|
barre3 Franchise ProfileFitness Franchises > Specialty Fitness Classes |
What is the Initial Investment for a barre3 Franchise?
The initial investment to open a barre3 franchise ranges from $277,033 to $395,000. This includes a franchise fee of $50,000. Potential franchisees should also prepare for additional costs, including a cash requirement of $50,000 and a net worth requirement between $100,000 and $250,000. Understanding these financial commitments is crucial for aspiring owners to ensure they are adequately prepared for startup expenses.
What Are the Ongoing Fees for a barre3 Franchise?
Franchisees of barre3 are subject to ongoing fees, which include a royalty fee of 6% of gross sales and a marketing fee of 2%. These fees are essential for maintaining brand presence and supporting franchisee operations. It's important for franchisees to factor these costs into their financial projections to ensure sustainable profitability.
What Are the Revenue Potential and Breakeven Timeline?
The average annual revenue for a barre3 franchise unit is approximately $377,000, with a median revenue of $315,000. The breakeven period is typically around 12 months, which indicates that franchisees can expect to recover their initial investment relatively quickly. This potential for revenue generation makes barre3 an attractive option for fitness entrepreneurs looking to enter the market.
How Many barre3 Franchise Units Are There?
As of 2023, barre3 operates a total of 132 units, consisting of 126 franchised locations and 6 corporate-owned units. The franchise has seen a slight decrease in the number of franchised units from 132 in 2021 to 126 in 2023. This stability in unit count suggests a focused approach to franchise growth and operational management within the barre3 system.
barre3 Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
barre3 Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 138 | 132 | 132 |
| Net Change YoY | -6 | 0 | |
| Franchised Units | 132 | 126 | 126 |
| Net Change YoY | -6 | 0 | |
| Corporate Units | 6 | 6 | 6 |
| Net Change YoY | 0 | 0 |
Initial Investment
The barre3 franchise offers a low to moderate initial investment range, with costs varying from $277,033 to $395,000. This investment includes a $50,000 franchise fee, making it accessible for aspiring franchisees looking to enter the fitness industry while maintaining a manageable financial commitment.
Revenue Potential
Franchisees can expect an average annual revenue of approximately $377,000 per unit, with a median revenue of $315,000. This revenue potential highlights barre3's strong market presence and the demand for its unique fitness offerings, making it an appealing choice for investors.
Royalty and Marketing Fees
barre3 franchises are subject to a royalty fee of 6% on gross sales, along with a 2% marketing fee. These fees contribute to the ongoing support and brand development that barre3 provides, ensuring franchisees benefit from a well-recognized brand and effective marketing strategies.
Financial Requirements
To qualify for a barre3 franchise, potential franchisees must have a net worth between $100,000 and $250,000, along with a minimum cash requirement of $50,000. These financial criteria help ensure that franchisees are adequately prepared to invest in and operate their business successfully.
Breakeven and Payback Period
Franchisees can anticipate a breakeven period of around 12 months, with an investment payback time of approximately 18 months. This relatively quick return on investment underscores the profitability potential of barre3 franchises, attracting both new and seasoned investors.
Franchise Growth
As of 2023, barre3 operates 126 franchised units, maintaining a stable presence since 2021. The consistent number of corporate units, which remains at 6, reflects the brand's commitment to growth and stability in the competitive fitness market, providing franchisees with a reliable support system.
Frequently Asked Questions
The initial investment for a barre3 franchise ranges from $277,033 to $395,000, which includes a franchise fee of $50,000.