About The Yard Gym Franchise
The Yard Gym is a boutique strength and conditioning fitness studio franchise that offers group fitness classes specializing in functional strength, conditioning, and anaerobic exercises using pro-level proprietary fitness equipment.
Franchisees operate compact studios ranging from 2,000 to 4,400 square feet, offering pre-recorded 50-minute group class sessions in three main categories: RIG (strength and endurance), TURF (cardiovascular and interval weight training), and PAY DAY (combined team workouts).
Target customers include all fitness levels and age groups seeking high-energy, coach-guided group fitness experiences.
The Yard Gym Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Revenue or $1,500/month minimum of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Greater of 2% of Gross Revenue or $200/month (same conditions as royalty minimum) | National brand fund |
| Total Investment Range | $340,500 – $908,000 | Includes build-out, inventory, working capital |
The investment range of $341K–$908K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Revenue or $1,500/month minimum) and marketing fee (Greater of 2% of Gross Revenue or $200/month (same conditions as royalty minimum)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Security Deposit | $5,000 | $5,000 |
| Training Expenses | $1,000 | $5,000 |
| Real Estate Lease and Lease Security Deposit | $24,000 | $280,000 |
| Initial Exercise Pack | $75,000 | $105,000 |
| Professional Fees (attorney, accounting) | $2,000 | $8,000 |
| Leasehold improvements, fixtures, construction and remodeling costs, décor, furnishings, signs, architect and design fees | $100,000 | $300,000 |
| Opening inventory of Branded Retail Merchandise | $5,000 | $10,000 |
| Mindbody Software and Computer System Hardware and Other Business Equipment | $8,500 | $20,000 |
| Security Deposits, utility deposits, business licenses, and other pre-paid expenses | $1,000 | $5,000 |
| Grand Opening Launch Marketing | $7,000 | $15,000 |
| Insurance | $2,000 | $5,000 |
| Additional Funds (3 months after Opening Date) | $60,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 ($5,000 each for franchises 2-5, $2,500 each for franchises over 5 in same transaction); $2,500 for Qualified Transfers |
| Renewal Fee | $7,500 |
| Technology Fee | $50/month Administrative Fee (includes 3 email accounts, cloud file sharing, Network Portal access; $10/month per additional email) |
| Audit Fee | Cost of audit if understatement of Gross Revenue is 3% or more |
| Local Marketing Requirement | Minimum 3% of Gross Revenue per calendar quarter |
| Non-Compliance Fees | $250 to $2,000 per infraction |
| Additional Training Fee | $500 per person per day plus travel costs |
| Mystery Shopper Fee (not yet required) | Up to $100/month estimated |
| Annual Meeting Registration Fee (not yet required) | Up to $500/person |
| Management Fee | 5% of Gross Revenue (only if franchisor manages gym after death/incapacity) |
| Relocation Fee | $1,500 per site evaluation |
| Social Media Lead Generation (optional) | $900/month |
| Webmaster Fee | $100/hour for content changes to Franchised Gym Subpage |
| Liquidated Damages | 36 x average monthly Royalty Fees (or 2x Initial Franchise Fee + Security Deposit if before Opening Date) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Up to 2 days classroom plus on-the-job training for Business Operations and Coach Training, plus 1 day New Gym Opening Launch |
| Classroom Training | 22 hours (8 hours Business Operations + 8 hours Coach Training + 6 hours New Gym Opening Launch) |
| On-the-Job Training | 32 hours (16 hours Business Operations + 16 hours Coach Training) |
| Training Location | Business Operations and Coach Training at operating Network Gyms in San Diego, California; New Gym Opening Launch via Zoom or comparable video technology |
| Additional Training | Continuing training programs may be required (up to 3 days per 12-month period for up to 2 management members). Additional on-site training available at $500/person/day plus travel costs. Annual meeting attendance mandatory for Primary Owner when implemented. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected with significant reserved rights |
| Exclusive Territory | Yes |
| Territory Size | Not smaller than a single zip code |
| Description | Franchisor will not establish or issue franchise rights to anyone else to operate a Network Gym within the assigned territory. However, franchisor reserves rights to: (1) open fitness gyms under dissimilar trade names in the territory; (2) open Network Gyms in Nontraditional Venues (airports, hotels, stadiums, malls, etc.) within the territory; (3) acquire and convert competitor chains (3+ locations) within the territory; (4) sell Branded Retail Merchandise through any retail/wholesale channel in the territory. Territory does not grant exclusive right to service clients who reside or work within it. Minimum Performance Requirement of 12 sessions per day and 288 sessions per month. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years from Opening Date |
| Renewal Term | Two consecutive 5-year renewal options |
| Renewal Fee | $7,500 |
| Renewal Conditions | Must give written notice 9-12 months before expiration; must be in good standing; sign then-current Franchise Agreement; conform to then-current design/trade dress standards; upgrade equipment if necessary; pay renewal fee; complete special training; sign general release; extend lease or relocate with landlord signing Addendum to Lease. Renewal option conditioned on franchisor still offering new franchises in the U.S. |
| Transfer Fee | $10,000 (scaled for multi-unit transfers); $2,500 for Qualified Transfers |
| Transfer Conditions | Proposed buyer must submit application and meet current qualifications; sign then-current Franchise Agreement; franchisee must not be in default; pay transfer fee; buyer must complete Initial Training Program; franchisee must sign general release; franchisor has 30-day right of first refusal |
| Termination for Cause | Curable defaults: 30 days to cure (10 days for monetary defaults). Non-curable defaults include: failure to obtain site approval within 180 days, breach of lease, bankruptcy/insolvency, material misrepresentation, criminal conviction, unauthorized transfer, misuse of confidential information, 3+ defaults in 24 months, abandonment, false reporting, imminent danger to public health/safety, failure to meet Minimum Performance Requirement |
| Non-Compete Period | 2 years after termination/expiration |
| Non-Compete Details | During the term: no Covered Person may engage in a Competitive Business (deriving 20%+ revenue from fitness equipment manufacture/sale or physical fitness instruction) anywhere in the world. Post-term: 2-year restriction within 5 miles of any Franchised Gym worldwide. Ownership of 5% or less of publicly traded competitor stock is permitted. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | A Primary Owner (20%+ equity holder) must complete the Initial Training Program and devote requisite time and effort. The Franchised Gym must be under the direct, full-time supervision of a qualified General Manager at all times. The General Manager may but need not be a Primary Owner. The same General Manager may serve up to 5 Franchised Gyms owned by the same franchisee or its affiliates. Franchisee must be a business entity and may not engage in any other business activities unrelated to owning and operating a Franchised Gym. |
| Required Suppliers | Franchisor (TYG Enterprises/TYG Affiliate) is the exclusive supplier of proprietary fitness equipment and Branded Retail Merchandise. MINDBODY, Inc. is the designated software provider under a master contract. |
| Supply Restrictions | Approximately 80% of required purchases must meet franchisor minimum specifications. Franchisees must purchase Designated Goods/Services only from franchisor-designated suppliers. Alternative suppliers of Non-Designated Goods/Services require prior written approval with up to $2,500 testing fee. Approval process takes 30 days; failure to respond means disapproval. |
| Franchisor Revenue from Suppliers | Equipment supplier provides franchisor and affiliates a 10% discount on equipment for company-owned locations. Franchisor will derive revenue from sale of Designated Goods/Services to franchisees. No revenue received from supplier transactions before FDD issuance date as this is the first fiscal year. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing. The franchisor does not guarantee notes, leases, or obligations to banks or landlords. |
The Yard Gym Franchise Earnings — Item 19
The Yard Gym does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
The Yard Gym Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Yard Gym System Growth
The Yard Gym currently operates 2 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
| 2023 | 2 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 13 states: HI, IN, MI, RI, SD, WI, CA, MD, MN, NY, ND, VA, WA
Franchisor Financials (Item 21)
Audited by Katz Cassidy, An Accountancy Corporation for year ending June 30 (audited period: May 5, 2023 inception through February 12, 2024).
The Yard Gym Franchise — FAQ
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