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Pause Studio Franchise Cost & 2025 FDD Data

Personal Care & BeautyCaliforniaFranchising since 2022

53/100

Second tier

53 this brand56 Personal Care & Beauty medianlikely 47–59: narrower with more SBA loans (high confidence)

Higher is better · an editorial assessment, not investment advice

#1,545 of 3,068 graded brands

Why a B: Helped by legal record and transparency. Held back by unit economics and scale. See all six factors

Total investment
$881K – $1.5M
Avg gross sales
$1.5M
5 outlets reporting; not profit
SBA charge-off
Under 10 loans (9)
2025 FDD7 of 8 figures cite a filing pageOwner-operator not requiredProtected territory

Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing

FranchiseVerdict summary · 2025 FDD

Per the 2025 FDD, a Pause Studio franchise requires a total initial investment of $881K – $1.5M, including a $60K franchise fee. Once open, the ongoing royalty is 7.0%. Per the 2025 FDD, average gross sales were $1.5M (5 outlets reporting; gross sales, not profit). Verdict grade: B (Second tier), an editorial assessment, not investment advice.

Sources: 2025 FDD · What one unit could make and lose →

Sources, dates and evidence

FDD issued: · Last cited check: · Staleness risk: medium (issued 12 to 24 months ago; a newer filing is likely on file)

Evidence for the headline figures: 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 scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.

Overview

Bottom line

  • RETURNSAverage gross sales of $1.5M/year (outlet median $1.6M; company-owned outlets only - not franchisee performance; 5 outlets reporting; gross sales, not profit).
  • GROWTHIn the latest Item 20 year, the number of franchised outlets grew by 3 (3 opened, 0 closed).

AT STAKEOne unit at the Item 7 midpoint: $156K a year in payments on assumed SBA 7(a)-style terms.You put in about $242K of your own cash and personally guarantee a $966K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose

Things to check before you sign (2)

  • The franchisor keeps the right to compete inside your territory (Item 12, territory).
  • You waive a jury trial in disputes with the franchisor (Item 17, renewal, termination and disputes).

Checked and clear: no auditor doubt that the franchisor can keep operating, no net loss of franchised outlets in the latest Item 20 years, no lawsuit naming the franchisor in Item 3, no rule that the owner must run it personally and the full filing on file, and an Item 19 average from 5 units. Not on file here, so ask: SBA charge-off rate against the category median and supplier rebates.

What to do next

  1. Step 1: Read the FDD itself.

    Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.

  2. Step 2: Talk to current and former owners.

    Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.

  3. Step 3: Talk to an SBA lender.

    Free: the SBA's Lender Match. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.

  4. Step 4: Have a franchise attorney review the FDD and agreement.

    Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.

Research steps, not investment or legal advice.

Can you afford it, and what does the money buy?

Entry cost (the Item 7 midpoint) is 2.7× the Personal Care & Beauty median ($447K).

Total investment$881K – $1.5M
2025 FDD p.27, show the quoted text2025 Franchise Disclosure Document, page 27, Item 7… Employees, Vendors, Suppliers Total Estimated Initial Investment (Note 16) $880,600 - $1,534,900 …Quoted from the franchisor's filing; the figure on this page is rounded. Table text, cells in reading order; column headings may sit outside the quoted lines.
Franchise fee$60,000
2025 FDD p.16, show the quoted text2025 Franchise Disclosure Document, page 16, Item 5Two Franchised Businesses Under a MUDA Ten Franchised Businesses Under a MUDA Low High Low High Low High Initial Franchise Fee $60,000 …Quoted from the franchisor's filing. Table text, cells in reading order; column headings may sit outside the quoted lines.
Royalty7.0%
2025 FDD p.17, show the quoted text2025 Franchise Disclosure Document, page 17, Item 6Exhibit H to the Franchise Disclosure Document. ITEM 6 OTHER FEES Franchise Agreement Fee Amount Due Date Notes Royalty Fee (Note 3) 7% of Gross Revenue (the …Quoted from the franchisor's filing. Table text, cells in reading order; column headings may sit outside the quoted lines.
Ad fund1.0%
2025 FDD p.17, show the quoted text2025 Franchise Disclosure Document, page 17, Item 6Advertising Fund Contribution (Note 4) 1%Quoted from the franchisor's filing.
Working capital$20K – $70K

Source: FDD 2025 · Items 5–7 (fees and startup costs)

Do you qualify? The filing states no minimum net worth or liquid capital. Ask Pause Franchisor Inc. (Item 1: 13353 W. Washington Blvd., Los Angeles, CA 90066) and your lender what they require, and keep living costs for the first year outside the deal.

Full Item 7 breakdown16 line items

Initial investment breakdown

Item 7 initial investment line items
Line itemLowHigh
Initial Franchise Fee$60K$60K
Leasehold Improvements$410K$670K
Project Management, Architecture & Engineering$45K$55K
Equipment$170K$382K
Furniture and Fixtures$20K$25K
Rent (3 months)$32.1K$66K
Security Deposit$32.1K$66K
Signage$10K$18K
Startup Supplies$10K$20K
Insurance Deposits and Premiums$1.4K$1.9K
Business Licenses and Permits$7.5K$15K
Professional Fees$15K$25K
Training Expenses$1K$5K
Grand Opening Marketing$40K$40K
Audio Video/Information Technology/Security$6.5K$16K
Additional Funds (3 months)$20K$70K
Total initial investment$881K$1.5M

Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.

Item 6 · what you pay once you are open

Ongoing fees

Pause Studio: Item 6 recurring fees
FeeAmount
Royalty7.0% of gross revenues
Marketing / ad fundBrand-wide marketing pool. 1% of Gross Revenue per month; may increase up to 2% of Gross Revenue with 3 months notice1.0% of gross revenues
Technology fee$800/month Technology Fee for POS system (currently Zenoti) and other software/platforms; subject to increases$800/month
Transfer fee$10,000
Renewal fee$10,000
Total fee loadnear the Personal Care & Beauty median of 8.0%8.0% of sales

What do units actually make?

Average gross sales are 3.0× the Personal Care & Beauty median ($519K).

Avg gross sales$1.5M

Company-owned outlets only - not franchisee performance

Source: 2025 FDD, page 68
Median gross sales$1.6MNot cited
Item 19 typeMean of Total Annual Gross Revenue across the five Affiliate-Owned Locations, Table 1a: Monthly and Total Gross Revenue for all Affiliate-Owned Locations, calendar year 2024 - Location #1 $1,789,882, #2 $1,744,798, #3 $1,569,015, #4 $1,322,393, #5 $1,285,791. These are the five affiliate studios open at least 12 consecutive months as of 31 December 2024; all three FRANCHISED studios are excluded because none was open all 12 months. All five sit in the greater Los Angeles metro area, are 2,700-3,400 sq ft, are under no territorial restriction, and PAID NO ROYALTY FEES during the period, contributing to the Advertising Fund only in the last two months of 2024
Sample size5 outlets

Source: FDD 2025 · Item 19 (sales and earnings)

Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled

What you could make and lose: one unit

What one Pause Studio unit would ask of you, from the filing's Item 7 total and labeled assumptions.

Average gross sales are $1.5M (FDD p.68), and the royalty and ad fund take about $123K of that a year (Item 6). This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. So this box does not estimate a profit. To cover the loan payment alone, one unit has to clear $156K a year after its food, labor, rent and other costs and the franchisor's fees.

How these figures are worked out
  • Loan (assumption): 80% of the $1.2M Item 7 midpoint is a $966K loan, paid over 10 years at 10.5%: $156K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours.

What you put at risk

Your own cash in: about $242K Assumption (the part the loan does not cover of the $1.2M Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $966K.

Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.

Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.

Returns modelOne unit · several units · editable

One unit

One unit: what is left after the loan payment

Gross sales, minus the franchisor's fees and the operating costs, is the unit's EBITDA (earnings before interest, taxes, depreciation and amortization). Minus an assumed loan payment, that is what is left for you, before tax. Gross sales are not profit.

This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners. Invested capital is the Item 7 total, which already includes its working-capital (additional funds) line.

Returns model · one unit

What would one Pause Studio unit leave you each year after the loan payment?

FDDFrom the filingNot set: this brand's filing does not supply it and we will not substitute one. Enter your ownYou overrode an FDD valueAssumed: our stated assumption, edit it
Gross sales · per unit, per year

Item 19 reports $1,542,375 per unit. Company-owned outlets only - not franchisee performance.

Gross sales, not profit: the costs below decide what is left.

Franchisor take · royalty + ad fund

Item 6, as stored, a year. A fixed fee, so it comes off EBITDA as dollars, not a share of sales.

Operating costs · you supply them

This brand's Item 19 does not print cost lines. Enter your own from a lease quote, a payroll plan and calls with current owners.

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.

Total invested capital · what you put in to open

Item 7 midpoint of $881K to $1.5M

Item 7's $20K to $70K additional funds are already in the total

Financing · assumed SBA 7(a)-style loan

Left after the loan payment · per year

The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.

Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.


Unit EBITDA · annual
Needs the inputs above
EBITDA margin
Needs the inputs above
Total invested
$1.2M
Your cash in
$242K
Loan payment · assumed
$156K/yr
Return on invested capital
Needs the inputs above
Payback
Needs the inputs above

Loan of $966K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.

One unit only. An owner of several units also pays for shared services (managers, accounting, a head office), which the multi-unit model adds on top of these figures.
Buying several existing units? The acquisition scenario

Buying several units

What buying a few existing units could return

Prices an existing operator of a few units off the single-unit EBITDA above, after shared services, and finances it with an SBA 7(a) loan, a conventional loan and a seller note. It shows the yearly return on your cash (IRR), whether year-1 earnings cover the loan payments (DSCR) and how the price is paid for. It starts at 5 units; every deal term is an assumption you can change, and none is from the FDD.

Not modelled yet

Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.

This scenario starts from a per-unit EBITDA. Fill in the operating costs in the one-unit model above and it runs on that figure, or take it to the full ROI workbench, where the multi-unit and acquisition models accept your own per-unit economics.

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 · filed by Pause Franchisor Inc.

Financial performance

Range (low → high)
$1.3M→$1.8MSource: 2025 FDD, page 68
Cohort dispersion (min → max)
Percentile ranks within Personal Care & Beauty
Gross sales rank
No comparison data
Investment cost rank95th percentile
among 112 brands with the figure · a high percentile means costlier to open
Royalty rate rank81st percentile
among 100 brands with the figure · a low percentile means a lower royalty
Unit count rank23rd percentile
among 111 brands with the figure

Each rank is among the Personal Care & Beauty brands that report that figure (the count is under each bar).

Who are you contracting with?

Pause Franchisor Inc., owned by Pause Holdings, Inc.

Item 1 (the franchisor) · who you're contracting with

The franchisor

Corporate structure & franchisor financials
Legal entity
Pause Franchisor Inc.
Parent company
Pause Holdings, Inc.
FDD Item 1, page 11 of the 2025 FDD
CEO title
CEO
John Klein
Incorporated in
DE
HQ
13353 W. Washington Blvd., Los Angeles, CA 90066
Auditor
Reese CPA LLC
Audited financials
Franchisor revenue
$226K
latest fiscal year in the 2025 FDD; $753K the year before

Overview

About

Athletic recovery, relaxation and wellness studio offering flotation therapy, vitamin infusion therapy, cold plunge/contrast therapy, sauna therapy, compression therapy, NAD+ therapy, LED light therapy, and optional cryogenic therapy

CEO
John Klein
Franchised outlets in
3 states and territories
Item 20 Table 3, at year end

Is the system healthy?

+3 franchised outlets over the two years to 2024 (0 to 3).

Franchised units3+5 company-owned (8 in all)
Verified · 2025 FDD p.73, show the quoted text2025 Franchise Disclosure Document, page 73, Item 20End of the Year Net Change Franchised Outlets 2022 0 0 0 2023 0 0 0 2024 0 3 +3 Company- Owned* 2022 2 3 +1 2023 3 5 +2 2024 5 5 0 Total Outlets 2022 2 3 +1 2023 3 5 +2 2024 5 8 …Quoted from the franchisor's filing. Table text, cells in reading order; column headings may sit outside the quoted lines.
Transferred0
Net change, latest year+3 (favorable)(0 → 3 outlets)

Source: FDD 2025 · Item 20 (outlets opened, closed and transferred)

Item 20 (outlet counts) · unit dynamics

The growth chart

Company-owned
5
Corporate units in the system
% franchised
38%
vs corporate-owned

Last fiscal year · Item 20 rates and pipeline

Reacquired
0
Franchisor bought back

Item 20 · franchised units at year end

Franchised units rose from 0 in 2022 to 3 in 2024

Axis does not start at zero.

Source and method
FDD Item 20, franchised outlets at each year end. Opened and closed are the latest year's counts.

Item 20 (outlet counts) Table 3 · franchised outlets at year end

Where current outlets are

Franchised outlets at year end by state, as the filing's Item 20 Table 3 counts them. Not a list of where the franchisor may sell new units.

Current outlets (count on the tile) · 3 statesNo current outlet

3 franchised outlets at year end in 3 states (Item 20 Table 3).

Government records

SBA loan data

Aggregated from SBA loan disclosures. This brand has only 9 7(a) loans on file; statistical reliability is limited below 10 loans.

Loans on file
9
SBA 7(a) loans matched to this brand, incl. those still being repaid
Loan volume
$11.2M
Average loan
$1.2M
loan volume divided by loans
Charge-off rate
Under 10 loans (9)
Insufficient SBA coverage: 9 loans, rate hidden below 10
Paid in full
Under 10 loans (9)
Recent-loan charge-off
Under 10 loans (9)
Lenders
7

Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated

Explore lender portfolios on Bank Reports or regional data on State Reports.

What are the risks?

Main risk in the grade: scale, then unit economics. The reasons are below.

SBA charge-offUnder 10 loans (9)
Litigation0 cases
Auditor going-concern doubtNo (favorable)

Source: SBA 7(a) FOIA · FDD Items 3, 21

What are you signing up for?

Ongoing fees run about 8.0% of sales (royalty + ad fund), before your own operating costs.

Initial term10 yrs
Renewal term10 yrs
TerritoryProtected, not exclusive
Initial trainingNot extracted

Source: FDD 2025 · Items 11, 12, 17

FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)

Contract and territory detail

Allowed renewals1
Protected territoryYes
Exclusive territoryNo
Territory radius3 mi
Territory population100,000
Online sales rightsReserved by franchisor
Franchisor can competeYes
Who runs it (Item 15)Owner-operator not required
Non-compete (years)2 years
Non-compete (miles)15 mi
Right of first refusalYes
Transfer requires consentYes
Termination notice30 days
Mandatory arbitrationYes
Arbitration locationLos Angeles County, California
Jury trial waiverYes
Governing lawDE

Items 10 (financing), 11 (training and support)

Training and operations

On-the-job training
50 hrs
Ongoing training
Required
Time to open
9–12 mo
From signing to launch (FDD p.40)
Site selection
Franchisee selects with franchisor approval; affiliate Accelerator Inc. is preferred Approved Supplier for real estate brokerage
Franchisor financing
Not offered
Item 10
POS system
Zenoti
Operating tech stack

Items 5 (initial fees) & 11 (training and support)

Franchisor support

Yes: Site selection assistance
Yes: Grand opening support
Yes: Lease negotiation help

Item 20 (outlet counts) · call current owners

Franchisee contacts

Who can you call before you sign?

26 current outlets listed

Each record has a phone number and state. No franchisee names or cities. 26 records. From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list holds 26 current outlets; Item 20's table counts 3 franchised at year end.

For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.

The list is not offered for this brand yet. The FDD's Item 20 exhibit lists the owners.

Free preview
(513) 509-••••OH
26 contacts on file
(307) 344-••••WY
(321) 356-••••FL

Frequently asked questions

How much does it cost to open a Pause Studio franchise?

Per the 2025 FDD, the total investment to open a Pause Studio franchise ranges from $881K to $1.5M, with an initial franchise fee of $60K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.

What do Pause Studio franchise owners earn?

According to Item 19 of the Pause Studio FDD, average gross sales were $1.5M (5 outlets reporting; gross sales, not profit). The median is $1.6M. Company-owned outlets only - not franchisee performance. What an owner keeps depends on location, operating costs and management.

Who owns Pause Studio?

Pause Studio is franchised by Pause Franchisor Inc. Its parent company is Pause Holdings, Inc.. Source: FDD Item 1, 2025 filing.

What is Item 19 in the Pause Studio 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 Pause Studio FDD and qualifies whose outlets they describe.

What is Pause Studio's franchise failure rate?

There is no published franchise failure rate, and Pause Studio has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.

How many Pause Studio franchise locations are there?

Per the 2025 FDD, Pause Studio has 3 franchised units and 5 company-owned (8 in all). In the latest year, the number of franchised outlets grew by 3 (3 opened, 0 closed).

Is Pause Studio a good franchise to buy?

FranchiseVerdict gives Pause Studio a B Verdict grade (Second tier) with a verdict score of 53 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by legal record (no litigation naming the franchisor in Item 3) and transparency. Held back by unit economics (avg gross sales $1.5M on a $1.2M investment midpoint, 1.3x: gross sales, not profit) and scale (3 franchised units, +5 company-owned: 8 in all). The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.

Other Personal Care & Beauty franchises

Similar investment first, then by grade

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.