The Bar Method Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
The Bar Method is a boutique-fitness franchise offering barre classes that blend ballet-inspired moves, strength, and stretching. Franchisees run studios on a membership and class-package model, staffing trained instructors.
FranchiseVerdict summary · 2026
A The Bar Method franchise requires a total initial investment of $240K – $491K, including a $43K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $423K[2]. SBA 7(a) loans show a 13.7% charge-off rate across 51 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $240K – $491K
- 46th pct Health & Fitn…
- Avg gross sales
- $423K
- 10th pct Health & Fitn…
- Royalty
- 6.0%
- 10th pct Health & Fitn…
- Units
- 77
- 76th pct Health & Fitn…
- SBA charge-off
- 13.7%
- % 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
- COSTTotal investment $240K – $491K including a $43K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $423K/year (median $384K).
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 13.7% across 51 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The Bar Method Franchisor LLC
- Parent company
- Purpose Brands Holdings, LLC
- Ultimate parent
- Purpose Brands Holdings, LLC (jointly owned by Anytime Worldwide, LLC and Ultimate Fitness Holdings, LLC)
- Predecessor
- The Bar Method Franchising, LLC (TBMLLC)
- Prior franchisor entity
- CEO title
- Chief Executive Officer (of parent companies Purpose Brands Holdings, LLC and Purpose Brands Intermediate, LLC)
- Thomas Leverton
- Incorporated in
- Delaware
- HQ
- 111 Weir Drive, Woodbury, MN 55125
- Auditor
- PwC (PricewaterhouseCoopers)
- Audited financials
- Franchisor revenue
- $3.8M
- Most recent fiscal year
Overview
About
- CEO
- Thomas Leverton
- Headquarters
- Minnesota
- Founded
- 2021
- FDD year
- 2026
- States available
- 20
Can you afford it, and what does the money buy?
Entry cost runs 36% below the typical health & fitness franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $43K | $43K |
| Working capital (3–6 mo) | $5K | $48K |
| Equipment, build-out, other | $192K | $400K |
| Total initial investment | $240K | $491K |
Source: The Bar Method 2026 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
- $240K – $491K
- Middle of category vs category
- Liquid capital req'd
- $5K – $48K
- Top 40% of category vs category
- Franchise fee
- $43K – $43K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · 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 | $429 |
| Transfer fee | $8K |
| Renewal fee | $10K |
| Inventory (initial) | $3K – $4K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 31% below the health & fitness norm.
Source: FDD 2026 · 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
$127K
30.0% margin
Unlevered ROIC
32%
EBITDA / total invested capital
Payback
3.1 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 The Bar Method unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
32%
Within 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 The Bar Method units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.9M
on $9.7M purchase
Total debt
$7.8M
SBA $4.9M + 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: 2026 FDD
Financial Performance
- Avg gross sales
- $423K
- Per unit, per year
- Median gross sales
- $384K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical gross sales
- Sample size
- 73 outlets
- vs category median 12 · large
- Range (low → high)
- $65K→$1.1M
- Cohort dispersion (min → max)
- Quartile band
- $211K→$730K
- Bottom 25% → top 25%
- Reporting year
- 2026
- Fiscal year the figures cover
- Source filing
- FDD 2026
- The FDD edition these figures were read from
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 173 Health & Fitness brands
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 $423K/year in gross sales. Revenue-to-investment ratio: 1.2x.
Fee burden
Total ongoing fee load of 8.0% (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 expanding at 5.5% CAGR over 3 years across 77 units — operators are staying and new ones are joining.
Multi-unit rate
Only 5% 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 The Bar Method Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 77
- Opened
- 5
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 4.5%
- Net growth (3-yr)
- +5.5%
- Net unit change over 3 years
- 3-yr CAGR
- +5.5%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 5
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 0
- Franchisor bought back
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)
- 86.3%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 21
- Defaults
- 7
- Typical loan rate
- 6.6%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- brand beats franchise avg ↓
- Jobs supported
- 703
- 3.9 per loan
- Lender concentration
- 18%
- top lender's share
Borrower mix: 62% went to startups / new businesses, 38% to established operators
Franchise vs independent — in fitness and recreational sports centers, franchised businesses charge off at 15.8% vs 18.2% for independents — franchising is associated with 13% lower SBA default risk in this category.
Vintage analysis
The Bar Method charge-off rate by loan vintage
Top lenders financing The Bar Method franchisees
Showing 3 of 21 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 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.
What could kill this investment?
SBA loans charge off at 13.7% — 14% 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
Three litigation matters including two 2009 state-AG actions over unregistered franchise sales plus a settled 2021 Item 19 arbitration ($125,000). Bankruptcy disclosure is only an officer's prior-employer CEC Chapter 11 (2020, unrelated to this franchisor) — low weight. Solid financials: $5M net worth, positive income $145,216.
Litigation (Item 3)
Three disclosed matters, all involving predecessor entities: (1) Twin Cities Barbelles/O'Rourke arbitration alleging inadequate Item 19 disclosures and misrepresentation, settled 2021 for $125,000; (2) Illinois AG action (2009) for unregistered franchise sales, resolved by consent decree with $5,000 penalty; (3) New York AG investigation (2009) for unregistered franchise sales, resolved by Assurance of Discontinuance with $2,500 payment. No current/active litigation involving the franchisor itself.
Largest disclosed settlement: $125,000
Bankruptcy (Item 4)
Disclosed in last 7 years
CEO Thomas Leverton was CEO of CEC Entertainment, Inc. which filed Chapter 11 bankruptcy in June 2020, approximately 4 months after he left; plan confirmed December 2020.
Audited financials (Item 21)
Yes · PwC (PricewaterhouseCoopers)
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 56 / 100 verdict
- 01HIGHThree litigation matters (2 AG consent actions, 1 settled Item 19 arbitration)
- 02HIGHOld, unrelated officer-affiliated bankruptcy (CEC Entertainment) — low weight
- 03MINORPositive net worth $5M and net income $145,216
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 6 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Within 10 miles of franchisor's principal business address (currently Woodbury, MN) |
| Jury trial waiver | Yes |
| Governing law | Minnesota |
| Litigation count | 3 |
View Item 3 litigation summary
Three disclosed matters, all involving predecessor entities: (1) Twin Cities Barbelles/O'Rourke arbitration alleging inadequate Item 19 disclosures and misrepresentation, settled 2021 for $125,000; (2) Illinois AG action (2009) for unregistered franchise sales, resolved by consent decree with $5,000 penalty; (3) New York AG investigation (2009) for unregistered franchise sales, resolved by Assurance of Discontinuance with $2,500 payment. No current/active litigation involving the franchisor itself.
Items 10, 11
Training & Operations
- Classroom training
- 45 hrs
- On-the-job training
- 30 hrs
- Training location
- Virtual/online, self-study, and in-person in Minnesota (Woodbury corporate headquarters) or another designated location
- Ongoing training
- Required
- Time to open
- 10 mo
- From signing to launch
- Site selection
- franchisor approves franchisee-selected site
- Franchisor financing
- Not offered
- Item 10
- POS system
- Studio Management System (provided via ProVision)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Studio Management System (provided via ProVision)
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 (2026) 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 $240K – $491K, 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 $423K. The median is $384K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the The Bar Method 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 The Bar Method FDD and qualifies whose outlets they describe.
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 77 total units in the United States, including 77 franchised units and 0 company-owned units. 5 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 verdict score of 56 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.