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Considering a Pure Barre Franchise? Don’t Overlook These 32 Important Franchise Fees

by Franchise Chatter on November 20, 2016

in Fitness Franchises, Franchise Fees



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If you are considering a Pure Barre franchise, don’t get blindsided by these 32 important franchise fees (from the initial franchise fee, to the royalty fee, to 30 other fees found in Items 5 and 6 of Pure Barre’s 2016 FDD).

1.  Option Fee:  $5,000



  • If you want to hold exclusive rights to a search area before signing the Franchise Agreement, you and Pure Barre may enter into an Option Agreement which requires you to pay it, upon signing, a fee of $5,000 (“Option Fee”). If you then elect to enter into a Franchise Agreement, Pure Barre will apply the Option Fee towards the Initial Fee due under the Franchise Agreement.
  • You will have 30 days from the date you sign an Option Agreement and pay the $5,000 Option Fee in which to sign the Franchise Agreement. If you enter into an Option Agreement but do not timely enter into a Franchise Agreement, you will forfeit the $5,000 Option Fee.
  • Entering into the Option Agreement is not required.

2.  Initial Fee:  $46,500

  • The Initial Fee for a Pure Barre franchise is $46,500, less the $5,000 Option Fee (if applicable), and is due in full upon signing the Franchise Agreement.
  • If you are signing a Franchise Agreement for an existing Pure Barre studio that you are buying from another franchisee, Pure Barre will not charge an Initial Fee, but you, as the buyer, are obligated to pay its then-current training fee (currently $750 per person) to receive required training from it.

3.  Development Fee:  $20,000 times the number of Pure Barre Studios you agree to develop

  • If Pure Barre elects to sign a Multi-Unit Development Agreement with you, you would pay the franchisor a multi-unit development fee (“Development Fee”) equal to $20,000 multiplied by the number of Pure Barre Studios you agree to develop.
  • A typical Multi-Unit Development Agreement would require the development of 2 to 7 Pure Barre Studios (a “Typical Development Deal”), depending on the size of the Development Area, requiring payment of a Development Fee ranging from $40,000 to $140,000 ($20,000 times the number of Studios required to be developed).
  • Pure Barre credits the Development Fee, in $20,000 increments, toward the initial franchise fee that is due as Franchise Agreements are signed until the aggregate amount of these credits equals the Development Fee.
  • A Typical Development Deal would require that all Studios be opened within 1 to 2 years after signing the Multi-Unit Development Agreement.
  • Pure Barre will fully earn the Development Fee when you pay it, and you must pay the fees in one lump sum. These fees are uniform and non-refundable.

4.  Development Services Fee:  $25,000 per Studio

  • Under the Multi-Unit Development Agreement, you may request that Pure Barre’s affiliate, PB OpCo, execute an agreement with you pursuant to which it will develop each Pure Barre Studio for you, including providing site location, construction management, and coordinating the acquisition of furniture, fixtures, equipment, and opening inventory.
  • If PB OpCo agrees to perform those services for you, it and you will execute a Development Services Agreement, the form of which is attached to the Multi-Unit Development Agreement as Attachment C.
  • Under the Development Services Agreement, you will be required to pay PB OpCo, in a lump sum, a $25,000 development services fee when you sign each of the Franchise Agreements. In a Typical Development Deal (2 to 7 Studios), the total development services fees would range from $50,000 to $175,000.

5.  Branded Equipment:  $1,200

  • After signing the Franchise Agreement, but before opening your Studio, you must purchase from PB Product at least 25 Pure Barre-branded floor mats, exercise balls, and exercise tubes, which will cost approximately $1,200, payable in a lump sum, depending on the quantity you purchase.

6.  Branded Merchandise:  $3,000

  • You must also purchase from PB Product other Pure Barre-branded merchandise to sell from your Studio, such as DVDs, apparel, and accessories, which will cost approximately $3,000, payable in a lump sum, depending on the quantity you purchase.
  • These fees are uniform and non-refundable.

7.  Pre-opening Assistance:  $2,500 to $4,500



  • Depending on its evaluation of your readiness to open your Studio, Pure Barre may require you to allow it (or its affiliates) to provide you: pre-sales assistance (for instance, if you fail to meet specified pre-opening membership goals); pre-opening call center services (for instance, to provide assistance in lead generation and follow up with respect to membership sales); and/or pre-opening training assistance which will typically occur at your Studio (for instance, to help your trainers satisfy their “test out” requirements).
  • This assistance will be approximately $2,500 to $4,500 depending on the assistance that Pure Barre (or its affiliate) provides you.
  • All fees and other amounts you pay to Pure Barre prior to opening your Studio are uniformly assessed, are payable in a lump sum, and are non-refundable.

8.  Royalty:  7% of Gross Sales; but after the first full calendar month of operation, the greater of 7% of Gross Sales or $1,000 per month

  • Due Date:  15th of each calendar month for Gross Sales during the prior month.
  • “Gross Sales” means the aggregate of all monies and receipts derived from all products prepared and services performed at your Studio; sales and orders made, solicited, or received at or in connection with your Studio, whether before or after you open your Studio; all other business whatsoever conducted or transacted at or from your Studio; and all other revenues derived from the operation of your Studio and the exploitation of the franchise system and/or the Marks by you, and whether these Gross Sales are evidenced by cash, credit, check, gift certificates, services, property, or other means of exchange.
  • Gross Sales also includes the proceeds of any insurance payments intended to replace your revenue as a result of the interruption of your business.
  • Gross Sales does not include (a) all sales taxes imposed by governmental authorities directly on sales and actually collected from customers, provided these taxes are added to the selling price and are, in fact, paid by you to the appropriate governmental authority, or (b) cash refunds and credit given to customers provided the related sales have been included in Gross Sales for which royalties were previously paid.

9.  Vendor Payments:  Pure Barre does not currently charge this fee. Pure Barre estimates that this fee will range between $50 to $100 per month if implemented.

  • Due Date:  Monthly.
  • Pure Barre may negotiate national agreements with vendors (for example music-licensing companies) and elect to collect payment from you then pay the particular vendor directly.
  • Pure Barre reserves the right to retain an administrative fee from any payments it collects from you and pay to a vendor.

10. Software Fee:  Pure Barre does not currently charge this fee. Pure Barre estimates that this fee will range between $150 to $250 per month if implemented.

  • Due Date:  Monthly.
  • This fee is for proprietary software or technology that Pure Barre or its affiliates develop and license to you, or third-party software that it acquires a license and sublicenses to you.

11.  Advertising Fee:  currently 1% of Gross Sales

  • Due Date:  15th of each calendar month for Gross Sales during the prior month.

12.  Local Advertising Expenses:  currently the greater of 1% of Gross Sales for preceding month or $150

  • Due Date:  Must spend each calendar month based on Gross Sales made in prior month.
  • This is the minimum amount which you must spend every month on local advertising, marketing, and promotion within the area reasonably surrounding your location.
  • If you fail to make these required monthly expenditures, you must contribute the amount you failed to spend to the Ad Program.

13.  Ad Co-op:  Pure Barre does not currently charge this fee, but it reserves the right to charge 1% of Gross Sales



  • Due Date:  15th of each calendar month for Gross Sales made in prior month.
  • Your contributions to the Ad Co-op will not count toward your local advertising expenses.

14.  Subsequent Training:  $350 to $750 per training session

  • Due Date:  Before training session.
  • Initial training is provided for up to 6 individuals at no charge.
  • Subsequent training fees are only for training provided after your Studio opens for business, will be based on the type of training provided, and are subject to change.

15.  Call Center Fee:  Pure Barre does not currently charge this fee. However, it estimates that this fee will range between $75 to $100 per month if implemented.

  • Due Date:  As incurred.
  • Pure Barre may, in its discretion, require you to use the services of a call center to help generate customer leads, to field phone calls and other communications from customers and potential customers, and for any other purposes it deems necessary or desirable.
  • Pure Barre or its affiliates may provide this service and you will pay it a fee for such services.

16.  Supplier Testing Fee:  estimated to be between $100 and $500

  • Due Date:  As incurred.
  • If you ask Pure Barre to evaluate a proposed supplier, and it incurs any non-trivial cost (such as to examine a sample of that supplier’s products), it reserves the right to require you to reimburse it for those costs.

17.  Annual Convention:  Pure Barre does not currently charge this fee. It estimates that this fee will range from $0 to $500 per attendee if implemented.

  • Due Date:  Before convention.
  • Pure Barre may charge you a fee to attend its annual convention. The amount of the fee will depend on the amount of its direct and administrative costs of providing the program and materials to franchisees.
  • Pure Barre may not hold a convention every year.

18.  Annual Convention No-Show Fee:  Pure Barre does not currently charge this fee. It estimates that this fee will range from $1,000 to $2,000 per attendee if implemented.

  • Due Date:  After convention.
  • If you (or a required representative) fail to attend a mandatory Annual Convention, Pure Barre reserves the right to charge you a non-attendance fee in an amount it determines to be the costs attributed to your failure to attend.

19.  Late Fee/Interest/Declined Payment Fee:  Late Fee of $100 for each failure to pay when due; interest of the lesser of 12% or the highest rate allowed by law on all past due amounts; declined payment fee of any amount charged to Pure Barre in connection with decline of electronic funds transfer, credit card payment, NSF (bounced) check, or other form of payment

  • Due Date:  Immediately when assessed.
  • For each instance in which you fail to make a payment when originally due.

20.  Non-Compliance Charge:  increase in your Royalty by 1% of Gross Sales

  • Due Date:  As incurred.
  • Due only if you fail to comply with your obligations under the Franchise Agreement and only for so long as you remain non-compliant. Payable in the same manner as your Royalty during the time the deficiency exists.

21.  Website Maintenance Fee:  Pure Barre does not currently charge this fee. It estimates that this fee will be $50 per month if implemented.

  • Due Date:  Monthly.
  • You must provide required information and updates. If you are in default of the Franchise Agreement, your website may be removed until defaults are cured.

22.  State and Local Taxes:  variable

  • Due Date:  When assessed (if assessed).
  • If Pure Barre is assessed state or local sales, use, property, or similar taxes based on your Gross Sales or on its receipt of fees from you (but excluding its ordinary income taxes or receipts taxes for fees due to it), then you will pay those taxes to Pure Barre or the taxing authority.

23.  Renewal Fee:  $5,000

  • Due Date:  Upon signing renewal agreement.

24.  Audit:  variable

  • Due Date:  Upon completion of audit, if applicable.
  • If Pure Barre audits your finances, and the audit was triggered by your failure to submit required reports or the audit reveals an understatement of Gross Sales of 3% or more, then you will reimburse Pure Barre for the costs of the audit.

25.  Transfer Fee — Franchise Agreement:  25% of then-current initial franchise fee

  • Due Date:  Before effective date of transfer.

26.  Transfer Fee – Multi-Unit Development Agreement:  the greater of 5% of the purchase price or $25,000, plus applicable goods and services taxes

  • Due Date:  Before effective date of transfer.

27.  Transfer Review Fee – Multi-Unit Development Agreement:  a maximum amount of $3,000, plus disbursements and applicable taxes

  • Due Date:  $1,500 when you give Pure Barre the transferee application with the balance due before the effective date of the transfer.
  • For Pure Barre’s expenses incurred in connection with the transfer, whether or not such transfer occurs.

28.  Costs and Attorneys’ Fees:  will vary under the circumstances

  • Due Date:  As incurred or as dictated by the court, if a legal proceeding is initiated.
  • Due if Pure Barre has to enforce the agreement or if it prevails in any litigation or arbitration involving the Franchise Agreement or Multi-Unit Development Agreement.

29.  Indemnity – Related Fees and Costs:  variable

  • Due Date:  As incurred.
  • Under the Franchise Agreement and Multi-Unit Development Agreement, you must defend and hold harmless Pure Barre and its affiliates for any legal claims brought as a result of the acts and omissions of you and your employees and agents.

30.  Termination Fee:  an amount equal to the net present value of the Royalties, Advertising Fees, and Ad Co-op Fees that would have become due following termination of the Franchise Agreement for the period the Franchise Agreement would have remained in effect but for your default

  • Due Date:  Upon termination of the Franchise Agreement.
  • You will be required to pay Pure Barre this fee if it terminates the Franchise Agreement based on your default or if you terminate the Franchise Agreement without cause.
  • Royalties, Advertising Fees, and Ad Co-op Fees will be calculated by multiplying (1) the number of calendar months in the Measurement Period by (2) the aggregate of the Royalties, Advertising Fees, and Ad Co-op payment percentages by (3) the greater of (i) $1,167 or (ii) the average monthly Gross Sales of the Studio during the 12 full calendar months immediately preceding the termination date.
  • If you have not operated your Studio for at least 12 months preceding the termination date, Royalties, Advertising Fees, and Ad Co-op Fees for purposes of clause (ii) will be calculated based on the average monthly Gross Sales of all Pure Barre Studios during the last fiscal year.
  • This fee is in addition to, and not in lieu of, any other damages Pure Barre sustains as a result of the termination.

31.  Interim Management Fee:  variable

  • Due Date:  As incurred.
  • At any time after the death or incapacity and before the appointment (if any) of an approved Operations Manager, Pure Barre may appoint an interim manager, which may include it or its affiliate, to operate your Studio.
  • You will compensate the interim manager at a rate Pure Barre reasonably determines, and the interim manager will be considered your agent.

32.  Management Fee:  10% of Gross Sales, plus costs and expenses

  • Due Date:  As incurred.
  • Pure Barre may assume management of your Studio, if: (1) you abandon or fail to actively operate your Studio; (2) you fail to comply with any provision of the Franchise Agreement or any system standard and do not cure the failure within the specified time period; or (3) the Franchise Agreement expires or is terminated and Pure Barre is deciding whether to exercise its option to purchase your Studio.
  • Pure Barre will exercise its right to assume management in 90-day increments, renewable for up to 1 year, in the aggregate.
  • Pure Barre will periodically discuss with you the results of operation during the time it manages the Studio.

If you are looking for information on the estimated initial investment for a Pure Barre franchise, check out this post:   Franchise Costs:  Detailed Estimates of Pure Barre Franchise Costs


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