MODO YOGA

Item 7 details a hefty initial investment of $463,450 to $931,050, including the $50,000 franchise fee, driven by build-out for heated studios and proprietary merchandise sales. Ongoing fees stack up unusually with a 4.5% variable royalty plus $350 monthly fixed royalty, the greater of 1.5% system fund or $400 monthly minimum, and a $750 monthly technology fee—potentially burdensome for lower-volume units. Item 19 shines brightly, reporting average gross revenues of $1,967,830 and median of $1,880,147 across disclosing locations, suggesting strong top-line performance in the competitive fitness sector where many studios struggle below $1M.

System health flags concerns: just 8 franchised locations after shrinking 11% from 9 in 2023, with 2 non-renewals signaling possible retention issues since franchising began in 2013 from Ottawa headquarters. No major litigation or high SBA default rates appear, but the contraction amid high revenues hints at profitability squeezes from fees or operational challenges in saturated wellness markets. For due diligence, these figures point to high-revenue potential rewarding experienced operators, but the small footprint and added fixed costs demand validating local demand before committing.