Do you want to open a fitness & wellness business by buying Pure Barre franchise? If YES, here is how much it cost to open a Pure Barre franchise successfully. If you are looking towards opening a Pure Barre Franchise, it will be nice for you to have a of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Pure Barre Franchising Inc. started operations in 2001 and they began selling franchise in 2009. They have their corporate headquarters at 3001 Brighton Blvd., #269 Denver, CO 80216, USA and presently they have an estimated 550 franchise units in operation.
PB Franchising, LLC is the franchisor. The franchisor’s direct parent company is Pure Barre, LLC. The franchisor is also a wholly-owned subsidiary of Xponential Fitness, LLC. Franchisees operate a fitness studio that offers and provides indoor Pure Barre classes/instruction under the “Pure Barre” mark. Each studio will offer and provide:
(i) fitness training classes using techniques and methods which are proprietary to the franchisor and which provide a total body workout using elements of Pilates, weights and ballet, including using a ballet barre, to perform small isometric movements for a safe, low-impact workout that strengthens and sculpts the body without adding bulk; and
(ii) any other services that the franchisor develops, designates and/or otherwise authorizes.
Financial Investment Required to Open a Pure Barre Franchise
Pure Barre has a franchise fee of up to $46,500, with total initial investment range of $178,350 – $370,000. Here are areas where you are expected to spend money and the cost associated with it;
Table of Content
- 1. Initial Fee: $60,000
- 2. Initial FFE Package: $20,000 to $32,000
- 3. Opening Inventory Package: $10,000 to $12,000
- 4. Pre-Opening Instructor Training: $8,750 to $10,950
- 6. Royalty: 7percent of Gross Sales of your Franchised Business
- 7. Marketing Fund
- 8. Business Management Software Fee
- 9. Technology Fee
- 10. Performance Software Fee
- 11. Renewal Fee: $10,000
1. Initial Fee: $60,000
You must pay to Pure Barre a lump sum initial franchise fee of $60,000 (the “Initial Franchise Fee”) to establish a single Studio under a Franchise Agreement (whether a start-up or conversion).
Please note that the Initial Franchise Fee is due upon the signing of the Franchise Agreement. The Initial Franchise Fee shall be fully earned by Pure Barre upon payment and is not refundable, in whole or in part, under any circumstance.
2. Initial FFE Package: $20,000 to $32,000
Please note that you must purchase an initial package of furniture, fixtures, and equipment that is designed to provide you with the majority of these items that you will need in connection with outfitting, equipping, and otherwise building out your Studio (the “Initial FFE Package”), and includes the cost of shipping.
As of the Issue Date of the Disclosure Document, the Initial FFE Package costs approximately between $20,000 and $32,000, and typically contains:
- (a) exercise accessory equipment and various other related equipment/ supplies for use in connection with the provision of the Approved Services
- (b) a Studio fixture package comprised of a desk, displays and display rack, storage cubbies, pedestals, custom-made ballet bars, and assorted other fixture
- (c) certain other equipment used in connection with the Studio, and (d) the shipping of these items to the Authorized Location.
3. Opening Inventory Package: $10,000 to $12,000
Please note that prior to opening your Studio, you must purchase opening inventory from Pure Barre at a cost of approximately $10,000 to $12,000 (“Opening Inventory Package”), which includes apparel and other merchandise that will be available for resale as part of your Approved Products, including items branded with the Proprietary Marks, and other t-shirts, towels, exercise clothing, and related accessories.
4. Pre-Opening Instructor Training: $8,750 to $10,950
Please note that you must pay Pure Barre the appropriate training and/ or subscription fees in connection with 7 individuals attending and completing the Pure Barre Classic Training necessary to become an Authorized Instructor prior to the opening of your Franchised Business, and Pure Barre assumes and expects that you will send up to 2 of those Authorized Instructors to also attend the Additional Instructor Training in order to provide certain advanced classes and instruction as part of the Approved Services prior to or around the opening of your Franchised Business.
Pure Barre estimates that you will pay: (i) approximately $8,750 in connection with 7 individuals attending the Pure Barre Classic Training (given Pure Barre’s current training fee for such Classic Training is $1,250/trainee); and (ii) an additional $2,200 in connection with 2 of those Authorized Instructors attending and completing the Additional Instructor Training ($1,100 per Authorized Instructor to attend a total of 2 additional days of training).
This means a total range of approximately $8,750 to $10,950 will be expended in connection with instructor training fees prior to opening, which must typically be paid to Pure Barre upon execution of your Franchise Agreement (at the very latest, Pure Barre will always require payment of all training fees before it approves your Authorized Instructors to attend their required initial training in connection with your Franchised Business).
5. Development Fee: $45,000 per Franchised Business
If you agree to open and operate between 3 and 5 Franchised Businesses
- $40,000 per Franchised Business if you agree to open and operate between 6 and 9 Franchised Businesses
- $35,000 per Franchised Business if you agree to open and operate 10 or more Franchised Businesses
Please note that if Pure Barre grants you the right to open 3 or more Franchised Businesses under a Development Agreement, you must pay Pure Barre a one-time Development Fee upon executing your Development Agreement.
Your Development Fee will depend on the number of Franchised Businesses Pure Barre grants you the right to open within the Development Area and is calculated as follows:
- (i) $45,000 per Franchised Business if you agree to open and operate between 3 and 5 Franchised Businesses;
- (ii) $40,000 per Franchised Business if you agree to open and operate between 6 and 9 Franchised Businesses; and
- (iii) $35,000 per Franchised Business if you agree to open and operate 10 or more Franchised Businesses.
You will be required to enter into Pure Barre’s then-current form of Franchise Agreement for each Franchised Business you wish to open under your Development Agreement, but you will not be required to pay any additional Initial Franchise Fee at the time you execute each of these Franchise Agreements.
Please note that if you enter into a Development Agreement, you must execute Pure Barre’s current form of Franchise Agreement for the first Studio that Pure Barre grants you the right to open within your Development Area concurrently with the Development Agreement.
6. Royalty: 7percent of Gross Sales of your Franchised Business
Due Date: Payable weekly based on the Gross Sales of your Franchised Business during the preceding business week. Please note that you will be required to start paying your Royalty once your Franchised Business begins collecting revenue from operations.
7. Marketing Fund
Currently, you must contribute to the Fund in an amount equal to 1percent of the Gross Sales of your Franchised Business (the “Fund Contribution”). Due Date: Payable weekly at the same time and in the same manner as the Royalty.
Pure Barre has established a Marketing Fund to promote and otherwise develop the System, Marks, and brand generally. Please note that Pure Barre reserves the right to increase your Fund Contribution to up to 2percent of the Gross Sales of your Franchised Business upon notice to you.
8. Business Management Software Fee
Then- current fee charged by Pure Barre’s Approved Supplier, which is currently $269 and the Due Date for this fee is Payable every 4 weeks, as agreed.
9. Technology Fee
While Pure Barre does not currently charge a Technology Fee to cover certain technology costs, it reserves the right to charge its then-current technology fee in the future (the “Technology Fee”). The Due Date for this fee is Payable monthly in the same manner as the Royalty.
Please note that Pure Barre reserves the right to collect a Technology Fee in connection with any costs it incurs in establishing and maintaining an intranet, extranet, online portal, website, online advertising tools, mobile application, and/ or any other technology for use in connection with the Franchised Business.
10. Performance Software Fee
Then- current fee charged by Pure Barre’s approved supplier (the “Performance Software Fee”). Pure Barre does not currently charge a Performance Software Fee, but reserves the right to charge its then- current Performance Software Fee in the future.
Due Date: Payable monthly in the same manner as the Royalty. Please note that Pure Barre reserves the right to collect a Performance Software Fee in connection with the ongoing cost of providing, maintaining, and implementing data tracking hardware and software.
11. Renewal Fee: $10,000
Due Date for this fee is at time of renewal. Please note that you must renovate and reimage the Studio at your expense at the time of renewal to conform to Pure Barre’s then- current standards and image.
- Transfer Fee Under Franchise Agreement: $10,000 and the Due Date for this fee is Before the transfer.
Please note that this is Payable when you sell the Studio. No charge if the Studio is transferred to a corporation or other entity that you control.
- Transfer Fee Under Development Agreement: $10,000 and the Due Date for this fee is on submitting application for consent to assignment.
Please note that this is Payable when you want to sell/transfer the rights under your Development Agreement.
- Insurance Policies: Amount of unpaid premium and the Due Date for this fee is As required or arranged with provider.
Please note that this fee is Payable only if you fail to maintain required insurance coverage and Pure Barre elects to obtain coverage for you.
- Audit Fees: Any costs and expenses Pure Barre incurs and the Due Date for this fee is within 15 calendar days after receipt of audit report.
Please note that this is Payable only if audit shows an understatement of Gross Revenue for the audited or reviewed period of 2percent or more.
- Mystery Shopper and Other Quality Control Programs: Currently, Pure Barre does not require franchisees to contribute to these programs, but it reserves the right to do so in the future
Due Date: Within 30 days of demand.
Please note that this is Payable only if Pure Barre establishes a mystery shopper program or other quality control mechanism/ program, in which case it reserves the right to require a franchisee to contribute up to $500/ year to help defray the costs of such programs that are designed to preserve the goodwill and brand image.
- Late Fees: The greater of the highest applicable legal rate for open account business credit, or 1.5percent per month and the Due Date for this is Upon demand.
Please note that this Applies to all amounts not paid when due, until paid in full. Pure Barre may also require you to pay an administrative fee of $50 for each late payment or late report.
- Penalty Fee: Then- current fee charged by Pure Barre; currently, $100 for each day of non-compliance and the Due Date for this fee is Upon demand.
Please note that this is Payable only in the event you fail to comply with your material obligations under your Franchise Agreement by permitting any instructor at your Studio to provide any fitness instruction or other Approved Services before they complete the Pure Barre Classic Training.
The Penalty Fee will be incurred during each day of non-compliance.
- Cost of Enforcement or Defense: All costs including attorneys’ fees and the Due Date for this fee is Upon settlement or conclusion of claim or action.
Please note that you will reimburse Pure Barre for all costs in enforcing its obligations concerning the Franchise Agreement if it prevails.
- Indemnification: All costs including attorneys’ fees and the Due Date for this fee is Upon settlement or conclusion of claim or action.
Please note that you will defend suits at your own cost and hold Pure Barre harmless against suits involving damages resulting from your operation of the Studio (subject to applicable state law).
- Alternative Supplier Approval: $500 per day for personnel engaged in evaluating a supplier and the Due Date for this fee is at time of request.
Additionally, you must reimbursement Pure Barre for any travel, accommodations, and meal expenses.
- Regional Cooperative: As the Cooperative determines and the Due Date for this fee As the Cooperative determines.
Please note that Pure Barre may establish regional cooperatives comprised of Studios that are within a given geographical area (each, a “Cooperative”). If a Cooperative is established where your Studio is located, you will be required to participate in that Cooperative and contribute to that Cooperative in the amounts the Cooperative determines.
Company-owned or affiliate- owned Studios will have the same voting rights in such Cooperatives as franchisee-owned Studios.
- Liquidated Damages: $10,000 and the Due Date for this fee is As incurred.
Please note that if you in any way compromise the secure access to the online version of the Manual, including, but not limited to, allowing unauthorized users access to the Manual and its confidential contents, you will be required to pay Pure Barre liquidated damages in the amount of $10,000, to compensate Pure Barre for the breach and related damage to the System.
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