In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the YogaSix franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a YogaSix franchise, based on Item 7 of the company’s 2020 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a YogaSix franchise, based on Items 5 and 6 of the company’s 2020 FDD

• Section IV – Number of franchised and company-owned YogaSix outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD

• Section V – Presentation and analysis of YogaSix’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:

• 2019 average, median, highest, and lowest gross revenue for the 7 YogaSix Studios that (a) were open and operating utilizing the Marks and System over the entirety of the 2019 calendar year, and (b) continue to operate in that manner as of the Issue Date of the 2020 FDD (the “Disclosed Studios”)

Section I – Background Information

17 Things You Need to Know About the YogaSix Franchise

Surpasses 400 Signed Franchise Agreements

1.  At the end of February 2020, YogaSix announced that it had already signed over 400 franchise agreements since it started franchising just a few years ago. At the time of the announcement, YogaSix had 42 studios open and plans to open several hundred locations in the next few years. The new signed franchise agreements will bring YogaSix to several new markets including Texas, Florida, New York, and New Jersey, among others. YogaSix has also signed a master franchise agreement for Saudi Arabia.

2.  Lindsay Junk, president of YogaSix, said, “We are ecstatic with how well YogaSix has been received among entrepreneurs in our first year of franchising. With everything going on in the world, people need yoga now more than ever and we cannot wait for our talented franchise partners to share YogaSix’s empowering, modern take on the practice with their communities.”

3.  YogaSix aims to debunk the stereotype that often surrounds the practice of yoga to eliminate the intimidation factor that many people feel when trying yoga for the first time. With modern-day yoga instruction, YogaSix offers diverse yoga and fitness programming that includes movement and intensity to help customers achieve their fitness goals.

4.  Utilizing modern language instead of Sanskrit and offering six core formats – Y6 101, Y6 Restore, Y6 Slow Flow, Y6 Hot, Y6 Power, and Y6 Sculpt Flow – YogaSix’s classes are meant to encompass every fitness level, whether the focus is on deep stretching, stress relief, or breaking a sweat.

5.  YogaSix is actively seeking qualified franchise partners in various cities across the nation. Headquartered in Irvine, CA, YogaSix is backed by Xponential Fitness, the largest boutique fitness brand with extensive experience in fitness franchising. YogaSix offers potential franchisees the opportunity to be part of a fresh brand with tremendous support, infrastructure, and knowledge.

New Location

6.  At the end of January 2020, YogaSix announced that it was opening a new location in Rochester Hills, Michigan. Natalie Gehring, regional director of real estate for Xponential Fitness, parent company of YogaSix, said, “We are thrilled to be opening YogaSix at the Village of Rochester Hills and bringing the community a great, fun place to practice yoga.”

7.  YogaSix provides a modern approach to ancient practices of yoga, such as using modern language instead of Sanskrit. The studio also utilizes sensory experiences through six core classes, and offers opportunities to people of all ages, shapes, sizes, and genders. YogaSix’s classes strive to encompass all fitness levels, targeting strength, agility, flexibility, and balance.

8.  With YogaSix being an addition to the Village of Rochester Hills, it is complementary to the likes of Whole Foods, Woodhouse Day Spa, lululemon, Aveda, and the recently opened [solidcore] studio. The store is one of the few that are opening in the village in 2020.

9.  Scott Aikens, vice chairman of Robert B. Aikens and Associates, developers of the village, said, “The Village of Rochester Hills offers a premier lifestyle center experience that includes the best shopping, dining, and fitness options. Visitors appreciate the convenience of being able to work out, shop, dine, and be entertained in one location. The addition of YogaSix at The Village will strengthen our current health and fitness offerings and will complement our retail lineup.”

Parent Company Debuts Five Fitness Brands in Saudi Arabia

10.  In late September 2020, as part of a major multi-brand deal, Xponential Fitness, the largest curator of boutique fitness brands in the world, opened its first studios in Saudi Arabia. The newly-opened studios represent the five fitness brands (namely, YogaSix, Club Pilates, Pure Barre, CycleBar, and AKT) included in the master franchise agreement signed last summer to bring more than 50 Xponential Fitness studios to the country over the next few years.

11.  The initial studios are housed inside of the brand new, state-of-the-art EVOX Clubs, which have separate facilities for men and women, in Riyadh. The EVOX Club for Women was created to serve the growing population of women seeking fitness options, following recent reforms in the country, and features studios for all five Xponential Fitness concepts. The EVOX Club for Men features the CycleBar brand.

12.  John Kersh, chief international development officer of Xponential Fitness, said, “These openings are not only a huge step forward for Xponential Fitness and its brands, but a cultural milestone in Saudi Arabia as we introduce its citizens to the exhilarating world of boutique fitness. Notably, Xponential Fitness is excited to bring the benefits of boutique fitness to the women of Saudi Arabia, who are now able to pursue and embrace a lifestyle of health and wellness, which is a new development. We expect this will be one of hundreds more successful international openings for our brands.”

13.  The studios opening in the EVOX Clubs in Riyadh mark the first collaboration between Xponential Fitness and Ezdihar Sports, one of the portfolio businesses of the Fawaz Abdulaziz Alhokair Company. The Alhokair Company is publicly traded on the Saudi Stock Exchange, and operates in a range of industries including movie cinemas, food and beverage, construction, and fashion retail, with over 1,700 stores across the Middle East.

Company History

14.  YogaSix was founded in 2012 by Bill Koman in St. Louis, Missouri. Koman, the son of a former NFL linebacker, had always had a passion for fitness, but spent most of his career in commercial development as the president of the Koman Group, a real estate company. However, when Koman developed lymphoma, he started doing yoga and meditation to cope with the intensity of the disease and its treatment. Koman felt that yoga greatly improved his well being and wanted to share his new passion with other people.

15.  Koman developed YogaSix as a high quality and consistent yoga studio concept. The YogaSix concept was such a hit that Koman opened a second location just a few months after opening the first studio. Over the next few years, more YogaSix locations were opened in Chicago, Milwaukee, and Columbus, Ohio.

16.  In 2018, Koman sold YogaSix to Xponential Fitness, a retail fitness company that owns several fitness brands including Club Pilates, CycleBar, StretchLab, Row House, and AKT. Under the new ownership, YogaSix began franchising and was able to sign over 250 franchise agreements in less than nine months.

Entrepreneur’s Franchise 500

17.  YogaSix did not rank on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of YogaSix franchise costs, based on Item 7 of the company’s 2020 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on YogaSix’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2019

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  34
• Net Change:  +34

Company-Owned

2017

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  7
• Net Change:  +1

2018

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  7
• Net Change:  0

2019

• Outlets at the Start of the Year:  7
• Outlets at the End of the Year:  0
• Net Change:  -7

Section V – Financial Performance Representations (Item 19, 2020 FDD) and Analysis

Average Gross Revenue of Disclosed Studios Over Measurement Period

• In the chart below in this Item, YogaSix discloses the average and median “Gross Revenue” generated by company-owned outlets from January 1, 2019 through December 31, 2019 (the “Measurement Period”) by the 7 Studios that (a) were open and operating utilizing the Marks and System over the entirety of the 2019 calendar year, and (b) continue to operate in that manner as of the Issue Date of the 2020 Disclosure Document (the “Disclosed Studios”).

• All of the Disclosed Studios were franchised Studios operating pursuant to a franchise agreement with YogaSix as of December 31, 2019. (Note: It looks like the Disclosed Studios started the year off as company-owned outlets, but were sold during the year to franchisees).

• The financial performance representations contained in this Item 19 are historical representations based on past performance of the Disclosed Studios. The following representations are based on monthly profit and loss reports provided by the owner of the Disclosed Studios.

Disclosed Studios