If you’re thinking about opening a yoga franchise, we love that idea — especially when you do so with Honor Yoga! Franchising is a great way to become your own boss, allowing you to be in business for yourself but not by yourself. But as you learn more about the world of franchising, you might be confused by some of its terminology and language. So, let’s look at a few common franchise terms you’ll come across as you move forward in your journey, what they mean, and why they’re important.
Put simply, a franchisor is a company or brand that’s offering an investment opportunity to potential franchisees. But in reality, a franchisor is much more than that — or should be, especially when opening a yoga franchise. The people behind the brand are what really determine the strength of a franchisor because those people will be the ones you’ll turn to for ongoing support. In addition to selling you the right to open stores and sell products or services using their brand name, they’ll also be the people who make sure you’re well trained and ready to do business. The training and support we offer is one of the best reasons to consider Honor Yoga when thinking about opening a yoga franchise.
Franchise Disclosure Document
A Franchise Disclosure Document (FDD) is a very important standardized document required of all franchisors by the Federal Trade Commission. Serious potential investors in Honor Yoga always have at least two weeks to review ours, oftentimes with their attorneys. In it, they’ll find answers to many of the questions they may have about the Honor Yoga brand and our offering, including answers to questions regarding our history, our team leaders, our investment numbers, and what they can expect from us in the way of training and support. Investors also learn more about what’s expected of them as an Honor Yoga yogipreneur and any monthly fees they’ll be responsible for.
A franchise fee is the one-time lump sum you’ll pay to become part of a brand family. All franchisors charge a franchise fee, payable upon the signing of a franchise agreement, and when opening a yoga franchise with Honor Yoga, you can expect to pay approximately $49,000. This fee covers the cost of your onboarding and pre-opening training and grants you access to our proprietary materials, logos, and resources, as well as gives you the right to do business under the recognized and respected Honor Yoga name.
Opening any new business requires an investment of not only time and effort but of money as well. Startup costs, sometimes called an initial investment, refer to the total financial investment an Honor Yoga yogipreneur will need to make in order to get his or her studio up and running. The great thing about an Honor Yoga opportunity is that we offer three models to choose from, each with its own startup costs (and our virtual studio model is super economical!). Whichever model you decide on, your initial investment will include expenses like our franchise fee, working capital, insurance, and so forth, and is typically represented as a range, showing low- and high-end amounts.
Royalties are the monthly fees collected by the franchisor against your gross receipts. Among other things, this money is used to fund the ongoing support we provide you, R&D of new products and services, and improved operating processes. In our case, that fee is 7% of your gross receipts (and 6% for teacher training gross receipts).
We pride ourselves in ensuring the cost of becoming part of the Honor Yoga family is transparent and factors in just about everything you’ll need to get going. For an in-depth look at an Honor Yoga investment, request a copy of our FDD.
If you’d like to learn more about opening a yoga franchise with Honor Yoga, we’d love to hear from you, so reach out today!