What are the costs to start and maintain a Pure Barre franchise?

Opening a Pure Barre franchise starts at $168,000, but that doesn’t include the cost of the location. Some franchisees can spend double this amount depending on the location, the size of the gym, and the other factors. The cost break down is as follows: Franchise fee: $46,500 Training expenses: $6,000-$10,000 Supplies and equipment: $5,000-$13,500 Insurance: $1,000-$3,000 Operation expenses: $12,000-$25,000 Fitting out location: $95,100-$195,700 Visit our How to Start a Pure Barre Franchise guide to learn more about the costs of starting and maintaining this business.

Should I Start an LLC for My Pure Barre Franchise?

Starting a limited liability company (LLC) for your pure barre franchise can provide several benefits.

Most importantly, an LLC structure offers limited liability to its owners, which can protect their personal assets from lawsuits and creditors.

For a pure barre franchise, lawsuits can arise from things like allegations you slandered a competitor in recent marketing materials or serious injury to a client during a session.

LLCs are also affordable, highly flexible (from a tax point-of-view), and can make your pure barre franchise seem more credible.

Recommended: Use Northwest to form an LLC for $29 (plus state fees).

Do I Need an LLC for a Pure Barre Franchise?

LLCs are a simple and inexpensive way to protect your personal assets and save money on taxes.

You should start an LLC when there's any risk involved in your business and/or when your business could benefit from tax options and increased credibility.

LLC Benefits for a Pure Barre Franchise

By starting an LLC for your Pure Barre franchise, you can:

Protect your savings, car, and house with limited liability protection
Have more tax benefits and options
Increase your business’s credibility

Limited Liability Protection

LLCs provide limited liability protection. This means your personal assets (e.g., car, house, bank account) are protected in the event your business is sued or if it defaults on a debt.

Pure Barre franchises will benefit from liability protection because of the risk of being sued for personal injury, trademark infringement, and personal data breaches.

Example 1: A competitor believes you slandered them in a local advertisement, driving their business down. They are suing you over this. Being an LLC, limited liability would protect your personal assets so they could not be taken in the settlement.

Example 2: A member injures themselves while doing a stretch a trainer recommends. While stretching they lose their balance and suffer a concussion. They sue for medical expenses and lost income. Limited liability as an LLC would protect your personal assets so they could not be used to pay for this.

Example 3: An electrical fire breaks out during a session. Everyone gets out safely but damage is done to the store next to your franchise. The owner demands you pay for the damage. Your personal assets could not be used to pay for this since they are protected with limited liability as an LLC.

An LLC will also protect your personal assets in the event of commercial bankruptcy or loan default.

To maintain your LLC's limited liability protection, you must maintain your LLC's corporate veil.

LLC Tax Benefits and Options for a Pure Barre Franchise

LLCs, by default, are taxed as a pass-through entity, just like a sole proprietorship or partnership. This means that the business's net income passes through to the owner's individual tax return.

The business’s net income is then subject to income taxes (based on the owner's tax bracket) and self-employment taxes.

Sole proprietorships and partnerships are taxed in a similar way to LLCs, but they do not offer limited liability protection or other tax options.

S Corp Option for LLCs

An S corporation (S corp) is an IRS tax status that an LLC can elect. S corp status allows business owners to be treated as employees of the business (for tax purposes).

S corp tax status can reduce self-employment taxes and will allow business owners to contribute pre-tax dollars to 401k or health insurance premiums.

The S corp status requires that the business pay the employee-owner(s) a reasonable salary for the work they perform.

In addition, the business might need to spend more on accounting, bookkeeping, and payroll services. To offset these costs, you'd need to be saving about $2,000 a year on taxes.

We estimate that if a Pure Barre franchise owner can pay themselves a reasonable salary and at least $10,000 in distributions each year, they could benefit from S corp status.

You can start an S corp when you form your LLC. Our How to Start an S Corp guide will lead you through the process.

Credibility and Consumer Trust

Pure Barre franchises rely on consumer trust. Credibility plays a key role in creating and maintaining any business.

Businesses gain consumer trust simply by forming an LLC.

A growing business can also benefit from the credibility of an LLC when applying for small business loans, grants, and credit.

Northwest will start an LLC for you for just $29 (plus state fees).

Get Started

How to Form an LLC

Forming an LLC is easy. There are two options for forming your LLC:

You can hire a professional LLC formation service to set up your LLC for a small fee
Or, you can choose your state from the list below to start an LLC yourself

Select Your State

For most new business owners, the best state to form an LLC in is the state where you live and where you plan to conduct your business.

Do LLCs Need Insurance?

All businesses need insurance to protect their business assets — even LLCs. This is because the limited liability protection from an LLC protects your personal assets, not your business assets.

Common Situations Business Insurance May Cover for a Pure Barre Franchise

Example 1: A visitor to your facility slips on wet flooring in the restroom, breaks his tailbone, and decides to sue for damages because you didn’t mark the wet floor. General liability insurance would pay for your legal defense and any required settlement.

Example 2: A local competitor sues your business for libel. While you disagree with the accusation, you know you need a lawyer right away. General liability insurance would cover your legal defense costs and any required settlement.

Example 3: While assisting a member, one of your trainers accidentally knocks over a visitor. The visitor breaks a wrist in the fall and asks your business to pay for her medical treatment. General liability insurance would cover her medical expenses.

Other Types of Coverage Pure Barre Franchises Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all Pure Barre franchises should obtain.

Commercial Property Insurance

You made a major investment in the equipment, supplies, and real estate needed to run your facility. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the business materials stored there.

Professional Liability Insurance

While you strive to provide targeted training that helps members transform their level of fitness, there’s always a chance someone might decide you made a mistake that caused them harm. If a member sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

Workers' Compensation Insurance

If you have any employees, most states will require you to carry workers’ compensation insurance for your part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Should I Start an LLC FAQ

Choosing the right business structure depends on your business’s unique circumstances and needs. However, unless your business is very low risk (like a hobby), an LLC is likely the better option.

Visit our LLC vs. Sole Proprietorship guide to learn more.

At a minimum, you’ll need general liability insurance, workers’ compensation insurance, and commercial property insurance.

Read our Business Insurance article for more info.

Opening a Pure Barre franchise starts at $168,000, but that doesn’t include the cost of the location. Some franchisees can spend double this amount depending on the location, the size of the gym, and the other factors. The cost break down is as follows:

Franchise fee: $46,500
Training expenses: $6,000-$10,000
Supplies and equipment: $5,000-$13,500
Insurance: $1,000-$3,000
Operation expenses: $12,000-$25,000
Fitting out location: $95,100-$195,700

Visit our How to Start a Pure Barre Franchise guide to learn more about the costs of starting and maintaining this business.

Ongoing expenses for a Pure Barre franchise include equipment maintenance, training, marketing and advertising, licenses and permits, utilities, Pure Barre inventory, and insurance.

Learn more about running a Pure Barre franchise.

Pure Barre franchises make money from selling classes or memberships to students. They also make money from selling branded clothing, accessories, and equipment.

Learn more about starting a Pure Barre franchise.

With over 650 licensed locations, Pure Barre is one of the leaders in the boutique fitness market, meaning Pure Barre franchisees can cultivate a loyal customer base.

The average profit margin for a successful Pure Barre franchise needs to be at least 10% to be sustainable.

Learn more about starting a Pure Barre franchise.