Do you want to open a yoga studio business by buying Yoga Pod franchise? If YES, here is how much it cost to open a Yoga Pod franchise successfully. In the United States, the practice of yoga have become a necessity, especially with this current generation. In the last 10 years, the popularity of the practice has exploded across the country and more and more people take it up every day.
The industry has experienced massive boom and with a yoga studio on every street corner in America, catering to the different styles of practice that exist and having something for just about everyone. Yoga Pod is just one studio chain that has multiple locations.
Presently, Yoga Pod is looking to add more franchised studios around the country and bring their classes to more people. The company’s focus of fitness and spirituality resonates with many people and lends itself to an immersive experience that keeps consumers coming back for more.
The dream for Yoga Pod came to founders Nicole and Gerry Weinholt while they were honeymooning in Italy in 2005 and has been a constant work in progress ever since.
After opening and operating the first Yoga Pod studio, they realized that they had a special product and that they wanted to share it with as many students as possible. They also wanted to provide the opportunity to other entrepreneurs who were passionate about yoga. This is why they began selling franchise licenses in 2012.
When you franchise with Yoga Pod, you will be responsible for holding up your own end of the bargain and stay in compliance with the agreement signed when the license was issued. These responsibilities tie the franchisee to a commitment to run the business the way the franchisor envisioned.
Coupled with not having any creative control, the franchisee must also pay ongoing fees to the franchisor for the right to continue doing business under their name. Yoga Pod charges each franchisee royalty and advertising fees that come in the form of percentages of their gross total sales.
Yoga Pod, even though they have a shorter history than many other franchise opportunities, is no different. They offer the tools and processes envisaged to work specifically for their brand and they share those ideas with their franchisees.
Yoga Pod provides training for each franchisee, all prior to the grand opening. This training is organised to ensure that each location is run in the image of Yoga Pod and that each owner has the tools and knowledge they will need to successfully launch the business.
Note that these trainings do not stop once the location is open. Ongoing trainings ensure that each location stays up to date with new techniques and the latest styles. It also ensures that each owner gets a refresher on the requirements for staying in compliance with the franchise agreement.
Financial Requirements of Opening a Yoga Pod Franchise
- Initial Franchise Fee: $40,000
- Total Investment: $209,600 to $272,100
- Working Capital: $52,500 to $55,500
- Royalty Fee: 6.0%
Steps on How to Open a Yoga Pod Franchise
When researching a particular franchise opportunity to learn the benefits of purchasing a license, there are several factors that should be examined. You have to precisely look at the process of becoming a franchisee, and if any part of the application process is uncomfortable for the applicant, it may be a sign that they should look elsewhere.
1. Download Yoga Pod Franchising Brochure
Yoga Pod starts rather simply. They encourage the candidate to download their franchising brochure, which contains some general information about the chain and the process. From there, the candidate is required to submit an inquiry form containing some basic details about themselves and their level of interest in the opportunity.
2. Yoga Pod Call
Note that the form submitted above will prompt a member of the franchise development team to call the candidate and begin the conversation about becoming a franchisee. This conversation will start with a brief call to allow both parties to get to know one another.
Through this conversation, the franchisor will learn about the strengths and weaknesses of the candidate, along with their prior experience, level of interest in the industry and brand, and their financial status to help paint a clearer picture of the applicant’s qualifications.
Also note that during this time, the franchisor will also disclose more information about their processes and expectations. They will provide the applicant with details regarding their role as a franchisor, as well as expectations that they have for their franchisees.
If anything disclosed during this call is unappealing to the applicant, it is advisable that they not take the process any further. A factor that is simply unappealing at the talking stage can turn into an absolute nightmare when it becomes time to actually run the franchise.
3. Submit Application
After the phone call, Yoga Pod will request that the candidate fill out and submit an application. Have it in mind that this application will provide them with all of the details they need to make an informed decision regarding the candidate.
Having a look at their financial status and credit history, along with their previous business ownership and operation experience helps them to make a sound decision regarding whether or not to grant a franchise license to the candidate.
They require previous business experience at either the operational or ownership level to determine that the applicant is seasoned enough to handle the pressures of owning one of their franchises. Indeed rookies make mistakes that are often avoidable but can be dangerous to a new business. In hopes of avoiding that, Yoga Pod looks for entrepreneurs who are both familiar with business practices, as well as passionate about yoga.
4. Review the Contract or Agreement
Once you’ve been in contact with the franchisor, meet the requirements, and have initiated the process of buying into the franchise, you’ll be provided with a formal agreement. This legal contract gives you the right to own and open Yoga Pod franchise under the company’s rules and regulations.
However, ensure you carefully go over the agreement so that you fully understand everything you agree to. If you wish, hire a lawyer with franchise experience to navigate you through the process. If something has been agreed in person, check that it’s been put in the contract.
5. Arrange Your Financing
You are expected to obtain financing for your franchise for start-up costs and the initial investment. In order to arrange financing, you will need a strong business plan with solid growth projections. As well as the initial investment, you’ll also need to consider how you will be financing new equipment. Will you be buying it brand new or leasing equipment?
6. Decide on a Location
Yoga Pod provides you with guidelines to ensure you meet any location requirements. This might mean being a certain distance from other franchisees. The majority of franchise owners tend to lease their location as it requires less money upfront. However, if you have the funds already and plan on being in the same place for an extended period of time, then buying a location may be more beneficial for you.
7. Training
Yoga Pod provides all the extensive training and workshops you need for you and your staff to fully understand the services, products, and systems that you’ll be using. Equip your team with the knowledge and skills they need to succeed and be an asset to the franchise.
Yoga Pod provides on-site training sessions at their headquarters, at a franchise location or even virtually. They offer training in marketing, bookkeeping, hiring and managing employees and even negotiating with suppliers. From training sessions, you should be fully aware of any policies and guidelines in place, products, and services through a combination of on-site training, hands-on work, and classroom-style learning.
8. Prepare for the Big Opening
Note that you may have to dedicate a big chunk of your first year’s marketing budget to the grand opening of your Yoga Pod business. Yoga Pod will definitely help with this as you can learn from what’s worked for the grand opening in the past. Also remember to promote the event through social media as well as word-of-mouth marketing. Don’t forget the balloons, banners, and signs to make sure the day attracts a lot of attention.
Conclusion
Yoga Pod has failed to live up to the expectations that the Weinholts had for the brand when they first launched it. They seem to be losing franchisees long before the end of their license period. Seven of their locations jumped ship in just over a year’s time.
While some of them have closed due to poor enrolment and insufficient revenue generation, that is not the case for all of them. Some locations have left the franchise system due to displeasure with the Yoga Pod brand. With so many locations leaving the franchise system and either closing completely or defecting to other chains, it raises some large red flags about what goes on in the relationship.