+We+immediately+abated+royalties+for+the+months+of+March%2C+April%2C+and+May.+This+helped+our+franchise+partners+have+some+financial+relief+as+they+focused+on+pivoting+to+online.+2%29+We+launched+and+maintain+Bodybar+Live%21%2C+which+gives+their+instructors+an+opportunity+to+earn+income+and+build+a+following+beyond+their+local+community.+3%29+We+launched+a+new+Facebook+Group+that+allowed+us+to+gamify+online+workouts+and+really+create+engagement+when+people+were+missing+it+the+most.+4%29+We+provided+direction+and+communication+on+how+to+properly+re-open+studios+in+a+safe+manner+compliant+with+CDC+and+local+guidelines.+5%29+We+signed+four+new+franchise+partners+between+May+and+July%2C+providing+brand+exposure+and+solidifying+the+strength+of+our+brand+in+spite+of+Covid-19.%3C%2Fp%3E%0D%0A%3Ch2%3EHow+are+you+supporting+your+corporate+employees%3F%3C%2Fh2%3E%0D%0A%3Cp%3EWe+are+somewhat+fortunate+in+that+we+are+still+an+emerging+brand+with+little+overhead.+Our+CEO+has+deferred+compensation+for+the+foreseeable+future+and+our+remaining+three+team+members+have+stayed+fully+employed+and+hustling+to+support+our+new+franchise+partners.+We+work+remotely+and+use+all+the+technologies+that+everyone+has+become+accustomed+to+during+this+time.%3C%2Fp%3E%0D%0A%3Ch2%3EHow+are+your+locations+supporting+their+employees%3F%3C%2Fh2%3E%0D%0A%3Cp%3EAs+our+locations+are+currently+open%2C+team+members+are+working%2C+they+are+wearing+masks%2C+as+are+our+clients+during+workouts%2C+and+we+are+following+all+the+CDC+guidelines+to+keep+them+safe.+We+know+we+have+had+some+franchise+partners+who+continued+to+pay+at+near+normal+rates+when+the+studios+were+shut+down.+At+the+end+of+the+day%2C+our+team+members+are+the+most+valuable+part+of+what+we+do.+Listening+to+them+and+providing+assistance+whenever+possible+is+the+right+thing+to+do.%3C%2Fp%3E%0D%0A%3Ch2%3EWhat+are+your+locations+doing+for+their+customers%3F%3C%2Fh2%3E%0D%0A%3Cp%3EBeyond+what+we+have+already+stated%2C+we+have+given+guidance+for+relaxed+freeze+and+for+late+cancel%2Fno-show+policies.%26nbsp%3B%3C%2Fp%3E%0D%0A%3Ch2%3EHow+are+you+working+with+your+suppliers%3F%3C%2Fh2%3E%0D%0A%3Cp%3EWe+are+syncing+on+current+challenges+regularly+in+order+to+establish+expectations+and+problem-solve+accordingly.%3C%2Fp%3E%0D%0A%3Ch2%3EHow+do+you+see+the+future+of+your+brand%2C+operations%2C+market%2C+etc.+post%26ndash%3BCovid-19%3F%3C%2Fh2%3E%0D%0A%3Cp%3EWe+feel+like+the+pandemic+has+validated+the+health+of+our+business+model+more+than+anything.+With+so+many+businesses+suffering%2C+our+formula+of+building+community+and+delivering+a+bad-ass+workout+has+allowed+our+franchise+partners+to+remain+in+a+good+financial+position.+We+expect+our+brand+to+thrive+as+we+move+past+this+tumultuous+season.+We+know+many+in+the+fitness+space+may+not+return+from+this+unless+they+pivot+on+how+they+deliver+their+workouts.+While+that+is+disappointing%2C+the+market+will+correct+and+there+will+be+as+many+winners+coming+out+of+this.+We+expect+our+brand+to+be+one+of+those+as+we+continue+to+love+on+our+clients%2C+respect+our+team+members%2C+and+continue+delivering+the+best+Pilates+workout+in+the+country%21%3C%2Fp%3E

Published: August 18th, 2020