Bottom line
- Total investment $983K – $2.8M including a $50K franchise fee.
- Average unit revenue of $2.0M/year. Estimated payback in 4.1 years.
- Rated MODERATE with a risk score of 65/100.
- Emerging franchise — only 2 years of franchising with 2 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 Hydrogen Fitness unit return on the cash you put in?
Unlevered ROIC · per unit
29%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Hydrogen Fitness units return on equity?
Equity IRR · 5-yr
23.7%
2.89× MOIC
Year-1 DSCR
3.67×
EBITDA ÷ debt service
Equity required
$27.0M
on $45.7M purchase
Total debt
$18.7M
SBA $5.0M + senior + seller note
Overview
About
Hydrogen Fitness franchisees operate boutique fitness facilities offering hydrogen-based wellness and fitness services. Day-to-day operations include managing facility memberships, scheduling classes, training staff, handling maintenance of specialized equipment, and managing the member experience across both fitness and hydrogen therapy offerings.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state 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.
1
states with franchisees (per FDD Item 12)
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
Pre-revenue-stage franchise system with minimal operating units, no published financials, and potential franchisor financial instability creating substantial validation and scalability risks.
Score breakdown · what drove the 65 / 100 rating
- 01MEDOnly 2 franchised units with unknown growth trajectory indicates extremely limited operating history and no proven scalability
- 02MINORNo Item 19 financial performance representation despite average revenues of $1.99M suggests franchisor is unwilling to substantiate earnings claims publicly
- 03MEDHigh investment range ($983K-$2.8M) against only 2 reference locations creates severe due diligence risk and limited comparables
- 04HIGHGoing Concern status is FALSE — potential financial instability at franchisor level raises sustainability concerns
- 05MINORRoyalty structure (greater of 4% or $1,000/month) provides minimal franchisor revenue from only 2 units, questioning business model viability
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
1 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Hydrogen Fitness · FDD (2026) PDF