Peter Jones Quizzes A Yoga Bellies Yoga Instructor | Dragons' Den

Summary

Cheryl and Mike McDonald pitch their business, Yoga Bellies, a franchise offering yoga classes for women and children, including pregnancy and postnatal yoga. With 60 franchise teachers globally, they seek £50,000 for a 20% equity stake to expand further. Despite initial skepticism from the dragons, particularly about the price hike in franchise fees, they secure an offer from Duncan Bannatyne for £50,000 in exchange for 35% equity, later negotiating it down to 20%. The couple is thrilled with the investment and expertise, which will help them scale their business internationally.

Takeaways

• 😀 Cheryl McDonald and Michael McDonald are the founders of Yoga Bellies, offering yoga classes for women and children in a welcoming environment.
• 😀 The business started with Cheryl teaching pregnancy yoga in her spare bedroom and has since grown to over 60 franchise teachers worldwide.
• 😀 Yoga Bellies generates income from initial franchise training fees, annual fees, and packs sold to teachers for their students.
• 😀 The business is on track for a turnover of £116,000 and net profits of £50,000 in the current year, with projected increases in the next two years.
• 😀 A demonstration of pregnancy yoga was given by one of their franchise teachers, Sophie Mandelis, who is 22 weeks pregnant.
• 😀 The business model includes offering franchise opportunities for women to own and run their own ethical yoga business while balancing family life.
• 😀 Their franchise fees have increased to £4,500 initially, with an ongoing £50 per month annual fee, which has sparked some debate on pricing.
• 😀 The business has expanded internationally, with teachers in countries such as Sweden, Korea, Dubai, Cyprus, and soon, San Francisco.
• 😀 Despite being a relatively new business, the couple has grown their network significantly and now ranks on the first page of Google for niche yoga terms like pregnancy yoga.
• 😀 During their pitch to investors, the couple faced skepticism from the dragons, particularly regarding the raised franchise fees, but remained confident in their approach and growth potential.

Q & A

What is the main focus of Yoga Bellies?

Yoga Bellies offers authentic yoga classes for women and children in a welcoming, safe, and fun environment. The classes focus on pregnancy, postnatal, and general wellness yoga.

How did Yoga Bellies start?

Yoga Bellies began when Cheryl McDonald, the founder, started teaching pregnancy yoga from her spare bedroom when her son was just six weeks old. From these humble beginnings, the business has grown into a global franchise.

How many franchise teachers does Yoga Bellies currently have?

Yoga Bellies currently has over 60 franchise teachers across the world, with a growing international presence.

What are the key revenue sources for Yoga Bellies?

Yoga Bellies generates income from initial franchise training fees, annual fees, and packs that they sell to teachers, which are given to every participant attending a class.

What financial targets are Yoga Bellies aiming for?

Yoga Bellies is targeting a turnover of £116,000 with a net profit of £50,000 for the current year. In years two and three, they expect turnover to reach £160,000 and £290,000, with net profits of £76,000 and £200,000, respectively.

What was the franchisee Sophie Mandellis's experience with Yoga Bellies?

Sophie Mandellis, a certified Yoga Bellies teacher, shared that her busiest class, with around 18 to 20 mothers, brings in just over £200 per class, equating to approximately £10,000 a year from just two weekly classes.

Why did Yoga Bellies raise its franchise fees?

The franchise fees were raised to attract more serious and committed teachers. Cheryl McDonald believes that higher fees will help bring in teachers who are more dedicated, thus increasing income and ensuring the sustainability of the business.

What challenges did Yoga Bellies face with increasing franchise fees?

The increase in franchise fees led to mixed reactions, with some potential investors and franchisees expressing concerns that the higher fees might slow down growth or reduce interest in the business.

What did Cheryl and Mike McDonald hope to gain from appearing on Dragons' Den?

Cheryl and Mike McDonald hoped to gain not only financial investment but also the business expertise of the Dragons to help grow the business more efficiently and cut costs.

How did Duncan Bannatyne respond to the Yoga Bellies pitch?

Duncan Bannatyne offered the £50,000 investment for a 35% stake in the business, acknowledging that while they didn’t need a Dragon, his expertise could help them scale up faster. They accepted the offer after some negotiation.