HOTWORX Franchise FDD, Profits & Costs (2025)
HOTWORX is a fitness franchise that began in 2017, with its first studio opening in Oxford, Mississippi. The company is headquartered in Marrero, Louisiana, and has grown rapidly, reaching 500 locations by mid-2023.
The franchise offers a unique workout experience that combines infrared heat, exercise, and 24-hour access, setting it apart from traditional gyms. Members engage in virtually instructed sessions, including isometric exercises and high-intensity interval training (HIIT), inside patented infrared saunas that enhance metabolism and speed up recovery.
The “3D Training” method employed by HOTWORX integrates heat, infrared energy, and exercise to deliver more effective fitness results in a shorter time.
Initial Investment
How much does it cost to start a HOTWORX franchise? It costs on average between $252,000 – $1,182,000 to start a HOTWORX franchised studio.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property.
Indeed, HOTWORX offers 2 types of franchises:
| Type of HOTWORX® Studio Franchise Outlet | Initial Investment Range |
|---|---|
| Single HOTWORX® Studio (Excluding California and New York) | $252,200 to $901,440 |
| Single HOTWORX® Studio (California and New York) | $356,299 to $1,182,389 |
We are summarizing below the main costs associated with opening a Single HOTWORX® Studio (California and New York). For more information on the costs required to start a HOTWORX franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $19,950 |
| HOTWORX Sauna, Software, and Workout Equipment | $109,650 to $185,860 |
| Other Required Studio Equipment, Software, Staff Uniforms, and Furniture | $21,000 to $31,300 |
| Other Required Studio Components | $12,250 to $28,800 |
| CAD Fee/Engineering Architect Fees & Pre-Construction Coordination | $1,200 to $28,800 |
| Trade Dress Items and Finish Out | $33,000 to $52,000 |
| Utility, Phone, Real Estate and Real Estate Lease Deposits | $5,800 to $111,000 |
| Insurance Initial Payment | $600 to $8,200 |
| Printing, Marketing and Advertising | $10,000 to $31,600 |
| Wholesale Goods/Inventory to Begin Operating | $20,000 to $31,600 |
| Professional Fees | $1,100 to $17,000 |
| Additional Funds During Startup Period | $71,000 to $109,000 |
| Out-of-Pocket Initial Training Expenses | $0 to $4,800 |
| SBA Loan Packaging Fees and Closing Costs | $0 to $22,500 |
| Leasehold Improvements | $50,749 to $499,979 |
| Total Estimated Investment | $356,299 to $1,182,389 |
Average Revenue (AUV)
How much revenue can you make with a HOTWORX franchise? A HOTWORX franchised studio makes on average $291,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $401,000 yearly revenue for similar fitness studio franchises.
Download the Franchise Disclosure Document
Frequently Asked Questions
How many HOTWORX locations are there?
As of the latest data, HOTWORX has 719 franchise locations.
What is the total investment required to open a HOTWORX franchise?
The total investment required to open a HOTWORX franchise ranges from $252,000 to $1,182,000.
What are the ongoing fees for a HOTWORX franchise?
The ongoing fees for a HOTWORX franchise include a royalty fee of 7% of gross sales, which is paid to the franchisor for continued use of the brand and access to support services.
In addition to the royalty fee, franchisees are required to contribute 2% of gross sales toward a national marketing fund. This fee supports advertising efforts and brand promotion on a broader scale.
What are the financial requirements to become a HOTWORX franchisee?
To qualify as a HOTWORX franchisee, you must have a minimum net worth required is $400,000, ensuring that franchisees have sufficient overall assets to support the business.
Additionally, prospective franchisees need to have at least $75,000 to $100,000 in liquid capital. This liquid capital is necessary to cover initial expenses and ensure smooth operations during the startup phase.
How much can a HOTWORX franchise owner expect to earn?
The average gross sales for a HOTWORX franchise are approximately $0.29 million per location. Assuming a 15% operating profit margin, $0.29 million yearly revenue can result in $44,000 EBITDA annually.
Disclaimer
Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.
All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.
