Real Hot Yoga Franchise Cost, Revenue & Review 2026
- Investment
- $224K – $385K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Under 10 loans (6)
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 on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $224K – $385K
- 44th pct Health & Fitn…
- Avg gross sales
- N/A
- Company-owned onlyn=1
- Royalty
- 7.0%
- 37th pct Health & Fitn…
- Units
- 1
- 2nd pct Health & Fitn…
- SBA charge-off
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness median · 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 30/100 (higher is better).
- GROWTHFlat: no net change in franchised outlets in the latest year (0 opened, 0 closed) (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
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
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 22% 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%
- 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 |
| Inventory (initial) | $4K – $5K |
| 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
No Item 19 revenue figure for Real Hot Yoga is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Real Hot Yoga unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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 11 · 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 median).
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 medians
How Real Hot Yoga Compares
Category median of published Health & Fitness brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- N/A
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 4
- Franchisor's next-year forecast
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)
Where the owners are · Item 20 owner list
2 current owners across 2 states.
- CA 1
- TN 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (6)
- Insufficient SBA coverage: 6 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (6)
- 5-yr charge-off
- Under 10 loans (6)
- 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
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed in Item 3.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
Jeffrey Dominick Morin, our VP of Franchise Sales, filed for bankruptcy in the United States Bankruptcy Court Eastern District of New Jersey, case number 12-12263, on January 31, 2012. ... Aaron Goodman, our VP of Operations, filed for bankruptcy in the United States Bankruptcy Court District of Tennessee on April 18, 2013, case number 3:13-bk-31495.
Audited financials (Item 21)
Yes · Akiva Manne
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 30 / 100 verdict
- 01MINOROld discharged personal bankruptcies of two officers (2012/2013)
- 02MEDAudited + 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 | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 90 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Knox County, Tennessee |
| Jury trial waiver | Yes |
| Governing law | Tennessee |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 43 hrs
- Training location
- On-site and classroom
- Ongoing training
- Required
- Site selection
- franchisee (franchisor approves; does not select site)
- Franchisor financing
- Not offered
- Item 10
- 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
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?
Item 19 of the Real Hot Yoga FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Real Hot Yoga?
Real Hot Yoga is franchised by Real Hot Yoga Franchise, LLC. Source: FDD Item 1, 2022 filing.
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.
Is Real Hot Yoga a good franchise to buy?
FranchiseVerdict rates Real Hot Yoga as a D-grade franchise with a verdict score of 30 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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?
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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.