Hot Ground GymFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Hot Ground Gym franchise requires a total initial investment of $163K – $317K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $422K[2]. Verdict grade: D. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $163K – $317K
- 29th pct Health & Fitn…
- Avg gross sales
- $422K
- 20th pct Health & Fitn…
- Royalty
- 6.0%
- 8th pct Health & Fitn…
- Units
- 3
- 16th pct Health & Fitn…
- SBA default
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $163K – $317K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $422K/year.
- Verdict D (Below Average) with a risk score of 71/100.
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Hot Ground Gym Franchising, LLC
- Incorporated in
- DE
- HQ
- 1950 North US Highway 45, Libertyville, IL 60048
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Affiliated brands
- Hot Ground Enterprises
- Hot Ground Gym AH
- Hot Ground Gym LV
- Hot Ground Gym
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Hot Ground Gym franchisees operate boutique fitness facilities offering specialized ground-based training or workout programs. Day-to-day operations include class scheduling, instructor management, member retention, facility maintenance, marketing, and sales—typical of the fitness studio segment but with unclear operational differentiation.
- CEO
- Douglas Gialds
- Headquarters
- IL
- Founded
- 2013
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $50K | $65K |
| Equipment, build-out, other | $73K | $212K |
| Total initial investment | $163K | $317K |
Source: Hot Ground Gym 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$127K
30.0% margin
Unlevered ROIC
43%
EBITDA / total invested capital
Payback
28 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $163K – $317K
- Better than avg vs category
- Liquid capital req'd
- $50K – $65K
- Below avg, review vs category
- Franchise fee
- $30K – $40K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $5K |
| Renewal fee | $25 |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $422K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 3 units
- vs category median 11 · small
- Range (low → high)
- $422K→$423K
- Cohort dispersion (min → max)
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Hot Ground Gym Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Hawaii
- Indiana
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Hot Ground Gym presents HIGH RISK due to going concern status, only 3 units, missing financial disclosures (Item 19), and unproven profitability despite substantial capital requirement.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 71 / 100 rating
- 01MEDOnly 3 operating units indicates extremely limited system maturity and unproven scalability model
- 02HIGHGoing Concern status is FALSE—suggests franchisor financial instability or legal/operational issues
- 03MEDNo Item 19 (Average Unit Volume) disclosed—cannot assess profitability or ROI on $163k-$317k investment
- 04MINORNo average net income data provided—impossible to validate payback period or break-even timeline
- 05MINORWide investment range ($154k spread) without corresponding revenue/profit disclosure raises transparency concerns
- 06MED6% royalty on undisclosed revenue stream creates unpredictable cost structure for franchisee planning
- 07MED7-year term locks franchisee into underperforming or unstable system with limited exit options
- 08MINORMinimal franchise footprint (3 units) suggests either recent launch without traction or significant unit attrition
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Demographics and population based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | No |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 15 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 29 hrs
- On-the-job training
- 71 hrs
- Training location
- On-site and corporate
- POS system
- Vagaro
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Vagaro
Item 20 · call current owners
Franchisee Contacts
21 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Hot Ground Gym · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Hot Ground Gym franchise?
The total investment to open a Hot Ground Gym franchise ranges from $163K – $317K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Hot Ground Gym franchise owners earn?
According to Item 19 of the Hot Ground Gym FDD, the average gross sales per unit is $422K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Hot Ground Gym's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Hot Ground Gym (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Hot Ground Gym franchise locations are there?
As of their most recent FDD filing, Hot Ground Gym has 3 total units in the United States, including 0 franchised units and 2 company-owned units. 1 new units were opened in the latest reporting year.
Is Hot Ground Gym a good franchise to buy?
FranchiseVerdict rates Hot Ground Gym as a D-grade franchise with a risk score of 71 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.