So you want to own either a Pure Barre, Barre3 or Bar Method studio but are not sure where to begin? We dug up the barre franchise costs of the three biggest barre franchises in North America to make it easier for you to compare costs.
First, let’s look at an overview of the cost of each studio. For a more detailed breakdown, keep scrolling to notes on each individual studio.
Pure Barre Franchise Costs
Typical Location: Retail shopping centers or street front retail areas.
1. Initial Fee: $46,500
2. Grand Opening: $1,000 – $2,000
There will be a minimum fee of $1,000 to promote and host a grand opening event. However, the cost to host and promote the event may exceed the $1,000 minimum.
3. Training Expenses: $6,000 – $12,500
These costs could be due to travel and accommodations for yourself and any employees that may require training.
4. Construction, Remodelling, Leasehold Improvements and Decorating Costs: $60,000 to $150,000
This figure is based on the cost to construct or remodel a studio, which typically ranges between 1,300 and 1,700 square feet.
Depending on where you are developing a studio, it may cost you a lot more in labour costs. For instance, opening a studio in a New York City borough might cost you as much as $275,000! You might, however, be able to negotiate tenant improvement concessions with the landlord, that could save you some change.
5. Fixtures, Furnishings, Equipment and Signs: $18,000 to $25,000
You’ll need to have Pure Barre-branded floor mats, exercise balls and tubes, for at least 25 people, all of which you can purchase from head office.
Other finishes that you must incorporate include: interior and exterior signage, the ballet barre, lighting package, stereo system and microphone. All of these items must come from a Pure Barre approved vendor before opening day.
Additional expenditures that you can purchase from a vendor of your choice include weights, a computer, telephone and wall mirrors.
6. Initial Inventory and Supplies: $6,000 to $12,000
This would include initial stock of official Pure Barre retail product, such as DVDs, apparel and accessories.
This investment would also include office supplies and the MindBody software and merchant account, so clients can register for classes using the MindBody app.
7. Security Deposits, Utility Deposits, Business Licenses and Other Prepaid Expenses: $3,000 to $8,000
This expense represents the estimate for security or utility deposits, in order to obtain business licenses and other pre-paid expenses.
8. Insurance Premiums: $3,000 to $5,000
At a minimum, Pure Barre requires commercial general liability, automobile liability, workers’ compensation, employer’s liability and umbrella liability coverage.
9. Additional Funds: 3 Months: $11,000 to $21,000
You will also need to make sure you can cover initial start-up expenses like payroll, utilities, music licensing etc. This would be for the first three months after opening.
10. Ongoing Franchising Fees:
Royalty fee – 7% of gross sales
Advertising fee – 1% of gross sales
Total Barre Franchise Costs: $154,500 to $282,000 plus real estate costs.
All stated fees are in U.S. dollars, as of April 2017.
Barre3 Franchise Costs
photo credit: Yelp.com Yelp Madison is Bowled Over by Barre via photopin (license)
Typical Location: Retail shopping center or on a street with high visibility, moderate pedestrian traffic, and easy parking or public transportation.
1. Initial Franchise Fee: $33,750 to $45,000
2. Equipment: $18,000 to $37,000
This includes the purchase of barre3 branded “FitBalls” and DVDs for instance. You must purchase 100 of these inflatable exercise balls for use both in the class and to sell in the studio.
Other necessities include mats, weights, straps, office equipment, computer, related office supplies, telephone, copier/printer/fax/scanner, headsets, amplifier, speakers, a sound system, wireless microphone system, furniture and fixtures.
You must also pay a nonrefundable fee of $375 for 50 DVDs
3. Initial Marketing Fee: $2,500
4. Marketing Fund: 2% of gross revenues
5. Insurance: $200 to $1,000
6. Renewal Fee: 25% of the then-current Initial Franchise Fee
7. Training Program: $4,000 per person, plus travel and living expenses which could cost you an estimated $1,000-$6,000.
8. Grand Opening Advertising: $1,000 to $2,000
To advertise the opening of your location, you must spend between $1,000 and $2,000.
9. Software License Fee: $250 to $400 per month.
This varies based on software package but would include the purchase of the MindBody app for clients to register for classes online.
10. Lease, Utility, and Security Deposit: $3,000 to $12,000
11. Lawyers, Architects, Engineers, and Designers: $8,500 to $16,000
12. Leasehold Improvements: $0 to $175,000
13. Building and Use Permits: $100 to $500
14. Additional Funds for First 6 Months: $5,000 to $35,000
This would include additional operating expenses during the first 6 months such as payroll costs.
15. Ongoing Upgrades and Updates: $1,400 per year – $25,000 (for the first five years)
Barre3 could at any point require you to update, upgrade or replace studio fixtures, or equipment, including those 100 Fitballs that must be replaced every six months.
Ongoing Franchising Fees:
Royalty fee – the greater of 5% of Gross Revenues or $850 per month
Total Barre Franchise Costs: $69,600 to $342,600
The Bar Method Franchise Costs
Initial Franchise Fee: $50,000
Fitting Up the Studio: $150,000 to $250,000
The cost of setting up the studio can vary depending on the size and condition of the premises and the local building costs.
Other Start-Up Costs: $61,500 to $155,500
This could include attorneys’ fees, additional training and coaching costs, as well as travel.
Working Capital: $30,000 to $90,000
Ongoing Franchising Fees: Royalty fee – 6% of gross sales.
Total Barre Franchise Costs: $291,500 to $545,500
thank you
How much can a franchisee expect to get as net income yearly in the first , second and third year?
I keep asking the same question but can’t get anyone to answer. What’s the profitability? I’m ready to invest if the profitability makes sense.
I haven’t come across anything online about profitability either but think it all depends on certain variables, location being one of the biggest factors.
Franchises are legally prohibited from making earnings claims unless it is disclosed in Item 19 of their Franchise Disclosure Document. Many franchises choose not to disclose profits so as to avoid future lawsuits from franchisees claiming reliance on profitability claims that did not turn out to be consistent with their own locations’ performance. Most franchises do, however, disclose gross sales and revenue numbers. If you do a little searching on government sites for California or Minnesota, you’ll find these disclosure documents for any franchise you want and can reference Item 19. (13 years in franchising).
Thanks! That’s good insight.
Thanks Joe. Very helpful. I will do as you suggest.