Verified — real FDD extraction
SBA-eligible · directory code S1729 since 2017
BAR METHOD
Fitness · independent · est. —
The Bar Method is a boutique fitness studio offering barre classes that blend ballet-inspired movements, strength, and stretching for low-impact toning. Members attend instructor-led group classes. A franchisee operates a studio, employing certified instructors and managing class schedules and memberships.
BAR METHOD net unit count declined -6.3% from 2021–2023 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Showing strain
Distress
The disclosed record shows weakness — shrinking units, elevated exits, or churn — worth reading closely before going further.
Exit rate · latest year
6.7%
vs 3.4% across 33 fitness systems
Cost to open
$356K–$513K
Item 7 total investment range
SBA loan defaults
20.0%
vs 14.8% avg across rated brands
Market density · California
Typical density
14% denser than the national average
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2021–2023
Survival record
FDD Item 20 · outlet status by year
In fiscal 2023, 5 of 75 franchised outlets left the system — a 6.7% annualized exit rate, vs 3.4% across 33 fitness systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Outlets at start | 91 | 79 | 76 |
| Opened | 4 | 2 | 3 |
| Transfers | 5 | 1 | 3 |
| Terminations | 13 | 5 | 3 |
| Non-renewals | 4 | 0 | 2 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 79 | 76 | 74 |
| Net change | -12 | -3 | -2 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 57 SBA-backed loans to BAR METHOD franchisees since 2012. Of the 35 that have resolved, 20.0% were charged off (defaulted) rather than paid in full, versus 14.8% across 570 rated brands.
20.0%
7 of 35 resolved defaulted
68.7%
avg. charged-off $ ÷ approved $
13.7%
default rate × loss severity
$359,353
what recent franchisees borrowed
69 mo
approval → charge-off, defaulted loans
6 vs 13
distinct banks — pulling back
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO BAR METHOD BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
Who finances it
the Huntington National Bank
15.8% of this brand's loans
That lender charges off 10.1% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
58.5%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
Not enough resolved loans to split
Computed from 57 SBA 7(a)/504 loans to BAR METHOD franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $43K franchise fee (Item 5) and a total investment of $356K–$513K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$356K–$513K
all-in investment range
Franchise fee (Item 5)
$43K
upfront, one-time
Royalty (Item 6)
6%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$60K
6% of sales, before profit
Over a 10-yr term
$600K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for BAR METHOD with an independent CPAModeled risk
FDD Risk Score · modeled from the public record
Modeled from the public record, this brand looks riskier than 79% of systems we score.
Risk percentile
79 / 100
Loan-corroborated
Modeled SBA charge-off
17.3%
Observed SBA charge-off
20.0%
Top drivers: System size (log units) (raises) · Share financed by high-loss lenders (raises) · Single-lender dependence (raises) · Net unit growth (raises). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
news:Hingham Anchor · 73mo ago
After three years in business, Bar Method Clovis closes Sept. 13
news:thebusinessjournal.com · 86mo ago
Openings & Closings: Kefi, The Bar Method, Milk & Honey, Japanese Steakhouse
news:West Side Rag · 100mo ago
10 questions to ask a BAR METHOD franchisee
Built from this brand's own disclosures · take it to your validation calls
The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These are the questions built from what BAR METHOD has actually disclosed — each one carries the number it came from, so you can tell whether the answer squares with the record.
- 01
BAR METHOD’s own Item 20 shows 5 of 75 franchised outlets left the system in fiscal 2023 — about 6.7%. Do you know any of those owners, and do you know why they left?
A franchisor will call these “transitions.” An owner three doors down usually knows whether they sold at a profit or handed the keys back.
FDD Item 20 · FY2023
- 02
3 units transferred to new owners in fiscal 2023. When you look at those, were they people cashing out a good business — or getting out of a bad one?
Transfers count as neutral in every ranking. They are the single easiest place to hide distress.
FDD Item 20 · FY2023
- 03
The system went from 79 units to 74 over 3 disclosed years. What's the explanation you've been given, and do you believe it?
A shrinking system means fewer owners funding the ad fund and support staff you're paying for.
FDD Item 20 · FY2021–FY2023
- 04
Of 35 SBA loans to BAR METHOD franchisees that have finished, 20.0% were charged off — the borrower didn't repay. Did you finance with an SBA loan, and how close did your first two years come to trouble?
This is the lender's view of failure, from public federal records, and it is independent of anything the franchisor discloses.
SBA 7(a)/504 loan record, FY1991–present
- 05
You pay 6.0% royalty on gross sales, plus the ad fund, before any of your own costs. On your actual revenue last year, what did you take home as the owner — not revenue, take-home?
Royalty is charged on sales, not profit. This is the number the brochure never shows and the one your life actually runs on.
FDD Item 6
- 06
BAR METHOD makes an earnings claim in Item 19. Does your unit look like that number — and do you know which units they included to build it?
Item 19 is legal to build from a flattering subset. Ask whether they excluded new units, closed units, or company stores.
FDD Item 19 · 2024
- 07
How many months did it take to cover your own costs, and how much cash did you burn getting there?
Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.
Not disclosed in any FDD — ask an owner
- 08
What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?
Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.
FDD Items 6, 8, 11
- 09
If your agreement came up for renewal tomorrow at current terms, would you sign again?
The single most predictive question you can ask. A hesitation is the answer.
Ask every owner you speak to
- 10
Who else should I call — including someone who left?
The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.
Ask every owner you speak to
Want this as a checklist you can take to the calls?
I'll email you the printable version, and tell you if BAR METHOD’s numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.
A broker is paid by the franchisor to place you. I'm paid by you — and the job is pressure-testing BAR METHOD's numbers, including talking you out of a bad deal.
This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.
BAR METHOD franchise questions, answered from the filings
What percentage of BAR METHOD franchises closed last year?
In BAR METHOD's latest FDD Item 20 (fiscal 2023), 5 of 75 franchised outlets left the system — an annualized exit rate of 6.7% — compared with 3.4% across 33 fitness systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a BAR METHOD franchise cost?
Per BAR METHOD's 2024 FDD, buying in requires an initial franchise fee of $43K (Item 5) and a total initial investment of $356K–$513K (Item 7).
What royalty does BAR METHOD charge?
BAR METHOD charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2024 FDD.
Does BAR METHOD disclose earnings (Item 19)?
Yes — BAR METHOD makes a financial performance representation in Item 19 of its 2024 FDD. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for BAR METHOD franchises default?
Across 57 SBA-backed loans to BAR METHOD franchisees since 2012, 7 of the 35 that have resolved were charged off — a 20.0% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.