Bottom line
- Total investment $224K – $399K including a $40K franchise fee.
- Average unit revenue of $44K/year. Estimated payback in 18.3 years.
- Rated CAUTION with a risk score of 70/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- Emerging franchise — only 3 years of franchising with 2 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one GLOW SAUNA STUDIOS unit return on the cash you put in?
Unlevered ROIC · per unit
3%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 GLOW SAUNA STUDIOS units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$133K
on $666K purchase
Total debt
$533K
SBA $0.3M + senior + seller note
Overview
About
Franchisees operate infrared sauna wellness studios, managing daily operations including member check-ins, facility maintenance, sauna pod scheduling, and ancillary wellness services. Primary revenue comes from sauna session memberships, day passes, and retail/treatment add-ons; operations require facility lease, equipment maintenance, staff scheduling, and member retention management.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Pre-revenue stage franchise system with dangerously thin unit economics, unproven model, and royalty obligations that consume most projected profits.
Score breakdown · what drove the 70 / 100 rating
- 01MEDOnly 2 operating units with unknown growth trajectory indicates extremely limited track record and system maturation
- 02MINORAverage net income of $16,992 on $224k-$399k investment yields 4-7.6% annual return, below market expectations and debt service thresholds
- 03MINORMinimum royalty of $1,000/month ($12,000 annually) represents 71% of average net income, creating severe cash flow pressure
- 04MINORHigh franchise fee ($40,000) plus substantial build-out costs capture most upfront capital with minimal system support infrastructure
- 05MINORWellness/sauna category subject to changing consumer preferences, membership churn, and seasonal revenue volatility not addressed
- 06MINORAbsence of Item 19 (financial performance representations) prevents validation of claimed average revenue/income figures
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
2 numbers
One-time purchase · CSV download · Validation questions included
FDD download
GLOW SAUNA STUDIOS · FDD (2024) PDF