Barre 3 logo

Barre 3 Franchise

Audited Financials
FitnessEst. 2008Portland, OR
www.barre3.com

Risk Score

Pending analysis

Investment Range

$73,465 - $650,851

Total US Locations

157

Business Summary

barre3® operates exercise service businesses that provide specialized fitness classes. These classes use a ballet barre and other equipment, combining techniques from ballet, Pilates, and yoga. barre3® studios also sell related services and products to clients.

Corporate History

The barre3® concept originated with its parent company, B3 Studios, which began operating exercise studios in 2008. B3 Franchising LLC, the franchisor, was formed in April 2010 and started offering barre3® franchises in August 2010. The company expanded significantly through acquisitions, notably acquiring most of The Barre Code® franchise system in August 2023, with those studios rebranding to barre3®. In January 2025, barre3® also acquired most of the Studio Barre franchise system, offering those franchisees the opportunity to rebrand as barre3® studios.

Financial Overview

Investment Range

$73,465 - $650,851

Franchise Fee (High)

$50,000

Royalty %

6%

Marketing %

2%

Equipment Costs (Low)

$15,215

Equipment Costs (High)

$429,030

Working Capital

$44,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

barre3® appears to be in good financial health. The company's financial statements are audited and show an unqualified opinion, indicating no concerns about its ability to continue operations. Net income has shown consistent growth, increasing from $860,446 in 2022 to $1,995,752 in 2024. The company also maintains substantial working capital, with over $8.7 million in 2024.

Financing Details

barre3® does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own loans, leases, or other financial obligations, and barre3® does not guarantee these arrangements.

Performance Metrics

Total US Locations

157

Franchised Units

151

Corporate Units

6

Avg Square Footage

1,700

Franchising Since

2010

Legal & Compliance Analysis

Recent Litigation

No

Bankruptcy

No

Litigation Count

1

Litigation Summary

barre3® has disclosed one past legal action. In May 2010, the Washington State Securities Division issued a Statement of Charges against B3 Studios, LLC (barre3®'s parent company) for violating franchise registration and disclosure laws. B3 Studios, LLC entered into a Consent Order, agreeing to cease and desist from such violations and reimbursed the state $700. There are no other litigation cases required to be disclosed for barre3®.

Bankruptcy History

barre3® has no bankruptcy history to report for the franchisor or its management.

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew their barre3® franchise agreement, franchisees must notify barre3® in writing between 13 and 18 months before their current term expires. They must be in substantial compliance with their agreement and not in default at the time of renewal. Franchisees are required to satisfy all payment obligations, including a renewal fee equal to 25% of the then-current initial franchise fee. They must also sign a new, current franchise agreement (which may have different terms), execute a new personal guaranty and a general release of claims. Additionally, franchisees must provide proof of their right to operate from their location or secure an alternative approved location, obtain all necessary licenses and permits, upgrade their studio to current standards (excluding computer systems), and complete any required renewal training courses. barre3® may waive some of these requirements at its discretion.

Training & Support Program

Franchisor Assistance

barre3® provides franchisees with comprehensive support both before and after their studio opens. Before opening, barre3® assists with designating a search area and authorized territory, reviewing and approving the lease, and providing general studio design specifications. Franchisees receive home-study materials and participate in mandatory Operator, Instructor Mentor, and New Instructor training programs, which are held in Portland, Oregon, or virtually. barre3® also inspects the studio before opening and provides a webpage on its website for the franchisee's studio, including setting up social media accounts and conducting a digital marketing campaign for the grand opening. After opening, barre3® offers ongoing support through telephone or email consultations for operational and marketing issues, and provides guidance on teaching methods, standards, and procedures via manuals, bulletins, videos, and webinars. barre3® also conducts additional training for new class choreography and music playlists and provides brand guidelines for creating promotional materials.

Initial Training Hours

130

Training Location

Portland, OR

Ongoing Support

After opening, barre3® provides ongoing support through representatives available for telephone or email consultations during business hours to discuss operational and marketing issues. The franchisor furnishes continuous guidance on teaching methods, standards, and operating procedures via manuals, bulletins, videos, webinars, and consultations. They also conduct additional training to introduce new class choreography and music playlists. Franchisees receive brand guidelines for creating their own advertising materials. Optional assistance includes developing new products and services (which franchisees must implement) and special on-site visits, available for a fee plus travel expenses.

Franchise Requirements

Ideal Candidate Profile

barre3® seeks a franchisee or a designated owner who can serve as the primary person responsible for the day-to-day management and operations of the studio. This individual must be able to devote full-time efforts to the business and cannot be employed simultaneously by any other business. While barre3® provides extensive training, the ideal candidate must be committed to actively participating in and managing the studio, possessing sufficient computer skills to operate the required systems.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

Yes

Operational Details

Location Type

retail

Owner Participation

full-time

Territory Type

protected

Staff Count

6

Territory Size Requirements

barre3® defines territories based on market variables, which may not always be a perfect circle. While the authorized territory is typically no less than a one-mile radius around the franchised location, its size and shape depend on factors like demographics, population density, market trends, traffic, and natural boundaries. In suburban or rural areas, the minimum female population is 15,000, and there must be at least 6,500 qualified households (those with an annual average income of $75,000 or above in urban areas, potentially lower in other areas). Urban markets may have smaller territories due to higher population density.

Staffing Notes

barre3® requires one person, either the franchisee or an approved operations manager, to be designated for full-time, day-to-day management of the studio. This individual cannot hold other employment simultaneously. For opening, a minimum of four certified instructors, including the owner or a dedicated instructor mentor, must be available. An 'Instructor Mentor' role is specifically defined for recruitment, auditions, and quality control of class instruction. All employees must sign a Franchisee Employee Nondisclosure, Noncompetition, and No Joint Employer Acknowledgement Agreement, acknowledging that they are employees of the franchisee and not barre3®. Franchisees or managers with children under six must arrange for offsite childcare.