You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple step guide to starting your pure barre franchise. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
STEP 1: Plan your Business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How long it will take you to break even?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a pure barre franchise?
The cost to open a Pure Barre franchise starts at $168,000, but that does not include the cost of the location. Some franchisees can spend double this amount depending on the location of their franchise, the size of the gym, and the other factors. This is how Pure Barre breaks down the initial cost of opening a franchise:
- Franchise Fee: $46,500
- Training Expenses: $6,000 - $10,000
- Fitting Out the Location: $95,100 – $195,700
- Supplies and Equipment: $5,000 - $13,500
- Insurance: $1000 - $3000
- Other Fees and Operation Expenses: $12,000 - $25,000
- Grand Opening: $2,500 - $5,000
What are the ongoing expenses for a pure barre franchise?
Each franchisee is responsible for paying a royalty fee of seven percent and an advertising fee of one percent of all gross sales. Besides these fees, there are the normal business expenses of rent, labor, utilities, and insurance.
Who is the target market?
The target market is financially stable women who are interested in living a healthy lifestyle which incorporates working our three to four times per week.
How does a pure barre franchise make money?
Pure Barre franchises owners have multiple income streams. Clients can pre-order a set number of classes or join for a set membership price which allows them to attend unlimited classes. Franchisees also earn money through the sale of Pure Barre brand exercise clothing, accessories and other equipment.
How much can you charge customers?
Prices for Pure Barre fitness varies based on the location, the type of membership and the number of classes members attend. In LA, the costs range from $25 per class, if the class is purchased individually, to $15 per class if the member buys 30 classes at a time. At the same location, an unlimited monthly pass costs $225.
The price for apparel and accessories are moderately priced from a few dollars for socks to around a hundred for Pure Barre training equipment.
How much profit can a pure barre franchise make?
According to one analysis, with an average of 24 people per class, a Pure Barre franchise can earn over $3.600 a week in profit. That is over $177,000 per year. With an average of 15 people per class, the per week profit is just under $1,500 per week, or just shy of $70,00 a year.
How can you make your business more profitable?
Pure Barre franchisees can promote the sale of apparel and accessories, in addition to opening more classes which are geared to specific demographics like brides or new mothers.
What will you name your business?
Choosing the right name is very important. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.
After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC prevents you from being personally liable if your pure barre franchise is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.
You should also consider using a registered agent service to help protect your privacy and stay compliant.
For most small businesses forming an LLC is a great option, but if you still want to weigh all your options check our our article, What Structure Should I Choose for My Business?
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a Pure Barre business, if you’re opening your own studio. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease a location:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a Pure Barre business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build a location:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your Pure Barre business will be in compliance and able to obtain a CO.
To avoid liability and potential lawsuits, Pure Barre business should have their clients sign waivers.
An example of an appropriate waiver can be found here.
STEP 7: Get Business Insurance
Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
How to promote & market a pure barre franchise
Marketing is usually handled by corporate, which will help set up franchisee's website and provide additional marketing materials and advice.
Recommended: Get started with local advertising for your business with a $300 credit from Yelp.
How to keep customers coming back
Providing a welcoming gym with good instructors, a convenient schedule, and value for the cost is essential for retaining customers.
STEP 9: Establish your Web Presence
A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.
Start A Pure Barre Franchise In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Pure Barre is the perfect business opportunity for anyone who is looking to get into a fitness-based franchise which stands out from hundreds of other gyms. Fitness enthusiasts, as well as those who want to promote healthy and positive lifestyles, will fit in well with the company's philosophy as long as they have a business background and enough money to fund the opportunity.
What happens during a typical day at a pure barre franchise?
The beauty of owning a Pure Barre franchise is it allows owners to combine their fitness-loving lifestyle with a unique way to earn a living. Some ambitious owners choose to become certified Pure Barre teachers and spend part of their time teaching and doing administrative work, but many owners leave the teaching to their employees. There is no requirement that owners teach classes. Most Pure Barre franchisees find there is more than enough which needs their attention including marketing, managing the staff, and dealing with customers.
What are some skills and experiences that will help you build a successful pure barre franchise?
One of the best things about buying into a franchise is the company wants every single owner to succeed. This is true especially true with Pure Barre, and is the reason the company is careful in choosing only to do business with people who have a background in running a business. Knowing how to manage a business and how to deal with people is important in this business. Owners have to motivate not only their staff, but also their clients every day.
What is the growth potential for a pure barre franchise?
There is a great amount of growth in the boutique fitness craze. These smaller, specialized gyms are really taking a bite out of the market share of the larger, impersonal mega-gyms. In a 2015 study, these boutique gyms already made up 21 percent of the health club market in the US. Since the study was released, hundreds of more gyms have opened across the US and their popularity continues to grow.
TRUiC's YouTube Channel
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One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a pure barre franchise?
The parent company can help new franchisees get off on the right foot by providing a proven business plan. Owners can benefit from learning as much as they can about the system in order to be able to answer any customer questions and make sure instructors are doing a good job in class.
How and when to build a team
A fully certified and enthusiastic team is critical to the successful running of a Pure Barre franchise from the beginning. The corporate headquarters can help franchisees hire qualified people.