Updated November 10, 2021.

If you are considering a Barre Code franchise, don’t get blindsided by these 29 important franchise fees (from the initial franchise fee, to the royalty fee, to 27 other fees found in Items 5 and 6 of The Barre Code’s 2021 FDD).

1.  Initial Franchise Fee:  $39,500 (single Studio) to $59,500 (five Studios)

• The initial franchise fee for a single Studio is $39,500. If you choose to execute the two or three Studio Multi-Unit Development Agreement, the initial franchise fee for two Studios will be $49,500 and the initial franchise fee for three Studios will be $59,500.

• You must pay The Barre Code the initial franchise fee in a lump sum when you sign the Franchise Agreement. The initial franchise fee is not refundable in whole or in part under any circumstances.

2.  Initial Trainer Training Fee:  $5,000

• You must pay an initial trainer training fee in the amount of $5,000, prior to opening. You are responsible for the cost of travel and lodging expenses for your employees in connection with each Training Instance. The trainer training fee is not refundable under any circumstances.

3.  Royalty:  6% of your Studio’s Gross Sales; a monthly Minimum Royalty of $500 will be assessed at the end of each month

• Due Date:  Weekly.

• Beginning with the launch of pre-sales, 6% of your Studio’s Gross Sales during the preceding week. Thereafter, 6% of your Studio’s Gross Sales during the preceding week; provided, however, that when your final Royalty payment is calculated for each calendar month, if the total amount of Royalty payable by you that month will be less than $500 per month, you pay The Barre Code the difference in one lump-sum at the same time you pay the Royalty for the first week of the subsequent month.

4.  Marketing Fund Contributions:  2% of your Studio’s Gross Sales for the first 24 weeks; thereafter, the greater of 1% of your Studio’s weekly Gross Sales or $40 per week

• Due Date:  Weekly.

5.  Weekly Fees:  currently $53.25/week

• Due Date:  Weekly.

• The Barre Code’s current system software and BrandBot management system, The Barre Code domain, email account subscriptions, IT services and maintenance, and The Core portal, which houses routines, playlists, and pre-opening materials, will be provided to you for a weekly subscription fee.

6.  Grand Opening Expenditure:  $5,000 to $10,000

• Due Date:  As incurred.

• The Franchise Agreement requires you to spend a minimum of $5,000 on lead generation and premarketing efforts as your Grand Opening Expenditure during the Grand Opening Period.

• You must also conduct an advertising program The Barre Code approves before you begin offering or selling Memberships prior to opening your Studio (“Pre-Opening Membership Sales”).

• The Barre Code estimates that you may, depending on the mediums chosen by you, spend up to $10,000 on advertising prior to opening your Studio, which amounts count towards your Grand Opening Expenditure.

7.  Local Advertising Cooperative:  percentage of your Studio’s Gross Sales as determined at time Local Advertising Cooperative is established

• Due Date:  Weekly.

8.  Local Advertising Expenditure:  $1,000 per month

• Due Date:  Monthly.

• As discussed in more detail in Item 11, beginning on the date you sign your lease, you are required to spend $1,000 each month on local advertising (“Local Advertising Expenditure”).

• However, The Barre Code may, upon 60 days’ notice, issue you a notice that all or part of such amount be paid to The Barre Code or its designee. If The Barre Code exercises this option, it will contribute the collected amount to the Marketing Fund.

9.  Additional Training Fee:  then-current charge, currently $1,000 per day (8-hour day) or $300 per hour, plus expenses

• Due Date:  As incurred.

• You will pay The Barre Code an Additional Training Fee (1) if The Barre Code determines that you (or your Operating Partner), your Instructor Trainer, or, if required by The Barre Code, any employees or instructors need additional training or assistance, or (2) you (or your Operating Partner) or your Instructor Trainer requests additional assistance.

• Additional travel fees are not included and will be assessed accordingly.

10.  Instructor Certification Review Fee:  $200 per instructor for up to 2 class formats; $75 for each additional submission: $50 for any resubmission

• Due Date:  As incurred.

• If The Barre Code permits you to offer certification programs at your Studio to train your prospective instructors, you must submit video recordings of the instructor’s participation in these programs to The Barre Code and it will charge a fee to review the videos for each attendee each time they participate in the program.

• For new instructors that are not part of your initial instructor team, The Barre Code charges a fee of $200 per instructor to review videos of the instructor’s attendance in up to 2 certification programs, if the instructor enrolls in these 2 certification programs simultaneously.

• If any new instructor enrolls in more than 2 certification programs simultaneously, The Barre Code will charge an additional fee of $75 per each additional format submitted, or if any instructor is required to resubmit their video recordings for certification, The Barre Code will charge a $50 resubmission fee.

11.  Trainer Training Course Fee:  $500 per trainee enrolled within the course

• Due Date:  As incurred.

• If The Barre Code permits you or another certified instructor to enroll in any of its trainer development courses, it will charge a fee of $500 per trainee per course to cover the materials, the facilitation of the course, and certification review.

• Enrolling in the course does not guarantee trainer certification upon completion of the course. Failure to certify by the end of the course may result in The Barre Code’s then-current certification review fee for every review required to gain a passing score.

• Should you or the instructor enrolled in the course not acquire a passing score within 10 weeks of the initial administration of the course, The Barre Code may require that you or your instructor re-enroll in the next administration of the course at the then-current Trainer Training fee.

12.  Certification Compliance Fee:  $1,000 per incident

• Due Date:  As incurred per incident.

• If there is an uncertified instructor on your class schedule, you will be charged a fee of $1,000 per incident. Additionally, you will also be charged a fee of $1,000 should it be noted that any of your instructors are teaching any materials other than the approved Curriculum.

13.  Renewal Franchise Fee:  $5,000

• Due Date:  As incurred.

• If you renew your Franchise Agreement for one 10-year term after the expiration of the Franchise Agreement, the renewal fee is $5,000. Your right to renew your Franchise Agreement is subject to other terms and conditions.

14.  Transfer:  $10,000

• Due Date:  Before transfer completed.

• The Barre Code has a right of first refusal to purchase your Studio should you decide to sell.

• Any transferee shall have to pay the transfer fee except that, in the event you (or your Operating Partner) or an owner with a controlling ownership interest in you (“Controlling Owner”), dies or is disabled, no transfer fee will be charged if transfer is to an immediate family member of yours (or your Operating Partner) or the Controlling Owner, as applicable.

15.  Annual Owner’s Conference:  $500 per franchise owner; $250 per franchise owner if you cannot attend

• Due Date:  Before conference.

• The Barre Code may host an annual owner’s conference at a time and location designated by it. The Barre Code charges $500 per person.

• If The Barre Code hosts an owner’s conference, your attendance is mandatory, as it will assist with the continued growth, support, and education of the business.

• If you cannot attend the annual owner’s conference, The Barre Code charges $250, unless your reason for non-attendance is related to a medical condition.

16.  Trainers Conference:  $250 per person in attendance

• Due Date:  As incurred.

• The Barre Code may host a Trainers conference at a time and location designated by The Barre Code. Attendance is required for all Instructor Trainers, Master Trainers, and Senior Master Trainers to keep certifications valid.

17.  Relocation Fee:  30% of then-current initial franchise fee

• Due Date:  Before relocation.

• You may only relocate your Studio with The Barre Code’s approval.

• If The Barre Code allows you to relocate your Studio, this relocation will be at your own expense and you must pay The Barre Code a fee for the services it provides.

18.  Audit:  amount of understated fees due plus interest on the understated amounts from the date originally due until the date of payment. If you fail to furnish required information or understate Gross Sales by more than 3%, the amount of audit fees and related expenses.

• Due Date:  Within 15 days after receiving the examination report.

19.  Interest:  lesser of 1.5% per month or highest commercial contract interest rate allowed by law

• Due Date:  As incurred.

• Due on all overdue amounts and accruing as of the original due date.

20.  Insufficient Funds:  $100

• Due Date:  As incurred.

• Due each time The Barre Code attempts to debit your business account and it receives a notice of insufficient funds.

21.  Administrative Default Fee:  $100 per occurrence, $100 per week until cured

• Due Date:  Upon demand.

• The Barre Code may charge this fee if you breach any of the terms, conditions, or policies outlined in the Franchise Agreement or the operations manual, otherwise fail to comply with The Barre Code’s standards and specifications, or use unauthorized products, equipment, or vendors.

• The Barre Code will address such matters through compliance reports prepared for non-compliant franchisees with a reasonable cure period.

22.  Individual Marketing or Advertising Materials:  will vary based on the time taken to create all requested materials

• Due Date:  As incurred.

• If you request any marketing or advertising materials for a specific event or promotion at your Studio that cannot be replicated for the entire franchise system, you will be charged a marketing and advertising fee, which will be based on the amount of time taken to create all requested materials.

23.  Maintenance and Refurbishing of Studio:  you must reimburse The Barre Code’s expenses

• Due Date:  As incurred.

• If, after The Barre Code notifies you, you do not undertake efforts to correct deficiencies in your Studio’s appearance, then The Barre Code can undertake the repairs and you must reimburse its costs.

24.  Insurance:  you must reimburse The Barre Code’s costs, plus a reasonable fee for its time incurred

• Due Date:  When billed.

• If you fail to obtain insurance, The Barre Code may obtain insurance for you and you must reimburse it.

25.  Indemnification:  will vary under circumstances

• Due Date:  As incurred.

• You must reimburse The Barre Code and its affiliates if any of them are held liable for claims related to your Studio’s operations or the Franchise Agreement.

26.  Costs and Attorney’s Fees:  will vary under circumstances

• Due Date:  As incurred.

• If The Barre Code prevails in an action or proceeding, you must pay The Barre Code its costs.

27.  Management Fee:  $400 per day (plus costs and expenses) for up to 60 days

• Due Date:  As incurred.

• Due when The Barre Code (or a third party) manages your Studio after your default or abandonment.

28.  Mystery Testing/Inspection:  will vary under the circumstances, but The Barre Code estimates the cost of each test or inspection to be approximately $250

• Due Date:  As incurred.

• The Barre Code may contract with third parties to conduct mystery shopper testing and other quality assurance inspections at your Studio.

• You must pay the cost of the tests/inspections, but you will not be obligated to pay for more than 2 third-party contracted mystery shopper visits per calendar year.

29.  Additional Remedies:  will vary under the circumstances

• Due Date:  As incurred.

• If your Franchise Agreement is terminated by you without cause or by The Barre Code, you will pay The Barre Code liquidated damages equal to the net present value of the balance of your Royalties and Marketing Fund Contributions from the date of termination until the scheduled expiration date of your Franchise Agreement.

• These Royalties and Marketing Fund Contributions are to be based on the average monthly amounts during the preceding 12 calendar months times the number of months remaining in the term of the Agreement, or if you have been operating your Studio for less than 12 calendar months as of the termination date, to be based on the average monthly amounts during the months in which you were open multiplied by the number of months remaining in the term of the Agreement.