UDPATED: 05.19.2021
CONTACT INFORMATION
+ Josh Titler Franchise Development Franworth + The Barre Code + 734-412-7220 + JoshT@franworth.com (Send Leads & T-checks here)
REFERRAL FEE TO CONSULTANT
+ Single: $28,000
+ Double: $36,000 + Triple: $44,000 + Quad: $52,000 + Five: $60,000
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BUSINESS SNAPSHOT INTERNATIONAL AVAILABILITY
INDUSTRY
Boutique Fitness
FOUNDED
2010
SBA REGISTRY
STARTED FRANCHISING
2012
VETFRAN OR MINORITY FRAN
Not at this time
Not at this time
UNITS OPEN
39
GROUP HEALTH INSURANCE
COMPANY UNITS OPEN
4
IN-HOUSE FINANCING
Not at this time
Yes
Financing available through our preferred vendor!
• NEW, limited time reduced franchise fees
INVESTMENT RANGE
FRANCHISE FEE
$228,064 – $380,867
• 1: $39,500 • 2: $49,500 • 3: $59,500
REQUIRED LIQUID CAPITAL
• 1: $150K • 2: $250K • 3: $350K
REQUIRED NET WORTH
• 1: $400K • 2: $650K • 3+: $1M+
ROYALTY & AD FUND
INDUSTRY SIZE
6% & 2%
BUYER MOTIVES
STATE REGISTRATIONS
SOLD OUT
• Active or executive owner • Low cost entry and low overhead • Feel good, empowerment business • Solid unit economics
As of 05.19.21, not registered in: CA, IL, MD, VA, MN, ND, NY, SD, WA
• Metro Detroit, MI • Downtown Chicago, IL (Burbs are open)
Est. $290B
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Welcome to The Barre Code, a rare opportunity to get in early with one of the most exciting and rewarding franchise concepts to come along in years!
HISTORY In 2010, Jillian Lorenz and Ariana Chernin turned a New Year’s Eve resolution into a lifelong mission to create and grow a best-in-class fitness program for everybody and every BODY, while promoting personal growth and self acceptance in an environment where women support one another. The duo wanted to change the mindset of women from trying to lose inches, pant sizes and weight to GAINING confidence, strength and love for the skin you are in. Check out the article here https://bit.ly/tbcissppp At The Barre Code, clients have everything to gain and nothing to lose. Clients of all fitness levels are welcome to discover our most efficient and results-driven fitness program that goes beyond the barre to offer three core formats: Barre, Bootcamp, and Brawl™ (a high energy kickboxing-style class). Whether you are a fitness fanatic or just beginning your journey, you will find a class style that is perfect for you. The Barre Code’s mission to support and empower women led us to develop a franchising model in which motivated, entrepreneur-spirited individuals could take a fitness concept that positively impacted their lives and bring it to their local community. As The Barre Code continues to grow, our vision grows stronger to continue to use fitness as a vehicle to positively impact the lives of individuals worldwide.
Co-founders Ariana Chernin and Jillian Lorenz
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THE BARRE CODE =
MUCH MORE THAN JUST BARRE
This is not just a barre studio, and The Barre Code is nothing like other barre franchises. Why should our members and clients go elsewhere for a total body workout when we can give it to them at The Barre Code?! We provide the most efficient and results-driven fitness program, focusing on three unique pillars of physical & mental wellness: cardio, strength and restoration (yoga) with our three core format classes called Barre, Bootcamp (HIIT) and Brawl™ (kickboxing), as well as a variety of specialty themed classes.
TH E BARRE CODE IS LIKE FOUR FITNESS FRAN CHISES COMBINED IN TO ON E That’s right. We’re a barre franchise, we’re a bootcamp franchise, we’re a kickboxing franchise, and we’re a yoga franchise. Why spend over $800,000 and buy all four of those types of franchises when the investment for one studio for The Barre Code can be under $300,000?! Check out the video, below.
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IN-STUDIO EXPERIENCE The Barre Code focuses on what you can GAIN by being part of #BarreCodeNation, not what you can lose. We have something for everybody, and every BODY. High-energy playlists, bumpin’ beats and dynamic lighting are what greets our members and clients for our Barre, Bootcamp and Brawl™ workouts. Trained and passionate instructors lead these high-energy classes. It’s also a welcoming atmosphere, focused on self-acceptance, empowerment and what can be gained by being there.
A BRAN D FOR EVERYBODY AN D EVERY
BODY
This isn't a niche business for people who like dance or ballet. The Barre Code was designed to be for everybody and every BODY.
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ROLES OF THE OWNER (AND THE EMPLOYEES ) The Barre Code franchisees typically start with two to five instructors (one is a Senior Trainer, the others just lead classes), one to two front desk associates (check-in, customer service and membership sales), and sometimes a manager. The franchisee can take an executive role in the business, hiring a manager who runs the day-to-day operations in the studio, or the owner can be actively involved in the business day-to-day. The franchisee will know how classes should be taught, but the franchisee's role is not to teach classes. That said, there are some franchisees who do teach occasionally, but that is not the role of the owner. The role of the owner is to invest dollars in marketing, covert interested prospects to trial, ensure a great culture and workout experience, and drive membership/class pack sales. The owner will also manage money and people. Managers can be hired at each studio to run the day-to-day operations of the studio (creating the schedule, executing plans and promotions, selling memberships, etc), and the owner can manage the manager on a daily basis. Check out these two short videos to learn more!
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AFFORDABLE TO GET INTO, WITH BANKS LINED UP AND READY TO LEND While The Barre Code has relationships with preferred lenders and banks already lined up for qualified buyers, some of The Barre Code franchisees have self-financed. According to The Barre Code's 2021 Franchise Disclosure Document (FDD), the median all-in investment for one studio is around $300,000. Part of the reason is because we don't have a large footprint. The ideal space is approximately 1,800 - 2,100 square feet. We also don't have a lot of expensive equipment. The Barre Code uses simple equipment like bands, balls and hand weights in our workout routines.
AFFORDABLE TO OPERATE, WITH RELATIVELY LOW OVERHEAD Compared to other brick-and-mortar franchise concepts, we think prospective franchisees will be pleasantly surprised how low the monthly overhead when they validate with existing franchisees.
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NATIONALLY RECOGNIZED In the 2021 Entrepreneur Franchise 500, The Barre Code was ranked for the third year in a row. We came in at #195! Watch Franworth's Founder and CEO John Rotche talk about Franworth's latest and hottest portfolio brand, and the reasons The Barre Code made the list, as well as a quick message of gratitude for your support and long-time relationship.
WHAT’S NEW? In the summer of 2020, The Barre Code partnered with Franworth, a franchise growth equity firm, to grow both vertically and horizontally. In 2021, Franworth is spearheading several initiatives for The Barre Code franchisees: + New marketing vendor, new website and simplified membership offering - franchisees will Work with one vendor, focusing on Facebook, Instagram and Google campaigns. This vendor has had tremendous success with other Franworth brands, and we are anticipating great results with The Barre Code. + Upgraded On-Demand and Live platform - even before covid, The Barre Code had online and on-demand classes. Customers love the flexibility of these omnichannels, and our upgraded platform will make the online and on-demand experience even better! + Increased focus on membership sales - it sounds simple enough, and it is. It's about a hyper-focus on inspecting what we expect. This, combined with our new digital marketing vendor, has us excited about our franchisees' future. + A slimmed down and streamlined studio design that should make the investment even more affordable as well as help lower ongoing monthly overhead.
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NEW TEAM MEMBERS Dave Keil is a Franworth operating partner, the president and COO, and former CEO of Pure Barre. Dave knows this space as well as anyone, and he LOVES The Barre Code, because it has so much more potential than competitors out there (and he would know).
John Rotche is the founder, CEO and managing director of Franworth and is a former IFA Entrepreneur of the Year.
David Barr is the Franworth managing director, a Franworth partner, and a past IFA chairman.
Matt Kurowski is the Operations Director for The Barre Code, a Lash Lounge franchisee, and the former COO of Soccer Shots.
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IDEAL CANDIDATE The following attributes and qualifications are what we’d consider the “ideal” background of a prospective studio owner: + People who love to help and enrich the lives of others will be drawn to this business + This can be an individual owner or team ownership + Active or executive owner + Women are particularly drawn to this concept, though husbands + wives and men see the value and benefit + Sales experience is great to support The Barre Code 2.0 sales-driven culture + If they don’t have sales experience, we love to see at least mid-level management experience (If they’ve owned, run or managed a business before, it’s a plus) + Someone who has guest service experience + Hotel, restaurant, retail and/or fitness experience is a plus + Someone with a magnetic, persuasive personality + Someone who wants a “sexy” or hot franchise concept
FINANCIAL QUALIFIERS Single Unit - $150,000 minimum liquidity and $400,000 minimum net worth Two Units - $250,000 minimum liquidity and $650,000 minimum net worth Three Units - $350,000 minimum liquidity & $1,000,000 minimum net worth Five Units - $550,000 minimum liquidity and $1,500,000 minimum net worth
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A successful system is the product of strong concept, industry opportunity, smart business strategy, sound, well-documented processes and tools, and exceptional people. The Barre Code has all of these things. WHAT DOES FRANCHISOR SUPPORT LOOK LIKE? The Barre Code provides exceptional, hands-on support across all business disciplines, including staff training, operations, finance and marketing. Each franchisee will attend initial business training (currently in Chicago, but it may move to Ann Arbor, MI), while instructors will participate in a fusion of both virtual and in-studio training to be certified by The Barre Code.
Access to franchisor personnel doesn’t disappear after initial training. The Barre Code has a dedicated ops team to help with business strategy and day-to-day operations, a dedicated local marketing coordinator for marketing guidance and consultation, and an accessible training team. WHAT IS THE FINANCIAL STRENGTH OF THE FRANCHISOR? We are profitable and backed by the team at Franworth.
Check out this 2-minute video to learn more about Franworth.
CAN I TOUR THE BARRE CODE? WHAT'S THE FOOTPRINT? The Barre Code has a medium sized footprint of approximately 1,800–2,100 square feet of retail space, typically found in lifestyle shopping centers. This allows franchisees to keep their costs relatively low, while still driving revenue and profitability.
Check out this virtual tour of The Barre Code studio. HOW MANY MULTI-UNIT OWNERS ARE THERE? About 1/3 of the franchisees are multi-unit owners, and that number is growing! We are a multiunit concept. ARE YOU INTERESTED IN INTERNATIONAL EXPANSION, INCLUDING CANADA? Not at this time. DO YOU HAVE A PROGRAM FOR E2 OR EB-5 VISA CANDIDATES? We currently do not.
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ARE THERE ANY FEE DEFERMENT STATES? Yes, Virginia and Washington. WHAT IS THE TERRITORY PROTECTION? 3 mile radius or 40,000 population, whichever comes first ARE THERE ANY TERRIOTRIES THAT ARE SOLD OUT? Metro Detroit and Downtown Chicago HAVE THERE BEEN ANY PROSPECT OBJECTIONS?
1) People always ask how The Barre Code has fared in covid. The answer is that it has affected the franchise owners. How much has it affected the franchise owners? That depends on the state they're in and the level of restrictions imposed by that state. We do have online and on-demand options and memberships, and as of May 2021, the franchisees are reaping 100% of the revenue from online and on-demand memberships. KEEP IN MIND, The Barre Code has very little equipment, so when the weather is nice, we can do outdoor classes whenever we want, like on the Blue Bridge in Grand Rapids, MI (see picture)! 2) Another objection that may come up is from men who say “it’s too feminine for me”. While it’s true that most of the clients are women (there are some men) and most of the franchisees are women (some husband + wife teams), this is a business. Many of our studios have managers, and there is plenty of work to do behind the scenes for a male that can lead to a successfully run business. 3) “I thought the AUV would be higher” comes up sometimes. In the 2021 FDD Item 19, we show two things A) a P&L for our four corporate studios and B) monthly sales numbers for every franchisee for 2019 and 2020. Prospects will validate a model similar to Subway or Supercuts, meaning it doesn’t take much to make money in this business. Overhead is pretty low, and if you own three or more of these you have a nice business that can be manager-run. Prospects will validate low monthly overhead. HOWEVER, Franworth is not standing still. We’re actively working on growing AUV with some aforementioned programs that we’re seeing very good results with early on. HAS THERE BEEN ANY LITIGATION? None.
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QUICK SUMMARY OF KEY POINTS? + Limited time reduced franchise fees! + This is like three or four fitness franchises in one
+ + + +
Great opportunity for an active owner or an executive multi-unit owner Studios can be manager-run with relatively low overhead SBA financing is available. Can be under $100,000 cash out of pocket to get started (if approved for, and utilizing, financing)
ANYTHING ELSE THAT WOULD HELP ME PRESENT THE BARRE CODE TO CANDIDATES? This is a feel good, empowerment business that’s relatively inexpensive to get into and relatively inexpensive to operate.
+ + + + +
Recurring revenue model The possibility of keeping your full-time job Potential to open multiple units Ability to hire managers to run the day-to-day operations Flexibility for consumers to access service online or on-demand if needed
MUTUAL EVALUATION PROCESS Below is an outline of our sales process. We have a seven-step process that works extremely well and is implemented by some of the top development pros in our industry, so we know how to close deals:
Prelim = receive lead, send intro video, then set up the intro call: Intro Call Marketing & Technology + Real Estate & Construction FDD Review + Training + Support Validation Executive Call Discovery Day
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