BAR METHOD

Item 7 in the 2026 FDD outlines an initial investment range of $240,012 to $491,082, including the $42,500 franchise fee, build-out for boutique studios, and equipment for barre classes plus retail apparel sales. Ongoing fees hit 6% royalties, 2% brand/ad fund, and a $429 monthly technology charge—standard for fitness but the tech add-on bumps costs versus category norms around 5-7% total. Item 19 shines with average gross revenues of $422,969 and medians at $383,926, suggesting solid top-line potential in a market crowded by yoga and Pilates rivals, though no profit figures mean operators must subtract 8% fees and typical 60-70% COGS for staffing and rent in high-traffic spots.

System health shows modest scale at 73 locations since 2008 franchising, with just 3 projected new units signaling contraction risk amid boutique fitness shakeouts. Low drama in FDD Item 20: only 1 termination and 1 non-renewal last year, plus 3 transfers, but a former franchisee's arbitration over alleged Item 19 and oral sales misrepresentations raises disclosure worries. SBA stats on 56 loans averaging $342,527 reveal a 12.5% default rate—elevated for fitness (norms 8-10%)—and parent Purpose Brands' bankruptcy history amplifies execution risks. For investors eyeing women's fitness trends, revenues tempt, but litigation, defaults, and slow growth demand scrutiny before committing.