STUDIO NOIR · Revenue Diversification
Phase 1: no diversification. Deliberately focused on membership (85% of Phase 1 revenue), with small adjacent lines (drop-ins 6%, private lessons 5%, merch 3%, events 1%).
Phase 2+: diversified revenue stack as amenities and offerings launch at flagship + digital + corporate.
Phase 1 revenue concentration risk
Phase 1 revenue is ~85% membership. That’s concentration risk. If membership crashes (pandemic, competitor entry, brand incident), Phase 1 has limited fallback.
Mitigants Phase 1: - Reserve of $25K covers ~4 months of fixed opex - Business interruption insurance covers 6 months of revenue - Trill line of credit as absolute last-resort bridge - Referral program compensates for churn faster than paid acquisition would
Accepted risk Phase 1: revenue concentration is a Phase 1 tradeoff we accept in exchange for focus.
Phase 2 revenue diversification (preserved for reference)
Rebuilt in 2028 alongside Phase 2 hiring + amenities launch.
Phase 2 revenue mix target (Year 3 of Phase 2)
| Line | Share of revenue |
|---|---|
| Membership (physical) | 55% |
| Personal training | 20% |
| Private studios + cabanas | 8% |
| Café + lounge F&B | 6% |
| Retail micro-boutique | 5% |
| Corporate wellness B2B | 3% |
| THE NOIR INVITATIONAL (sponsor + ticket + streaming) | 2% |
| Digital membership | 1% |
Total Phase 2 Year 3: ~$8M-$10M revenue.
Why Phase 2 diversifies
Pandemic scenario: membership drops 40%, but corporate contracts hold, digital spikes, apparel DTC grows. Blended revenue drops maybe 25-30% instead of 40%. Reserve carries the rest.
Competitor entry: membership growth slows but existing member retention holds (recovery amenities + café + community are stickier than any competitor can copy). Revenue holds flat rather than declining.
THE NOIR INVITATIONAL year off: Y1 not held or postponed doesn’t crash the business because Invitational is only 2% of Y3 revenue. Sponsor relationships hold.
Phase 2 pandemic-resilient revenue
- Digital membership: grows during closure
- DTC apparel: grows or holds during closure (branded goods as connection to brand)
- Corporate wellness contracts: most survive short closures
- Private cabanas: can operate at reduced capacity even in strict closures
- Physical membership at reduced capacity: limited but continues in most scenarios
Phase 2 revenue concentration risk
Even at Phase 2 Year 3 mature state, membership is still 55% of revenue. That’s diversified compared to Phase 1’s 85% but still concentrated. Further diversification happens in Phase 3 (franchise royalty stream).
Phase 3 diversification (Phase 3 franchise)
Franchise revenue diversifies STUDIO NOIR IP LLC’s income: - Corporate flagship in Raleigh: continues - Franchisor royalty stream (6-8% of franchisee revenue): grows over time - Franchise fee at signing ($40K-$75K per franchisee) - Multi-city geographic diversification (Raleigh + Charlotte + Atlanta + Miami + Nashville franchises) - International franchise (London, Dubai, Toronto) adds currency diversification
At Phase 3 Year 5+: - 5-8 franchised units - Combined revenue (flagship + royalty stream): $12M-$20M - Raleigh flagship no longer the single point of failure
Full Phase 3 revenue diversification model rebuilt in 2032.