What are the pros and cons of owning a franchised yoga studio?

[ 3 minute read ]

The yoga industry is seeing a rise in studio franchised businesses.   This means there are more opportunities to buy into a franchise or chain studio.  But does this business model work for you?

The answer will depend on how comfortable you are with starting a yoga studio on your own versus with the support of an existing business.  Read this article to help you think through some of the pros and cons to owning a franchised studio.

3 PROS OF OWNING A FRANCHISED STUDIO

1. Established brand and customer base
2. Training for new owners
3. Marketing support and Financing options

1. Established Brand and Customer Base

Starting a business can be risky and buying into an established brand which, may already have a known presence in the market, can make this feel less dangerous.  A level of brand awareness and customer expectation can increase newcomers and word of mouth marketing.

2. Training for New Owners

Franchised yoga studios are targeting consistency and often provide training to new owners.  This might include business details such as the point-of-sale (POS) system, scheduling tools, people management and/or accounting practices.

3. Marketing Support and Financing Options

Often, franchises provide support in the way of advertising costs by promoting the overall brand and including the location of each franchise location.  In addition to marketing cost support, the franchise might offer financing options to avoid the need to work with a bank to secure a loan.

3 CONS OF OWNING A FRANCHISED STUDIO

1.  Franchise Fees
2.  Limited Creativity
3.  Locked into Long-Term Contract

1. Franchise Fees

Franchises don’t offer out their business model for free.  There's typically an initial franchise fee to buy into the business.  This may be rolled into the loan or might be required up front.  Royalty payments are almost always required to be paid on a monthly basis.  And while the marketing support helps drive new customers, there's often a marketing fee sourced from each franchised studio.

2. Limited Creativity

While some folks love drawing within the lines, most yoga folks don’t want to give up their ability to be creative.  Depending on the franchise, the model may not be flexible when it comes to studio design, new class ideas, recruiting/hiring, teaching styles, class schedules or pricing strategies.

3. Long-Term Contracts

Some franchises require contracts that span 10 years or even longer. This can put a large financial strain on business and also a strain on the owner who may have significant life changes within that time frame. 

Still not sure whether a franchised studio is the right choice for you? 

Take our 5 minute Independent vs. Franchised Studio Quiz and find out which is best for your dream yoga studio!