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YogaFit Franchise Costs & Fees

Date of Incorporation: 2013
Franchising Since: 2014
Headquarters: Chanhassen, Minnesota

Business Description: YogaFit Franchising, LLC is the franchisor. YogaFit Studios give members, of all levels, unlimited access to modern, welcoming, and instruction-driven yoga studios that offer a selection of both live classes and virtual on-demand classes.

Franchise Offer: The franchisee will utilize the franchisor’s proprietary business format and system for operating a yoga studio.

Financial Assistance: Franchisees may qualify for financing through the franchisor’s preferred financing vendor, Lease Servicing Center (LSC), through a program under which we guarantee a portion of the financed amount. Qualification depends on the franchisee’s personal credit profile and other factors. Except for the financing disclosed, the franchisor does not offer any direct or indirect financing.

Training and Assistance: The franchisor will provide initial training to at least two people in the franchisee’s organization (including the General Manager), which the attendees must complete to the franchisor’s satisfaction. The training is conducted at the franchisor’s headquarters and a designated Studio location of our choosing. The training program is four days. Periodically, the franchisor may offer additional training programs and it may charge a fee for attending these training programs. The franchisor has the right to require specific certification programs for Studio personnel who provide yoga or personal fitness instruction, teach any form of exercise, or provide any kind of fitness or nutrition instruction or counseling. In addition, the franchisor may hold and require that the Principal Owner (this is, a person who owns a 25% or greater interest in the franchisee entity) and general manger or other designated employees attend, at the franchisee’s expense, any conference, meeting, convention or seminar to present new methods and programs for operation, training, management, sales or marketing.

Territory: When the Franchise Agreement is signed, franchisees will select a general geographic area in which they intend to operate their Studio (Preliminary Designated Area). The franchisor generally will approve the selection unless it determines, in our sole judgment, it is unavailable for development under its current policies. Once franchisees have acquired a site, the franchisor will complete the Franchise Agreement to reflect the site (which will become the Studio’s “Authorized Location”) and to define the “Designated Area” around the Authorized Location. A minimum Designated Area will consist of one city block and, in suburban and rural areas, may be as large as a three-mile driving distance from the anticipated location. The actual size and boundaries of the Designated Area will depend upon a variety of factors, including the population base; density of population; growth trends of population; the density of residential and business entities; and major topographical features which clearly define contiguous areas, like rivers, mountains, major freeways, and underdeveloped land areas.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Renewal is for unlimited additional 10-year terms, if requirements are met.

Obligations and Restrictions: During the term of the Franchise Agreement, franchisees (if the franchisee is an individual) or the general manager must devote sufficient time and best efforts to the management of the Studio. Franchisees are expected to stay informed about the franchisor’s organizational plans, initiatives and direction by regular review of communications sent to them electronically or otherwise. Franchisees or their general manager must provide direct on-premises supervision to the Studio. Franchisees must offer at the Studio all of the products, equipment and services that the franchisor periodically requires and franchisees may not offer at the Studio any unapproved products or use the premises for any purpose other than the operation of the Studio.

Estimated Number of Units: 15

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $25,000 $25,000
Go FAST Kit $15,800 $15,800
Security and Media Package (including FitnessOnDemand) $19,000 $19,000
Grand Opening Marketing $4,000 $4,000
Mirrors $2,000 $3,600
Misc. Equipment $3,500 $3,500
Exterior Signage $2,500 $4,000
Flooring (and Installation) $7,800 $9,000
Leasehold Improvements (not including flooring) $0 $125,000
Deposits, Utilities, and Insurance $2,700 $5,700
Training Expenses $500 $2,000
Business Licenses and Professional Fees $1,000 $4,000
Additional Funds (3 months period) $50,000 $50,000
ESTIMATED TOTAL $133,800 $270,600
Other Fees
Type of Fee Amount
Royalty The greater of 5% of Gross Revenues or $500 per month.
National Marketing Fee The greater of 2% of Gross Revenue or $100 per month.
Local Marketing Fund or Advertising Cooperative Contribution The greater of 2% of Gross Revenues or $100 per month.
Website Fee $30 per month per Studio.
Door Access Cards Then-current price for door access cards (currently $5)
Software License Fee (Fitware) Currently, $150 per month.
FitnessOnDemand Currently, $149.99 per month.
Decline Recovery Service $1 per decline.
Online Acquisition Fee $15 per online enrollment.
Reimbursement Processing Fee $35 per month.
Audits Cost of audit plus interest at the maximum rate allowable by law.
Transfer Fee $15,000
Convention All franchisees are required to attend the annual convention and the franchisor anticipates that there will be a fee in future years.
Renewal Fee 10% of the then-current initial franchise fee (reduced to 5% if the renewal franchise documents are returned on time).
Costs and Attorneys’ Fees Will vary under circumstances.
Insurance $130-$200 monthly.
Interest 18% per annum or the maximum amount allowed by law.
Indemnification Will vary under circumstances.
Supplier Review Fee The franchisor’s costs and expenses, which are currently expected to range between $1,000 and $3,000, although costs could exceed those amounts depending on the product.
Modernization and Maintenance Costs The franchisor’s reasonable costs and expenses which will vary.
Additional Assistance or Training Currently, $250 per day plus travel costs.
Securities Offering Costs/td> Will vary under circumstances.

The above information has been taken from the FDD of YogaFit. Year of FDD: 2016

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