Risk Score
Pending analysis
Investment Range
$355,357 - $511,869
Franchise Fee
$33,750
Total US Locations
74
Business Summary
Bar Method Studio operates fitness studios featuring barre-based exercise classes. The Bar Method system is designed to create a lean, firm, sculpted body through proprietary and non-proprietary instructional techniques, formats, and methods. Bar Method Studios offer both basic and advanced classes, which typically include free weights, push-ups, ballet bar work, core exercises, and stretching. In addition to classes, Bar Method Studios often sell fitness apparel and other related products. The target customer base for Bar Method Studios is primarily women between the ages of 25 and 65, though men and women of other age groups also participate.
Corporate History
The Bar Method Franchisor LLC was formed in Delaware on October 25, 2021, and began offering Bar Method Studio franchises in November 2021. It conducts business under its corporate name and the Bar Method brand, also selling certain supplies to its franchisees. The company became an indirect, wholly-owned subsidiary of TGR Parent, LLC on April 2, 2024. Its predecessor, The Bar Method Franchising, LLC (TBMLLC), started franchising Bar Method Studios in January 2008. Before TBMLLC, an affiliate named The Bar Method LLC (TBM) operated a Bar Method Studio in San Francisco, California, from 2001 to December 2020 and offered rights for studios from June 2003 until October 2007. In November 2021, as part of a securitization transaction, TBMLLC transferred all existing U.S. franchise agreements and related intellectual property to The Bar Method Franchisor LLC, making it the franchisor for all existing and future agreements.
Financial Overview
Investment Range
$355,357 - $511,869
Franchise Fee (Low)
$33,750
Franchise Fee (High)
$42,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$70,388
Equipment Costs (High)
$99,654
Working Capital
$20,892
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
SEB Franchising Guarantor LLC, which guarantees the Bar Method Franchisor LLC's performance, maintains $5,000,000 in cash and cash equivalents. The guarantor reported minimal net losses of $451 in 2023 and $786 in 2022. This entity is a special purpose company designed primarily for guaranteeing obligations and holding certain assets for franchising subsidiaries. The Bar Method Franchisor LLC's manager, Anytime Fitness, LLC, shows strong financial health with consolidated net income of over $54 million in 2023.
Financing Details
Bar Method Franchisor LLC does not offer direct financing to its franchisees. However, it has arrangements with third-party lenders. Geneva Capital, LLC, an equipment lender, offers financing up to $100,000 for tangible equipment, security systems, and signage (excluding the initial franchise fee and working capital). This financing is structured as a lease, typically requiring an advance payment of up to 20% and a security deposit equal to one month's lease payment. Lease terms range from 12 to 36 months, with fixed interest rates based on market conditions and the franchisee's creditworthiness. Owners and their spouses must provide a personal guarantee. Bar Method Franchisor LLC receives a 1.5% referral fee and an additional 1.5% of the lease amount is added to a guaranty pool. Additionally, Guidant Financial offers various financing programs, including 401(k) business financing for a fee of $4,995 plus $149 per month for administration, SBA loan assistance for a $2,500 consulting fee (refundable under certain conditions), unsecured financing up to $125,000 depending on credit score, and equipment leasing with rates from 6.99% to 13.90% with a 10% down payment. Bar Method Franchisor LLC receives a $1,000 referral fee from Guidant for each client who uses their retirement rollover program.
Performance Metrics
Total US Locations
74
Franchised Units
73
Corporate Units
1
Avg Square Footage
1,700
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
3
Litigation Summary
Bar Method Franchisor LLC has been involved in three disclosed litigation cases. One case, Twin Cities Barbelles, LLC and Kayla O'Rourke v. The Bar Method Franchising, LLC, was an arbitration filed on May 21, 2020, against the predecessor franchisor. The franchisees alleged misrepresentations in the 2015 FDD and oral financial performance representations induced them to purchase two studios. The Bar Method Franchisor LLC's predecessor denied the allegations and filed counterclaims for breach of agreement and misappropriation of trade secrets after the franchisees abandoned their studios. This matter was settled on May 3, 2021, with Bar Method Franchisor LLC paying $125,000, which was funded by a third-party seller. The other two cases, both from 2009, involved actions by the Illinois and New York Attorneys General against the predecessor and its affiliate for unregistered franchise sales and failure to provide an FDD. Both state actions resulted in consent decrees or assurances of discontinuance, requiring the predecessor to offer rescission and pay penalties ($5,000 in Illinois, $2,500 in New York). In both instances, the franchisees did not accept the rescission offers and continue to operate their studios.
Bankruptcy History
Bar Method Franchisor LLC itself has no bankruptcy history. However, its Chief Financial Officer, R. John Pindred, was an officer of Family Christian, LLC from August 2004 to September 2014. Approximately five months after Mr. Pindred left that company, Family Christian, LLC filed for Chapter 11 bankruptcy on February 11, 2015. A Chapter 11 Plan of Liquidation was confirmed in August 2015, involving a sale of assets and continuity of operations, and the case was closed in August 2016.
Agreement Terms
Initial Term
6 years
Renewal Term
5 years
Renewal Conditions
To renew, Bar Method Franchisor LLC franchisees must be in good standing, having complied with all obligations under their franchise and other agreements. They must provide written notice of their election to renew between 90 and 180 days before the end of the initial term. Renewal requires signing Bar Method Franchisor LLC's then-current franchise agreement (which may include materially different terms, fees, and a revised protected territory). Franchisees are also required to remodel, renovate, or upgrade their Studio to meet the current standards for new Bar Method Studios, pay a renewal fee of $10,000, and sign a general release of claims (if permitted by state law).
Training & Support Program
Franchisor Assistance
Before opening a Bar Method Studio, Bar Method Franchisor LLC assists with site location approval and designates a protected territory. It creates a specific studio layout/design (Compliance Drawing) and provides mandatory specifications for design, equipment, decor, and products. Bar Method Franchisor LLC also sells required fitness accessories and initial retail inventory. Franchisees receive an Operations Manual and a Franchise Business Consultant for pre-opening support. Mandatory training includes 'New Owner Training' for the Principal Operator and Principal Owner, and 'Teacher Training' for at least three teachers (no charge for the first three). If the Principal Owner or Operator is not a teacher, a 'Teacher Manager Support Program' is required for a $5,000 fee. Bar Method Franchisor LLC also helps develop the grand opening marketing program. During operation, Bar Method Franchisor LLC provides ongoing advice on studio operations based on reports and inspections, covering standards, purchasing, teacher training, and administrative procedures. This guidance is offered through the Operations Manual, bulletins, electronic media, telephone consultations, or at its offices. Bar Method Franchisor LLC may hold mandatory training courses, programs, and conferences. It provides updates to the Operations Manual and System Standards, which may require additional capital investment from franchisees. Bar Method Franchisor LLC maintains and administers a Marketing Fund and a System Website, and may establish mandatory 'Group Programs' for clients. Franchisees participating in the Bar Livestream Program receive Bar Method content and may be eligible for referral fees. Additional coaching or evaluation services are available or may be required for a fee.
Initial Training Hours
75
Training Location
Online, Woodbury, Minnesota, or Edina, Minnesota
Ongoing Support
Bar Method Franchisor LLC provides ongoing advice on studio operations based on franchisee reports or inspections, covering standards, purchasing, teacher training, and administrative procedures. This guidance is provided through the Operations Manual, bulletins, electronic media, telephone consultations, and/or at Bar Method Franchisor LLC's office or a Studio. Bar Method Franchisor LLC may hold various mandatory training courses and programs, as well as conferences or conventions, that designated personnel must attend. It provides updates to the Operations Manual and System Standards, which may require franchisees to invest additional capital and incur higher operating costs. Bar Method Franchisor LLC maintains and administers the Marketing Fund and the System Website. It may establish Group Programs that franchisees must participate in. For franchisees participating in the Bar Livestream Program, Bar Method Franchisor LLC provides Bar Method content and referral fees. Additional coaching, evaluation, or training can be requested or required by Bar Method Franchisor LLC for a fee ($250 per hour plus travel expenses, with an annual coaching and evaluation program fee of $650). A Principal Owner must register for and attend Bar Method Franchisor LLC's conferences, if held.
Franchise Requirements
Ideal Candidate Profile
The Bar Method seeks franchisees, whether individuals or entities, whose owners demonstrate strong personal character, skill, aptitude, attitude, business ability, and financial capacity. For an entity, the Principal Owner must hold more than 20% of the ownership interests. Franchisees are expected to operate the studio diligently and faithfully, with a designated Principal Operator serving as the on-premises manager. This Principal Operator must satisfactorily complete the franchisor's New Owner Training program. The franchisor relies on the franchisee's commitment to fully exploit the granted rights, understanding that the business involves risks and success depends largely on the franchisee's skill and effort.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
protected
Staff Count
5
Territory Size Requirements
Bar Method Franchisor LLC defines its protected territories by drawing a circle around the Studio location using mapping and demographic software. The territory size is at Bar Method Franchisor LLC's sole discretion and will not be larger than an area with more than 50,000 people, based on census projections for up to five years from the Franchise Agreement date. Other criteria considered for defining territory boundaries include population density, growth trends, affluence, density of residential and business entities, traffic generators, driving time, and natural boundaries. These factors help determine the physical boundaries of the protected territory, which may be described by a map or geographic area.
Staffing Notes
Bar Method Franchisor LLC requires each Studio to have a 'Principal Operator' who serves as an on-premises manager and must complete the New Owner Training program. If the Principal Owner or Principal Operator is not a Bar Method teacher, a 'Teacher Manager' must be designated to complete a one-year 'Teacher Manager Support Program', starting at least 90 days before the Studio opens, for a $5,000 fee. Before the Studio opens, at least three teachers (including the owner, if applicable) must complete Teacher Training and become certified Bar Method instructors. Within one year of opening, the Studio must have at least four certified teachers on staff. Teachers cannot teach classes, other than practice classes, until certified. Bar Method Franchisor LLC emphasizes that it does not control labor or employment matters for franchisees, who are solely responsible for hiring, firing, discipline, and terms of employment for all Studio staff.