Hot Ground Gym Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Hot Ground Gym is a veteran-founded kids' fitness franchise built on discipline, leadership, and teamwork through obstacle-style training. Franchisees run the gyms, managing coaches, classes, and enrollment.
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]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $163K – $317K
- 29th pct Health & Fitn…
- Avg gross sales
- N/A
- Company-owned onlyn=2
- Royalty
- 6.0%
- 10th pct Health & Fitn…
- Units
- 3
- 15th pct Health & Fitn…
- SBA charge-off
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $163K – $317K including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSThe system had exactly one franchised outlet at the end of FY2024 (Item 20, printed p.36), and it opened on 1 October 2024 — a three-month partial year at $29,802, neither an average nor annualisable. The figure previously shown was a single affiliate-owned location, which the FDD notes is 'not a franchise'.
- RISKVerdict C (Average), verdict score 40/100 (higher is better).
- DATAItem 19 reports Gross Revenues - affiliate-owned and one franchised location rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Hot Ground Gym Franchising, LLC
- CEO title
- President & Founder
- Douglas Gialds
- Incorporated in
- DE
- HQ
- 1950 North US Highway 45, Libertyville, IL 60048
- Auditor
- CliftonLarsonAllen LLP (CLA)
- Audited financials
- Franchisor revenue
- $9K
- 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
- CEO
- Douglas Gialds
- Headquarters
- IL
- Founded
- 2013
- FDD year
- 2025
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 58% below the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $163K – $317K
- Top 40% of category vs category
- Liquid capital req'd
- $50K – $65K
- Bottom third — review vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 6.0%
- percentage · 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 |
| Technology fee | $175 |
| Transfer fee | $5K |
| Renewal fee | $25 |
| Inventory (initial) | $8K – $15K |
| Total fee load | 8.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Hot Ground Gym did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Hot Ground Gym unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
76%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
The system had exactly one franchised outlet at the end of FY2024 (Item 20, printed p.36), and it opened on 1 October 2024 — a three-month partial year at $29,802, neither an average nor annualisable. The figure previously shown was a single affiliate-owned location, which the FDD notes is 'not a franchise'.
Company-owned outlets only - not franchisee performance
Based on a sample of only 2
- Item 19 type
- Gross Revenues - affiliate-owned and one franchised location
- Sample size
- 2
- vs category median 12 · small
- Range (low → high)
- $422K→$423K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 0 / 10
- vs category median 4 / 10 · below
Compared against 173 Health & Fitness brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% (near the Health & Fitness average).
Disclosure
Item 19 reports Gross Revenues - affiliate-owned and one franchised location rather than annual gross sales, so unit revenue is not directly comparable.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Health & Fitness averages
How Hot Ground Gym Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 states 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.
2
states with franchisees (per FDD Item 12)
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
None disclosed
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP (CLA)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 40 / 100 verdict
- 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
- 05MED6% royalty on undisclosed revenue stream creates unpredictable cost structure for franchisee planning
- 06MED7-year term locks franchisee into underperforming or unstable system with limited exit options
- 07MINORMinimal franchise footprint (3 units) suggests either recent launch without traction or significant unit attrition
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | DE |
| 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
- 8 W College Drive #A, Arlington Heights, IL 60004 and/or other locations as specified
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee selects with franchisor consulting assistance; franchisor must approve
- Franchisor financing
- Not offered
- Item 10
- POS system
- Vagaro
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Vagaro
Item 20 · call current owners
Franchisee Contacts
1 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?
Hot Ground Gym does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Hot Ground Gym FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Hot Ground Gym FDD and qualifies whose outlets they describe.
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 1 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 C-grade franchise with a verdict score of 40 out of 100 (higher is better), 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.