Neighborhood Barre Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Neighborhood Barre is a boutique fitness franchise offering barre, cardio, and dance-inspired group classes. Franchisees run the studios, managing instructors, class scheduling, and membership growth.
FranchiseVerdict summary · 2026
A Neighborhood Barre franchise requires a total initial investment of $94K – $266K, including a $49K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $161K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $94K – $266K
- 15th pct Health & Fitn…
- Avg gross sales
- $161K
- 1st pct Health & Fitn…
- Royalty
- 7.0%
- 30th pct Health & Fitn…
- Units
- 22
- 55th pct Health & Fitn…
- SBA charge-off
- N/A
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
- COSTTotal investment $94K – $266K including a $49K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $161K/year (median $155K).
- RISKVerdict B (Above average), verdict score 54/100 (higher is better).
- LEGAL16 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Neighborhood Barre Franchising, LLC
- Parent company
- Extraordinary Brands, LLC
- Ultimate parent
- AE Capital Group, LLC
- Predecessor
- Barre Skinny, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Paul Flick
- Incorporated in
- VA
- HQ
- 126 Garrett Street, Suite J, Charlottesville, Virginia 22902
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Franchisor revenue
- $100K
- vs $74K prior year
Overview
About
- CEO
- Paul Flick
- Headquarters
- VA
- Founded
- 2024
- FDD year
- 2025
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 69% below the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $49K | $49K |
| Working capital (3–6 mo) | $10K | $30K |
| Equipment, build-out, other | $35K | $187K |
| Total initial investment | $94K | $266K |
Source: Neighborhood Barre 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $94K – $266K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $30K
- Top 40% of category vs category
- Franchise fee
- $49K – $49K
- Middle of category vs category
- Royalty
- 7.0%
- formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Inventory (initial) | $2K – $5K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 74% below the health & fitness norm.
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$47K
29.0% margin
Unlevered ROIC
23%
EBITDA / total invested capital
Payback
4.3 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Neighborhood Barre unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
23%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Neighborhood Barre units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$707K
on $3.5M purchase
Total debt
$2.8M
SBA $1.8M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $161K
- Per unit, per year
- Median gross sales
- $155K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 18 outlets
- vs category median 12
- Range (low → high)
- $89K→$240K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 173 Health & Fitness brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $161K/year in gross sales. Revenue-to-investment ratio: 0.9x.
Fee burden
Total ongoing fee load of 9.0% (near the Health & Fitness average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -5.0% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
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 Neighborhood Barre Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 22
- Opened
- 11
- Last reporting year
- Closed
- 2
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.3%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
- Net growth (3-yr)
- +5.3%
- Net unit change over 3 years
- 3-yr CAGR
- -5.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 1
- Transfers (3yr)
- 2
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 9 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
9
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $135K
- Median loan
- $135K
- average
- Charge-off rate
- N/A
- limited sample (1 loan) — rate not shown below 10
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
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
High-risk franchise with opaque profitability, litigation-plagued parent company, regulatory violations, and stagnant unit growth—investment protection severely compromised.
Litigation (Item 3)
Neighborhood Barre Franchising itself has no direct litigation. Disclosed cases relate to CEO Paul Flick and affiliates (360 Painting, Window Gang, Rooterman, PSB): 5 pending actions, 5 prior civil settlements, 6 governmental consent orders/AVCs involving disclosure violations and regulatory actions in MD, IL, VA, CA, and WA.
Largest disclosed settlement: $190,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC
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 54 / 100 verdict
- 01HIGHExtensive litigation across parent company involving fraud allegations, breach of contract, and multi-state franchise registration violations affecting CEO and related brands
- 02MINORNo average net income disclosure despite $94K-$266K investment requirement and $160K average revenue — profitability metrics completely opaque
- 03MINOROnly 22 units with unknown growth trajectory in a mature fitness/wellness category suggests stagnant or declining system expansion
- 04MEDHigh royalty burden (greater of 7% or $250/week = $13K annually minimum) on $160K revenue creates thin margin risk without disclosed net income
- 05HIGHGoing concern status indicates parent company financial instability despite franchise obligations
- 06MINORMulti-state regulatory actions for franchise disclosure violations suggest systemic compliance failures in FDD documentation
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory radius | 2 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | No |
| Arbitration location | Charlottesville, VA |
| Jury trial waiver | No |
| Governing law | VA |
| Litigation count | 16 |
View Item 3 litigation summary
Neighborhood Barre Franchising itself has no direct litigation. Disclosed cases relate to CEO Paul Flick and affiliates (360 Painting, Window Gang, Rooterman, PSB): 5 pending actions, 5 prior civil settlements, 6 governmental consent orders/AVCs involving disclosure violations and regulatory actions in MD, IL, VA, CA, and WA.
Items 10, 11
Training & Operations
- Classroom training
- 72 hrs
- On-the-job training
- 40 hrs
- Training location
- Corporate headquarters or designated training location; also virtual/your Studio
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Xplor Technologies
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Xplor Technologies
Item 20 · call current owners
Franchisee Contacts
19 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Neighborhood Barre · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Neighborhood Barre franchise?
The total investment to open a Neighborhood Barre franchise ranges from $94K – $266K, with an initial franchise fee of $49K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Neighborhood Barre franchise owners earn?
According to Item 19 of the Neighborhood Barre FDD, the average gross sales per unit is $161K. The median is $155K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Neighborhood Barre FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Neighborhood Barre FDD and qualifies whose outlets they describe.
What is Neighborhood Barre's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Neighborhood Barre (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Neighborhood Barre franchise locations are there?
As of their most recent FDD filing, Neighborhood Barre has 22 total units in the United States, including 19 franchised units and 3 company-owned units. 11 new units were opened in the latest reporting year.
Is Neighborhood Barre a good franchise to buy?
FranchiseVerdict rates Neighborhood Barre as a B-grade franchise with a verdict score of 54 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.