Gracie BarraFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Gracie Barra franchise requires a total initial investment of $76K – $234K, including a $10K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 16 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $76K – $234K
- 13th pct Health & Fitn…
- Avg gross sales
- N/A
- 59th pct Health & Fitn…
- Royalty
- N/A
- Units
- 367
- 95th pct Health & Fitn…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 16 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 353 to 288 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $76K – $234K including a $10K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 49/100. SBA loan charge-off rate of 0.0% across 16 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 22.6% CAGR over 3 years with 367 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Gracie Barra Franchise Systems, Inc.
- Incorporated in
- CA
- HQ
- 300 Spectrum Center Drive, Suite 400, Irvine, California 92618
- Auditor
- MM & Company, LLP
- Audited financials
- Franchisor revenue
- $2.5M
- vs $3.4M prior year
Overview
About
Franchisees operate martial arts training academies offering Brazilian Jiu-Jitsu instruction to youth and adult clients. Day-to-day operations include managing instructors, conducting classes, membership billing, facility maintenance, and community marketing to drive enrollment and retention.
- CEO
- Flavio Almeida
- Headquarters
- CA
- Founded
- 2009
- FDD year
- 2025
- States available
- 30
FDD Item 7 · 2025 filing · 11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Franchise Feenot refundable | $10K | $10K | |
| Uniform Expensesnot refundable | $8K | $20K | |
| Initial Training Expenses | — | — | |
| Leasehold Improvements | $10K | $40K | |
| Rent | $18K | $60K | |
| Computer Equipment and Software | $2K | $4K | |
| School Furnishings, Fixtures and Equipment | $10K | $40K | |
| Licenses and Deposits | $3K | $20K | |
| Insurance | $1K | $2K | |
| Supplies | $1K | $2K | |
| Additional Funds (3 months) | $10K | $30K | |
| Total initial investment | $73K | $228K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $76K – $234K
- Better than avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $10K – $10K
- Better than avg vs category
- Royalty
- $600 per month for first 3 months, then $900 per month
- Ad fund
- -n/d
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $600 initially, then $900 from 4th month |
| Training fee | $199 |
| Transfer fee | $1K |
| Renewal fee | $0 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Health & Fitness averages
How Gracie Barra Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 367
- Opened
- 40
- Last reporting year
- Closed
- 11
- Turnover rate
- 3.0%
- Company-owned
- 14
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Multi-unit owners
- 1.6%
- Net growth (yr3)
- +9.0%
- Net unit change last year
- 3-yr CAGR
- +22.6%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 7
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 16
- Loan volume
- $7.9M
- Median loan
- $491K
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 12
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a 0.0% charge-off rate across 16 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Material litigation, undisclosed financials, and subpar growth create moderate-to-high risk despite protected territory and reasonable initial investment.
Litigation (Item 3)
L.M. v Gracie Barra Franchise Systems, Inc., et al., No. D-101CV-2024-01228, pending in First Judicial District Court, Santa Fe County, New Mexico. Allegations of sexual grooming and assault between two students at franchisee location. Franchisor named on vicarious liability claim only. Employee not involved. Case in early discovery stages. Being vigorously defended; franchisor expects favorable result.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · MM & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 49 / 100 rating
- 01HIGHActive litigation involving vicarious liability for sexual assault at franchised location creates significant legal and reputational risk
- 02MEDNo Item 19 financial disclosure (Avg Revenue and Net Income not disclosed) prevents accurate ROI analysis on $76k-$233.5k investment
- 03MINORModest unit growth of 9.0% YoY is below industry standards for martial arts/fitness franchises, suggesting market saturation or underperformance
- 04MINORLow royalty structure ($600-$900/month) indicates weak franchisor support infrastructure relative to franchisee investment size
- 05MINOR5-year term is shorter than industry standard (typically 10 years), creating renewal uncertainty and unstable long-term planning
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Radius |
| Protected territory | Yes |
| Territory radius | 0.5 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Orange County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
L.M. v Gracie Barra Franchise Systems, Inc., et al., No. D-101CV-2024-01228, pending in First Judicial District Court, Santa Fe County, New Mexico. Allegations of sexual grooming and assault between two students at franchisee location. Franchisor named on vicarious liability claim only. Employee not involved. Case in early discovery stages. Being vigorously defended; franchisor expects favorable result.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 0 hrs
- Training location
- web-based format
- Ongoing training
- Required
- POS system
- Kinetic Data
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Kinetic Data
Item 20 · call current owners
Franchisee Contacts
83 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Gracie Barra · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Gracie Barra franchise?
The total investment to open a Gracie Barra franchise ranges from $76K – $234K, with an initial franchise fee of $10K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Gracie Barra franchise owners earn?
Gracie Barra does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Gracie Barra's franchise failure rate?
Based on SBA 7(a) loan data, Gracie Barra has a charge-off rate of 0.0% across 16 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Gracie Barra franchise locations are there?
As of their most recent FDD filing, Gracie Barra has 367 total units in the United States, including 353 franchised units and 14 company-owned units. 40 new units were opened in the latest reporting year.
Is Gracie Barra a good franchise to buy?
FranchiseVerdict rates Gracie Barra as a A-grade franchise with a risk score of 49 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.