Real Hot YogaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Real Hot Yoga franchise requires a total initial investment of $224K – $385K, including a $49K franchise fee and an ongoing 7.0% royalty[2]. The 2022 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $224K – $385K
- 45th pct Health & Fitn…
- Avg gross sales
- N/A
- 59th pct Health & Fitn…
- Royalty
- 7.0%
- 28th pct Health & Fitn…
- Units
- 1
- 2nd pct Health & Fitn…
- SBA default
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $224K – $385K including a $49K franchise fee, 7.0% ongoing royalty.
- Item 19 disclosed $596K from 1 affiliate-owned outlet — the only unit in the system. This reflects franchisor operations, not franchisee performance.
- Verdict C (Average) with a risk score of 64/100.
- Item 19 reports "Actual Gross Profits of an affiliate-owned outlet" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Real Hot Yoga Franchise, LLC
- Incorporated in
- TN
- HQ
- 8023 Kingston Pk., Ste 5, Knoxville, TN 37919
- Auditor
- Akiva Manne
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
Overview
About
Real Hot Yoga franchisees operate heated yoga studios offering group classes, personal training, and wellness services to members on monthly or class-pass subscription models. Day-to-day operations include class scheduling, instructor management, facility maintenance of heating systems, membership billing, and community marketing to drive class attendance and retention.
- Headquarters
- TN
- Founded
- 2019
- FDD year
- 2022
- States available
- 1
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $49K | $49K |
| Working capital (3–6 mo) | $20K | $30K |
| Equipment, build-out, other | $155K | $306K |
| Total initial investment | $224K | $385K |
Source: Real Hot Yoga 2022 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $224K – $385K
- Near category avg vs category
- Liquid capital req'd
- $20K – $30K
- Better than avg vs category
- Franchise fee
- $49K – $49K
- Near category avg vs category
- Royalty
- 7.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $650 |
| Transfer fee | $25K |
| Renewal fee | $25K |
| Total fee load | 8.0% of rev |
Financial Performance
Item 19 disclosed $596K from 1 affiliate-owned outlet — the only unit in the system. This reflects franchisor operations, not franchisee performance.
vs Health & Fitness averages
How Real Hot Yoga Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- $1.6M
- Median loan
- $325K
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Real Hot Yoga's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Real Hot Yoga presents elevated risk due to going concern status, single-unit system suggesting contraction, absence of financial substantiation (Item 19), and unclear franchisor viability despite reasonable unit-level economics.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Akiva Manne
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 64 / 100 rating
- 01HIGHGoing Concern status indicates franchisor financial distress or viability uncertainty
- 02MINOROnly 1 operating unit despite franchise system suggests failed expansion or recent collapse
- 03HIGHNo disclosed litigation history is unusual for yoga/wellness sector with liability exposure
- 04MEDMissing Item 19 financial performance representations limits ability to validate stated averages
- 05MINORHigh initial investment ($223.8K-$385.1K) relative to single operating location suggests unproven model scalability
- 06HIGH7% royalty on $595.9K average revenue = $41.7K annual fee is material but sustainability unclear with going concern status
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius or population based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Tennessee |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 43 hrs
- Training location
- On-site and classroom
- POS system
- Mind Body Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Mind Body Software
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Real Hot Yoga · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Real Hot Yoga franchise?
The total investment to open a Real Hot Yoga franchise ranges from $224K – $385K, with an initial franchise fee of $49K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Real Hot Yoga franchise owners earn?
Real Hot Yoga does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Real Hot Yoga's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Real Hot Yoga (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Real Hot Yoga franchise locations are there?
As of their most recent FDD filing, Real Hot Yoga has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is Real Hot Yoga a good franchise to buy?
FranchiseVerdict rates Real Hot Yoga as a C-grade franchise with a risk score of 64 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.