BARRE3

Item 7 lays out the hefty entry: $50,000 franchise fee within a $556,424-$650,851 total investment, covering buildout for proprietary classes using balls, mats, bands, and sliders. Ongoing fees bite at 6% royalty (minimum $850/month), 2% brand fund, plus $487 monthly software license—potentially $30K+ annually on average gross revenues of $414,000, with medians hitting $456,552 per Item 19. No explicit profits disclosed, but these figures suggest top performers could clear healthy margins after fixed costs in the competitive specialized fitness niche against yoga spots and health clubs.

System metrics flag turbulence: 151 franchise and 6 corporate locations, but a stark -96% growth from 282 (2024) to 11 projected (2025), despite 17 new units eyed and 19 transfers. Low non-renewals at 2 show retention strength, and 78 SBA loans averaging $261,299 with just 11.5% default rate indicate viable financing. Prospective buyers should probe Item 20 for litigation trends, FDD projections in Item 21, and validate Item 19 medians via current franchisee validation amid this contraction—key to gauging if Barre3's loyal retail fitness crowd sustains rebound potential.