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Yoga Six Franchise ProfileFitness Franchises > Specialty Fitness Classes |
What Are the Initial Investment Requirements for a Yoga Six Franchise?
To open a Yoga Six franchise, you need to prepare for an initial investment ranging from $399,370 to $462,097. This includes a franchise fee of $60,000, which is paid upfront. Additionally, you will need to have at least $60,000 in cash readily available and a net worth between $300,000 and $500,000. These financial prerequisites ensure that franchisees are equipped to handle the startup and operational costs effectively.
What Are the Ongoing Fees for a Yoga Six Franchise?
Once you’re up and running, Yoga Six franchisees are required to pay a royalty fee of 7% on gross sales, along with a marketing fee of 2%. These ongoing fees contribute to the brand's national marketing efforts and support services, helping to drive customer traffic and enhance brand visibility. Understanding these fees is crucial for financial planning and maintaining profitability in your franchise operation.
What Is the Average Revenue Potential for a Yoga Six Franchise?
The average annual revenue for a Yoga Six unit is approximately $40,700, with a median revenue of $39,377. However, revenue can vary significantly, with the lowest reported at $2,509 and the highest reaching $146,943. This wide range highlights the importance of location, marketing, and operational management in determining your franchise's financial success.
What Is the Expected Breakeven and Payback Period for a Yoga Six Franchise?
Yoga Six franchisees can expect to break even within 12 months of opening. The investment payback period is estimated at around 11 months, which indicates a relatively quick return on investment compared to many other franchise opportunities. This efficiency in recovering initial costs can be appealing for potential franchisees looking for a profitable venture in the fitness industry.
Yoga Six Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Yoga Six Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 81 | 126 | 166 |
| Net Change YoY | 45 | 40 | |
| Franchised Units | 77 | 125 | 166 |
| Net Change YoY | 48 | 41 | |
| Corporate Units | 4 | 1 | 0 |
| Net Change YoY | -3 | -1 |
Initial Investment
The Yoga Six franchise requires a low initial investment ranging from $399,370 to $462,097. This includes a franchise fee of $60,000, ensuring that franchisees have a solid foundation to start their business.
Financial Requirements
Franchisees must have a cash requirement of $60,000 and a net worth between $300,000 and $500,000. These financial metrics are essential for ensuring that potential owners are adequately prepared for the investment and operational demands of running a Yoga Six studio.
Revenue Potential
The average annual revenue per unit is approximately $40,700, with a median of $39,377. This indicates a strong potential for profitability, with some units generating as much as $146,943 annually, showcasing the brand's ability to attract and retain customers.
Operational Efficiency
Yoga Six franchises typically achieve breakeven within 12 months and can expect an investment payback period of about 11 months. This rapid return on investment highlights the operational efficiency and demand for the franchise's offerings.
Franchise Growth
The brand has seen significant growth, increasing from 77 franchised units in 2021 to 166 in 2023. This upward trend reflects the franchise's expanding market presence and the increasing popularity of yoga and wellness services.
Ongoing Fees
Franchisees are subject to a royalty fee of 7% of gross sales and a marketing fee of 2%. These fees contribute to the overall support and brand promotion, ensuring that Yoga Six remains competitive and well-marketed in the fitness industry.
Frequently Asked Questions
The initial investment for a Yoga Six franchise ranges from $399,370 to $462,097. This includes the franchise fee of $60,000 along with other startup costs.