Bottom line
- Total investment $529K – $826K including a $60K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $489K/year (median $468K).
- Rated MODERATE with a risk score of 61/100. SBA loan default rate of 0.0% across 121 loans (below the industry average).
- 14 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Yoga Six unit return on the cash you put in?
Unlevered ROIC · per unit
20%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Yoga Six units return on equity?
Equity IRR · 5-yr
45.5%
6.52× MOIC
Year-1 DSCR
1.97×
EBITDA ÷ debt service
Equity required
$2.5M
on $10.7M purchase
Total debt
$8.2M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate boutique yoga studios offering group fitness classes, typically managing 15-30+ instructors, handling member retention/billing systems, and overseeing facility operations including cleaning, scheduling, and community marketing. Day-to-day responsibilities include staff management, class coordination, member acquisition, and ensuring brand compliance across studio atmosphere and instruction quality.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Yoga Six presents HIGH RISK due to active litigation for fraud/regulatory violations, undisclosed profitability metrics, stagnant unit growth, and corporate financial instability—unsuitable for risk-averse investors.
Score breakdown · what drove the 61 / 100 rating
- 01HIGHActive litigation involving fraud allegations and franchise law violations with regulatory consent orders indicating disclosure compliance failures
- 02HIGHGoing concern status is FALSE, suggesting potential financial instability at corporate level
- 03MINORSlow unit growth of only 3.8% YoY with 192 units indicates stagnation or market saturation challenges
- 04MEDNo Item 19 (average net income) disclosed despite $488,615 average revenue—prevents ROI validation and suggests weak unit economics
- 05MINORHigh initial investment ($529K-$826K) combined with 7% royalty creates significant financial burden with unproven profitability
- 06MINORRegulatory consent orders demonstrate documented failures in franchise disclosure compliance and business practice standards
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
94 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Yoga Six · FDD (2025) PDF