Hot Ground Gym Franchise Cost, Revenue & Review 2026
- Investment
- $163K – $317K
- Disclosed sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
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 on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2024. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 6 headline figures on this page cite a page of the filing.
Overview
- Investment
- $163K – $317K
- 29th pct Health & Fitn…
- Avg gross sales
- N/A
- Company-owned onlyn=2
- Royalty
- 6.0%
- 13th pct Health & Fitn…
- Units
- 3
- 14th pct Health & Fitn…
- SBA charge-off
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness median · 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).
- GROWTHPositive: net +1 franchised outlets in the latest year (1 opened, 0 closed) (Item 20).
- DATAItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. 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
- $2K
- 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 39% 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%
- 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% |
| 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
No Item 19 revenue figure for Hot Ground Gym is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Hot Ground Gym unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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 11 · small
- Range (low → high)
- $422K→$423KCited, not corroborated — printed on page 41 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
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 median).
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
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 medians
How Hot Ground Gym Compares
Category median of published Health & Fitness brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- N/A
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
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)
Where the owners are · Item 20 owner list
1 current owner across 1 state.
- HI 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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
- 02MEDNo Item 19 (Average Unit Volume) disclosed—cannot assess profitability or ROI on $163k-$317k investment
- 03MINORNo average net income data provided—impossible to validate payback period or break-even timeline
- 04MED6% royalty on undisclosed revenue stream creates unpredictable cost structure for franchisee planning
- 05MED7-year term locks franchisee into underperforming or unstable system with limited exit options
- 06MINORMinimal 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 territory |
| 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
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?
Item 19 of the Hot Ground Gym FDD discloses outlet figures from $422K to $423K but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Hot Ground Gym?
Hot Ground Gym is franchised by Hot Ground Gym Franchising, LLC. Source: FDD Item 1, 2025 filing.
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). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.