Pure Barre logo

Pure Barre Franchise

Audited Financials
FitnessEst. 2023Irvine, CA
www.purebarre.com

Risk Score

Pending analysis

Investment Range

$314,411 - $629,345

Franchise Fee

$40,000

Total US Locations

617

Business Summary

Pure Barre operates fitness studios that offer barre and other specialized exercise classes using specific equipment. These studios provide a total body workout by combining elements of Pilates, weights, and ballet, focusing on small isometric movements for a safe, low-impact workout that sculpts and strengthens the body. Pure Barre also offers related merchandise and products.

Corporate History

PB Franchising SPV, LLC, the franchisor for Pure Barre, was formed in March 2023. Before its formation, Pure Barre-branded studios were offered by its predecessor and affiliate, PB Franchising, LLC, from October 2012 through March 2023. In March 2023, Pure Barre and its affiliates underwent an internal reorganization where PB Franchising SPV, LLC acquired the trademarks and intellectual property related to the Pure Barre system. PB Franchising SPV, LLC began selling Pure Barre franchises in April 2023, and franchise agreements previously signed by the predecessor were assigned to it in December 2023.

Financial Overview

Investment Range

$314,411 - $629,345

Franchise Fee (Low)

$40,000

Franchise Fee (High)

$60,000

Royalty %

7%

Marketing %

2%

Equipment Costs (Low)

$155,900

Equipment Costs (High)

$375,500

Working Capital

$31,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The auditor emphasizes that Pure Barre's (XPOF Assetco's) financial statements may not fully represent its standalone operations due to significant transactions and relationships with its parent company, Xponential Fitness LLC, and its affiliates. There are also significant net advances to the parent company, totaling $155,034 thousand as of December 31, 2024, which are treated as a reduction to member's equity because the parent does not plan to return these funds. All of Pure Barre's tangible and intangible assets are used as collateral for its parent's credit facility. The company believes its current litigation and regulatory matters will not have a material adverse effect on its business or financial position, but acknowledges that an unfavorable resolution could impact future reporting periods.

Financing Details

Pure Barre does not offer any direct or indirect financing. It also does not guarantee any notes, leases, or other obligations for its franchisees. While third-party lenders, such as Amerifund and Navitas, have sponsored its conventions in the past and may do so in the future, Pure Barre is not aware of the specific terms of any financing franchisees might obtain from these or other lenders.

Performance Metrics

Total US Locations

617

Franchised Units

617

Corporate Units

0

Avg Square Footage

1,650

Franchising Since

2012

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To qualify for a successor franchise, Pure Barre franchisees must execute Pure Barre's then-current franchise agreement, which may contain materially different terms. They must also maintain possession of the Authorized Location or secure an approved alternative, remodel their studio to comply with current System Standards, have substantially complied with the Franchise Agreement during its term, be in compliance with all provisions of the Franchise Agreement and any other agreements with Pure Barre, pay a $10,000 successor franchise fee, provide 90 to 180 days' notice of their desire to acquire a successor term, and sign a general release.

Training & Support Program

Franchisor Assistance

Pure Barre provides comprehensive assistance to its franchisees. Before opening, Pure Barre provides franchisees (or their Operating Principal) and Designated Managers with a proprietary Initial Training Program, typically 60-90 days prior to opening. They also offer access to a confidential Learning Management System containing specifications, standards, and procedures, along with layout and design guidelines. Franchisees receive lists of components for fitness equipment, furnishings, supplies, and Approved Suppliers. Pure Barre licenses the use of its trademarks and consults on establishing the Pre-Sales Phase and Opening Support Program. For multi-unit agreements, Pure Barre designates the Development Area and approves proposed studio premises. Ongoing operational assistance includes specifying and approving equipment and suppliers, offering continuing advisory assistance and information, and administering the Brand Development Fund. Pure Barre may also provide additional or refresher training annually. For advertising, Pure Barre requires submission of all advertising materials for approval, provides social media guidelines, and mandates contributions to a Brand Development Fund (currently 2% of Gross Sales) for national/regional campaigns. Franchisees must also meet a Local Advertising Requirement (the greater of $1,500 or 2% of Gross Sales monthly) and an Initial Marketing Requirement of at least $15,000 for pre-opening activities. Technologically, Pure Barre requires franchisees to purchase and use a specified Computer System, including hardware, software, a POS System, audio-visual equipment, and high-speed internet, and to license specific business/studio management software. The system grants Pure Barre independent access to monitored information.

Initial Training Hours

30

Training Location

Online; at corporate headquarters in Irvine, CA; or other designated training location

Ongoing Support

After opening, Pure Barre provides ongoing support by specifying or approving certain equipment and suppliers, and offering continuing advisory assistance and information as deemed appropriate, delivered through directives, System bulletins, meetings, seminars, phone, computer, email, fax, personal visits, newsletters, or manuals. Pure Barre (or its affiliates) maintains and administers the Brand Development Fund for marketing and brand development. Franchisees may also be required to attend up to five days of additional or refresher training each year, with no training fee charged for mandatory training. Remedial training may also be required and charged if a franchisee is not complying with System Standards.

Franchise Requirements

Ideal Candidate Profile

Pure Barre is looking for franchisees who are individuals of high character and ability, and who will maintain and exhibit traits of enthusiasm, cleanliness, neatness, friendliness, honesty, and loyalty to promote customer satisfaction and the brand's goodwill. Ideal candidates should have a good reputation, no conflicting interests, a good credit rating, and sufficient and competent business experience and aptitude. While the franchisor recommends that the franchisee or their Operating Principal personally supervise the Studio, they may appoint a qualified and approved Designated Manager to manage daily operations.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

supervisory

Territory Type

protected

Staff Count

8

Territory Size Requirements

Pure Barre designates a "Designated Territory" around each approved studio location. This territory will generally encompass an area with a population of at least 15,000 people, as determined by the U.S. Census Bureau or other commercial sources. The precise size and shape of the territory are subject to variation based on the studio's specific location and the surrounding demographics. Boundaries can be defined using zip codes, streets, natural or man-made landmarks, or county lines. For multi-unit agreements, the "Development Area" also varies depending on the number of studios a developer commits to opening and the demographics of the agreed-upon general area, with similar methods for boundary description.

Staffing Notes

Pure Barre studios require staffing with qualified, competent personnel who are trained in accordance with the franchise agreement and System Standards. Franchisees are solely responsible for hiring, disciplining, and setting employment terms for their employees and independent contractors, adhering to all applicable labor laws. Each studio must have at least one 'Authorized Instructor' on-site to provide Approved Services at all times. Additionally, the studio must be managed by at least one individual who has completed the 'Owner/Operator Module' of the Initial Training Program. While personal supervision by the owner (or Operating Principal) is recommended, it is not strictly required, as a 'Designated Manager' approved by Pure Barre can oversee daily operations after completing the 'Designated Manager Training Program.'