Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2014: Our Latest Views on Barre Bee Fit’s Annual Gross Revenue for Company Studios

by Franchise Chatter on July 31, 2014

in Fitness Franchises, Franchise Earnings



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Barre Bee Fit

Highlights of Barre Bee Fit’s Item 19 Financial Performance Representations (2014 FDD)

  • Barre Bee Fit offers and grants franchises to operate fitness and workout studios offering barre-based fitness classes and other services and products it authorizes (each, a “Studio”).
  • Each Studio will typically be comprised of two instruction rooms, in which group classes may be offered. However, if your Studio is located in the suburbs of Chicago or if another Studio is located within 10 miles of your Studio, Barre Bee Fit may permit you to open a Studio with one classroom.
  • Studios offer a wide variety of classes focusing on cardiovascular conditioning, strength training, and restoration. Studios also offer “hot” classes, in specially designed heated classrooms.
  • Customers of each Studio can purchase single classes, class packages, or monthly all-access memberships, as well as an array of fitness related and branded products.
  • As of the end of the 2013 fiscal year, Barre Bee Fit’s affiliate BBF owned and operated four Company Studios in Chicago, Illinois, with a total of six classrooms.
  • All visitors to Company Studios enrolled for classes, purchased memberships, and paid for visits using a single online system; therefore Barre Bee Fit is unable to provide performance figures for individual Company Studios.
  • The tables included in this Item 19 reflect total numbers for all Company Studios in operation in each respective year.
  • To better understand the numbers presented below, please note the following schedule of Company Studio openings.
  • The first Company Studio, with one classroom, was opened in June 2010.
  • A second Company Studio, with one classroom, was opened in May 2011, and a second classroom was opened in the first Company Studio in March 2011.
  • A third Company Studio, with one classroom, was opened in June 2012.
  • A fourth Company Studio, with two classrooms, was opened in September 2013.

Gross Revenue of Barre Bee Fit Company Studios

  • The following table demonstrates the gross revenue collectively earned by all Company Studios in the 2010, 2011, 2012, and 2013 calendar years.
  • Barre Bee Fit has not annualized the numbers shown in this table to account for Company Studios that opened mid-year.
  • “Gross Revenue” means gross revenue generated from sales of memberships, individual classes, and class packages (but excluding non-class revenue, such as sale of merchandise or other products).
  • Some Company Studios have earned this amount. Your individual results may differ. There is no assurance you will earn this much.
  • 2010:  $53,292
  • 2011:  $285,024
  • 2012:  $802,272
  • 2013:  $1,230,000

The Bottom Line

  • The total estimated initial investment necessary to begin operation of a Barre Bee Fit studio ranges from $162,350 to $353,900. The low range of the estimated initial investment assumes you operate a Studio that contains one classroom. The high range of the estimated initial investment assumes you operate a Studio that contains two classrooms.
  • Barre Bee Fit’s initial investment range is a bit higher than Pure Barre’s ($151,500 to $252,500) and Barre 3’s ($69,600 to $342,600), two of its competitors in the barre niche of fitness franchises.
  • Barre Bee Fit’s total revenue in 201o was $53,292. This was for the first Company Studio, with one classroom, that was opened in June 2010. Therefore, the 2010 average monthly revenue per classroom for the Company Studio was $7,613.14.
  • Barre Bee Fit’s total revenue in 2011 was $285,024. This was for the first Company Studio, with one classroom that was open for the entire 2012 calendar year; a second Company Studio, with one classroom, that was opened in May 2011; and a second classroom that was opened in the first Company Studio in March 2011. Therefore, the 2011 average monthly revenue per classroom for Company Studios was $9,500.80.
  • Barre Bee Fit’s total revenue in 2012 was $802,272. This was for the first Company Studio, with two classrooms, and a second Company Studio, with one classroom, that were open for the entire 2012 calendar year. Also included were the revenues for a third Company Studio, with one classroom, that was opened in June 2012. Therefore, the 2012 average monthly revenue per classroom for Company Studios was $18,657.49.
  • Barre Bee Fit’s total revenue in 2013 was $1,230,000. This was for the first Company Studio, with two classrooms; a second Company Studio, with one classroom; and a third Company Studio, with one classroom, that were open for the entire 2013 calendar year. Also included were the revenues for a fourth Company Studio, with two classrooms, that was opened in September 2013. Therefore, the 2013 average monthly revenue per classroom for Company Studios was $21,964.28.
  • Barre Bee Fit’s average monthly revenue per classroom in 2013 ($21,964.28) was 17.72% higher than its 2012 average ($18,657.49), and 131.18% higher than its 2011 average ($9,500.80).
  • Based on the discussion above, the total annualized revenue in 2013 for a Studio with one classroom was $263,571.36, while the total annualized revenue in 2013 for a Studio with two classrooms was $527,142.72. Most franchised Studios will have two classrooms, unless your Studio is located in the suburbs of Chicago or if another Studio is located within 10 miles of your Studio (in which cases, Barre Bee Fit may permit you to open a Studio with one classroom).
  • The four Company Studios, with a total of six classrooms among them, are all located in the Chicago, Illinois area, where Barre Bee Fit has established a brand presence. Your actual results may be significantly different if you operate outside Chicago.
  • For purposes of comparison, the 2013 average unit volume for Pure Barre Studios was $372,258. Pure Barre did not mention the typical number of classrooms per location, but considering that Pure Barre Studios are typically between 1,300 and 1,700 square feet (versus Barre Bee Fit’s 1,800 to 3,600 square feet), I would assume that most Pure Barre Studios consist of one classroom only. This would also explain the lower initial investment range for Pure Barre.
  • From these revenue figures, you will still have to deduct all your operating expenses (including rent, payroll, royalties, and marketing expenses, among others) to arrive at your operating profit.
  • A suitable building for a free standing Studio will range in size from approximately 1,800 square feet to 3,600 square feet and will likely cost from $36,000 to $60,000 per year.
  • Barre Bee Fit charges a Royalty Fee of 6% of gross sales and a Marketing Fund Contribution of 1% of gross sales. In addition, you are required to spend the greater of $500 or 1% of gross sales on local advertising.



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