Neighborhood BarreFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Neighborhood Barre franchise requires a total initial investment of $94K – $266K, including a $49K franchise fee. Per the 2025 FDD, average unit revenue was $161K[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $94K – $266K
- 15th pct Health & Fitn…
- Avg gross sales
- $161K
- 5th pct Health & Fitn…
- Royalty
- N/A
- Units
- 22
- 56th 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
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
Franchised units fell from 20 to 19 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
16 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $94K – $266K including a $49K franchise fee.
- Average unit revenue of $161K/year (median $155K).
- Verdict B (Above Average) with a risk score of 61/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Neighborhood Barre Franchising, LLC
- Parent company
- Extraordinary Brands, LLC
- Incorporated in
- VA
- HQ
- 126 Garrett Street, Suite J, Charlottesville, Virginia 22902
- Auditor
- Muhammad Zubairy, CPA PC
- Audited financials
- Franchisor revenue
- $74K
- vs $100K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Neighborhood Barre franchisees operate boutique fitness studios offering barre, yoga, and dance-inspired cardio classes to suburban clientele. Daily operations include managing instructors, scheduling classes, managing member retention through studios typically ranging 2,000-3,000 sq ft, and handling membership billing and customer service.
- CEO
- Paul Flick
- Headquarters
- VA
- Founded
- 2024
- FDD year
- 2025
- States available
- 10
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.
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
$48K
30.0% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $94K – $266K
- Better than avg vs category
- Liquid capital req'd
- $10K – $30K
- Better than avg vs category
- Franchise fee
- $29K – $49K
- Near category avg vs category
- Royalty
- Greater of 7% of Gross Sales or $250 per week
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $15K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $161K
- Per unit, per year
- Median gross sales
- $155K
- Item 19 type
- gross_sales
- Sample size
- 18 units
- vs category median 11
- Range (low → high)
- $89K→$240K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 180 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.
vs Health & Fitness averages
How Neighborhood Barre Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 22
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 86%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- -5.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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 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
- 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
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
4 case reference(s): 2 pending, 1 settled.
Largest disclosed settlement: $72,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Muhammad Zubairy, CPA PC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
Score breakdown · what drove the 61 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Radius-based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 16 |
View Item 3 litigation summary
4 case reference(s): 2 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 72 hrs
- On-the-job training
- 40 hrs
- Training location
- On-site and at franchisor location
- POS system
- Xplor Technologies
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Xplor Technologies
Item 20 · call current owners
Franchisee Contacts
18 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 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 20 franchised units and 3 company-owned units. 2 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 risk score of 61 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.