How to Finance a barre3 Franchise: Studio Costs and SBA Rules
By Chris Cornella
A barre3 franchise loan typically funds a boutique fitness studio: a leased space built out for small-group classes, a modest equipment package, a membership launch and enough working capital to carry the studio until the member base grows. Because the up-front investment is lighter than a big-box gym but the build-out timeline is long, the financing plan has to cover both construction and an extended pre-opening period.
Below we cover barre3’s published requirements, how lenders size a boutique studio loan, what barre3’s SBA Franchise Directory note means and how to prepare an application.
US Professional Funding is not affiliated with, sponsored by or endorsed by barre3; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
barre3 Franchise Loan at a Glance
- Liquid capital: barre3 says candidates need a minimum of $150,000 in liquid capital to qualify for its discovery process, and that the amount is market dependent.
- Franchise fee, royalty and brand fund: set out in Items 5 and 6 of the FDD, which barre3 provides after the brand discovery call; confirm current amounts there.
- Total investment: disclosed in Item 7 of the FDD; the range depends heavily on market and the condition of the leased space.
- Build-out timeline: an estimated 12 to 14 months after signing, according to barre3.
- System size: more than 200 studios in the U.S., Canada and Chile, with 23 studios opened in 2025 and 16 projected to open in 2026, according to the company.
- Founded: first studio opened in 2008 in Portland, Oregon.
- SBA Franchise Directory: listed, with a note requiring the lender to secure the appropriate lien position on all collateral.
What Is barre3?
barre3 was founded by Sadie and Chris Lincoln, who opened the first studio in 2008 in the Pearl District of Portland, Oregon. Sadie Lincoln serves as co-founder and CEO. The brand describes itself as an omnichannel boutique fitness company owned and operated by women.
Studios and online. The company reports more than 200 studios across the U.S., Canada and Chile, a franchisee network of more than 200 studio owners and a corporate team of more than 50 people. Alongside its studios, barre3 runs an online platform with more than 2,300 on-demand workouts, giving the brand a digital presence that complements in-studio classes.
Membership model. barre3 studios sell class-based memberships, including 4- and 8-class monthly plans, along with other class packages. Recurring monthly revenue is what lenders analyze first.
Growth through conversions. barre3 also invites owners of independent barre and fitness studios to convert to the brand, and it has brought groups of existing studios into the system through rebrands. Conversions create a different financing profile from a new build, discussed below.
Why lenders view barre3 the way they do. Lenders see a boutique studio as a service business with a leased location, light hard collateral and revenue that depends on member retention and instructor quality. Brand support helps, but each studio is underwritten on its own lease, market and owner.
barre3 Franchise Costs
barre3 delivers its FDD after the brand discovery call. Because fees and investment figures change and vary by market, verify every number there before you build a loan request.
Initial franchise fee. Item 5 of the FDD sets the initial fee, when it is due and whether any multi-studio pricing applies. The fee is generally financeable as part of a start-up loan.
Lease and build-out. A barre3 studio is a leased retail or mixed-use space finished for group classes: flooring suited to low-impact movement, wall-mounted barres, mirrors, lighting, sound, climate control, a front desk and retail area, restrooms and changing space. Whether the landlord provides a tenant improvement allowance, and whether the space is a former fitness or retail tenant, can move the build-out cost significantly.
Equipment and fixtures. Compared with a traditional gym, the equipment list is short: barres, mats, light weights, balls, resistance bands and other small props, plus audio systems, front-desk technology and retail fixtures. That keeps equipment cost modest but also limits the collateral a lender can rely on.
Opening costs and working capital. Pre-sale marketing, instructor training, payroll before opening, rent during construction, insurance, deposits and opening retail inventory all need funding. With an estimated build-out timeline of 12 to 14 months after signing, rent and other carrying costs before opening deserve careful budgeting.
Total investment. Expect Item 7 of the FDD to show the total range and break it into categories such as:
- Initial franchise fee
- Leasehold improvements and construction
- Architect, design and permit fees
- Studio equipment and props
- Audio, technology and front-desk systems
- Signage and decor
- Opening retail inventory
- Training and travel
- Grand opening and pre-sale marketing
- Rent, security deposits and insurance
- Additional funds for the initial operating period
Compare each line item’s range and assumptions in the FDD with the bids and lease terms for your actual site.
Ongoing Fees and How They Affect a barre3 Franchise Loan
Royalty and brand fund. Item 6 of the FDD defines the royalty, any brand or marketing fund contribution, required local marketing and how each is calculated. These are typically tied to studio revenue, so they scale with membership.
Technology and other fees. Expect fees for studio software, digital content and training, plus transfer and renewal fees.
Refresh obligations. Check the franchise agreement for required updates to studio design, equipment or branding during the term, and plan to finance them when they come due.
How lenders factor these costs in. Lenders apply royalty and fund percentages to projected membership revenue, then subtract rent, instructor payroll and other operating costs to see whether the remaining cash flow comfortably covers loan payments. Because studio revenue ramps as members join, lenders want to see a realistic membership curve and reserves to cover the gap.
Franchisor Requirements for New Owners
- Liquid capital: a minimum of $150,000 to qualify for discovery, market dependent, according to barre3.
- Target market: an available territory in the candidate’s target market is required at pre-qualification.
- Timeline: barre3 looks for candidates ready to invest within 2 to 6 months, or offers an extended planning pathway.
- Net worth: confirm any net worth requirement in the FDD and during discovery.
- Fit and commitment: barre3 evaluates candidates through an application, an assessment and leadership review, and many owners come from the barre3 client community.
The approval process. barre3 describes a structured discovery path: an inquiry form and a short pre-qualification call; a brand discovery call, after which candidates receive the FDD; independent FDD review with legal or financial advisors; a detailed FDD review call; a non-binding franchise application and assessment; financial verification, financing conversations, market research and validation calls with current owners; candidate approval and a virtual partnership day; a meeting with the founders; and finally signing the franchise agreement and moving to the new studio development team for site selection and construction.
The financing conversations happen before signing, which means a buyer should know how a barre3 franchise loan will be structured well before committing to a lease.
Ways to Own a barre3
A new studio. Most owners open a new studio in an available market. Financing is based on projections, the lease, the owner’s capital and experience, and it must cover the build-out timeline and pre-opening costs. Our overview of fitness center start-up financing explains how these loans work.
Buying an existing studio. When a barre3 owner sells, a buyer acquires an operating studio with members, instructors and a lease. barre3 must approve the transfer, and the landlord usually must approve a lease assignment. Lenders can underwrite the studio’s actual membership and financial history. Our guide to buying a boutique fitness studio covers class packs, instructors and financing.
Converting an independent studio. barre3 actively recruits owners of independent studios to convert. A conversion owner already has a space, members and staff, so the financing need is usually rebranding, studio updates, any fees and working capital for the transition. Read more about financing a franchise conversion.
Multiple studios. Owners who succeed with one studio may add more in their market, financing each with support from existing studios’ cash flow.
Financing Options for a barre3 Franchise
SBA 7(a) loans. Because barre3 is on the SBA Franchise Directory, the SBA 7(a) program is a natural fit for build-out, equipment, franchise fees, working capital and studio purchases. The program maximum is currently $5 million, more than a single studio typically requires.
SBA 504 loans. The 504 program finances owner-occupied real estate and long-lived fixed assets. Because barre3 studios generally operate in leased space, 504 is rarely relevant unless an owner buys the building that houses the studio.
Conventional term loans. Owners with strong credit, liquidity and collateral, or existing studios with history, may qualify for a conventional business loan. Terms and collateral requirements vary by lender.
Equipment financing. Barres, mirrors, audio systems, front-desk technology and props can be financed or leased separately to preserve cash. See our fitness equipment financing and leasing options.
Working capital and lines of credit. Boutique studios often see membership swings around New Year resolutions, summer travel and school calendars. A line of credit can bridge slower months, fund pre-sale marketing or cover instructor payroll during ramp-up. Learn more about fitness center working capital.
Seller financing on resales. A selling owner may agree to carry part of the price. A seller note is typically subordinate to the senior loan, and loan programs may limit its terms or repayment timing.
SBA Loans for barre3 Franchisees
The SBA Franchise Directory lists franchise brands whose agreements have been reviewed for SBA eligibility. A listing allows SBA lenders to consider loans to the brand’s franchisees, but it is not an endorsement and every borrower must still qualify.
barre3’s directory listing. barre3 is listed under code S2428, with a note stating that the lender or CDC (the certified development company in a 504 loan) must ensure it secures the appropriate lien position on all collateral in accordance with the SBA’s standard operating procedures.
What the note means in plain English. Some franchise agreements give the franchisor rights in a franchisee’s assets, such as equipment, fixtures or the right to take over the location, that could compete with the lender’s claim. The note reminds the lender to confirm that its lien on the studio’s equipment, fixtures and other collateral sits in the position SBA rules require. The lender may ask the franchisor or landlord for an acknowledgment or waiver. It is a documentation step, not a bar to financing, but it can add time to closing.
SBA application tips. Provide a sources-and-uses statement tied to the Item 7 categories and your contractor bids, proof of liquidity, a résumé, the signed or proposed lease and monthly projections built on a membership ramp, with royalty and fund fees included.
How Lenders Evaluate a barre3 Deal
Personal credit and financial history. Lenders review credit reports, personal tax returns and a personal financial statement, and typically require a personal guarantee.
Net worth and liquidity. barre3’s liquid capital threshold sets a starting point, but lenders also look at what remains after the equity injection to cover the build-out period and ramp-up.
Industry and management experience. Many barre3 owners start as clients or instructors. Lenders value business or management experience and a clear plan for hiring instructors and a studio manager.
Business plan and projections. A strong plan models pre-sale memberships, a month-by-month membership ramp, churn, class capacity and instructor payroll, plus rent and franchise fees. Our article on how lenders read an FDD explains which disclosures matter most.
The FDD and franchise agreement. Lenders review the term, renewal rights, transfer rules, territory and any franchisor rights in the studio’s assets, which ties directly to the SBA directory note.
Site and lease. The lease should generally run at least as long as the loan, including renewal options. Lenders compare rent with projected revenue.
Historical financials for resales. For an existing studio, expect to provide profit and loss statements, tax returns and membership reports showing active members, attrition and revenue per member.
Membership, Instructors and the Pre-Opening Period
For a barre3 studio, the most important financing variable is time. The estimated 12 to 14 months from signing to opening means rent may start before revenue, and pre-sale campaigns typically begin before the doors open. Build the loan to include carrying costs and pre-opening marketing, not just construction.
Instructor pipeline. Classes depend on trained instructors. Budget for training and payroll during the launch and plan for turnover, because a studio that loses key instructors can lose members.
Multi-Unit Growth and Development
Adding studios. Owners who add studios typically finance each one when its site and lease are ready. Once the first studio has a stable membership base, its cash flow can support the next loan.
Development agreements. If barre3 offers multi-studio development rights, review the schedule carefully. Missing a development deadline can affect rights, and lenders do not finance future studios before their sites are identified.
Real-World Scenarios
A longtime client opening a first studio. A barre3 client with corporate management experience qualifies through discovery, signs a lease in a neighborhood retail center and uses an SBA 7(a) loan for build-out, equipment, the franchise fee and working capital, keeping personal reserves for the pre-opening period.
An independent studio owner converting. The owner of a successful independent barre studio converts to barre3. The lender underwrites the studio’s existing revenue and finances the rebrand, equipment updates and transition working capital.
A buyer purchasing an existing studio. A buyer acquires a studio from an owner who is relocating. The lender reviews membership reports and financials, the remaining lease term and barre3’s transfer approval, and the seller carries a small subordinated note.
Common Mistakes to Avoid
- Underestimating carrying costs during a build-out that can take more than a year
- Building projections on fast membership growth without a realistic ramp and churn rate
- Signing a lease before financing is lined up
- Overlooking the SBA directory note on lien position and its effect on closing time
- Relying on one or two instructors without a staffing plan
- Treating light equipment as strong collateral
For more pitfalls, read the fitness center loan mistakes that cost owners the most.
Next Steps to Finance Your barre3 Franchise
Step 1: Confirm your capital. Make sure you meet barre3’s liquid capital threshold for your market and have reserves beyond it.
Step 2: Complete discovery and review the FDD. Study Items 5, 6, 7, 10, 17 and 19 and the franchise agreement with a franchise attorney and accountant.
Step 3: Talk with a financing specialist early. Financing conversations are part of barre3’s evaluation stage. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
Step 4: Secure a site and bids. Work with barre3’s development team on site selection and obtain contractor bids and lease terms.
Step 5: Build projections. Prepare a membership ramp, staffing plan and sources-and-uses statement.
Step 6: Apply and close. Submit your loan request with the FDD, franchise agreement, lease and financial documents, and allow time for the lender’s lien and collateral steps.
barre3 Franchise Loan FAQs
How much does it cost to open a barre3 studio?
The total investment is disclosed in Item 7 of barre3’s current FDD and varies by market and space condition. Request the FDD during discovery and compare it with local bids.
How much liquid capital do I need?
barre3 says candidates need a minimum of $150,000 in liquid capital to qualify for discovery, and that the amount is market dependent.
What are the barre3 franchise fee and royalty?
They are set out in Items 5 and 6 of the current FDD. Confirm the initial fee, royalty, brand fund and technology fees there before building projections.
Can I get an SBA loan for a barre3 franchise?
Yes, if you qualify. barre3 is on the SBA Franchise Directory, and its listing note asks the lender to secure the appropriate lien position on all collateral.
What does the SBA directory note mean for my loan?
It means the lender must confirm its lien on the studio’s collateral is in the required position, which may involve reviewing the franchise agreement and lease and obtaining acknowledgments. It can add time but does not prevent financing.
Can I convert my existing studio to barre3?
barre3 recruits independent studio owners to convert. Financing usually covers rebranding, updates and transition working capital, and lenders can rely on the studio’s existing results.
Can I buy an existing barre3 studio?
Yes, when one is for sale and barre3 approves the transfer. Lenders review the studio’s membership reports, financials and lease.
How long does it take to open?
barre3 estimates a build-out timeline of 12 to 14 months after signing the franchise agreement.
Does barre3 offer financing?
Review Item 10 of the current FDD for any franchisor financing. barre3’s discovery process includes connecting with lenders, but loans are made by outside lenders.
Can a first-time business owner get a barre3 franchise loan?
Yes, if the candidate meets barre3’s requirements and the lender’s standards. Strong liquidity, management experience and a detailed membership plan help offset a lack of ownership history.
Final Thoughts
A barre3 franchise loan is less about heavy equipment and more about time, membership and lease terms. Buyers who confirm costs in the FDD, budget for a long build-out, understand the SBA directory’s lien note and present a realistic membership ramp give lenders what they need to say yes.
US Professional Funding helps franchise owners and buyers finance start-ups, acquisitions, equipment, working capital and refinancing. Learn more about our franchise financing and fitness center financing solutions.
