In this FDD Talk 2017 post, you’ll learn the following:
- Section I – Background information on The Barre Code franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for The Barre Code franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for The Barre Code franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of The Barre Code’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- gross revenue collectively earned by all The Barre Code Company Studios from 2010 through 2016 calendar years
Section I – Background Information
11 Things You Need to Know About The Barre Code Franchise
On-Demand Streaming Service
1. At the end of June, The Barre Code announced that it would be offering an on-demand streaming service starting July 5. The service is available to Barre Code members across the country as a complement to their in-studio workouts, as well as to women without a Barre Code studio in their city.
2. Every month, new Barre Code, HIIT, TBC, and Restore workouts will be added, as a supplement to weekly Barre Code workouts. The workouts don’t require any equipment and the service is available to stream on Amazon Fire TV, Android TV, Apple TV, Google Play, iOS, and Roku.
3. To celebrate the launch of the new video service, The Barre Code held a contest where the winner received a free month of membership. To enter, customers had to follow The Barre Code on Instagram and fill out a form on the company’s website. The winner was announced on July 5, the official launch of the on-demand streaming service.
First Ohio Location
4. In early April, The Barre Code opened its first Ohio location in downtown Cincinnati. The studio is owned by Michelle Ziegler, who became an instructor at a Chicago location after taking classes at The Barre Code for four years.
5. Ziegler wanted to open a franchise in Cincinnati, which is her husband’s hometown, after seeing the revitalization of the downtown area. Ziegler says the response to the new studio has been amazing so far.
Second Location in Nebraska
6. In early February, a second Barre Code studio opened in Nebraska in West Omaha. The first location was opened in another part of Omaha in 2015. New location franchise owner Bonnie Eisenhart said that the studio will start off by offering 25 classes per week. A week before the grand opening, classes were offered for free.
7. Eisenhart says that, unlike big box gyms, The Barre Code offers a sense of community and creates “a network of women.”
8. The Barre Code was founded in 2010 by Ariana Chernin and Jillian Lorenz in the River North neighborhood of Chicago. Chernin and Lorenz had met each other just the year before, but immediately bonded over their shared love of fitness.
9. The first Barre Code studio was the first of its kind blending barre, cardio, and strength exercises. Due to the high demand for their classes, within six months of opening The Barre Code, Chernin and Lorenz left their jobs to fully dedicate their time to their new business.
10. By 2013, Lorenz and Chernin had developed a franchise model and opened six additional locations by the end of the following year. Today, there are over 30 Barre Code studios in 14 states.
Entrepreneur’s Franchise 500
11. The Barre Code has only been franchising since 2013 and has yet to appear on Entrepreneur’s annual Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of The Barre Code franchise costs, based on Item 7 of the company’s 2017 FDD (updated).
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on The Barre Code’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.
Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis
- The Barre Code 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 one instruction room, in which group classes may be offered (“Classroom”).
- Studios offer a wide array of classes focusing on cardiovascular conditioning, strength training, and restoration.
- 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 2016 fiscal year, The Barre Code’s affiliate BBF owned and operated four Company Studios in Chicago, Illinois, with a total of seven Classrooms; one Company Studio in Denver, Colorado, with a total of two Classrooms; and one Company Studio in Miami, Florida, with a total of one Classroom.
- All visitors to Company Studios enrolled for classes, purchased memberships, and paid for visits using a single online system; therefore the franchisor is unable to provide performance figures for individual Company Studios.
- The table included in this Item 19 reflects 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 and closings.
- 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.
- A fifth Company Studio, with two Classrooms, was opened in September 2014.
- A sixth Company Studio, with two Classrooms, was opened in November 2015.
- A seventh Company Studio, with one Classroom, was opened in January 2016.
- The second Company Studio, with one Classroom, was closed in April 2016.
Gross Revenue of The Barre Code Company Studios
- The following table demonstrates the gross revenue collectively earned by all Company Studios from 2010 through 2016 calendar years.
- The Barre Code has not annualized the numbers shown in this table to account for Company Studios that opened mid-year or later.
- “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.