Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Modo Yoga Franchise Costs (2016 FDD)

by Franchise Chatter on October 2, 2016

in Fitness Franchises, Franchise Costs



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Detailed Estimates of Modo Yoga Franchise Costs Based on Item 7 (Estimated Initial Investment) of Modo Yoga’s 2016 Franchise Disclosure Document

  • All figures in Item 7 are estimates only. Actual costs will vary for each franchisee depending on a number of factors.
  • If you are a Heritage Studio you may not incur all of these expenses.
  • The amounts payable to the franchisor are non-refundable unless otherwise noted. The refundability of other amounts depends upon your agreement with the applicable supplier or other party.

1.  Initial Franchise Fee:  $7,675; $11,512.50; or $15,350

  • The standard initial franchise fee is $15,350.
  • The lower initial franchise fee of $11,512.50 reflects a discount of 25% off of the standard initial franchise fee. The discount is provided if the market in which the franchisee is applying to develop a studio is determined by the franchisor to be small.
  • The lowest initial franchise fee of $7,675 is only available to Heritage Studios that have elected to convert their licensed business to a franchise.

2.  Travel and Living Expenses While Training:  $0

  • With the exception of Level I and II training, all training is done through webinars and online communication tools.

3.  Lease, Utility, and Security Deposits:  $15,000 to $40,000

  • You will need approximately 4,000 square feet for your studio. This amount includes an estimate for a deposit of the first three months’ rent and utility deposits.

4.  Leasehold Improvements:  $250,000 to $750,650

  • This estimate includes amounts needed for construction, remodeling, decorating costs, and any other leasehold improvements.

5.  Business License and Permit:  $1,500 to $3,000

6.  Signage:  $2,000 to $15,000

7.  Furniture and Fixtures:  $20,000 to $45,000

8.  Opening Inventory:  $5,000 to $11,000

  • This estimate includes inventory of yoga apparel, equipment, and accessories, including the company’s proprietary products, for your first 90 days of operations.

9.  Legal and Professional Fees:  $10,000 to $25,000

  • This figure includes the franchisor’s estimate of the cost for you to consult with independent legal and other professional advisors.

10.  Additional Funds – 3 Months:  $20,000 to $45,000

  • These miscellaneous start-up costs are the franchisor’s estimate of necessary working capital. You may have additional expenses in starting the business. Your actual costs will depend on your management skill, the size of the city in which you open, experience and business acumen, your sales figures during the first three-month period, your ability to follow the franchisor’s system, and local market and economic conditions.
  • The franchisor based its estimate of these expenses on the experience of its affiliate that was involved in the opening of the studio at 340 S. La Brea, in West Hollywood, California.

11.  Total:  $327,337.50 to $950,000

  • These figures are estimates and the franchisor cannot guarantee that you will not have additional expenses starting the business. Your costs will depend on factors such as how much you follow the franchisor’s methods and procedures; your skill, experience, and business acumen; local economic conditions; the local market; the size of the city in which you open; competition; and your customers.
  • The franchisor does not offer financing to franchisees for any of the above items.



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