Bottom line
- Total investment $163K – $317K including a $40K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 75/100.
- Emerging franchise — only 2 years of franchising with 3 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 Hot Ground Gym unit return on the cash you put in?
Unlevered ROIC · per unit
76%
Above typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 75 / 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
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
21 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hot Ground Gym · FDD (2025) PDF