In this FDD Talk 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 2020 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 2020 FDD
- Section IV – Number of franchised and company-owned The Barre Code outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD
- Section V – Presentation and analysis of The Barre Code’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:
- fiscal year 2018 and fiscal year 2019 average, median, high, and low revenue and number of Studios for The Barre Code franchisees included in survey (includes Studios that were open and operating at any time during the fiscal year)
- fiscal year 2018 and fiscal year 2019 average, median, high, and low revenue and number of Studios for The Barre Code multi-unit franchisees included in survey (includes Studios that were open and operating at any time during the fiscal year)
Section I – Background Information
17 Things You Need to Know About The Barre Code Franchise
New Location Closes Doors and Moves to Virtual Classes
1. In January 2020, Ginger Ellington opened the first Georgia location of The Barre Code in Alpharetta. However, just two months later, Ellington had to close the doors temporarily beginning March 16 due to the outbreak of COVID-19. According to Ellington, “We were just starting to kind of feel like we were taking off a little bit, and our membership was starting to go up, and then it was like, ‘Oh my gosh, we’re going to have to start over.’ I was really worried about all the members we had gotten [so far] either canceling or freezing because I know it’s going to be hard for a lot of people.”
2. Ellington said she has a medical background, so she has always known the importance of exercise on the body, immune system, and mind. She first became interested in becoming a franchise owner for The Barre Code after surgery due to a knee injury from playing tennis. She was told to start physical therapy, which she found through barre classes. “I actually rehabbed my knee and regained my strength through barre. I started to realize how so many people, as they age, stop strength training – usually because they get hurt,” Ellington said. “I was then a true barre believer.”
3. Ellington’s daughters became interested in barre as well, which launched her interest in actually owning a studio. Ellington said her daughters loved The Barre Code specifically because of the format of the classes. “This is our happy place,” Ellington said. “We really felt like it was where we were supposed to be.”
4. The Barre Code offers four variations of barre classes: boot camp, which is focused on improving cardiovascular conditioning and functional strength with heavy weights and high-intensity interval training; brawl, which features cardio kickboxing sequencing and strength work; regular barre, the studio’s signature class combining barre work and isometric movements with constantly changing routines, a variety of props, and high-energy music; and BarRestore, a 50-minute restorative class that combines the signature barre class with a 20-minute extended stretch and meditation session.
5. While the physical location is closed, Ellington said the entire franchise has switched to virtual workouts. The studio is offering on-demand classes for a $39.95 monthly subscription, which gives access to more than 80 digital workouts, guided meditations, and playlists.
6. Standard membership options are also available, which feature the four-class monthly option for $59 per month; the eight-class monthly option for $99 per month; or the unlimited monthly option for $119 per month. A standard membership grants access to as many livestream classes as the member’s specific plan offers, Ellington said, but for now the studio is offering six to eight live classes per day.
7. Additionally, Ellington said those who have lost their job due to the COVID-19 pandemic can email alpharetta@thebarrecode.com to discuss a free membership option for the livestream classes. Ellington added, “We have decided to offer these classes for free to everyone affected financially by the virus. We felt like it was a great way to stay connected with the community and to keep our members connected. It’s important for health and mental health to keep exercising especially right now.”
8. Despite being new to the area, Ellington said the Alpharetta community has rallied behind her and The Barre Code during this time. “Alpharetta has been awesome. We’ve only had a handful of members cancel or even put their membership on freeze,” Ellington said. “A lot of people have really been saying they’re going to try to hang in there with us. It’s heartwarming to have people stick by you, especially when you’re first getting started.”
Franchisee Holds Outdoor Classes Amid Restrictions
9. In early June 2020, The Barre Code Grand Rapids decided to take advantage of its outdoor space to hold classes. At the time, gyms and other fitness centers were among the few businesses still closed under Michigan’s COVID-19 restrictions. However, under a new mandate by Governor Gretchen Whitmer, outdoor fitness classes were permitted.
10. Owner Stacie Thomas said, “As soon as we were able to start working out in groups of 10 we quickly started adding nine-person classes. Tonight will be our first class when we’re offering it to more than nine other members.”
11. The business is taking social distance precautions, setting up bright, pink flags at each attendee’s designated area, keeping everyone at least six feet apart. When arriving to class, attendees can check in using their phones to prevent close contact with staff. Thomas said she’s excited to reconnect with her clients outside, but is also awaiting the day her doors can reopen.
12. The Barre Code Grand Rapids was still live streaming classes around eight times per day in addition to its outdoor classes. Thomas said the group hoped to reopen by early July if state officials permitted it.
13. “In this time off, I haven’t had the option to not pay rent, so this is an extension of my studio right now … I know that there are people fighting for themselves and their businesses to get back in running and operating and I very much look forward to that day as well,” Thomas said.
Company History
14. The Barre Code was founded in 2010 by Jillian Lorenz and Ariana Chernin in the River North neighborhood of Chicago, Illinois. Lorenz and Chernin first met in 2009 and immediately bonded over their passion for women’s fitness.
15. The two, who had been independently choreographing workout routines for years, joined forces to create Barre Bee Fit (The Barre Code’s original name), a complete fitness program specially engineered for women. After several months of careful planning, Lorenz and Chernin signed the lease on their first studio.
16. Within six months, the first Barre Code studio needed to add a second room to accommodate high demand. A few more locations were opened before Lorenz and Chernin started franchising The Barre Code in 2012. Since then, The Barre Code has grown to more than 200,000 members, with locations across the country. Lorenz and Chernin still own and operate the company and serve as co-CEOs.
Entrepreneur’s Franchise 500
17. The Barre Code ranked No. 379 on Entrepreneur’s 2020 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 2020 FDD.
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 2020 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
Franchised
2017
- Outlets at the Start of the Year: 24
- Outlets at the End of the Year: 28
- Net Change: +4
2018
- Outlets at the Start of the Year: 28
- Outlets at the End of the Year: 31
- Net Change: +3
2019
- Outlets at the Start of the Year: 31
- Outlets at the End of the Year: 42
- Net Change: +11
Company-Owned
2017
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 6
- Net Change: 0
2018
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 6
- Net Change: 0
2019
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 5
- Net Change: -1
Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis
- The following information is an historic financial performance representation about the franchise system’s existing franchised Studios and subsets of those Studios. The information includes the historic revenue of existing franchised Studios and subsets of those Studios.
- The tables below exclude information on Studios owned by The Barre Code’s affiliate, BBF (Company-Owned Studios).
- Some Studios and franchisees have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.
Part 1 – Annual Revenue by Franchisees
- Combined revenue of all studios owned by single franchisee.
- Includes studios which were open and operating at any time during the fiscal year.
- Annual revenue means the value of all sales of goods and services recognized during the fiscal period.
Fiscal Year 2018
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