YogaSix Franchise Costs $356K – $508K (+ 2024 Profits)

YogaSix is a prominent name in the modern yoga landscape, offering a refreshing approach to one of the world’s oldest fitness practices. Established in 2012, YogaSix has rapidly expanded its presence, making it the largest franchised yoga brand worldwide.

The brand’s headquarters are located in Irvine, California, underpinning its strong foundation in the United States while emphasizing its global reach​. YogaSix’s franchising model began in 2018, and since then, it has been recognized for its rapid growth and innovative approach to yoga.

The franchise stands out in the fitness industry by offering a variety of yoga classes that cater to all levels, from beginners to seasoned practitioners. These classes range from heated and non-heated yoga sessions to boot camp-style fitness classes and meditation, ensuring accessibility and a comprehensive wellness experience for all members.

Type of Expenditure	Amount
Initial Franchise Fee	$60,000
Travel & Living Expenses While Training	$0 – $3,000
Real Estate/Lease and Professional Fees	$19,000 – $40,000
Net Leasehold Improvements	$166,000 – $272,000
Signage	$13,000 – $19,000
Insurance	$1,200 – $2,600
Lease Payments in Connection with Fitness Equipment and Other FFE Package	$2,200 – $10,500
Pre-Sale and Soft Opening Retail Inventory Package	$12,000
AV Package and Computer System	$48,000
Initial Marketing Spend, including amounts on Opening Support Program	$15,000
Teacher Training Facilitator Training Program Tuition Fee	$3,000 – $4,500
Music and Technology Fee	$1,545
Additional Funds – 3 Months	$15,000 – $20,000
Total Estimated Initial Investment:	$356,000 – $508,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The Initial Franchise Fee for a single studio is $60,000. This is due upon signing the Franchise Agreement and is non-refundable.

Royalty Fee

Throughout the term, franchisees agree to pay a weekly Royalty Fee equal to 7% of the Gross Sales generated by the Studio over the immediately preceding week.

Marketing/Advertising Fee

The initial brand fund fee, also referred to as the Fund Contribution, is set at 2% of the Studio’s Gross Sales. This contribution starts from the earlier of the date your Studio opens or when the Studio receives a payment from a client for services to be provided. The Franchisor reserves the right to increase the Fund Contribution upon giving 60 days’ written notice.

Pre-Sale and Soft Opening Retail Inventory Package

Franchisees are required to purchase a Pre-Sale and Soft Opening Retail Inventory Package at a cost of $12,000.

Teacher Training Facilitator Training Program Tuition Fee

The tuition fee for the Teacher Training Facilitator Training Program, necessary for initial instructor personnel, is $3,000 per program, plus additional costs estimated to be $1,500 for travel and other expenses of the facilitator.

Music and Technology Fee

Franchisees must pay a monthly Music and Technology Fee, which starts during the Pre-Sales Phase, amounting to $309 monthly ($180 for the Technology Fee and $129 for the Music Licensing Fee).

Fitness Equipment and Other FFE Package Leasing Cost

The estimated 3-month leasing cost for the Fitness Equipment and Other FFE Package ranges from $2,200 to $10,500 for a traditional studio and $1,750 to $8,000 for a Non-Traditional Studio. If purchasing outright, the cost is estimated to be between $41,500 and $51,500.

Franchise pros and cons

The Pros:

• Quality training: The franchisor offers its franchisees extensive training to acquaint them with the basics of its concept, equipment use, operational aspects and training of its staff. In addition, it helps them carry out a successful grand opening and make sales.
• Marketing strategies: YogaSix helps the franchisee establish and grow a following for their clubs using turnkey marketing plans and resources such as national and regional advertising, social media, influencer marketing and local club promotional campaigns.
• Real estate and site selection: The brand helps its franchisees with site selection, club designs and construction and lease negotiations. Franchisees can identify a viable and competitive business location using the brand’s demographic data analysis.
• Extensive training and ongoing support: The brand has an experienced team and professional management to help franchisees establish and operate their clubs successfully. Franchisees get resources, networks, advice and growth insight from the Xponential and YogaSix professional teams.
• Evolving member experience: The brand is constantly evolving and curating updates to its programming classes and technology. Franchisees can sustain excellent services and facilitate member growth and profitability.
• Third-party financing: The franchisor provides its franchisees with third-party financing for the franchise fee, startup costs, equipment, inventory and payroll.
• Exclusive territory protection: The franchisor provides its franchisees with an exclusive territory to operate in. It does not grant any other franchise or operate competing channels in the agreed-upon area.
• Executive business model: The YogaSix presents a scalable and attractive consumer-oriented concept. Franchisees can leverage low development costs and national vendor networks to establish and run profitable clubs.

The cons:

• Not a part-time business opportunity: The franchise cannot be operated part-time. Franchisees must follow their parent company’s working schedule.
• Not a passive business opportunity: The franchise does not allow absentee ownership. Franchisees must actively participate in decision-making and the operations of their clubs.
• Not a home-based or mobile business: A YogaSix franchise cannot be run from home or a vehicle. Franchisees are required to work from an office space, retail facility or warehouse.
• Competition: Stretch Lab, Club Pilates and Pure Barre.

How to open a YogaSix franchise

Opening a YogaSix franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a YogaSix franchise.

1. Research and Due Diligence

• Learn about YogaSix: Familiarize yourself with the YogaSix brand, its philosophy, class offerings, and community culture to ensure it aligns with your passion and business goals.
• Understand the Market: Assess the demand for yoga and wellness services in your desired location, considering local competition and community interest in health and fitness.

2. Financial Evaluation

• Review Financial Requirements: Understand the initial investment, liquid capital, and net worth requirements for opening a YogaSix franchise, which can range significantly based on location and other factors.
• Secure Financing: If necessary, explore financing options such as loans, investors, or personal savings to meet the financial requirements for starting your franchise.

3. Submit an Inquiry

• Express Interest: Reach out to YogaSix through their franchise inquiry process, typically available on their official franchise website, to express your interest in opening a franchise.

4. Participate in the Franchise Disclosure Process

• Review the Franchise Disclosure Document (FDD): Carefully examine the FDD provided by YogaSix, which includes detailed information about the franchise opportunity, financial performance, and legal obligations.
• Consult Professionals: Consider consulting with a franchise attorney and a financial advisor to understand the FDD and the financial implications of opening a YogaSix franchise.

5. Attend Discovery Day

• Visit a YogaSix Location: Attend a Discovery Day or similar event if offered, to experience the YogaSix culture firsthand, meet with the corporate team, and get a feel for the day-to-day operations of a studio.

6. Location Selection

• Site Approval: Work with YogaSix to identify and secure an ideal location for your studio, adhering to the brand’s site selection criteria and leveraging their support in lease negotiation and site approval.

7. Training and Preparation

• Complete Training Program: Participate in YogaSix’s comprehensive training program for franchisees, covering all aspects of running a studio, including operations, marketing, class scheduling, and staff management.
• Hire Staff: Recruit and hire qualified instructors and staff members who align with the YogaSix philosophy and have the necessary skills to create a welcoming and supportive environment for members.

Disclaimer

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