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

Section I – Estimated initial investment (franchise costs) for a Barre3 franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Barre3 franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Barre3 outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Barre3 franchise opportunity

Section V – Presentation and analysis of Barre3’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• average monthly gross sales for each month from February 2023 to January 2024 for the 118 franchisee-owned Barre3 outlets operating in the U.S. for all 12 months of the reporting period, grouped by number of classrooms (one classroom and two classrooms)

• average monthly gross sales for each month from February 2023 to January 2024 for the 5 company-owned Barre3 outlets operating in the U.S. for all 12 months of the reporting period, all with one classroom

• recurring service revenue, non-recurring service revenue, and retail revenue as a percentage of total gross revenue for the 118 franchisee-owned, 5 company-owned, and all 123 Barre3 outlets operating in the U.S. for all 12 months of the reporting period

Section VI – Key ratios, comparables, computations, and analyses for the Barre3 franchise opportunity (exclusive content for Platinum subscribers)

Section I – Barre3 Franchise Costs

• Initial Franchise Fee:  $41,250 to $50,000
• Financing Fees:  $0 to $10,900
• Insurance:  $2,250 to $3,800
• Travel and Room and Board While Attending the Operator Training Program:  $1,000 to $2,500
• Lease, Utility, and Security Deposit:  $4,533 to $13,874
• Professional Services:  $1,000 to $5,600
• Site Selection:  $5,000
• Construction Management (Architects, Designers, Construction Managers):  $38,000 to $46,500
• Additional Engineers:  $0 to $5,500
• Leasehold Improvements:  $118,000 to $300,000
• Equipment:  $12,300 to $14,900
• Software:  $500 to $750
• Branded Opening Props:  $2,700 to $3,100
• Additional Props and Retail Items/Apparel:  $5,500 to $7,100
• Pre-Opening and Grand Opening Advertising:  $15,000 to $20,000
• Optional Pre-Opening Services:  $0 to $5,000
• Additional Funds for First 3 Months of Your Studio Operations:  $30,000 to $58,000
• Total Estimated Barre3 Franchise Costs:  $277,033 to $552,524

Section II – Barre3’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $41,250 to $50,000
• Royalty Fee:  if you commence operations before your studio opens, 6% of Gross Revenues. The greater of 6% of Gross Revenues or $850 per month after studio opening.
• Marketing Fund Fee:  2% of Gross Revenues

Section III – Number of Franchised and Company-Owned Barre3 Outlets

Franchised

2021

• Outlets at the Start of the Year:  132
• Outlets at the End of the Year:  132
• Net Change:  0

2022

• Outlets at the Start of the Year:  132
• Outlets at the End of the Year:  126
• Net Change:  -6

2023

• Outlets at the Start of the Year:  126
• Outlets at the End of the Year:  126
• Net Change:  0

Company-Owned

2021

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  9
• Net Change:  +1

2022

• Outlets at the Start of the Year:  9
• Outlets at the End of the Year:  8
• Net Change:  -1

2023

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  5
• Net Change:  -3

Section IV – News Updates on the Barre3 Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Barre3 Franchise (Item 19, 2024 FDD)

• Provided in this Item 19 is Gross Revenue (defined below) data from franchisee-owned outlets and company-owned outlets operating in the U.S. from February 1, 2023 to January 31, 2024 (the “Reporting Period”).

• The data used for the calculations presented in this Item 19 was collected from the point of sale software system Barre3 requires franchisees to use and uses itself. The figures reported to Barre3’s point of sale system by franchisees has not been audited.

• There were 128 franchisee-owned outlets open in the U.S. during some or all of the Reporting Period. Parts 1 and 3 include data on the 118 franchisee-owned outlets that were open all 12 months of the Reporting Period, and exclude 10 franchisee-owned outlets that operated their studios for less than 12 months in the Reporting Period either due to the fact that these outlets either opened, temporarily closed, or permanently closed during the Reporting Period.

• There were 5 company-owned outlets open and operating in the U.S. during the Reporting Period. Parts 2 and 3 include data on all 5 company-owned outlets that were open all 12 months of the Reporting Period.

• All franchisee-owned outlets and company-owned outlets for which data is presented in this Item 19 are called “Reporting Units.”

• Because franchisee-owned Reporting Units may have one or two classrooms, Part 1 first reports figures for those Reporting Units with one classroom, then for those Reporting Units with two classrooms, and then for all Reporting Units combined.

• Of these Reporting Units with one classroom, the student capacity of such classrooms ranges from 21 to 30 per class. Of these Reporting Units with two classrooms, the student capacity in the first classroom ranges from 21 to 30 per classroom and the student capacity in the second classroom ranges from 8 to 15 per class; however, many studios were not operating the second classroom during the reporting period.

Part 1 – Gross Revenue for Franchisee-Owned Reporting Units in the Reporting Period

• The following chart displays the monthly average Gross Revenue for the franchisee-owned Reporting Units during the Reporting Period.

• The average Gross Revenue (annualized) for all franchisee-owned Reporting Units during the Reporting Period was $377,000 and represents a 27% increase over the prior 12 months.

One Room Studios (110 Reporting Units)

• Feb-2023:  $26,278
• Mar-2023:  $27,783
• Apr-2023:  $38,601
• May-2023:  $27,572
• Jun-2023:  $26,995
• Jul-2023:  $30,936
• Aug-2023:  $26,687
• Sep-2023:  $27,481
• Oct-2023:  $29,243
• Nov- 2023:  $39,089
• Dec-2023:  $31,034
• Jan-2024:  $28,999

• Current 12-Month Average:  $360,698
• Previous 12-Month Average:  $293,860
• Year-Over-Year Percentage Change:  23%

Two Room Studios (8 Reporting Units)

• Feb-2023:  $43,574
• Mar-2023:  $46,494
• Apr-2023:  $71,604
• May-2023:  $44,982
• Jun-2023:  $42,938
• Jul-2023:  $48,792
• Aug-2023:  $41,833
• Sep-2023:  $42,988
• Oct-2023:  $48,967
• Nov- 2023:  $67,192
• Dec-2023:  $49,958
• Jan-2024:  $47,682

• Current 12-Month Average:  $597,004
• Previous 12-Month Average:  $491,653
• Year-Over-Year Percentage Change:  21%

All Studios (118 Reporting Units)

• Feb-2023:  $27,466
• Mar-2023:  $29,068
• Apr-2023:  $40,852
• May-2023:  $28,763
• Jun-2023:  $28,085
• Jul-2023:  $32,159
• Aug-2023:  $27,727
• Sep-2023:  $28,540
• Oct-2023:  $30,587
• Nov- 2023:  $41,002
• Dec-2023:  $32,328
• Jan-2024:  $30,275

• Current 12-Month Average:  $376,851
• Previous 12-Month Average:  $297,550
• Year-Over-Year Percentage Change:  27%

Part 2 – Gross Revenue for Company-Owned Reporting Units in the Reporting Period

• The following chart displays the monthly average Gross Revenue for company-owned Reporting Units during the Reporting Period. Company-owned Reporting Units do not have any two room studios that operated during the Reporting Period.

• The average Gross Revenue (annualized) for all company-owned Reporting Units during the Reporting Period was $718,000 and represents a 33% increase over the prior 12 months.

One Room Studios (5 Reporting Units)

• Feb-2023:  $50,335
• Mar-2023:  $54,885
• Apr-2023:  $81,895
• May-2023:  $55,006
• Jun-2023:  $52,192
• Jul-2023:  $64,159
• Aug-2023:  $51,485
• Sep-2023:  $56,560
• Oct-2023:  $61,690
• Nov- 2023:  $78,280
• Dec-2023:  $58,724
• Jan-2024:  $52,316

• Current 12-Month Average:  $717,527
• Previous 12-Month Average:  $541,185
• Year-Over-Year Percentage Change:  33%

Part 3 – Gross Revenue Category as Percentage of Total Gross Revenue for Reporting Units in the Reporting Period

• Barre3 categorizes revenue generated from the sale of services and products at studios in three categories: “nonrecurring service revenue,” “recurring service revenue,” and “retail revenue.” Part 3 reports the percentage of each revenue category as compared with the total Gross Revenue receipts for both franchisee-owned and company-owned Reporting Units during the Reporting Period.

• Recurring service revenue means receipts from the sale of services that are sold on a membership basis (e.g., monthly membership) where those memberships automatically renew upon expiration.

• Non-recurring service revenue means receipts for the sale of classes that are not sold on an automatically recurring basis (e.g., individual class sales).

• Retail revenue means the sale of retail products at the studio (e.g., athletic apparel).

• To calculate the percentages reported in Part 3, the amount of Gross Revenue generated in each revenue category was divided by the total revenue for the appropriate group of Reporting Units.

Franchisee-Owned Reporting Units

• Number of Reporting Units:  118
• Recurring Service Revenue:  63%
• Non-Recurring Service Revenue:  29%
• Retail Revenue:  8%
• Total:  100%

Company-Owned Reporting Units

• Number of Reporting Units:  5
• Recurring Service Revenue:  50%
• Non-Recurring Service Revenue:  42%
• Retail Revenue:  8%
• Total:  100%

All Reporting Units

• Number of Reporting Units:  123
• Recurring Service Revenue:  62%
• Non-Recurring Service Revenue:  30%
• Retail Revenue:  8%
• Total:  100%

• Some outlets have sold the amounts disclosed in this Item 19. Your individual results may vary. There is no assurance that you will earn as much.

Section VI – Barre3 Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️