SweatHouz Franchise FDD, Profits, Costs & Fees (2024)
Launched in 2019 and initiating its franchise operations in 2022, SweatHouz is a dynamic player in the health and wellness sector. The brand is celebrated for its state-of-the-art infrared saunas and rejuvenating cold plunge pools, which provide a plethora of health-centric services and experiences.
These range from secluded infrared sauna treatments to red light therapy, hydro massages, and invigorating cold plunges. SweatHouz’s offerings are crafted to enhance well-being through calorie expenditure, metabolic stimulation, improved skin health, detoxification, and profound relaxation.
SweatHouz, with its corporate headquarters nestled in Atlanta, Georgia, carves a niche for itself within the burgeoning wellness industry worldwide.
The franchise leverages a subscription-based revenue model coupled with significant profit margins, making it an attractive venture for business enthusiasts in the wellness domain.
Initial Investment
How much does it cost to start a SweatHouz franchise? It costs on average between $517,000 – $920,000 to start a SweatHouz 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.
Type of Expenditure | Amount |
---|---|
Initial Franchise Fee | $35,000 |
Initial Equipment Package | $70,000 to $90,000 |
Training Program Expenses | $0 to $5,000 |
Lease Review Fee | $0 to $2,000 |
Three Months’ Rent & Deposits | $20,000 to $48,000 |
Leasehold Improvements | $296,273 to $588,860 |
Professional Fees / Permits | $10,000 to $17,000 |
Furniture, Fixtures & Equipment | $25,000 to $30,000 |
Computer System, POS, and Technology Set Up | $1,500 to $2,200 |
Opening Inventory & Supplies | $12,000 to $15,000 |
Grand Opening Advertising | $10,000 to $20,000 |
Insurance | $3,500 to $6,000 |
Signage | $8,000 to $17,000 |
Deposits | $1,000 to $3,500 |
Additional funds (3 months) | $20,000 to $40,000 |
Total | $517,273 to $919,560 |
Average Revenue (AUV)
How much revenue can you make with a SweatHouz franchise? A SweatHouz franchised restaurant makes on average $603,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $908,000 yearly revenue for similar massage & spa franchises. Below are 10 SweatHouz competitors as a comparison:
SweatHouz Franchise Disclosure Document
Frequently Asked Questions
How many SweatHouz locations are there?
As of the latest data, SweatHouz has a total of 12 locations, all of which are company-owned. The breakdown includes 4 franchised units and 8 company-owned units.
What is the total investment required to open a SweatHouz franchise?
The total investment required to open a SweatHouz franchise ranges from $517,000 to $920,000.
What are the ongoing fees for a SweatHouz franchise?
A SweatHouz franchise has a royalty fee ranging from 6% to 8% of gross sales, starting at 6% for the first 24 months, then 7% from the 25th month, and 8% from the 49th month onward.
Additionally, franchisees are required to contribute 2% of gross sales weekly to the brand fund for marketing and brand support. Other possible fees may apply as outlined in the franchise agreement.
What are the financial requirements to become a SweatHouz franchisee?
To become a SweatHouz franchisee, the financial requirements typically include a minimum net worth ranging from $500,000 to $750,000.
Additionally, a minimum liquid capital requirement is estimated to be between $100,000 to $150,000. These requirements ensure that the franchisee has the financial stability and resources to cover startup costs, unforeseen expenses, and operational needs during the early stages of the business.
How much can a SweatHouz franchise owner expect to earn?
The average gross sales for a SweatHouz franchise are approximately $0.6 million per location. Assuming a 15% operating profit margin, $0.6 million yearly revenue can result in $90,000 EBITDA annually.
Who owns SweatHouz?
SweatHouz is owned by LS Franchisor LLC, a Georgia-based limited liability company. The company was formed on March 3, 2022, and operates under its principal address in Atlanta, Georgia.
LS Franchisor LLC is responsible for the franchising and business operations of SweatHouz, which provides wellness services like infrared sauna, red light therapy, hydromassage, and cold plunge treatments.
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