In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Pure Barre franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Pure Barre franchise, based on Item 7 of the company’s 2017 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Pure Barre franchise, based on Items 5 and 6 of the company’s 2017 FDD
- Section IV – Presentation and analysis of Pure Barre’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
- average unit volume during the one-year Measurement Period for Pure Barre studios that have been in operation for 12 months to 23 months as of September 30, 2017
- average unit volume during the one-year Measurement Period for Pure Barre studios that have been in operation for 24 months to 35 months as of September 30, 2017
- average unit volume during the one-year Measurement Period for Pure Barre studios that have been in operation for 36 months or more as of September 30, 2017
- average total revenues, product costs, gross profits, labor costs, occupancy costs, other operating expenses, total operating expenses, and EBITDA, expressed as percentages of total revenue, during the first half of 2016 for the 107 Pure Barre franchisees that submitted detailed profit and loss statements to Pure Barre
Section I – Background Information
13 Things You Need to Know About the Pure Barre Franchise
Founder Returns to Company as “Chief Barre Officer”
1. At the end of April 2017, Pure Barre announced that founder Carrie Dorr was returning to the company in the role of Chief Barre Officer. Dorr founded the company in 2001 and stayed involved with the business until 2015 when she stepped back to start the Soul Day Foundation, a non-profit organization dedicated to spreading kindness and lifting souls of women and children in need. During her time away from Pure Barre, Dorr served as an advisor to the company’s Board of Directors.
2. In her new role as Chief Barre Officer, Dorr will focus on evolving the Pure Barre technique and introducing new class innovations to provide an enhanced experience for new students as well as the brand’s current client base of more than 550,000 members. She will also build out Pure Barre’s training team and introduce a range of innovative techniques, allowing clients to diversify workouts and cross-train within the Pure Barre way of movement.
3. Under Dorr’s direction, Pure Barre also launched three new classes in 2017: an introductory class, an express class, and a cardio-centric class. Additionally, Dorr and her team redesigned the classic Pure Barre class to make it more accessible to new clients.
4. When asked about her return, Dorr said, “Since I started Pure Barre so many years ago, my passion for the brand and the incredible community it attracts has remained unwavering. The company has achieved some remarkable milestones since launch, and I think we are now in a better place than ever to introduce a range of innovative class offerings. I am thrilled to be back in an official capacity to lead this charge.”
Maria Menounos Serves as Brand Ambassador
5. In mid-August 2017, Pure Barre announced its partnership with AfterBuzz TV CEO and two-time The New York Times best-selling author of the acclaimed “The EveryGirl’s Guide to…” series, Maria Menounos. As part of the partnership, Menounos will serve as a brand ambassador for Pure Barre to support its core mission of empowering bodies and minds everywhere.
6. Menounos said, “I fell in love with Pure Barre within the first session. I always say ‘work smarter, not harder’ and feel like Pure Barre is just that – small movements that amount to big, transformative changes both physically and mentally. I am thrilled to join the Pure Barre family and look forward to spreading the word about its unparalleled technique and powerful community.”
7. To kick off the partnership, Menounos celebrated the launch of Pure Barre’s newest class offering, Pure Empower. The new class is a total body strength training and cardio-centric workout designed to sculpt the entire body and increase heart rate while maintaining a low impact nature. Pure Empower utilizes the ballet barre, platform, free weights, and ankle/wrist weights to challenge the cardiorespiratory system.
8. To support the launch of Pure Empower, Menounos talked about the class on her social media channels and hosted a charity class in support of women’s empowerment in the fall of 2017.
Partners with Zimmerman Advertising to Help Accelerate Growth
9. At the start of May 2017, Zimmerman Advertising announced its partnership with Pure Barre. Zimmerman will be providing strategic leadership for the business in the areas of branding, media planning and buying, digital marketing, market investment modeling, and social media. Pure Barre will also be working with Zimmerman’s Social Media practice to attract new clients through Zimmerman’s proprietary Social Acquisition platform.
10. Scott Breault, chief marketing officer of Pure Barre, said, “I have known the Zimmerman team and their capabilities for many years and have been waiting for the right opportunity to work together – this is it. We have a great brand with a massive ambition to double in size in the next few years. Zimmerman has the proven experience and the drive we need to help make that vision a reality.”
11. Pure Barre was founded in 2001 by Carrie Rezabek Dorr in Birmingham, Michigan. Dorr was a fitness guru, dancer, and choreographer who built Pure Barre from scratch. The first location was in the basement of an office building and Dorr had no initial clients, staff, signage, or even a bathroom. However, it didn’t take long for Dorr to build up her clientele after they saw how effective her Barre program was at delivering their desired results.
12. Dorr started franchising the Pure Barre concept in 2009 and the franchise is largely responsible for the popularity of barre exercise classes. Today, there are over 460 Pure Barre locations in the U.S. and Canada. Pure Barre plans to have more than 1,000 studios open by the end of 2021.
Entrepreneur’s Franchise 500
13. Pure Barre has ranked on Entrepreneur’s annual Franchise 500 list every year since 2015. The brand’s highest rank was No. 147 in 2018, while its lowest rank was No. 211 in 2015. Pure Barre also earned a spot on Entrepreneur’s 2015 Top Fastest-Growing Franchises list at No. 31.
Section II – Estimated Costs
- Please click here for detailed estimates of Pure Barre franchise costs, based on Item 7 of the company’s 2017 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Pure Barre’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
Part 1 – Average Unit Volume – Franchised Studios – October 1, 2016 to September 30, 2017
- As is common for new businesses generally, Pure Barre studios typically experience revenue volatility during their first year of operation. Their results are not reflective of and would artificially impact the results of studios that have passed through the initial opening phase and have achieved more operational stability.
- As a result, of the 461 franchisee-owned Pure Barre studios in the United States in operation as of September 30, 2017, Pure Barre has eliminated from the data set 66 that were not operating for the entire time period running from October 1, 2016 to September 30, 2017 (the “Measurement Period”).
- The results shown in Item 19 are based on the results of the remaining 395 franchisee-owned studios in the United States, all of which were open and operating as of September 30, 2016.
- No affiliate-owned studios are included in the data set.
- The results shown in this Item 19 reflect, solely with respect to the 395 franchisee-owned Pure Barre studios in the data set, system-wide per-studio average Unit Volume during the Measurement Period.
- For purposes of these calculations, Unit Volume was determined in the same manner as you will calculate Gross Sales as defined in the Franchise Agreement.
- To calculate the average Unit Volume, Pure Barre added the Unit Volume for all 395 franchisee-owned studios in the data set, then divided that number by 395.
- To calculate the median Unit Volume, Pure Barre put all Unit Volumes in numerical order, then selected the Unit Volume that was in the middle.
- The data used to calculate the studio’s Unit Volume was obtained either from reports submitted by franchisees or by Pure Barre polling the information directly from the franchisees’ point-of-sale systems. Neither Pure Barre nor its affiliates have undertaken an independent investigation to verify the amounts reported by franchisees.