Perspire Sauna StudioFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Perspire Sauna Studio franchise requires a total initial investment of $566K – $990K, including a $50K franchise fee. Per the 2025 FDD, average unit revenue was $596K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 70 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $566K – $990K
- 69th pct Healthcare
- Avg gross sales
- $596K
- 16th pct Healthcare
- Royalty
- N/A
- Units
- 72
- 59th pct Healthcare
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.8x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Only 0.0% of 70 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 18 to 6 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $566K – $990K including a $50K franchise fee.
- Average unit revenue of $596K/year.
- Verdict A (Top Quintile) with a risk score of 24/100. SBA loan charge-off rate of 0.0% across 70 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Sweat Equity Group, LLC
- Parent company
- Sweat Equity Group Holdings, LLC
- CEO title
- CEO, President and Co-Founder
- Lee Braun
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 129 Cabrillo Street, 200, Costa Mesa, CA 92627
- Auditor
- Windes
- Audited financials
- Franchisor revenue
- $4.7M
- vs $5.1M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Franchisees operate infrared sauna studios offering 30–45 minute wellness sessions, memberships, and add-on services (chromotherapy, sound therapy). Day-to-day operations include managing studio scheduling, member check-ins, facility maintenance, cleaning/sanitization, staff scheduling, and marketing to drive recurring membership revenue.
- CEO
- Lee Braun
- Headquarters
- CA
- Founded
- 2017
- FDD year
- 2025
- States available
- 22
FDD Item 7 · 2025 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $45K | $45K | |
| Initial Equipment Package (Saunas) | $64K | $64K | |
| Travel Expenses During Training at our offices | $0 | $3K | |
| Three Months' Rent and Deposits | $15K | $30K | |
| Audio (TVs, Speakers, Security cameras) | $7K | $12K | |
| Leasehold improvements | $200K | $275K | |
| Construction Management | $15K | $17K | |
| Millwork | $20K | $28K | |
| Architecture fees | $7K | $15K | |
| Permits, etc. | $4K | $6K | |
| Office/Spa Furniture and Equipment | $3K | $5K | |
| Computer System & Receipt Printer | $3K | $4K | |
| Opening Inventory and Supplies | $1K | $3K | |
| Pre-Sale Marketing and Grand Opening Advertising | $20K | $20K | |
| Insurance | $2K | $4K | |
| Miscellaneous Pre-Opening and Organization Costs | $3K | $4K | |
| Estimated shipping and sauna install | $7K | $14K | |
| Signage | $6K | $12K | |
| Additional Funds 3 - 6 months | $25K | $35K | |
| Total initial investment | $446K | $593K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$101K
17.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $566K – $990K
- Below avg, review vs category
- Liquid capital req'd
- $25K – $60K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Near category avg vs category
- Royalty
- The greater of 7% of Gross Revenues or $600 per month
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | greater of 6% or $600/month |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $25K |
| Renewal fee | $13K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $596K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Historical
- Sample size
- 72 units
- vs category median 12 · large
- Range (low → high)
- $255K→$936K
- Cohort dispersion (min → max)
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 201 Healthcare brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Healthcare averages
How Perspire Sauna Studio Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 72
- Opened
- 22
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
- Net growth (yr3)
- +46.7%
- Net unit change last year
- 3-yr CAGR
- +153.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 2
- Transfer rate
- 23.8%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 70
- Loan volume
- $25.1M
- Median loan
- $401K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 18
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Perspire Sauna Studio's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 9-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 70 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Perspire presents moderate-to-caution risk due to lack of financial transparency (no Item 19), high capital requirements, aggressive growth rate, and unclear unit economics in a competitive wellness category.
Litigation (Item 3)
No litigation information is required to be disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Windes⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 24 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — unable to validate ROI claims or typical unit profitability
- 02MEDHigh capital requirement ($565k–$990k) with no disclosed average revenue or net income benchmarks
- 03MINORRapid expansion (46.7% YoY growth) may indicate aggressive recruitment over unit sustainability; quality control risk
- 04MINORMinimum royalty floor of $600/month creates fixed cost burden even for underperforming locations
- 05MEDWellness/fitness category has high failure rates; sauna studios are experiential with limited recurring revenue model clarity
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Household count |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 12,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Costa Mesa, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation information is required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 64 hrs
- On-the-job training
- 62 hrs
- Training location
- On-site and franchisor facility
- Ongoing training
- Required
- POS system
- MINDBODY
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MINDBODY
Item 20 · call current owners
Franchisee Contacts
66 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Perspire Sauna Studio · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Perspire Sauna Studio franchise?
The total investment to open a Perspire Sauna Studio franchise ranges from $566K – $990K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Perspire Sauna Studio franchise owners earn?
According to Item 19 of the Perspire Sauna Studio FDD, the average gross sales per unit is $596K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Perspire Sauna Studio's franchise failure rate?
Based on SBA 7(a) loan data, Perspire Sauna Studio has a charge-off rate of 0.0% across 70 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Perspire Sauna Studio franchise locations are there?
As of their most recent FDD filing, Perspire Sauna Studio has 72 total units in the United States, including 18 franchised units and 6 company-owned units. 22 new units were opened in the latest reporting year.
Is Perspire Sauna Studio a good franchise to buy?
FranchiseVerdict rates Perspire Sauna Studio as a A-grade franchise with a risk score of 24 out of 100, 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.
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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.