Yoga Six

Yoga Six, franchising since 2018 under Xponential Fitness, has nudged from 185 locations in 2023 to 192 in 2024—a modest +4% growth signaling steady but not explosive expansion. Projected new units stand at 16, with 3 terminations and a notable 19 system transfers hinting at some owner reshuffling rather than mass exodus. Item 20 flags litigation primarily around disclosure violations, fraudulent inducement, and breach of contract claims against Xponential brands like Yoga Six—red flags for operational friction. Bankruptcy history in the system adds caution, though SBA stats shine: 61 loans averaging $433K with a low 1.6% default rate suggests franchisees are servicing debt effectively.

Financials hit hard with initial investments of $529,233-$826,265 and a $60K franchise fee, plus 7% royalties, 2% ad fund, and $334/month tech fee—positioning it as mid-tier for fitness. Item 19 discloses average gross revenue at $488,615 and median $468,417, implying solid top-line potential for studios in retail centers targeting yoga enthusiasts. For investors eyeing cash flow, these figures (pre-expenses) suggest viability if costs are controlled, but Xponential's multi-brand litigation cloud tempers optimism—high transfers and legal noise mean scrutinize FDD Items 7 and 20 closely before committing.