The Bar MethodFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A The Bar Method franchise requires a total initial investment of $356K – $513K, including a $43K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $383K[2]. SBA 7(a) loans show a 13.7% charge-off rate across 51 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $356K – $513K
- 66th pct Health & Fitn…
- Avg gross sales
- $383K
- 18th pct Health & Fitn…
- Royalty
- 6.0%
- 8th pct Health & Fitn…
- Units
- 74
- 76th pct Health & Fitn…
- SBA default
- 13.7%
- 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
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $356K – $513K including a $43K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $383K/year (median $329K).
- Verdict B (Above Average) with a risk score of 58/100. SBA loan charge-off rate of 13.7% across 51 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- The Bar Method Franchisor LLC
- Parent company
- Purpose Brands Holdings, LLC
- Incorporated in
- DE
- HQ
- 111 Weir Drive, Woodbury, MN 55125
- Auditor
- Redpath and Company, LLC
- Audited financials
- Franchisor revenue
- $3.8M
- Most recent fiscal year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Overview
About
Bar Method franchisees operate boutique fitness studios offering barre-based fitness classes targeting primarily female clientele. Day-to-day operations include managing class schedules, instructor payroll, marketing, member retention, and facility maintenance for a studio-based recurring revenue model with membership and drop-in fees.
- CEO
- Thomas Leverton
- Headquarters
- MN
- Founded
- 2021
- FDD year
- 2024
- States available
- 20
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $43K | $43K |
| Working capital (3–6 mo) | $15K | $27K |
| Equipment, build-out, other | $299K | $444K |
| Total initial investment | $356K | $513K |
Source: The Bar Method 2024 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
$115K
30.0% margin
Unlevered ROIC
25%
EBITDA / total invested capital
Payback
4.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $356K – $513K
- Near category avg vs category
- Liquid capital req'd
- $15K – $27K
- Better than avg vs category
- Franchise fee
- $33K – $43K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $299 |
| Transfer fee | $8K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $383K
- Per unit, per year
- Median gross sales
- $329K
- Item 19 type
- gross_sales
- Sample size
- 72 units
- vs category median 11 · large
- Range (low → high)
- $76K→$1.0M
- Cohort dispersion (min → max)
- 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 The Bar Method Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 74
- Opened
- 3
- Last reporting year
- Closed
- 5
- Turnover rate
- 6.8%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Multi-unit owners
- 4.5%
- Net growth (yr3)
- -2.7%
- Net unit change last year
- 3-yr CAGR
- -6.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 3
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 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
- 51
- Loan volume
- $18.1M
- Median loan
- $307K
- 50th percentile
- Charge-off rate
- 13.7%
- 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)
- 79.4%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 21
- Defaults
- 7
Vintage analysis
The Bar Method charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Bar Method'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 15 states
- Startup risk premium and job creation velocity
- 13-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
The Bar Method presents high risk due to system contraction, ongoing multi-state litigation involving misrepresentations, undisclosed profitability metrics, and franchisor going concern status.
Audited financials (Item 21)
Yes · Redpath and Company, LLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 58 / 100 rating
- 01MINORDeclining unit count (-2.7% YoY) indicates system contraction and potential franchisee struggles
- 02HIGHMultiple active litigation matters including Item 19 misrepresentation and unregistered franchise sales in multiple states
- 03MEDNet income not disclosed despite average revenue of $383,065, suggesting profitability concerns or unwillingness to share performance data
- 04HIGHGoing concern status raises questions about franchisor's financial viability and ability to support franchisees
- 05MEDHigh initial investment ($356K-$512K) combined with unit decline creates elevated risk of capital loss
- 06MINOR6% royalty on gross revenue (not net) creates cash flow pressure during slow periods
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 | 6 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| 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 | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 3 |
Items 10, 11
Training & Operations
- Classroom training
- 45 hrs
- On-the-job training
- 30 hrs
- POS system
- Studio Management System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Studio Management System
Item 20 · call current owners
Franchisee Contacts
81 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Bar Method · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Bar Method franchise?
The total investment to open a The Bar Method franchise ranges from $356K – $513K, with an initial franchise fee of $43K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Bar Method franchise owners earn?
According to Item 19 of the The Bar Method FDD, the average gross sales per unit is $383K. The median is $329K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The Bar Method's franchise failure rate?
Based on SBA 7(a) loan data, The Bar Method has a charge-off rate of 13.7% across 51 loans, meaning 13.7% 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 The Bar Method franchise locations are there?
As of their most recent FDD filing, The Bar Method has 74 total units in the United States, including 73 franchised units and 1 company-owned units. 3 new units were opened in the latest reporting year.
Is The Bar Method a good franchise to buy?
FranchiseVerdict rates The Bar Method as a B-grade franchise with a risk score of 58 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.