Risk Score
Pending analysis
Investment Range
$529,233 - $826,265
Franchise Fee
$40,000
Total US Locations
192
Business Summary
Yoga Six operates fitness studios that offer yoga and other specialized exercise classes using designated equipment. These studios provide live instructional group and individual classes, as well as membership programs for clientele.
Corporate History
Yoga Six Franchise SPV, LLC was formed in March 2023 as part of an internal reorganization by its parent company, Xponential Fitness, Inc., which is publicly traded. The Yoga Six brand itself has been offering franchises since September 2018 through a predecessor entity, Yoga Six Franchise, LLC. The current entity, Yoga Six Franchise SPV, LLC, officially began selling Yoga Six franchises in April 2023 after acquiring the brand's intellectual property. Yoga Six is one of eight fitness brands owned and franchised by subsidiaries of Xponential.
Financial Overview
Investment Range
$529,233 - $826,265
Franchise Fee (Low)
$40,000
Franchise Fee (High)
$60,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$351,600
Equipment Costs (High)
$505,500
Working Capital
$45,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial health of Yoga Six's parent company, XPOF Assetco, LLC, shows significant reliance on its ultimate parent, Xponential Fitness LLC. Auditors have emphasized that Assetco's financial statements may not be indicative of independent operations due to extensive related-party transactions. These transactions include centralized cash management, which results in substantial "net advances to the Member" (Xponential Fitness LLC) totaling $155,034,000 as of December 31, 2024, which the Member has no plan to repay in the foreseeable future. Despite these advances, Assetco reported a net income of $150,109,000 in 2024. All of Assetco's assets also collateralize the existing debt of its Member, Xponential Fitness LLC.
Financing Details
Yoga Six does not provide any direct or indirect financing to its franchisees. This means that Yoga Six will not offer loans, guarantee notes, or secure lease obligations for franchisees. While certain third-party lenders, such as Amerifund and Navitas, have sponsored past conventions and may do so in the future, Yoga Six explicitly states it is unaware of the specific terms of any financing franchisees might obtain from them.
Performance Metrics
Total US Locations
192
Franchised Units
192
Corporate Units
0
Avg Square Footage
1,650
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
8
Litigation Summary
Yoga Six and its affiliates are involved in multiple significant legal and regulatory matters. Several franchisees have filed lawsuits in California and arbitrations in other states, primarily alleging pre-sale disclosure violations, fraudulent inducement, and breach of contract related to their franchise agreements. These cases often seek rescission of the agreements and damages. Additionally, Yoga Six's parent company, Xponential Fitness, Inc., and its officers face consolidated securities lawsuits alleging violations of securities law, breach of fiduciary duties, and mismanagement. In November 2024, Yoga Six and its affiliates also entered a consent order with the California Department of Financial Protection and Innovation, agreeing to pay a $450,000 penalty to resolve findings of material misrepresentations and omissions in past franchise registration applications.
Bankruptcy History
Yoga Six's Chief Operating Officer for North America, Timothy Weiderhoft, and his wife filed a personal Chapter 7 bankruptcy in August 2023. This was due to an unrelated restaurant business failing during the COVID-19 pandemic. The bankruptcy was successfully discharged in December 2023.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew with Yoga Six, franchisees must sign the then-current franchise agreement, which might have different terms. They need to keep their approved location or find a new one that Yoga Six approves. The studio must be remodeled to meet current brand standards, and the franchisee must have followed all parts of their previous agreement and other agreements with Yoga Six. Additionally, a $10,000 successor franchise fee is required, along with written notice of intent to renew between 90 and 180 days before the current term ends, and the signing of a general legal release.
Training & Support Program
Franchisor Assistance
Yoga Six provides extensive support to its franchisees. Before opening, Yoga Six helps with site selection guidance, provides access to a comprehensive online Learning Management System with manuals and operating procedures, and licenses the brand's trademarks. Franchisees and their managers receive initial training covering operations, sales, and management, while instructors undergo specialized Teacher Training Facilitator Training. Yoga Six also consults on the pre-opening sales and marketing plan. After opening, ongoing support includes specifying and approving equipment and suppliers, offering continuous advisory assistance and information as deemed appropriate, and managing the Brand Development Fund for advertising. Franchisees receive guidelines for local marketing and social media. Yoga Six also provides and requires the use of a specific computer system and software for business management, and an audio/visual package. Additional training is available, including optional elective support programs and mandatory refresher training, some of which may incur fees.
Initial Training Hours
95
Training Location
Corporate headquarters in Irvine, CA, virtually, or at the franchisee's studio or a nearby studio.
Ongoing Support
Yoga Six provides ongoing support to franchisees through various channels. This includes approving and specifying equipment and suppliers, offering continuous advisory assistance and information as deemed appropriate, and maintaining the Brand Development Fund. Franchisees and their management personnel may be required to attend up to five days of additional training annually at a designated facility without tuition fees. An elective Approved Teacher Training Facilitator Support Program is also available, offering high-quality training, quality control, recruiting assistance, and corporate-led training programs for new hires. Franchisees can also request additional or refresher training, which may be provided at a designated facility or on-site at their studio, potentially incurring a training fee.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
protected
Territory Size Requirements
Yoga Six designated territories are generally defined as an area with a population of at least 15,000 people. The exact size and shape of the territory will vary depending on the specific location and demographics surrounding the Yoga Six studio. Boundaries may be described using zip codes, streets, natural or man-made landmarks, or county lines, and will be outlined on a map.
Staffing Notes
Yoga Six requires studios to always employ at least seven Authorized Instructors. These instructors must complete a 200-hour yoga teacher training (either a third-party program or Yoga Six's proprietary training) and successfully finish Yoga Six's Teacher Training Facilitator Training Program to provide approved services. Studios must also be managed by an approved Designated Manager or the Operating Principal, both of whom need to complete specific initial training modules. All personnel are expected to be of high character, enthusiastic, clean, friendly, honest, and loyal. Franchisees are solely responsible for hiring, training, and managing their staff according to these standards and all applicable employment laws.