D70/100FDD 2024
Glow Sauna Studios — Litigation & Risk
Health & Wellness - Other · FDD Items 3, 4 & 5
Lower Risk
No litigation cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
70 / 100
FranchiseVerdict composite
Rating
CAUTION
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
1
Government-backed loans issued
Default rate
—
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
Total loan volume
$417K
Avg loan size
$417K
Participating lenders
1
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Not required
You retain the right to sue in court
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Texas
State whose law governs disputes — relevant if you're not based there
What drove the 70/100 rating
Risk Score Breakdown
- 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 FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.