This is an estimated owner-operator benefit for one mature, traditional Yoga Six studio, not a franchisor-reported profit figure. A manager-run studio may produce materially less: after a $62,900 manager-wage proxy, the same scenarios range from about a $54,000 loss to about $9,000 of pre-tax residual profit.
Item 19 total-population median for 167 Qualified Studios in 2025. Revenue is not owner earnings.
System median revenue multiplied by the 6.17% IRS industry net-income margin.
Base owner-operator benefit less the $62,900 BLS median manager-wage proxy.
About 87% of the 191 U.S. studios operating at year-end 2025 met the full-year eligibility rule.
IRS net income less deficit divided by receipts for amusement, gambling, and recreation sole proprietorships.
Royalty, required marketing, Technology Fee, and Software Fee divided by median Gross Revenue.
How much may a Yoga Six owner make in a year?
An actively involved owner may receive roughly $9,000 to $72,000 in annual pre-tax owner-operator benefit under the three modeled cases. The base case is about $31,000. These are estimates for a mature traditional studio, not forecasts or probabilities, and the lower bound is not a loss floor.
The revenue anchors are official 2025 Item 19 observations: the fourth-quartile median, the systemwide median, and the first-quartile median. The margin anchor is the 2023 IRS sole-proprietorship ratio for the broad “Amusement, gambling, and recreation industries” group: $933.271 million of net income less deficit divided by $15.12234 billion of business receipts, or 6.17%. Because no same-brand expense statement is disclosed, the conservative and upside margins are explicit editorial sensitivities of three percentage points below and above that benchmark.
| Scenario | FDD revenue anchor | Margin assumption | Owner-operator benefit |
|---|---|---|---|
|
Conservative Fourth-quartile median |
$290,500 | 3.17% | $9,213 shown as $9,000 |
|
Base All-studio median |
$501,800 | 6.17% | $30,968 shown as $31,000 |
|
Upside First-quartile median |
$785,200 | 9.17% | $72,014 shown as $72,000 |
Annual pre-tax benefit per mature traditional studio, rounded to the nearest $1,000.
Interpretation: revenue and margin both matter. Moving from the fourth-quartile revenue median to the first-quartile median accounts for most of the spread; the ±3 percentage-point margin sensitivity adds further uncertainty.
Source: 2026 Amended FDD, Item 19, pp. 68–70; 2023 IRS SOI nonfarm sole-proprietorship Table 2. Formula: revenue × scenario margin. Calculations use full precision and are rounded only for display.
What does the 2026 Yoga Six FDD actually report?
Item 19 reports 2025 Gross Revenue distributions for franchised studios, not owner income. All 191 U.S. studios operating at December 31, 2025 were third-party franchise-owned, and 167 Qualified Studios were included because they operated under franchise ownership for the full measurement year. Twenty-four studios were excluded because they were not open for that entire period.
| Item 19 cohort | Studios | Median Gross Revenue | Reported range |
|---|---|---|---|
| First quartile | 42 | $785,200 | $681,300–$1,196,300 |
| Second quartile | 42 | $582,400 | $501,800–$676,800 |
| Third quartile | 42 | $423,800 | $377,100–$484,600 |
| Fourth quartile | 41 | $290,500 | $149,400–$377,100 |
| Total Qualified Studios | 167 | $501,800 | $149,400–$1,196,300 |
The all-studio average Gross Revenue was $531,600, while the median was $501,800. Seventy-nine of 167 Qualified Studios, or 47%, met or exceeded the average. That relationship is consistent with higher-revenue studios pulling the average above the median. Quartiles describe the observed 2025 distribution; they are not probabilities for a new studio.
- Gross Revenue
- The Item 19 measure: total studio revenue, excluding sales tax. The FDD states that this definition differs from Gross Sales used to calculate royalties and certain other fees.
- Estimated owner-operator benefit
- Modeled pre-tax economic benefit after the broad benchmark’s deductions, before personal income taxes and financing principal. It may include compensation for the owner’s labor.
- Manager-run residual
- Owner-operator benefit less a market wage for a General and Operations Manager. It is a scenario, not a disclosed Yoga Six result.
- Take-home pay
- Not estimated. Personal taxes, entity structure, owner distributions, retained cash, capital expenditures, and financing principal vary by owner.
How does owner involvement change the result?
Active owner operation can change the economic benefit by approximately the cost of the manager role the owner performs. Item 15 recommends, but does not require, personal supervision by the owner or Operating Principal. An approved Designated Manager may supervise daily operations. The model therefore separates active owner labor from residual business profit.
The May 2025 Bureau of Labor Statistics estimate for General and Operations Managers in NAICS 713940, Fitness and Recreational Sports Centers, shows a $62,900 median annual wage. That is a wage-only proxy: it excludes employer payroll taxes, benefits, bonuses, recruiting costs, and any studio-specific premium. Subtracting it from the owner-operator benefit produces the manager-run residual below.
| Scenario | Owner-operator benefit | Manager wage proxy | Manager-run residual |
|---|---|---|---|
| Conservative | $9,213 | -$62,900 | -$53,687 |
| Base | $30,968 | -$62,900 | -$31,932 |
| Upside | $72,014 | -$62,900 | $9,114 |
Owner-operator benefit compared with manager-run residual, in thousands of dollars per year.
Interpretation: the FDD permits a Designated Manager, but “manager-led” does not mean passive income. Under this limited benchmark, manager compensation absorbs all modeled benefit in the conservative and base cases.
Source: 2026 Amended FDD, Item 15, pp. 56–57; BLS May 2025 National Industry-Specific Occupational Employment and Wage Estimates, NAICS 713940 and SOC 11-1021. Manager-run residual = owner-operator benefit − $62,900.
How much do disclosed recurring fees reduce studio economics?
At the $501,800 Item 19 median, the known recurring franchise and required-marketing obligations equal an illustrative $69,606, or 13.9% of revenue. This is a derived fee-burden proxy, not a complete operating-expense statement, and it uses Gross Revenue as an approximation for fee-bearing Gross Sales.
| Recurring obligation | 2026 FDD basis | Annual proxy at $501,800 | Model treatment |
|---|---|---|---|
| Royalty | 7% of Gross Sales | $35,126 | Derived using Gross Revenue as proxy |
| Brand Development Fund | Currently 2% of Gross Sales | $10,036 | Derived using Gross Revenue as proxy |
| Local Advertising Requirement | Greater of $1,500 per month or 2% of prior-month Gross Sales | $18,000 | Annual floor applies at the median |
| Technology Fee | Currently $334 per month | $4,008 | Annualized fixed fee |
| Software Fee | Currently $203 per month | $2,436 | Annualized Item 7 operating obligation |
| Known recurring-fee proxy | $69,606 | 13.9% of median Gross Revenue | |
The FDD also permits a regional or local advertising cooperative, although none is currently charged, and caps aggregate required marketing at 7% per month subject to the franchisee’s notice obligations. The table excludes ordinary studio costs such as instructors, management, occupancy, insurance, payment processing, cleaning, utilities, maintenance, supplies, and replacement equipment.
The scenario model uses an all-in IRS net-income margin, so these FDD fees are not subtracted a second time. The fee table instead tests whether a prospective franchisee’s local pro forma has explicitly budgeted the disclosed obligations. Because Item 19 Gross Revenue and Item 6 Gross Sales have different definitions, actual invoices may not equal these proxies.
FDD source: 2026 Amended Franchise Disclosure Document, Item 6, pp. 16–25, and Item 7, pp. 25–30.
Why is the earnings range so uncertain?
The largest uncertainty is the absence of a same-brand profit-and-loss disclosure. Item 19 provides a strong revenue distribution but no labor, rent, operating profit, owner compensation, EBITDA, or cash-flow data. The IRS margin is broad, covers sole proprietorships across amusement, gambling, and recreation activities, and is not specific to franchised yoga studios.
- Population selection: Item 19 excludes 24 studios that were not open for the full 2025 measurement period. New-unit ramp-up economics therefore are not represented in the annual revenue quartiles.
- Operating churn: Item 20 reports 24 franchised openings, one termination, and 24 outlets that ceased operations for other reasons during 2025, ending the year with 191 franchised outlets. Those counts do not reveal the profit or loss of each affected studio.
- Benchmark structure: IRS Schedule C net income generally includes the proprietor’s returnfor both labor and capital. It also reflects reported interest and depreciation. The model does not add those items back.
- Financing: financing principal is not modeled. Interest is embedded indirectly in the broad IRS benchmark, so the scenario is not a debt-free operating-profit measure.
- Capital expenditures: replacement equipment, future remodeling, and other capital spending are not estimated. Depreciation in the IRS benchmark is not the same as annual cash capital expenditure.
- Personal taxes: no after-tax take-home estimate is provided because federal, state, and local tax outcomes depend on entity structure, deductions, jurisdiction, and owner circumstances.
What should a buyer verify before relying on the range?
A buyer should replace the broad margin assumptions with studio-level evidence before making a capital decision. The most useful work is to reconcile Item 19 Gross Revenue to complete profit-and-loss statements from comparable mature franchisees and to separate owner labor from residual business return.
- Request the written substantiation supporting the 2026 FDD Item 19 tables and confirm the exact definition of Qualified Studio and Gross Revenue.
- Interview franchisees in the first, middle, and fourth revenue quartiles—not only top performers—and ask for normalized instructor payroll, manager payroll, rent, common-area charges, merchant fees, insurance, and maintenance.
- Reconcile Gross Revenue to Gross Sales so the 7% Royalty, 2% Brand Development Fund contribution, and Local Advertising Requirement are calculated on the correct base.
- Ask active owners how many hours they work and which Designated Manager duties they personally perform. Value that labor separately from distributions.
- Obtain a local wage quote for the actual studio-manager role, including payroll taxes, benefits, incentives, recruiting, and coverage when the manager is absent.
- Build debt principal and interest from the buyer’s actual financing proposal, then test whether cash remains for maintenance capital expenditures and owner distributions.
- Review Item 20 outlet status and transfer tables, then speak with former franchisees as well as current operators about closures, transfers, and ramp-up duration.
What is the strongest defensible earnings takeaway?
The strongest defensible range is approximately $9,000 to $72,000 of annual owner-operator benefit for one mature traditional studio, with a $31,000 base scenario. It is scenario-based, not official owner earnings. The most important driver is studio revenue relative to the Item 19 quartiles; the second is whether the owner performs the Designated Manager role or pays market compensation for it.
The largest unresolved uncertainty is unit-level operating expense structure. At the base case, subtracting the $62,900 BLS manager-wage proxy changes the modeled result from about $31,000 of owner-operator benefit to about a $32,000 manager-run loss before payroll burden. A buyer should therefore verify Item 19 substantiation, full studio P&Ls, owner hours, manager compensation, occupancy, and financing with multiple current and former franchisees. Losses below the conservative scenario remain possible.