Risk Score
Pending analysis
Investment Range
$236,550 - $954,100
Franchise Fee
$25,000
Total US Locations
2
Business Summary
THE YARD GYM offers franchises for operating boutique strength and conditioning fitness studios. These studios specialize in functional strength, conditioning, and anaerobic group classes, using professional-level fitness equipment. They also provide individual fitness coaching within an aesthetically pleasing and high-energy environment. THE YARD GYM classes feature pre-recorded 50-minute sessions led by instructors, which are displayed on television screens, while on-site coaches offer personalized guidance. The class offerings include "RIG" for strength and endurance, "TURF" for cardiovascular and power training, and "PAY DAY" for team-based resilience building. Franchisees may also offer evening yoga classes. Additionally, THE YARD GYM sells Branded Retail Merchandise such as fitness apparel and accessories, with potential future expansion into wearable fitness tracking monitors and proprietary nutritional products. Locations are typically 2,000 to 4,400 square feet.
Corporate History
TYG Enterprises, LLC, the franchisor, was formed in Delaware on May 5, 2023. While its current principal place of business is in Caringbah, NSW, Australia, it plans to relocate its headquarters to Southern California in 2024. The company is affiliated through common ownership with The Yard Ventures Pty Ltd (organized September 13, 2021) and Bova Fitness Pty Ltd (organized July 29, 2014), both Australian limited liability companies. The Bova Parent initially owned the intellectual property for THE YARD GYM and TYG TRAINING, licensing it to The Yard Gym Pty, Ltd, which opened the first THE YARD GYM in Caringbah, Australia, on July 13, 2020. In 2021, the Bova Parent licensed the TYG Affiliate to sell THE YARD GYM franchises in Australia. In 2023, the Bova Parent assigned all THE YARD GYM intellectual property to the TYG Affiliate. TYG Enterprises, LLC began offering THE YARD GYM franchises in the United States (excluding Illinois) on February 16, 2024, and has no predecessor. It intends to offer TYG TRAINING franchises in Illinois in 2024, with these programs being operationally identical to THE YARD GYM franchises, differing only in name and geographical reach due to trademark restrictions.
Financial Overview
Investment Range
$236,550 - $954,100
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$115,500
Equipment Costs (High)
$131,500
Working Capital
$80,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Yard Gym's financial condition, as highlighted in its financial statements, raises concerns about the franchisor's ability to provide services and support to its franchisees. As of June 30, 2024, The Yard Gym reported a member's equity deficit of $238,851.
Financing Details
The Yard Gym does not offer any direct or indirect financing options to its franchisees. The franchisor also does not guarantee any notes, leases, or other obligations to banks or landlords for franchisees.
Performance Metrics
Total US Locations
2
Franchised Units
2
Corporate Units
0
Avg Square Footage
3,200
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Yard Gym has no litigation history to report.
Bankruptcy History
The Yard Gym has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew, The Yard Gym franchisees must meet several conditions, including the franchisor still offering new THE YARD GYM or TYG TRAINING franchises in the United States. Franchisees must provide written notice of their intent to renew 9 to 12 months before the current term expires, pay a $7,500 renewal fee, and be in good standing under their existing Franchise Agreement. They are also required to sign The Yard Gym's then-current Franchise Agreement and a general release. Additionally, franchisees must update their gym's design, appearance, and trade dress to meet current Network Gym standards, which may include purchasing and installing a new equipment pack if necessary. Franchisees must also negotiate with their landlord to extend their lease for the full renewal term or relocate to a new approved location, ensuring the landlord signs The Yard Gym's then-current Addendum to Lease.
Training & Support Program
Franchisor Assistance
Before opening, The Yard Gym provides franchisees with access to its Brand Standards Manual, written site selection criteria, and construction specifications, including a prototype layout and floor plan. The franchisor reviews proposed sites, designates territories, and approves design personnel and contractors. It also approves construction drawings, addresses development and construction questions, and sells the initial equipment package and initial Branded Retail Merchandise. Franchisees can request approval for alternative suppliers, and the franchisor delivers Initial Training Program modules covering Business Operations and Coach Training. Additionally, The Yard Gym designs and implements a Grand Opening Launch marketing program, designates an optional third-party bookkeeping service, and provides Computer System specifications. After opening, The Yard Gym offers ongoing consultation and advice in response to franchisee inquiries via various channels like the Network Portal, phone, or in person. Franchisees can request additional on-site training or manager qualification (for a fee) and have access to the Network Portal. The franchisor sells replacement fitness equipment, parts, and additional Branded Retail Merchandise. When the system reaches sufficient size, The Yard Gym may conduct joint annual meetings for franchisees (which may include a registration fee) and issues revisions to the Brand Standards Manual. It also reviews requests for alternative suppliers, conducts periodic inspections and record reviews, administers the Marketing Fund, reviews local marketing materials, maintains The Yard Gym website with individual subpages for each gym, and plans to implement a mystery shopper program (for a fee). The franchisor may also set minimum/maximum prices and client refund policies.
Initial Training Hours
64
Training Location
Primarily at operating Network Gyms in San Diego, California, with some virtual modules via Zoom or video technology.
Ongoing Support
After opening, The Yard Gym provides ongoing support to franchisees through regular consultation and advice, which can be delivered via the Network Portal, telephone, email, or in-person. Franchisees can also request additional on-site training or send new Primary Owners or General Managers for training after the opening date, though these may incur fees. Franchisees maintain access to the Network Portal for announcements and resources. The franchisor sells replacement fitness equipment, parts, and new models, as well as additional Branded Retail Merchandise. When the system is large enough, The Yard Gym plans to hold joint annual meetings for franchisees (which may have a registration fee). The franchisor regularly updates the Brand Standards Manual and reviews requests for alternative suppliers. It conducts periodic inspections of operations and reviews financial records, administers the Marketing Fund, and reviews local marketing materials created by franchisees. The Yard Gym maintains its website, providing each franchised gym with a customizable subpage, and plans to implement a mystery shopper program for performance feedback, with associated fees. The franchisor may also establish minimum/maximum prices and client refund policies for consistency across the brand, and intends to form a franchisee advisory council when the system reaches sufficient size.
Franchise Requirements
Ideal Candidate Profile
The Yard Gym primarily seeks conversion franchisees who are operators with at least two years of prior experience owning and operating a strength and conditioning gym at a location that can be readily adapted into a The Yard Gym facility. Franchisees must also meet The Yard Gym's financial and general background criteria. Each franchise must have a Primary Owner who owns at least 20% equity, completes initial training, and dedicates significant effort to meeting obligations. The franchised gym must always be under the direct, full-time supervision of a qualified General Manager.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
2
Operational Details
Location Type
Retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Each The Yard Gym territory will be a designated geographic area, in no event smaller than a single zip code. The franchisor does not guarantee that territories will be identical in geographic size or population, and the territory will not change due to future population or demographic shifts.
Staffing Notes
The Yard Gym requires each franchised gym to be under the direct, full-time supervision of a General Manager at all times. This General Manager must successfully complete The Yard Gym's Initial Training Program. A single General Manager may oversee up to five franchised gyms if they are owned by the same franchisee or an affiliate. Franchisees are responsible for all hiring, firing, and establishing employment policies for their staff. All employees and independent contractors working at a The Yard Gym location must be competent, well-trained by the franchisee, fluent in English, maintain a neat appearance, and wear branded t-shirts purchased from The Yard Gym or its designated supplier. The franchisor recommends that all opening employees and instructors participate in the one-day New Gym Opening Launch training.