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I Own a Yoga Studio. How Can I Start a Franchise?

In Short

    • Protect your brand by registering trade marks for your business name, logo, and slogan.

    • Carefully choose franchise locations and decide who will hold the lease.

    • Ensure consistency in fit-outs and training across your franchises to maintain your brand identity.

Tips for Businesses
Before franchising your yoga studio, protect your intellectual property, including your brand and trade marks. Decide who will hold the lease, and ensure fit-outs and training are consistent across all locations to maintain a unified brand experience. Also, make insurance mandatory for your franchisees to limit liability.


Table of Contents

If you own a thriving yoga studio, you may be considering expanding your business. One way you can do this is by starting a franchise for your yoga studio business. By setting up your yoga studio franchise carefully, you can maintain control over how your franchises operate while separating yourself from the day-to-day management of the business. This article will outline some legal considerations for starting a yoga studio franchise.

Protecting Your Brand

If you franchise your business, you allow other people to use your:

  • branding;
  • business name;
  • business model; and
  • trade secrets.

These aspects of your business are all part of your intellectual property (IP). Your IP defines your business and your brand. It is the single most valuable asset to you as a franchisor.

Prospective franchisees will be interested in joining your franchise if you can show them that using your brand will attract clients in their area and drive profits. If you do not have an established reputation or brand, prospective franchisees will question why they should pay to use your brand rather than setting up their own business. This means you should have a strong brand before you franchise your business.  

When you start a franchise system, you license your IP for others to use. Make sure you have registered trademarks for your:

  • business name;
  • slogan; and
  • any logos.

This protects your IP from being used in a manner that is contrary to how registered IP is used.

Registering a trade mark gives you exclusive rights to use the trade mark. You can allow your franchisees to use your trade marks in your franchise agreement. Your trade marks should be recognisable and distinct from other studios’ branding. This will help customers remember and easily refer to your yoga studio.

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Choosing Locations and Lease Arrangements

It is your responsibility to approve the locations of your yoga studios. The location where you open your yoga studios can be crucial to your success. The first few franchises you set up can determine the long-term success of your franchise, so it is essential to take this step correctly. When researching potential locations, consider:

  • the area’s potential client base;
  • your ability to soundproof or otherwise fit out the premises; and
  • any competition.

You should also decide who will hold the lease for your franchises. As the franchisor, you can:

  • hold the lease yourself and issue a Licence to Occupy to the franchisee; or
  • allow the franchisee to personally hold the lease with you as the franchisor having step in rights.

Holding the lease yourself means that you have an additional level of control over the franchise. If the franchisee terminates the franchise agreement early, you can simply re-access the premises without needing consent from the landlord.

If the franchisee holds the lease personally, you will have less control over the location. However, you can always include any requirements you have for the premises in the franchise agreement. If the franchisee decides to abandon the premises, they will be responsible for covering rent. You will not be liable for this unless you re-enter the premises under the step in deed.

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Should the Fit Out Be Consistent?

As a franchisor, you have substantial control over how franchisees set up your franchises. You can decide the extent and cost of the fit out. This may include:

  • buying and setting up a reception desk;
  • installing signage; or
  • painting the walls a specific colour.

It is important to keep fit outs relatively consistent. This way, customers can identify your brand at every franchise. Every location will be slightly different. However, as a franchisor, you can specify a particular set up style to maintain a sense of familiarity across your franchises.

What Insurance Do I Need?

People may occasionally injure themselves in your yoga classes. You must limit your liability by ensuring that each yoga studio franchise has the right insurance. You may need to obtain:

  • public liability insurance, which reduces your financial liability in the event of death or injury of third parties, property loss or damage, or economic loss due to negligence; and
  • business interruption insurance (if any interruptions were to be faced by the business).

Include a clause in your franchise agreement that requires your franchisees to have the correct insurances.

What Training Should I Offer Franchisees?

There are many different styles of yoga and yoga teaching. Your business has likely been successful as people enjoy your style of yoga and how you teach it. To maintain this success, you may need to provide regular training for your franchisees. You should specify all required training in your franchise agreement. Additionally, you should maintain an ongoing program, so franchisees stay updated with your systems and preferred teaching styles.

Key Takeaways

Deciding to expand your yoga studio into a franchise requires careful thought and planning. Before beginning the process, consider:

  • whether you need to protect your business name, logo, and slogans by registering them as trade marks;
  • where the yoga studio franchises will be located and who will be listed on the lease;
  • what elements of your studio fit out should be consistent across different franchises;
  • how you can limit your liability by obtaining public liability insurance and making it mandatory for your franchisees also to obtain insurance and
  • how to structure your training programs and maintain a consistent standard of teaching across your yoga studio franchise.

If you have any questions or need advice about setting up a yoga studio franchise, our experienced franchising lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today at 1300 544 755 or visit our membership page.

Frequently Asked Questions

Should all franchise locations have a consistent design?

Yes, it is essential to maintain a consistent fit-out across all franchises. This includes elements such as reception desk setup, signage, and wall colours, to ensure customers can easily identify your brand in any location.

How should I provide training for franchisees?

Regular training is crucial to maintain the quality and consistency of your yoga classes. Specify required training in the franchise agreement and provide ongoing training programs to ensure franchisees are updated with your systems and preferred teaching styles.

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Ramsha Naz

Ramsha Naz

Lawyer | View profile

Ramsha is a Lawyer at LegalVision within the Franchising and Leasing team. She graduated from the University of New South Wales with a Juris Doctor.  Ramsha has previous extensive experience working in Property Law and assisting with Corporate and Commercial Law matters.

Qualifications: Juris Doctor, Graduate Diploma of Legal Practice, University of New South Wales.

Read all articles by Ramsha

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