Reading time: 5 minutes

If you own a successful yoga studio, you may be considering expanding your business. One way you can do this is by starting a franchise. By setting up your yoga studio franchise carefully, you can maintain control over how your franchises operate and still separate yourself from day to day management. This article will outline the legal issues you should consider if you decide to start a yoga studio franchise.

Protecting Your Brand

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

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

These aspects of your business are all part of your intellectual property (IP). Your IP defines your business and your brand.

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

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

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

This protects your IP.

Registering a trade mark gives you exclusive rights to the use of 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 to help customers remember and refer your yoga studio.

Choosing Locations and Lease Arrangements

It is your responsibility to approve the locations of your yoga studios. Where you decide to open your yoga studios can be crucial to your success. The first few franchises that you set up can determine the long term success of your franchise, so it is important to get this step right. 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 premises licence to the franchisee; or
  • allow the franchisee to personally hold the lease.

Holding the lease yourself means that you have an additional level of control over the franchise. If you need to replace the franchisee, you can do so without consent from the landlord.

If the franchisee holds the lease personally, you will have less control over the location. However, if the franchisee decides to abandon the premises they will be responsible for covering rent, not you.

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 so that customers can identify your brand at every franchise. Every location will be slightly different, but as a franchisor, you can specify a particular set up to maintain a sense of familiarity across your franchises.

What Insurance Do I Need?

People may occasionally injure themselves in your yoga classes. It is essential that you limit your liability by making sure that each yoga studio franchise has the right insurance. You may need to obtain:

  • general insurance; and
  • income insurance.

In addition, public liability insurance reduces your financial liability in the event of:

  • death or injury to third parties;
  • property loss or damage; or
  • economic loss due to negligence.

You can include a clause in your franchise agreement that requires your franchisees to have the correct insurance.

What Training Should I Offer Franchisees?

There are many different styles of yoga and yoga teaching. Your business has probably been successful because 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 and maintain an ongoing program so that franchisees stay up to date with your preferred teaching style.

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 to also 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, contact LegalVision’s franchise lawyers on 1300 544 755 or fill out the form on this page.


Redundancies and Restructuring: Understanding Your Employer Obligations

Thursday 7 July | 11:00 - 11:45am

If you plan on making a role redundant, it is crucial that you understand your employer obligations. Our free webinar will explain.
Register Now

How to Sponsor Foreign Workers For Your Tech Business

Wednesday 13 July | 11:00 - 11:45am

Need web3 talent for your tech business? Consider sponsoring workers from overseas. Join our free webinar to learn more.
Register Now

Advertising 101: Social Media, Influencers and the Law

Thursday 21 July | 11:00 - 11:45am

Learn how to promote your business on social media without breaking the law. Register for our free webinar today.
Register Now

Structuring for Certainty in Uncertain Times

Tuesday 26 July | 12:00 - 12:45pm

Learn how to structure to weather storm and ensure you can take advantage of the “green shoots” opportunities arising on the other side of a recession.
Register Now

Playing for the Prize: How to Run Trade Promotions

Thursday 28 July | 11:00 - 11:45am

Running a promotion with a prize? Your business has specific trade promotion obligations. Join our free webinar to learn more.
Register Now

Web3 Essentials: Understanding SAFT Agreements

Tuesday 2 August | 11:00 - 11:45am

Learn how SAFT Agreements can help your Web3 business when raising capital. Register today for our free webinar.
Register Now

Understanding Your Annual Franchise Update Obligations

Wednesday 3 August | 11:00 - 11:45am

Franchisors must meet annual reporting obligations each October. Understand your legal requirements by registering for our free webinar today.
Register Now

Legal Essentials for Product Manufacturers

Thursday 11 August | 11:00 - 11:45am

As a product manufacturer, do you know your legal obligations if there is a product recall? Join our free webinar to learn more.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Silje Andersen-Cooke
Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2022 Law Firm of the Year Winner 2022 Law Firm of the Year - Australasian Law Awards