About Modo Yoga Franchise
Modo Yoga is a yoga studio franchise offering heated yoga classes in an environmentally conscious and community focused setting.
The brand was founded with a commitment to sustainability, social responsibility, and accessible wellness, and has been franchising since 2013.
Modo studios offer a signature series of hot yoga classes designed to improve strength, flexibility, and mental clarity in a heated studio environment.
Modo Yoga Franchise Cost & Fees
Minimum Investment
$339K
Average Investment
$662K
Maximum Investment
$986K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $25,000 | One-time payment upon signing |
| Royalty Fee | $350 monthly Fixed Royalty Fee and 5% weekly Variable Royalty Fee of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenues (the "Brand Fund Fee") | National brand fund |
| Total Investment Range | $338,900 – $986,000 | Includes build-out, inventory, working capital |
The investment range of $339K–$986K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty ($350 monthly Fixed Royalty Fee and 5% weekly Variable Royalty Fee of Gross Revenues) and marketing fee (2% of Gross Revenues (the "Brand Fund Fee")) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| INITIAL FRANCHISE FEE | $25,000 | $25,000 |
| TRAINING EXPENSES (Note 1) | $6,000 | $16,200 |
| LEASE & SECURITY DEPOSITS (Note 2) | $15,000 | $40,000 |
| LEASEHOLD IMPROVEMENTS (Note 3) | $250,000 | $750,650 |
| BUSINESS LICENSE & PERMIT | $1,500 | $3,000 |
| SIGNAGE | $2,000 | $15,000 |
| FURNITURE & FIXTURES | $20,000 | $45,000 |
| UTILITY DEPOSITS AND FEES (Note 4) | $0 | $3,000 |
| INSURANCE (Note 5) | $2,000 | $3,000 |
| GRAND OPENING (Note 6) | $1,500 | $3,000 |
| TELEPHONE | $150 | $300 |
| SOFTWARE LICENSE | $750 | $850 |
| OPENING INVENTORY (Note 7) | $5,000 | $11,000 |
| LEGAL AND PROFESSIONAL FEES (Note 8) | $10,000 | $25,000 |
| ADDITIONAL FUNDS - 3 MONTHS (Note 9) | $20,000 | $45,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The lesser of 5% of the sale price of your Studio or $5,000 plus our reasonable legal and administrative costs (for 25% or more ownership transfer); $500 plus our reasonable legal and administrative costs (for less than 25% ownership transfer with new owner involved in operations or holding voting shares) |
| Renewal Fee | $1,000 |
| Technology Fee | $10 per month (Business Management Software Support Fee) |
| Audit Fee | Reimbursement of all audit expenses if gross revenues have been understated by 3% or more |
| Late Fee/Interest | The lesser of 10% per annum or the highest amount permitted by law |
| Indemnification | Payment of our losses and costs |
| Early Termination Fee | $10,000 plus the sum of Royalty Fees and Brand Fund fees paid during the previous 12 months multiplied by the number of years remaining in the then-current term |
| Liquidated Damages | The sum of Royalty Fees and Brand Fund Fees paid during the previous 12 months multiplied by the number of years remaining in the then-current term |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Foundational Training Module 1: 50 hours; Foundational Training Module 2: 150 hours; Studio Owner Training: 10-16 hours classroom, 8-16 hours on-the-job. |
| Classroom Training | Foundational Training Module 1: 50 hours; Foundational Training Module 2: 150 hours; Studio Owner Training: 10-16 hours |
| On-the-Job Training | Foundational Training Module 1: 0 hours; Foundational Training Module 2: 0 hours; Studio Owner Training: 8-16 hours |
| Training Location | Online or in person at a location we designate |
| Additional Training | We may require you and your personnel to attend additional training or retraining programs, including an annual general meeting (AGM). All directors and officers are required to take the “Flow” and at least 2 Modo Yoga teacher training courses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Ranges from 3.10 miles to 7.45 miles radius depending on population density. |
| Description | You will receive the right to operate a Studio at a location and within a specified territory to be approved by us (the “Territory”). You will receive a Territory with a radius depending on the density of the population in the area: 0-150,000 population: 7.45 miles; 150,000-300,000 population: 6.21 miles; 300,000-500,000 population: 4.97 miles; 500,000-700,000 population: 3.72 miles; 700,000+ population: 3.10 miles. The radius might be larger or smaller based on population density in our sole judgment. During the term of your Franchise Agreement, we will not operate a Studio in your Territory and we will not permit third parties to do so. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | one successive additional term of 5 years |
| Renewal Fee | $1,000 |
| Renewal Conditions | Written notice 6-9 months prior to expiration, no default, all monetary obligations satisfied, general release executed, valid lease for renewal term, Studio meets then-current requirements (modifications, renovations, etc.), sign current form of Franchise Agreement (may have different terms/fees/territory), no 3+ default notices in 24 months, complete additional training, meet new franchisee qualification standards. |
| Transfer Fee | The lesser of 5% of the sale price of your Studio or $5,000 plus our reasonable legal and administrative costs (for 25% or more ownership transfer); $500 plus our reasonable legal and administrative costs (for less than 25% ownership transfer with new owner involved in operations or holding voting shares) |
| Transfer Conditions | No existing default, all obligations satisfied, Studio premises in compliance with current standards (or renovation by transferee), lessor consent, transferee meets new franchisee qualifications, transferee signs current Franchise Agreement and guarantee, transferee completes initial training, pay legal/administrative costs, pay transfer fee, execute general release, transferee's obligations subrogated to franchisor, transfer all agreements with franchisor. |
| Termination for Cause | Franchisor can terminate if you default or if events like insolvency, abandonment, material misrepresentation, criminal misconduct, unauthorized transfer, repeated failures to comply, under-reporting gross revenues, health department report failures, unsatisfied judgments over $5,000, imminent danger to public health/safety, designation as a 'blocked person', failure to complete approved transfer upon death/disability, winding-up/dissolution, lease expiration/termination, or 5+ material unresolved customer/employee complaints in 12 months occur. Curable defaults have 5-14 days to cure, or 24 hours for trademark misuse/damaging social media posts. |
| Non-Compete Period | During the term of the franchise: no competing business. After termination/expiration: 1 year. |
| Non-Compete Details | During term: Franchisee and Owners may not have interest in or advise any competing yoga/fitness studio business. Exception: with franchisor's written consent, individual franchisee/owner may teach yoga/fitness classes (not teacher training) at non-Modo Yoga studios outside any existing Modo Yoga territory, provided it doesn't conflict with obligations. After term: Franchisee and Owners may not operate a Competing Business for 1 year within 10 miles of any operating/developing Studio or former Studio location, with exceptions. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must participate in the operation and management of your Studio (personally through the Primary Person(s) or through a full-time manager) and diligently devote your best efforts to maximize sales and profits, keeping free from conflicting enterprises. The Primary Person(s) must manage your Studio during the first year of operation, after which your Studio may be operated by a Manager. If a Manager is used, they must successfully complete Module 2 of Foundational Training. |
| Required Suppliers | You must purchase all supplies required for use in operation of your Studio only from us or our approved or designated environmental and ethical suppliers, including the reservation and scheduling system that we designate. This also includes the ongoing supplies to your Studio of yoga mats, water bottles, apparel, as well as all other items, which we may periodically specify, and all other items that bear the MODO YOGA® trademarks. |
| Supply Restrictions | All fixtures, furnishings, color schemes, machinery, equipment, and accessories must conform to specifications of design, color, quality, sustainability performance, and utility designated and approved by us. You must conform to the specifications and quality control standards we periodically prescribe regarding supplies used by your Studio. |
| Franchisor Revenue from Suppliers | CAD$3,754 in revenue from required purchases or leases from franchisees during the fiscal year ended October 31, 2021, which was 0.2% of our total revenues of CAD$1,979,215. We receive compensation from suppliers on account of purchases or leases by franchisees ranging from 1% to 10% of the total purchases or leases. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer financing to you, either directly or indirectly. We do not guarantee your note, lease or other obligation. |
Modo Yoga Franchise Earnings — Item 19
Modo Yoga does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Modo Yoga does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Modo Yoga Litigation & Risk Flags
Clean Litigation RecordModo Yoga has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Modo Yoga System Growth
Total Units
12
Franchised
12
Company-Owned
0
Modo Yoga currently operates 12 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 16 |
| 2020 | 0 | 3 | 13 |
| 2021 | 0 | 1 | 12 |
Transfers: 0 | Closures: 4
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$2.0M
Net Income
$10K
Total Assets
$410K
Audited by Smythe LLP for year ending October 31.
Modo Yoga Franchise — FAQ
The total investment to open a Modo Yoga franchise ranges from $338,900 to $986,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $25,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Modo Yoga charges a royalty fee of $350 monthly Fixed Royalty Fee and 5% weekly Variable Royalty Fee of Gross Revenues of gross sales, plus a 2% of Gross Revenues (the "Brand Fund Fee") contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Modo Yoga Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Modo Yoga to ensure you have the most up-to-date version.
Modo Yoga does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Modo Yoga has been franchising since 2013. The FDD shows an investment range of $338,900-$986,000, a $350 monthly Fixed Royalty Fee and 5% weekly Variable Royalty Fee of Gross Revenues royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $25,000 and the total investment ranges from $338,900 to $986,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Modo Yoga and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Modo Yoga or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com