From the filings
Software purchasing at Modo Yoga is controlled by a small HQ team led by CEO Emily Drouillard and CFO Ash Steier. The franchise mandates business management software for scheduling and reservations across all 12 franchised studios. With a 5-year initial term and a single 5-year renewal, contract windows are infrequent but predictable for vendors targeting this boutique fitness brand.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
7%of gross sales (FY2022)
15% reference
Franchisor behaviours
18 requirements the franchisor states in this filing, each in its own words; 10 explicit no's; 6 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have online access to your computer-based information and you must agree to continuously provide such access as well as ensure your records are accurate, complete and up-to-date.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Upon Franchisor’s request, Franchisee shall provide to Franchisor on a quarterly basis, on or before the 20th day of each month following each calendar quarter, an income and expense statement and a balance sheet in such form and detail as shall from time to time be reasonably required by Franchisor in respect of the…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We may periodically designate or approve a corporation affiliated, associated or in a license relationship with us as a supplier.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
We may specify different equipment, software, computer and other systems as well as designate a different supplier from which you must purchase those items.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
3754Item 8
We received CAD$3,754 in revenue from required purchases or leases from franchisees during the fiscal year ended October 31, 2021, which was 0.2% of our total revenues of CAD$1,979,215.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
As of the date of this disclosure document, we receive compensation from suppliers on account of purchases or leases by franchisees ranging from 1% to 10% of the total purchases or leases.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
10Item 8
We estimate that the required purchases and leases described in this Item will constitute approximately 30% to 40% of all purchases and leases you will incur to establish your Studio, and approximately 10% to 20% of all purchases and leases you will incur to operate your Studio.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you would like to propose a new supplier, (i) you must send us a written request, (ii) the supplier must demonstrate that it can supply goods or services meeting our specifications, (iii) the supplier must demonstrate its financial soundness, the reliability of its product or service and a high regard for ethics…
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
(v) stop all use of all telephone numbers, facsimile numbers, e-mail addresses, home pages, websites and the like that are associated with the Studio and the System and cooperate with 29 2022 Modo Yoga FDD – Franchise Agreement WEST\297355016.2 Franchisor in causing all applicable telephone companies and other…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee must abide by: (a) the Payment Card Industry Data Security Standards enacted by the applicable Card Associations (as they may be modified from time to time or as successor standards are adopted);
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
In order to monitor the System, Franchisor shall have the right to take classes offered at the Studio, free of charge, conduct quality assurance audits, and conduct customer surveys.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 14
We may periodically modify the operations manual to reflect changes in the system.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
Franchisee must obtain Franchisor’s written consent to a site for the Studio and have executed a lease with respect to such approved site within 180 calendar days after execution of this Agreement (the “Lease Deadline”).
Marketing
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
Franchisee shall participate in all customer loyalty and similar programs required by Franchisor.
Operations
Must the franchisee buy products from a designated distributor?
YesFranchise agreement
Franchisee shall purchase all supplies required for use in operation of the franchised business only from Franchisor or suppliers designated or approved by Franchisor.
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have online access to your computer-based information and you must agree to continuously provide such access as well as ensure your records are accurate, complete and up-to-date.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisor may charge a fee to provide studio owner training to additional individuals.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
Every year, you or at least 1 of your owners must attend our annual general meeting for franchisees (“AGM”) unless you meet certain exceptions as outlined in the operations manual or we do not conduct one.
Who buys here
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
The franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.
Modo Yoga operates a small, fully franchised network of 12 hot yoga studios. The brand’s 2022 Franchise Disclosure Document shows a 7.7% year-over-year decline in units, signaling a contracting footprint. For software vendors, this means the addressable market is narrow—just 12 locations—and new-unit-driven sales are unlikely in the near term. The royalty rate is 5.0%, and the initial franchise term runs 5 years, with one successive 5-year renewal available if conditions are met. Average unit volume is not disclosed in the most recent FDD.
Despite the small size, the franchise’s mandated tech requirements create a captive opportunity. Every studio must use business management software for scheduling classes and administering a reservation system. If you sell a platform that replaces or integrates with these functions, the entire system is your target.
HQ is lean. The FDD lists Emily Drouillard as Chief Executive Officer and Director, Ted Grand as Co-Founder, President and Director, Jessica May Robertson as Co-Founder, Vice President and Director, Ash Steier as Chief Financial Officer, and Maura Costello as Chief Operating Officer. No parent company is on file; the brand appears independently owned. With no field operators mapped in our corpus, purchasing authority almost certainly sits with this executive group. For a software pitch, the CFO and COO are the most natural entry points—Steier controls the budget, and Costello oversees operations where the mandated scheduling and reservation tools live.
The FDD mandates “business management software” for two specific functions: scheduling classes and administering a reservation system. No vendor is named, which means the system may be open to franchisee choice within a category, or the franchisor simply does not disclose the preferred vendor in Item 11. This ambiguity is a signal: if you can show that your platform meets the mandate better than the incumbent, you may find a receptive audience at HQ. The absence of a named POS or back-office system in the disclosure suggests the tech stack is light, focused on class booking and client management.
Item 8 of the FDD contains no procurement extract, so the franchisor’s supplier designation process—whether designated, approved, or open—is not publicly known. Renewal terms are clearer: franchisees who meet certain conditions can enter into a then-current renewal agreement for one additional 5-year term. Because the initial term is also 5 years, the natural contract cycle for any given unit is a decade. With only 12 units and negative growth, the number of renewal-driven evaluation windows in any given year is small. Vendors should monitor franchisee transfer activity and any shift in HQ’s growth strategy for new openings.
The 2022 FDD is embedded below. It was filed with state franchise regulators and contains the full legal and operational disclosures for the brand. For software vendors, the most relevant sections are Item 11 (franchisor’s obligations), which lists the mandated technology, and Item 1 (the franchisor and any parents, predecessors, and affiliates), which names the executives who control purchasing. Item 17 outlines the renewal terms that shape contract windows. Because the system is small and HQ is tightly held, direct outreach to the C-suite is likely the most effective path. For a ranked target list of franchise systems matched to your software category, FranCloud can help.
Questions vendors ask
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FDD alert
We’ll email you the moment Modo Yoga - 2022 Initial files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Modo Yoga - 2022 Initial’s FDD on file does not disclose a franchisee directory.
Related Fitness brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.