About Neighborhood Barre Franchise
Neighborhood Barre is a franchise system of exercise studios that offer classes combining dance conditioning, Pilates, and isometric techniques to individuals of all experience and fitness levels.
Franchisees operate retail studio locations typically between 1,200 and 1,600 square feet, offering group fitness classes with certified instructors while also selling branded mats, exercise balls, bands, and other approved equipment, merchandise, and clothing.
The target market includes women and men of all fitness levels ranging in age from teens to seniors.
Neighborhood Barre Franchise Cost & Fees
Minimum Investment
$94K
Average Investment
$180K
Maximum Investment
$266K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,000 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Sales or $250 per week, whichever is greater of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Sales (Creative Brand Fund Contribution) | National brand fund |
| Total Investment Range | $94,040 – $266,000 | Includes build-out, inventory, working capital |
The investment range of $94K–$266K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Sales or $250 per week, whichever is greater) and marketing fee (2% of Gross Sales (Creative Brand Fund Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,000 | $49,000 |
| Leasehold Improvements | $20,000 | $150,000 |
| Design Fee | $1,000 | $3,500 |
| Signage | $1,500 | $6,500 |
| Studio Exercise Equipment | $2,540 | $3,500 |
| Furniture and Fixtures | $2,000 | $5,000 |
| Software, Computer and Website | $2,000 | $3,000 |
| Inventory & Merchandise | $2,000 | $5,000 |
| Initial Training Expenses | $900 | $4,000 |
| Grand Opening Marketing Campaign | $3,000 | $5,000 |
| Business Licenses | $100 | $1,500 |
| Additional Funds - 3 Months | $10,000 | $30,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 plus $5,000 per additional development right; 10% of sale price if buyer sourced through franchisor |
| Renewal Fee | 20% of the then-current franchise fee |
| Technology Fee | $250 per month |
| Audit Fee | $500-$2,500 plus travel costs (only if understatement of 2%+ or failure to submit required reports) |
| Local Advertising Expenditure | $1,000 per month minimum, averaged quarterly |
| Website Maintenance and Intranet Fees | $125 per month |
| Software Fee | $382 per month |
| Music License Fee | $759 per year |
| Annual Convention | $400 per attendee ($600 double booking, $1,000 non-attendance) |
| Extension of Time to Open | $2,500 per month |
| Relocation Fee | $5,000 |
| Alternative Supplier Approval | $500 per day plus expenses |
| Interest on Late Fees | 1.5% per month or highest rate allowed by law |
| Mystery Shopper/Quality Control | Up to $500 per year (not currently assessed) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Principal Operator Training: 58 hours (30 classroom + 28 on-the-job). Certified Instructor Training: 54 hours (42 classroom + 12 on-the-job). Total: 112 hours. |
| Classroom Training | 72 hours total (30 hours Principal Operator + 42 hours Certified Instructor) |
| On-the-Job Training | 40 hours total (28 hours Principal Operator + 12 hours Certified Instructor) |
| Training Location | Principal Operator training at franchisee's studio or virtually. Certified Instructor training includes virtual sessions, home studio sessions, and in-person training weekend at Corporate Training Location. |
| Additional Training | Up to 5 days additional/refresher training per year. Mandatory annual owner's conference. Level 2 Instructor Training required after initial certification. Online training seminars up to 2 times per year. Local/regional seminars up to 1 time per year. Remedial training may be required at $500/day if standards not maintained. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Typically contains a maximum of 50,000 people, approximately a two-mile radius around the studio. In Central Business Districts, may be limited to a radius of two blocks to two miles. |
| Description | Franchisor will not open or operate, or authorize any third party to open or operate, another Neighborhood Barre Studio within the Designated Territory. Territory boundaries may be described by zip codes, streets, landmarks, county lines, or delineated on a map. Territory size may vary based on location and demographics. Significant reserved rights include: operating other brands within territory, selling products via internet/alternative channels within territory, opening studios at Non-Traditional Sites within territory (gyms, hotels, airports, etc.), and acquiring/merging with competing businesses. Franchisee may not actively solicit outside territory without consent. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 3 successive 5-year terms |
| Renewal Fee | 20% of the then-current franchise fee |
| Renewal Conditions | Must notify franchisor 6-12 months in advance; sign then-current franchise agreement (may have materially different terms including higher fees and modified territory); refurbish studio to current specifications; execute general release; complete then-current training requirements; secure landlord's right to continue operating; be in substantial compliance during term; no existing defaults; pay successor fee. |
| Transfer Fee | $15,000 plus $5,000 per additional development right transfer |
| Transfer Conditions | Franchisor must approve all transfers. Conditions include: pay $5,000 non-refundable deposit; pay transfer fee; satisfy all monetary obligations; execute general release; remain liable for pre-transfer obligations; comply with non-compete and confidentiality; landlord consent; transferee must meet qualifications, complete training, sign then-current franchise agreement, and upgrade studio to current specifications. Franchisor has right of first refusal within 30 days. |
| Termination for Cause | Curable defaults: 10 days for non-payment; 24 hours for health/safety violations; 30 days for other breaches. Non-curable defaults include: material misrepresentation; failure to complete training; failure to secure site or open on time; suspension of operations for 5+ days; conviction of felony; misuse of marks; disclosure of proprietary information; unauthorized transfer; violation of non-compete; insolvency/bankruptcy; underreporting gross sales; 3+ defaults in 18 months. |
| Non-Compete Period | 2 years after expiration, termination, or transfer |
| Non-Compete Details | During term: Restricted Parties may not teach or lead barre-based fitness classes, own or work for any Competitive Business (fitness studio deriving 25%+ revenue from barre classes), or divert customers, anywhere in the United States. After term: Same restrictions but geographically limited to 10-mile radius of former studio or any other operating/developing Neighborhood Barre Studio. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The business must always be under the direct, on-premises, full-time supervision of a Key Manager. If the franchisee is an individual, they serve as Key Manager; if an entity, the franchisee must appoint one. The Key Manager must meet franchisor minimum standards and complete initial training. The Key Manager does not need to be an owner or have equity interest. If the franchisee is not an individual, all principals must sign a personal guaranty. |
| Required Suppliers | Franchisees must purchase branded exercise equipment (balls, mats, bands), website development/maintenance, POS system (Xplor Technologies), payment processing, and certain merchandise from franchisor-designated or approved suppliers. Franchisor or its approved suppliers are the only approved source for weights, exercise equipment, clothing, merchandise, and other items for resale. An approved architect must be used for studio design. |
| Supply Restrictions | All merchandise, equipment, supplies, and services must be purchased from designated or approved suppliers. If no designated supplier exists, items must meet franchisor specifications and be from an approved source. Franchisor charges a 5% administrative fee on purchases through them. Minimum inventory levels must be maintained. Supplier approval takes up to 30 days and costs $500/day for evaluation. |
| Franchisor Revenue from Suppliers | In fiscal year 2024, predecessor had revenues from franchisee purchases of $34,900.84 (21.4% of total revenues of $163,242). Franchisor had revenues from franchisee purchases of $44,622.59 (28.4% of total revenues of $157,066.15). Estimated 63%-78% of total establishment cost from designated/approved sources, and 6%-10% of ongoing operating costs. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Neither the franchisor nor any agent or affiliate offers direct or indirect financing. Franchisor does not guarantee franchisee notes, leases, or other obligations. Franchisees must sign a credit card payment authorization for amounts owed to franchisor and maintain a minimum available credit limit designated by franchisor. |
Neighborhood Barre Franchise Earnings — Item 19
Average Revenue
$161K
Median Revenue
$155K
Revenue Range
$89K – $240K
Sample Size
18 units
Past financial performance does not guarantee future results. Individual results will vary.
Neighborhood Barre Litigation & Risk Flags
4 Pending Actions ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Neighborhood Barre System Growth
Total Units
22
Franchised
19
Company-Owned
3
Neighborhood Barre currently operates 19 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 7 | 0 | 21 |
| 2023 | 2 | 4 | 21 |
| 2024 | 3 | 1 | 22 |
Transfers: 2 | Closures: 1
State Registrations
Registered in 3 states: IN, MI, WI
Franchisor Financials (Item 21)
Revenue
$100K
Net Income
$-301,575
Total Assets
$4K
Audited by Muhammad Zubairy, CPA PC for year ending December 31.
Neighborhood Barre Franchise — FAQ
The total investment to open a Neighborhood Barre franchise ranges from $94,040 to $266,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $49,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Neighborhood Barre charges a royalty fee of 7% of Gross Sales or $250 per week, whichever is greater of gross sales, plus a 2% of Gross Sales (Creative Brand Fund Contribution) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Neighborhood Barre Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Neighborhood Barre to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Neighborhood Barre franchise owners report average revenue of $161K and median revenue of $155K. This is based on a sample of 18 units. Past performance does not guarantee future results.
Neighborhood Barre has been franchising since 2024. The FDD shows an investment range of $94,040-$266,000, a 7% of Gross Sales or $250 per week, whichever is greater royalty, and includes an Item 19 earnings disclosure. There are 4 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $49,000 and the total investment ranges from $94,040 to $266,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Neighborhood Barre and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Neighborhood Barre or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com