Gracie Barra Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Gracie Barra is a martial-arts franchise teaching Brazilian Jiu-Jitsu to kids and adults through its global academy system. Franchisees run a training academy managing instructors, classes, and memberships.
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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $76K – $234K
- 12th pct Health & Fitn…
- Avg gross sales
- N/A
- 51st pct Health & Fitn…
- Royalty
- N/A
- Units
- 367
- 94th pct Health & Fitn…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $76K – $234K including a $10K franchise fee.
- Total revenues for year ended Dec 31, 2024: franchise fees $314,657, marketing fees $137,750, royalty fees $2,574,141, online course registration $329,079, other income $185,007.
- Verdict A (Strongest tier), verdict score 80/100 (higher is better). SBA loan charge-off rate of 0.0% across 16 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- System growing at 42.9% CAGR over 3 years with 367 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Gracie Barra Franchise Systems, Inc.
- Parent company
- None
- Predecessor
- Gracie Barra America, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Flavio Almeida
- Incorporated in
- CA
- HQ
- 300 Spectrum Center Drive, Suite 400, Irvine, California 92618
- Auditor
- MM & Company, LLP
- Audited financials
- Franchisor revenue
- $3.5M
- vs $3.4M prior year
Overview
About
- CEO
- Flavio Almeida
- Headquarters
- CA
- Founded
- 2009
- FDD year
- 2025
- States available
- 30
Can you afford it, and what does the money buy?
Entry cost runs 73% below the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown11 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
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $30K
- Top 40% of category vs category
- Franchise fee
- $10K – $10K
- Top 40% of category vs category
- Royalty
- $600/month when royalties begin; $900/month starting the …
- Ad fund
- No advertising fund contribution required
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $600/month initially; increases to $900/month beginning the 4th month after royalty payments start |
| Transfer fee | $1K |
| Renewal fee | $0 |
| Inventory (initial) | $1K – $2K |
Financial Performance
Total revenues for year ended Dec 31, 2024: franchise fees $314,657, marketing fees $137,750, royalty fees $2,574,141, online course registration $329,079, other income $185,007.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 42.9% CAGR over 3 years across 367 units — operators are staying and new ones are joining.
Multi-unit rate
Only 2% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Health & Fitness averages
How Gracie Barra Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 367
- Opened
- 40
- Last reporting year
- Closed
- 0
- Terminated
- 7
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 4
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.1%
- Company-owned
- 14
- Corporate units in the system
- % franchised
- 96%
- vs corporate-owned
- Multi-unit owners
- 1.6%
- Net growth (3-yr)
- +42.9%
- Net unit change over 3 years
- 3-yr CAGR
- +42.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 40
- Closed (3yr)
- 0
- Terminated (3yr)
- 7
- Non-renewed (3yr)
- 4
- Transfers (3yr)
- 7
- Reacquired (3yr)
- 0
- Franchisor bought back
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
- Typical loan rate
- 8.8%
- avg rate to borrowers
- vs industry
- N/A
- Jobs supported
- N/A
- Lender concentration
- 15%
- top lender's share
Vintage analysis
Gracie Barra charge-off rate by loan vintage
Top lenders financing Gracie Barra franchisees
Showing 3 of 12 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Gracie Barra's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 9 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
With a 0.0% charge-off rate across 16 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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 - pending in New Mexico; vicarious liability claim arising from alleged sexual grooming and assault at franchised location
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: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 80 / 100 verdict
- 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
What are you signing up for?
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | 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 | CA |
| Litigation count | 1 |
View Item 3 litigation summary
L.M. v Gracie Barra Franchise Systems, Inc. et al - pending in New Mexico; vicarious liability claim arising from alleged sexual grooming and assault at franchised location
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 0 hrs
- Training location
- Online
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor approves
- Franchisor financing
- Offered
- Item 10
- 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 verdict score of 80 out of 100 (higher is better), 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.
For franchisors
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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.