Have you been considering opening a Barre Franchise?
Have you been looking into the cost of starting a Barre Franchise?
Are you curious about how to open or buy a Barre Studio?
You have come to the right place. I’m Amy Mewborn – and I have been helping women launch fitness studios for over 13 years I’d love to tell you a bit more about Barre Franchise costs and what to expect if you want to open a studio of your own and become a Barre studio owner.
I worked in corporate America for fifteen years and was acing a little bit every day! PULLED to accomplish something larger and better. And I yearned to make a difference in the lives of other women!
I quit a six-figure financial job to start my first studio. Nevertheless, in the absence of processes or advice, I made a couple of B ofIG blunders that cost me more than $75,000 in the first year and more than $250,000 over the next five years. The larger disappointment was that, as a result of many of those blunders, I would struggle to replace my six-figure salary, and as the sole provider for my family, we needed that money!
I had always intended to open two studios, so when I started my second, I avoided all of the mistakes I had made the first time. The second studio was not only more successful and profitable, but it was also THREE TIMES MORE SUCCESSFUL AND PROFITABLE!
I developed the franchise manuals for one of the world’s largest fitness companies! I’ve built my own-million-dollar studios and assisted in the establishment of other half-million-dollar studios! Studios that are built around a recurring revenue model and that are the enterprises of women’s dreams!
Since then, I’ve assisted with the grand opening of over 100 studios that provide barre, yoga, TRX, bootcamp, boxing, cycling, dance, and more! And ladies who stick to the regimen will see results!
If you want to establish a multi-six figure studio and executive model that lets you ton the business, spend time with your family and friends, travel, and be your own – I’m here to help you do it properly without spending $50,000 on franchise fees!
A franchise will always charge you the highest applicable legal rate possible, whether we are talking fees for ongoing sales training, or licensing and royalty payments. By opening your studio, you can bypass a lot of these additional costs.
Studio in a Box will provide you with the established, proven, and profitable business methods you need to create the life you want!
Common Barre Franchise Fees Average Numbers:
- Initial franchisee: $46,500
- Barre Training Expenses: About $8,000 – $10,000
- Barre Location Build Out: Between 95,000 and $195,000
- Barre Equipment, Supplies, etc: About $10,000
- Annual Advertising Fee: 1% of gross revenue
- Annual Royalty Fee: 7% of gross revenue
- Initial Term and Renewal: 5 5-Year initial, 5 5-Year renewal
- Music Licensing Fee (3 months): $1,087
- Business Management Software Fee: $199/month
- The Applicable Early Termination Fee, as defined by the franchisor
Now, what if you could get similar systems comprehensive training and tools to open your own studio without the franchise fees and expenses?
Benefits of the systems of a Barre Franchise –
or business consultant who has launched 110+ studios:
- It’s easier to obtain financing with an established business plan and business systems.
- Proven business systems so you don’t have to reinvent the wheel and create your training manuals, contracts, marketing plans, business plans, checklists, and so much more!
- Marketing strategies, systems, and support typically bring in substantially increased revenues and build a completely scalable business, MUCH more quickly
- Systems to train your staff to provide standardized customer service, improved sales, and improved client retention.
- You can save a LOT of money by avoiding the biggest mistakes (GET OUR FREE GUIDE to find out the five biggest mistakes we’ve seen in launching a studio.) When I launched my first studio, I made over $75,000 in mistakes in just the first year. Imagine if you could avoid that kind of mistake in launching your business!
- According to the US Small Business Association, businesses with established systems have a 95% higher likelihood of success over 5 years.
Biggest Dangers of a Barre Business – or another barre franchise like them:
- MUCH higher start-up costs. When you consider the $46k upfront franchise fee – you’re immediately spending much more than is necessary to build a super successful barre studio, never less, than the added costs for the Barre “brand standards” where you have to build out your studio with the equipment and materials that they approve (and often provide).
- Encroachment – many Franchises or other franchise agreements protect your “territory” for up to only 5 to 10 miles. I allow one of the franchises that sold a franchise and then put a CORPORATE OWNED studio less than 10 miles away – taking a large percentage of the franchisee’s client base that she had just spent 3 years building!
- Limited Independence – you may LOVE the Franchise classes. Or you may want to be able to offer the Franchise classes, plus some other types of classes. In most barre franchises, you are limited to ONLY offering what the barre franchise allows – with little to no deviation. If you want any semblance of independence, autonomy, or the ability to create something unique – it typically is not allowed in the franchise system.
- Ongoing royalty and advertising fees. With the Barre Franchise’s 7% annual royalty fee and 1% marketing fee, you are required to pay 8% of your GROSS sales income to the franchise every year. This means that if you have a $300,000/year grossing studio – you will be required to pay the Franchise a minimum of $24,000 per year. If you have a $500,000/year grossing studio – you will be required to pay the Franchise a minimum of $40,000 per year in added barre franchise fees.
- Unfair termination – Most barre franchise agreements are written to protect primarily the franchisor. They want to ensure that a barre franchisee can not improperly use their systems, their name, their brand, their marks, their choreography; or in any way sully the barre franchise brand. Most barre franchise agreements allow the franchisor to terminate the barre franchise agreement WAY more easily than the franchisee can terminate the same agreement.
- Franchisor Mark Up – This never seems like much until you start to run the numbers. But imagine if a barre franchise requires that you buy their mats, their sticky socks, their balls, or their bands. And imagine that the barre franchisor sells you a logoed mat and charges you $140 for that mat. Now, imagine if you could get that same mat for just $40 (a difference of $100 per mat). This amounts to a difference of $3,000 – just to purchase your initial mats. NOW imagine if that same situation was true with sticky socks. What if the franchisor charged you $9 per pair of socks, that you could buy for about $4 per pair of socks? If you buy 5000 pairs of socks (meaning you bought about 13 pairs a day), that is a difference of $25,000 over the year – in added costs for socks – meaning SUBSTANTIALLY lower profits for you!
If you’re curious about how to open a barre studio and still get the tools initial training program and systems of a barre technique franchise, without the Barre fees and rules, click here to sign up for our Free Guide – How To Open a Studio Without The Fees and Rules of a Franchise.
We’ll email you your free guide and provide you with the opportunity to schedule a free consultation to discuss how you can open a barre studio of your own without the whole barre concept and Franchise fees.
FAQs
How much do Barre franchise owners make?
The revenue that fraanchise owner earns can be very variable depending on a variety of criteria like location, quality control programs, level of competition, level of market demand basic business skills, corporate costs, and the ability of management. In 2021, the typical annual revenue for a fitness franchise is expected to amount to $579,173, as reported by Entrepreneur. Having said that, it is possible that this does not in any way reflect the revenues of a Barre studio owner.
It is essential for franchise opportunities to keep in mind that running a franchise successfully requires a significant investment of one’s time, money, and effort. In addition to the initial franchise fee and the yearly royalties, franchise owners are liable for the expenses of any operational expenditures. These costs include the costs of any equipment, inventory, staff, training fees, and marketing.
In conclusion, the success of a Barre business, just like the success of any franchise model or other type of proven business model, is dependent on a multitude of circumstances. These elements include the local market, the demand from customers, and the level of competition. When considering an investment in a franchise, it is essential to carry out considerable study and give serious consideration to both the costs and the potential income.
How much is a Barre franchise worth?
To open a Barre business, you need to budget for the following costs (on average):
Franchise initial fee of $60,000
Initially investing between $ 198,000 to $ 382,000 (including the franchise fee, equipment, build-out costs estimated initial investment amount, all development costs and initial operating expenses)
The value of a Barre franchise is determined by a variety of factors, including the business’s location-approved services, sales, costs, and overall profitability.
If you have other questions, please email me at amy@amymewborn.com and let me know how I can help you achieve your goal of opening a barre studio of your very own!