Bottom line
- Total investment $573K – $889K including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $509K/year (median $492K).
- Rated STRONG with a risk score of 52/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Pure Sweat Studios unit return on the cash you put in?
Unlevered ROIC · per unit
15%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Pure Sweat Studios units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.6M purchase
Total debt
$6.1M
SBA $3.8M + senior + seller note
Overview
About
Pure Sweat Studios operates boutique fitness studios offering group fitness classes (likely HIIT, strength, or cardio-focused workouts). Franchisees manage daily studio operations including class scheduling, instructor hiring/training, member retention, retail sales, and marketing to build recurring monthly membership revenue.
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 20 · 7 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
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
Early-stage fitness franchise with unproven unit economics, material financial disclosure gaps, and high capital requirements relative to system size and growth rate.
Score breakdown · what drove the 52 / 100 rating
- 01MEDNet income not disclosed in FDD Item 19 — unable to validate profitability claims against $509k avg revenue
- 02MINORHigh initial investment ($573k–$889k) with only 22.2% YoY unit growth suggests slow scaling and unproven unit economics
- 03MINORRoyalty structure (6% of gross) provides no margin cushion if revenue underperforms — franchisee bears full downside
- 04MEDOnly 11 units system-wide indicates early-stage franchise with limited operational maturity and case study data
- 05MEDRevenue figure ($509k avg) lacks context: unclear if this is median, mean, or if it includes failed/closed locations
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
11 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Pure Sweat Studios · FDD (2026) PDF