Real Hot Yoga Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Real Hot Yoga is a boutique fitness franchise offering heated yoga and group fitness classes. Franchisees run the studios, managing instructors, class scheduling, and membership growth.
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). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $224K – $385K
- 44th pct Health & Fitn…
- Avg gross sales
- N/A
- Company-owned onlyn=1
- Royalty
- 7.0%
- 30th pct Health & Fitn…
- Units
- 1
- 3rd pct Health & Fitn…
- SBA charge-off
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $224K – $385K including a $49K franchise fee, 7.0% ongoing royalty.
- RETURNSItem 19 disclosed $596K from 1 affiliate-owned outlet — the only unit in the system. This reflects franchisor operations, not franchisee performance.
- RISKVerdict D (Below average), verdict score 33/100 (higher is better).
- DATAItem 19 reports Actual Gross Profits of an affiliate-owned outlet rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Real Hot Yoga Franchise, LLC
- Incorporated in
- Tennessee
- HQ
- 8023 Kingston Pk., Ste 5, Knoxville, TN 37919
- Auditor
- Akiva Manne
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
Overview
About
- Headquarters
- TN
- Founded
- 2019
- FDD year
- 2022
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 47% below the typical health & fitness franchise.
Source: FDD 2022 · Items 5–7
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
- Middle of category vs category
- Liquid capital req'd
- $20K – $30K
- Middle of category vs category
- Franchise fee
- $49K – $49K
- Middle of category 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 |
What do units actually make?
Source: FDD 2022 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Real Hot Yoga did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Real Hot Yoga unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
68%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
Item 19 disclosed $596K from 1 affiliate-owned outlet — the only unit in the system. This reflects franchisor operations, not franchisee performance.
Company-owned outlets only - not franchisee performance
Based on a single reporting unit - not a system average
- Item 19 type
- Actual Gross Profits of an affiliate-owned outlet
- Sample size
- 1
- vs category median 12 · small
- Reporting year
- 2021
- Fiscal year the figures cover
- Source filing
- FDD 2022
- Disclosed in the 2022 filing, covering 2021
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 173 Health & Fitness brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Health & Fitness average).
Disclosure
Item 19 reports Actual Gross Profits of an affiliate-owned outlet rather than annual gross sales, so unit revenue is not directly comparable.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Health & Fitness averages
How Real Hot Yoga Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
- limited sample (6 loans) — rate not shown below 10
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
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Early-stage franchisor (began 2020) with only 1 company-owned unit and 0 franchised; financial_distress flagged but distress_is_early_stage=true. Bankruptcies disclosed are old personal filings by two officers (2012/2013, both discharged), which are low weight. Audited financials and Item 19 disclosed.
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 33 / 100 verdict
- 01MINOREarly-stage distress (distress_is_early_stage=true), 1 unit, 0 franchised
- 02MINOROld discharged personal bankruptcies of two officers (2012/2013)
- 03MEDAudited + Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 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
2 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 Item 19 in the Real Hot Yoga FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Real Hot Yoga FDD and qualifies whose outlets they describe.
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 D-grade franchise with a verdict score of 33 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Real Hot Yoga, you can request corrections or provide updated information.
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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.