Are you considering leaving your career to run your own business? If a boutique fitness studio like Ritual Hot Yoga is on your radar, it’s wise to do some deep due diligence. Ritual Hot Yoga is a franchise opportunity in the booming yoga industry, promising a high-end, immersive studio experience. But how does investing in a hot yoga studio stack up against a cleaning business franchise model such as Assett Franchise? In this comprehensive review, we’ll break down the Ritual Hot Yoga franchise – from company background and costs to industry pros and cons – and then compare it to the commercial cleaning world. By the end, you’ll see why Assett’s cleaning franchise might offer a more scalable, stable path to that $1M+ recurring revenue dream.
What Is the Ritual Hot Yoga Franchise Opportunity?
Company Overview and Industry
Ritual Hot Yoga is a boutique fitness franchise specializing in hot yoga classes delivered in a luxury setting. The company was founded in 2015 by Lindsey Kaalberg, who opened the first Ritual studio in San Francisco. The concept gained a following for its unique approach: each 50-minute class is held in an infrared-heated studio with curated music and is led by two instructors for personalized attention. Ritual provides all the essentials for clients – mats, towels, water, essential oils, even post-class refreshments – to create an all-inclusive, high-touch experience. This premium model quickly proved popular among urban wellness enthusiasts.
After a few years of refining the concept, Ritual Hot Yoga began franchising around 2019. The corporate headquarters relocated to Chicago, IL, as the brand started expanding beyond its California roots. As of 2024, Ritual Hot Yoga has about 5 studios in operation across the U.S. – a small but growing footprint. Those locations include several Chicago neighborhood studios (River North, Lakeview, Wicker Park), plus studios in San Francisco, Lake Country (Wisconsin), and Salt Lake City. While still an emerging franchisor, Ritual has hit some early milestones. Notably, their studios generate strong sales: the average unit revenue is about $912,988 per year (2024 average). In Item 19 of its Franchise Disclosure Document (FDD), the company disclosed an affiliate-owned studio with annual gross revenue of ~$913K and a net income of roughly $128K–$164K. That suggests profit margins in the mid-teens, indicative of a healthy business but also reflecting the high operating costs of a luxury fitness studio. Overall, Ritual Hot Yoga positions itself as a high-end fitness franchise in the surging health and wellness industry – but with a relatively new franchise network that’s just beginning to scale up.
What Franchisees Get
A Ritual Hot Yoga franchise offers both a unique service to customers and a support system for franchise owners. Franchisees deliver boutique yoga classes to a devoted client base of health-conscious consumers. Each studio offers multiple heated yoga classes daily, taught by certified instructors using Ritual’s proprietary format. Customers are typically local residents and professionals (B2C), often on membership plans that give them unlimited classes or a set number of classes per month. Because Ritual emphasizes a luxurious and convenient experience, franchisees cater to clients who appreciate the provided amenities (no need to bring their own mat or towel) and the community atmosphere. The target demographic spans young professionals, fitness enthusiasts, and busy parents – anyone seeking an intense workout coupled with mindfulness and stress relief. Ritual’s branding and vibe tend to attract a premium clientele willing to pay top dollar for an immersive yoga experience.
On the franchise support side, Ritual Hot Yoga provides a structured system to help new owners get up and running. Key elements of the support package include:
- Site Selection & Studio Build-Out Assistance: The franchisor helps choose an ideal location (typically a flexible retail space) and guides the design and build-out of the hot yoga studio. They understand the real estate flexibility needed and will assist with lease negotiations and layout to optimize the studio’s ambiance and capacity.
- Comprehensive Training: New franchisees, their managers, and even initial instructors go through Ritual’s training programs. There is a two-week initial training at headquarters covering operations, marketing, and the Ritual class methodology. In addition, Ritual provides a specialized teacher training program to ensure all instructors deliver classes the “Ritual way” with consistent quality. Ongoing training refreshers are available as needed.
- Grand Opening and Marketing Support: The Ritual team assists with planning the studio’s grand opening events and initial marketing campaigns. Franchisees receive guidance on local marketing strategies and have access to branded materials and a custom studio website/mobile app for class scheduling.
- Continued Operational Support: Once open, franchise owners have access to ongoing coaching and resources from Ritual HQ. This includes help with best practices for membership sales, customer retention, and organizing workshops or events. Being a small franchise system, Ritual encourages a close-knit relationship – franchisees can lean on the corporate team for advice as they grow their member community. There is also territory protection: each franchise is granted a defined geographic territory so no other Ritual studio will open nearby in that area.
In terms of day-to-day, a Ritual Hot Yoga franchisee can expect to be managing customer relations, membership sales, and staff (teachers and possibly a studio manager/front-desk staff). The business is customer-facing and labor-intensive – success hinges on recruiting and retaining great yoga instructors and delivering a top-notch class experience every time. The franchisor’s philosophy is that hiring the best teachers and giving them a career path within the brand leads to strong student satisfaction and retention. Thus, franchisees are advised to focus on building a passionate, skilled team. If you as an owner are passionate about fitness and enjoy building a local community, this franchise provides the playbook and brand to do so. However, it’s important to note that operating a fitness studio is generally a hands-on endeavor – many owners will be heavily involved in local marketing, class scheduling, and ensuring each class lives up to the brand’s premium standards. It’s not a passive investment by nature (more on that later when we compare to cleaning).
Startup Costs and Ongoing Fees
Investing in a Ritual Hot Yoga franchise requires a significant upfront commitment – as is typical for build-out heavy, brick-and-mortar businesses. According to the franchisor’s FDD, the initial investment ranges from about $302,000 to $503,000 to open one studio. This includes virtually everything needed to launch:
- Franchise Fee: $40,000 (one-time). This secures your territory and access to the Ritual Hot Yoga brand and systems.
- Studio Build-Out and Equipment: A large portion of the investment goes into leasehold improvements and outfitting the studio. The space needs proper flooring, infrared heating panels, mirrors, sound system, and upscale decor. Just the leasehold improvements are estimated at $74K–$159K. Additionally, you’ll purchase a specialty equipment package (heat/humidity systems, etc.) for about $15K and an audio-visual/music system (~$9K–$10K). Branded fixtures, signage, yoga mats and props, and initial retail inventory (branded apparel, etc.) are also part of the cost.
- Pre-Opening Expenses: Initial marketing for launch is budgeted around $18K–$26K to build awareness and attract founding members. You’ll also travel to training (the training fee is $4,000 plus up to $4,000 for travel). There’s an allowance for permits, insurance, and other opening fees.
- Working Capital: Uniquely, Ritual recommends having $100K–$150K set aside for the first 3 months of operating expenses. This cushion covers rent, utilities, staff payroll, etc., until membership revenue ramps up. It highlights that studios may operate at a loss for a few months initially until they build a steady membership base.
- Total Estimated Investment: $300K–$500K including all the above. (Some sources cite a slightly wider range up to $540K, but $300–$500K is a good ballpark for most cases.)
Beyond startup costs, ongoing fees include a royalty of 7% of gross sales to the franchisor. This is in line with many fitness franchises. Notably, Ritual Hot Yoga currently does not charge a national ad fund fee (0%), though franchisees are responsible for their own local marketing spend. (The FDD indicates a marketing fee could be added in the future, but as of now there’s none.) Franchisees must also maintain certain insurance and may pay tech or software fees for the booking app/CRM, though those details are relatively minor compared to the major costs above.
Considering the financial picture, prospective owners should weigh the revenue potential against these costs. As mentioned, the company’s sample financials show about $912K annual gross revenue per studio on average, with an estimated owner earnings of ~$128K–$164K from that (after operating expenses). If achieved, those earnings represent a solid income, but they also imply it could take a few years to recoup the initial $300K–$500K investment. In fact, analysts estimate a 3.2 to 5.2 year franchise payback period for Ritual Hot Yoga. That means you might be in operation for 4+ years before you’ve earned back your initial capital – a reasonable timeframe for a fitness business, but something to keep in mind if you’re seeking a quicker return on investment.
In summary, Ritual Hot Yoga offers a premium fitness franchise opportunity: you’re buying into a concept that can generate nearly $1M in sales per location and fosters a passionate customer community. However, it comes with a hefty price tag and the operational complexity of running a retail studio with multiple employees. To decide if it’s right for you, it helps to step back and compare the yoga studio industry vs. the commercial cleaning industry – especially since Assett Franchise (a commercial cleaning brand) is being positioned as a “cleaner alternative” in more ways than one.
How the Industry Itself Compares
When evaluating any franchise, it’s critical to not only examine the specific brand but also the industry it operates in. A hot yoga studio business lives in the fitness industry, while Assett Franchise is part of the commercial cleaning industry. Your day-to-day reality, customer base, and long-term prospects can differ dramatically between these arenas. Let’s compare Ritual Hot Yoga’s industry versus the commercial cleaning industry in practical, financial, and operational terms. We’ll highlight what the yoga/fitness space offers, and then see how commercial cleaning stacks up – and why cleaning often comes out ahead for entrepreneurs seeking stability and scale.
Ritual Hot Yoga’s Industry Advantages
Operating a franchise in the boutique fitness sector – specifically a yoga studio – does have some attractive advantages. Here are a few notable ones for Ritual Hot Yoga’s industry:
- Booming Wellness Market: The yoga and fitness industry is enormous and growing. In the U.S. alone, yoga and Pilates studios generate around $14–15 billion annually in revenue, reflecting Americans’ willingness to spend on health and wellness. Globally, the yoga market is projected to keep expanding at a strong pace. This rising tide of interest in fitness means a well-run yoga studio can tap into a large pool of potential customers seeking mindful exercise and stress relief.
- Recurring Membership Revenue: A yoga studio like Ritual Hot Yoga typically uses a membership or subscription model. Customers often pay monthly for unlimited classes (or buy class packs), providing the franchisee with recurring revenue streams. This can smooth out cash flow compared to one-off services. A base of loyal members who renew each month creates a predictable income floor – as long as you keep them happy and engaged.
- High Customer Engagement and Community: Boutique fitness thrives on building a passionate community. The nature of a yoga business means you interact with your customers frequently (some attend class daily or several times a week). This high engagement can foster loyalty and word-of-mouth referrals. For an owner who loves people, a yoga franchise offers the rewarding experience of creating a positive, healthy community. You’ll see your customers progress and transform, which can be deeply satisfying compared to a more behind-the-scenes business.
- Premium Pricing Potential: Brands like Ritual Hot Yoga position themselves at the luxury end of fitness. This means franchisees can charge premium prices – often $100–$180 per month for memberships or significant fees for retreats and workshops. With the right demographic, a single studio can gross high revenues (as we saw, ~$900K/year average) because each customer is worth a lot. The all-inclusive service (providing mats, etc.) justifies higher pricing. If you fill classes and upsell retail merchandise or teacher training programs, the revenue per client can be substantial.
- Trend Alignment and Personal Passion: Investing in a fitness franchise often aligns with owners’ personal passions. If you’re someone who values yoga or fitness in your own life, running a studio allows you to turn that passion into a career. The industry is also trend-driven and youthful. Brands that keep up with fitness trends (like hot yoga, HIIT, etc.) can ride waves of popularity. There’s an excitement in being part of a vibrant, consumer-facing industry where new class styles or wellness trends keep things dynamic.
These advantages paint an appealing picture of the yoga studio business. A Ritual Hot Yoga franchise allows you to be part of a trendy sector, make a positive impact on individuals’ health, and potentially earn a healthy revenue if you build your membership base. However, it’s important to weigh these against the challenges and compare them to what the commercial cleaning industry offers, which we’ll do next.
Compared to the Commercial Cleaning Industry
Now let’s contrast all of that with the commercial cleaning industry, where Assett Franchise operates. On the surface, cleaning may not sound as glamorous as running a hip yoga studio – but from a business perspective, it has major advantages that translate into long-term stability, easier scalability, and often better profitability. Consider the following points that favor commercial cleaning:
- Massive, Essential Market: Commercial cleaning is a truly huge and fundamental industry. In the United States, janitorial and commercial cleaning services account for around $90–100 billion in annual revenue, making it an order of magnitude larger than the yoga studio niche. Crucially, these services are essential and recession-resistant – every office, school, medical facility, and retail store needs cleaning, in good times or bad. Companies might trim budgets during a downturn, but basic cleaning is usually non-negotiable for health, safety, and professionalism. By contrast, fitness classes are discretionary spending that consumers can cancel when tightening belts. The essential nature of cleaning means a well-run cleaning business can maintain demand even through economic ups and downs. (In fact, the COVID-19 pandemic increased awareness of cleanliness, boosting cleaning service demand.) Simply put, a cleaning business franchise benefits from a stable, evergreen market need – dirt and germs aren’t going away!
- Recurring B2B Contracts: Commercial cleaning franchises typically serve business clients on contract, rather than individual consumers making spur-of-the-moment purchases. This B2B model leads to long-term recurring revenue. For example, a cleaning franchise might have contracts to clean a client’s offices 5 nights a week, every week. Revenue from these contracts recurs monthly under multi-month or annual agreements. Unlike gym members who can quit any time, business clients are more likely to stick with a reliable cleaning provider for the long haul (less churn). The result is far more predictable, steady income. You’re invoicing clients on a set schedule, and as long as you deliver good service, those contracts often renew automatically. This contractual, recurring revenue model is a golden trait of the cleaning industry that offers franchise owners peace of mind and easier forecasting.
- Lower Cost of Entry, Higher Scalability: One of the biggest differences is the cost structure. Starting a cleaning franchise generally costs significantly less than starting a retail fitness studio. There’s no expensive storefront or heavy build-out required – you don’t need a public facility at all, as cleaning crews go out to client locations. Many commercial cleaning franchises, especially unit franchises, can be launched for well under $100,000 total investment. Some janitorial franchises even start in the $20K–$70K range including franchise fees, because the main expenses are basic equipment (vacuums, supplies) and initial working capital, not real estate or specialized installations. This low cost of entry reduces your financial risk and debt burden. Furthermore, the cleaning business model scales up without major additional capital – you don’t have to build a new facility to grow. To increase revenue, you add more client accounts and hire more cleaning staff, which is a linear, relatively low-cost expansion. You could grow to a $1M/year cleaning business by gradually layering on contracts, all while working from a modest office (or home office) and maybe a storage unit for supplies. There’s no need for multiple locations or pricey equipment upgrades as you scale. This scalability is very attractive for an entrepreneur: your growth is limited mainly by your ability to sell services and recruit cleaners, not by high fixed costs.
- Simpler Operations (Semi-Absentee Potential): Running a commercial cleaning franchise tends to be operationally simpler than running a customer-centric retail business like a gym. In cleaning, work is often done after-hours at client facilities, and the business back-end revolves around scheduling cleaners, quality checking their work, and maintaining supplies. You typically don’t have hundreds of customers coming through a physical location each day with all the attendant customer service. Instead, you might interact with a few dozen client contacts by email/phone and manage a team of cleaners in the field. This simplicity makes it feasible to operate in a semi-absentee or executive capacity. Many cleaning franchise owners keep their day job initially or focus on big-picture growth while a small staff handles daily cleaning routes. Assett Franchise, for example, is built so owners can run it with as little as 5 hours per week by leveraging systems and delegating tasks. Compare that to a yoga studio owner who likely needs to be on-site often, handling member issues or stepping in if an instructor calls out. The cleaning industry’s back-office nature means you can apply management skills on the business (sales, quality control, hiring) rather than being stuck in the business every hour. This also makes it ideal for first-time entrepreneurs – the operational playbook is straightforward (keep places clean, keep clients happy), especially with a good franchisor’s support.
- No Expensive Facilities or Inventory: In commercial cleaning, your “equipment” is mostly cleaning tools and your workforce. You’re not investing in showers, sound systems, HVAC for hot yoga, or retail boutique décor. There’s no need to maintain a trendy studio space or keep up with décor trends. You also don’t carry inventory aside from cleaning supplies (which are low-cost and consumed as part of service). This means lower overhead costs day-to-day. Rent for a small office or storage space is minimal compared to renting a large studio in a prime retail location. Utilities and insurance costs are also far lower. The absence of a public-facing facility also shields you from certain risks – for instance, a yoga studio might see membership dip in summer or holidays when people travel, or suffer if a nearby competitor studio opens; a cleaning business has a more steady usage pattern and isn’t as beholden to “foot traffic.”
- Less Seasonality, More Stability: Many service businesses aimed at consumers have seasonal swings or fickle demand influenced by trends (e.g., fitness booms in January, slower in summer). Commercial cleaning demand is relatively steady year-round – offices need cleaning regardless of season. There can be some growth in certain seasons (like flu season prompting extra disinfection services) but not the wild swings you might see in, say, a mosquito spraying business that’s dead in winter or a gym that cycles with New Year’s resolutions. The steadiness of cleaning contracts means your revenue and workload won’t whipsaw throughout the year, which is better for planning and staffing. Additionally, cleaning is not subject to the “fad” factor – you’re not worried about the next fitness craze making your service obsolete. Cleaning needs and methods evolve slowly and the core need is permanent.
In short, the commercial cleaning industry offers scale, resilience, and simplicity that can outshine sexier industries when it comes to building a profitable business. A cleaning business might not have the buzz of a fitness studio, but it has a wide moat of essential demand and typically requires fewer headaches to keep running. Next, let’s see how Assett Franchise builds on these industry advantages and where it stands relative to a franchise like Ritual Hot Yoga.
How the Assett Franchise Compares
Assett Franchise is a commercial cleaning business franchise founded by Matt Pencarinha, and it’s specifically designed to give corporate career escapees a smoother path to business ownership. Having looked at Ritual Hot Yoga, we can now highlight how Assett’s model leverages the strengths of the cleaning industry while offering unique systems and support that put it in a league of its own. Here’s how Assett Franchise compares:
Simpler Systems, Bigger Potential
Assett Franchise operates in the commercial cleaning arena, meaning franchisees start off in an industry that’s already essential and over $100B in size. Unlike a complex fitness studio, Assett’s business model is intentionally streamlined. It’s built for owners who want to work on the business, not in it day-to-day. There’s no requirement for prior cleaning experience – Assett provides a complete business playbook and training so that even first-time entrepreneurs can hit the ground running. The model has been proven to scale to $1M+ in recurring revenue per year through long-term commercial contracts, which is comparable top-line potential to a successful fitness studio but achieved with much less complexity. Assett focuses on simple systems for service delivery, client acquisition, and billing that make it easy to manage growth. As a result, the owner’s role is more about strategy and oversight (managing client relationships, ensuring quality) rather than being tied up in daily service delivery or constant on-site oversight. This simplicity, combined with the huge market demand for cleaning, gives Assett franchisees a realistic shot at building a seven-figure business without the heavy lifting (financially and operationally) that a brick-and-mortar franchise would entail.
Automated Hiring = Time and Money Saved
One standout feature where Assett truly differentiates itself is through its automated hiring system. In any service business, especially cleaning, hiring and retaining reliable staff is often the #1 headache for owners. Assett recognized this and created a proprietary system to automate much of the recruitment, screening, and onboarding of cleaning personnel. This means as an Assett owner, you’re not spending endless hours posting job ads, interviewing cleaners, and dealing with high turnover all on your own – the system continuously funnels qualified candidates into your pipeline. The impact of this cannot be overstated: it can save owners 20–30 hours per week (or the cost of a dedicated hiring manager) that would otherwise be spent managing payroll and staffing issues. By taking labor recruitment largely off your plate, Assett frees you to focus on signing new contracts and scaling the business. It also ensures you have a consistently high-quality workforce ready to deploy as you grow. Cleaning contracts can be scaled with confidence because you know the manpower will be there when you need it, without frantic last-minute scrambling. In essence, Assett Franchise has “productized” the labor aspect of the business – a revolutionary approach in an industry where many small operators struggle with staffing. This automated hiring engine directly translates to time saved, lower stress, and even cost savings (because efficient hiring reduces churn and training costs). It’s a modern solution that gives Assett owners a significant edge over both independent cleaning businesses and other franchises that don’t offer such a system.
Personalized and Founder-Led
Another compelling way Assett Franchise sets itself apart is through its personalized, founder-led culture. Unlike some franchise brands backed by private equity or large corporate franchisors, Assett is a family-owned franchise where the founder, Matt Pencarinha, is directly involved in guiding franchisees, according to bizbuysell.com. This means when you join Assett, you’re not just another number in a vast system – you become part of a close-knit franchise family. Franchisees get direct access to leadership for mentorship and advice. Matt and his team are approachable and invested in each owner’s success, which can make a huge difference especially in the early stages of ramping up. Decisions within the franchise system are made with long-term franchisee success in mind (rather than short-term investor mandates). Assett’s culture emphasizes community and a clear mission – not just cleaning for profit, but helping entrepreneurs achieve freedom and providing exceptional reliability to clients. Because Assett is founder-led, the training and support also have a personal touch. You can expect coaching from people who have built the business from scratch, and who continue to run it with passion. For franchisees, this translates to feeling genuinely supported on your journey to business ownership. If you’ve ever been wary of being left to sink-or-swim by a big franchisor, Assett’s model will be refreshing – they walk alongside you. Additionally, a community-focused model means Assett encourages franchisees to build relationships in their local business community, work with integrity, and even give back where possible. It’s not just about cleaning buildings; it’s about building a business you can be proud of in your hometown. This ethos, driven by a hands-on founder, helps Assett franchise owners stay motivated and aligned with a bigger purpose as they grow their enterprise.
Final Thoughts
Choosing the right franchise opportunity comes down to aligning the business model with your personal goals, financial situation, and vision for your life. Ritual Hot Yoga is undoubtedly a strong concept in the fitness world – it offers a distinctive studio experience and could be a great fit for someone deeply passionate about yoga and who thrives in a customer-service, community-building environment. For the right owner (one who doesn’t mind the higher investment and active role), Ritual Hot Yoga can provide a fulfilling career and a chance to make an impact on people’s well-being. However, if your priority is long-term income, stability, and flexibility, the advantages of Assett Franchise and the commercial cleaning industry are hard to ignore. Assett offers more of what an executive-minded owner is looking for, with fewer of the operational pitfalls that come with a retail franchise.
In comparing the two, it becomes clear that Assett Franchise offers more advantages for someone who wants:
- A scalable, stable business
- Low operational complexity
- Predictable recurring revenue
- Minimal risk and faster ROI
- A modern business model built for executive ownership
Both franchises have their strengths, and ultimately the “right” opportunity depends on the type of business you see yourself running. But if you’re looking for a franchise model that can deliver reliable income, can grow without 24/7 hands-on involvement, and is backed by a supportive, innovative franchisor, Assett may be the cleaner – and smarter – alternative.
If you’re exploring franchise opportunities and want a model that can deliver long-term income, flexibility, and control — we’d love to show you how Assett Franchise can help you build a business that works for your life. Visit https://assettfranchise.com to connect with our team and learn more.
