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

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

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

Section III – Number of franchised and company-owned Pure Barre 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 Pure Barre franchise opportunity

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

• average gross revenue for each calendar month from February 2023 to January 2024 for the Pure Barre studios that were owned and operated by a franchisee for the entire Measurement Period (except for permitted temporary closures) and were in operation for at least 6 calendar months when their results began to be included in the data set and as of the end of the calendar month for which their results were included (“Qualified Studios”)

• average gross revenue for each calendar month from February 2023 to January 2024 for the Qualified Studios that scheduled at least 150 classes during the respective calendar month (“Fully Scheduled Qualified Studios”)

• average gross revenue for each calendar month from February 2023 to January 2024 for the Qualified Studios that scheduled less than 150 classes during the respective calendar month (“Minimally Scheduled Qualified Studios”)

• average gross revenue, active members, leads, and new memberships during of New Studios during their initial 12-month opening phase

• 2023 average, median, maximum, and minimum monthly membership attrition rate for those Studios that were Qualified Studios as of January 31, 2024

• 2023 average revenue mix (memberships, services, fees, products) for those Studios that were Qualified Studios as of January 31, 2024

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

Section I – Pure Barre Franchise Costs

• Initial Franchise Fee:  $60,000
• Initial Training Program Fees:  $0
• Travel and Living Expenses While Training:  $0 to $3,000
• Real Estate/Lease and Professional Fees:  $19,000 to $31,000
• Net Leasehold Improvements:  $102,000 to $166,000
• Signage:  $10,000 to $18,500
• Insurance:  $1,050 to $2,500
• Payments for Fitness Equipment & Initial FF&E Package:  $2,200 to $5,900
• Pre-Sales and Soft Opening Retail Inventory Kit:  $15,000
• Computer System, A/V Equipment, and Related Equipment:  $17,500 to $18,500
• Initial Grand Opening Marketing & Advertising Spend:  $15,000 to $25,000
• Initial Instructor Training Fees:  $11,300
• Technology, Music, and Software Fees:  $2,280
• Additional Funds – 3 Months:  $10,000 to $60,000
• Total Estimated Pure Barre Franchise Costs:  $265,330 to $418,980

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

• Initial Franchise Fee:  $60,000
• Royalty:  7% of Gross Sales
• Brand Development Fund:  currently, 2% of Gross Sales

Section III – Number of Franchised and Company-Owned Pure Barre Outlets

Franchised

2021

• Outlets at the Start of the Year:  571
• Outlets at the End of the Year:  603
• Net Change:  +32

2022

• Outlets at the Start of the Year:  603
• Outlets at the End of the Year:  619
• Net Change:  +16

2023

• Outlets at the Start of the Year:  619
• Outlets at the End of the Year:  615
• Net Change:  -4

Company-Owned

2021

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  3
• Net Change:  -2

2022

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  13
• Net Change:  +10

2023

• Outlets at the Start of the Year:  13
• Outlets at the End of the Year:  0
• Net Change:  -13

Section IV – News Updates on the Pure Barre Franchise

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

• The data presented in the charts below is data Pure Barre obtained by polling the information directly from the franchisees’ gym management software systems and/or from profit and loss reports provided to it by franchisees. In all cases, the data used was the franchisees’ data. Neither Pure Barre nor its affiliates have undertaken an independent investigation to verify the data that we polled from the franchisees’ gym management software systems or that was provided to it by franchisees.

• Pure Barre does not anticipate the data polled from or provided by current franchisees in this Item 19 will materially differ from that of a new franchisee. This Item 19 contains certain historical data related to the operation of certain Studios.

• “Gross Revenue” means the total revenue generated by a given Studio, including all revenue generated from the sale and provision of any and all approved services at, from, or otherwise through, that Studio. Gross Revenue excludes sales tax (that the Studio owner must pay directly to the appropriate taxing authority).

• “Measurement Period” means the period beginning on February 1, 2023 and ending on January 31, 2024. Each month in the Measurement Period is an entire calendar month.

Part 1 – Average Gross Revenue of Qualified Studios

• A “Qualified Studio” is a Studio that was owned and operated by a franchisee for the entire Measurement Period (except for permitted temporary closures) and that was in operation for at least 6 calendar months when its results began to be included in the data set and as of the end of the calendar month for which its results were included. Qualified Studios do not include Studios that operated at Non-Traditional Sites.

• “Non-Traditional Site” is any location that is situated within or as part of a larger venue or facility and, as a result, is likely to draw the predominance of its customers from those persons who are using or attending events in the larger venue or facility (for example, “big box” gyms and/or fitness facilities, cruise ships, military bases, shopping malls, airports, sports facilities and stadiums, industrial or office complexes, hotels, train stations and other transportation facilities, travel plazas, casinos, hospitals, theme parks, convention centers, colleges/universities, multi-unit residential properties, and other similar captive market locations).

• February 2023 (596 Studios):  $27,503
• March 2023 (597 Studios):  $27,719
• April 2023 (599 Studios):  $26,391
• May 2023 (599 Studios):  $27,471
• June 2023 (609 Studios):  $27,327
• July 2023 (604 Studios):  $27,642
• August 2023 (613 Studios):  $28,230
• September 2023 (617 Studios):  $28,803
• October 2023 (617 Studios):  $31,610
• November 2023 (601 Studios):  $35,587
• December 2023 (603 Studios):  $31,105
• January 2024 (602 Studios):  $29,580

• Total Annual Gross Revenue (February 2023 to January 2024):  $348,968
• Average Monthly Gross Revenue (February 2023 to January 2024):  $29,081

Part 2 – Average Gross Revenue of Fully Scheduled Qualified Studios

• “Fully Scheduled Qualified Studio” means a Qualified Studio that scheduled at least 150 classes during the respective calendar month.

• February 2023 (288 Studios):  $34,985
• March 2023 (411 Studios):  $32,094
• April 2023 (328 Studios):  $32,987
• May 2023 (378 Studios):  $32,998
• June 2023 (368 Studios):  $33,408
• July 2023 (326 Studios):  $34,763
• August 2023 (406 Studios):  $33,232
• September 2023 (332 Studios):  $36,378
• October 2023 (404 Studios):  $37,860
• November 2023 (338 Studios):  $44,576
• December 2023 (269 Studios):  $40,607
• January 2024 (365 Studios):  $35,867

• Total Annual Gross Revenue (February 2023 to January 2024):  $429,755
• Average Monthly Gross Revenue (February 2023 to January 2024):  $35,813

Part 3 – Average Gross Revenue of Minimally Scheduled Qualified Studios

• “Minimally Scheduled Qualified Studio” means a Qualified Studio that scheduled less than 150 classes during the respective calendar month.

• February 2023 (308 Studios):  $20,507
• March 2023 (186 Studios):  $18,050
• April 2023 (271 Studios):  $18,407
• May 2023 (221 Studios):  $18,017
• June 2023 (241 Studios):  $18,041
• July 2023 (278 Studios):  $19,291
• August 2023 (207 Studios):  $18,419
• September 2023 (285 Studios):  $19,979
• October 2023 (213 Studios):  $19,756
• November 2023 (263 Studios):  $24,034
• December 2023 (334 Studios):  $23,452
• January 2024 (237 Studios):  $19,897

• Total Annual Gross Revenue (February 2023 to January 2024):  $237,850
• Average Monthly Gross Revenue (February 2023 to January 2024):  $19,821

Part 4 – Member Information for New Studios

• The chart below in this Part 4 reflects the monthly average Gross Revenue, Active Members, Leads, and New Memberships of New Studios during their initial 12-month opening phase.

• “Month 1” refers to the calendar month in which the Studio launched its soft opening, which refers to when the Studio opened to its members and new prospects. The Gross Revenue data provided in Month 1 only includes the Gross Revenue generated by the New Studio after the soft opening and does not include pre-opening membership sales prior to the New Studio’s soft opening, regardless of when the Studio opened during the particular calendar month.

• “Month 2” refers to the calendar month after Month 1, and the same sequence repeats itself through “Month 12.”

Month 1 (23 New Studios)

• Average Gross Revenue:  $10,541
• Average Active Members:  214
• Average Leads:  300
• Average New Memberships:  49

Month 2 (23 New Studios)

• Average Gross Revenue:  $30,492
• Average Active Members:  251
• Average Leads:  295
• Average New Memberships:  51

Month 3 (23 New Studios)

• Average Gross Revenue:  $36,300
• Average Active Members:  260
• Average Leads:  241
• Average New Memberships:  33

Month 4 (19 New Studios)

• Average Gross Revenue:  $36,575
• Average Active Members:  273
• Average Leads:  229
• Average New Memberships:  31

Month 5 (18 New Studios)

• Average Gross Revenue:  $36,776
• Average Active Members:  273
• Average Leads:  213
• Average New Memberships:  29

Month 6 (17 New Studios)

• Average Gross Revenue:  $35,051
• Average Active Members:  264
• Average Leads:  208
• Average New Memberships:  27

Month 7 (15 New Studios)

• Average Gross Revenue:  $36,059
• Average Active Members:  262
• Average Leads:  221
• Average New Memberships:  24

Month 8 (13 New Studios)

• Average Gross Revenue:  $34,989
• Average Active Members:  264
• Average Leads:  209
• Average New Memberships:  24

Month 9 (12 New Studios)

• Average Gross Revenue:  $36,033
• Average Active Members:  258
• Average Leads:  171
• Average New Memberships:  24

Month 10 (9 New Studios)

• Average Gross Revenue:  $37,503
• Average Active Members:  249
• Average Leads:  172
• Average New Memberships:  21

Month 11 (8 New Studios)

• Average Gross Revenue:  $38,832
• Average Active Members:  246
• Average Leads:  203
• Average New Memberships:  23

Month 12 (7 New Studios)

• Average Gross Revenue:  $35,677
• Average Active Members:  240
• Average Leads:  191
• Average New Memberships:  22

• “Active Members” means Studio members who were party to an effective studio membership agreement with a New Studio at the conclusion of the particular calendar month.

• “Leads” means the total number of prospective Studio members who submitted contact information to New Studios regarding Studio products or services during the particular calendar month.

• “New Memberships” means the total number of new Studio members who signed a studio membership agreement in the particular calendar month. New Memberships are included in the number of Active Members for that particular calendar month.

• A “New Studio” means a Studio that was owned and operated by a franchisee and that opened in calendar year 2023.

Part 5 – Monthly Membership Attrition Rate

• The chart below reflects the average monthly Membership Attrition Rate during the 2023 calendar year for those Studios that were Qualified Studios as of January 31, 2024. There were 602 Qualified Studios as of January 31, 2024.

• Average Monthly Membership Attrition Rate:  6.6%
• Number and Percentage That Met or Exceeded the Average:  287/47.67%
• Median Monthly Membership Attrition Rate:  6.6%
• Maximum Monthly Membership Attrition Rate:  12.2%
• Minimum Monthly Membership Attrition Rate:  2.9%

• “Membership Attrition Rate” means the number of cancelled Studio memberships during a particular calendar month divided by the number of Studio members at the end of the prior respective calendar month.

Part 6 – Average Revenue Mix

• The chart below reflects the average Gross Revenue that is attributed to Memberships, Services, Fees, and Products during the 2023 calendar year for those Studios that were Qualified Studios as of January 31, 2024. There were 602 Qualified Studios as of January 31, 2024.

• Each category (Memberships, Services, Fees, and Products) are exclusive of each other.

• Average Memberships:  79%
• Average Services:  11%
• Average Fees:  0%
• Average Products:  10%

• “Fees” means Gross Revenue attributed to fees charged by Studios, such as set up fees, cancellation fees, monthly freeze fees, and enhancement fees.

• “Memberships” means Gross Revenue attributed to down payments and recurring dues for Studio memberships and membership add-ons.

• “Products” means Gross Revenue attributed to retail products sold by Studios.

• “Services” means Gross Revenue attributed to services that Studios provide, such as personal training services, drop-in fees, and studio class packages.

• Some Studios have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

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