Ritual Hot YogaFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Ritual Hot Yoga franchise requires a total initial investment of $297K – $490K, including a $40K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $633K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $297K – $490K
- 58th pct Health & Fitn…
- Avg gross sales
- $633K
- 35th pct Health & Fitn…
- Royalty
- 7.0%
- 28th pct Health & Fitn…
- Units
- 5
- 26th 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
Franchised units fell from 2 to 1 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $297K – $490K including a $40K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $633K/year, with an estimated 12% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 45/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Ritual Franchising Company LLC
- Predecessor
- company
- Prior franchisor entity
- CEO title
- Founder/CEO
- Lindsey Kaalberg
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- IL
- HQ
- 1100 N. Lake Shore Drive, Chicago, Illinois 60611
- Auditor
- KPM Accounting & Management Solutions
- Audited financials
- Franchisor revenue
- $62K
- vs $81K prior year
Affiliated brands
- We have one affiliate
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate hot yoga studios offering heated group fitness classes, typically managing membership sales, class scheduling, instructor hiring/training, and facility operations. Day-to-day responsibilities include member retention, marketing, instructor management, and maintaining studio facilities while paying 7% of gross revenue to the franchisor.
- CEO
- Lindsey Kaalberg
- Headquarters
- IL
- Founded
- 2019
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $100K | $150K |
| Equipment, build-out, other | $157K | $300K |
| Total initial investment | $297K | $490K |
Source: Ritual Hot Yoga 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$184K
29.0% margin
Unlevered ROIC
35%
EBITDA / total invested capital
Payback
34 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $297K – $490K
- Near category avg vs category
- Liquid capital req'd
- $100K – $150K
- Below avg, review vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 8.3 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Training fee | $4K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $633K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $47K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 12.0%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Historical
- Sample size
- 5 units
- vs category median 11 · small
- Range (low → high)
- $12K→$935K
- Cohort dispersion (min → max)
- Quartile band
- $12K→$913K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Ritual Hot Yoga Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 5
- Opened
- 1
- 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
- 3
- Corporate units in the system
- % franchised
- 40%
- vs corporate-owned
- Net growth (yr3)
- +100.0%
- Net unit change last year
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 5
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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.
Available to sell in · Item 12
- Hawaii
- Illinois
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $1.7M
- Median loan
- $1.7M
- 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
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Ritual Hot Yoga's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Ritual Hot Yoga presents CAUTION-level risk: extremely limited franchise network (5 units), thin profit margins after royalties, and unproven scalability despite high startup capital requirements.
Litigation (Item 3)
No litigation is required to be disclosed in Item 3
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPM Accounting & Management Solutions
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 45 / 100 rating
- 01MINOROnly 5 units in system with 100% YoY growth suggests extremely small franchise network and unproven scalability
- 02MINORNet income of $47,288 on $633,015 revenue (7.5% net margin) is razor-thin after 7% royalty obligation, leaving minimal profitability
- 03MINORHigh initial investment range ($297k-$490k) paired with modest unit count indicates franchisor may be reliant on franchise fees for revenue rather than proven unit economics
- 04HIGHNo disclosed going concern statement is positive, but microscopic unit base (5 locations) provides insufficient performance data to validate model
- 05MINORFranchise fee of $40,000 represents 13.5-23.6% of total startup cost, typical for new/unproven systems rather than established brands
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 |
| Allowed renewalsℹ | 1 |
| Territory type | Designated Territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Illinois |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 88 hrs
- On-the-job training
- 8 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- POS system
- third party, web-based Studio POS solution
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: third party, web-based Studio POS solution
Item 20 · call current owners
Franchisee Contacts
18 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Ritual Hot Yoga · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Ritual Hot Yoga franchise?
The total investment to open a Ritual Hot Yoga franchise ranges from $297K – $490K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Ritual Hot Yoga franchise owners earn?
According to Item 19 of the Ritual Hot Yoga FDD, the average gross sales per unit is $633K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Ritual Hot Yoga's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Ritual 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 Ritual Hot Yoga franchise locations are there?
As of their most recent FDD filing, Ritual Hot Yoga has 5 total units in the United States, including 2 franchised units and 3 company-owned units. 1 new units were opened in the latest reporting year.
Is Ritual Hot Yoga a good franchise to buy?
FranchiseVerdict rates Ritual Hot Yoga as a A-grade franchise with a risk score of 45 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.