Sauna HouseFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A SAUNA HOUSE franchise requires a total initial investment of $1.6M – $3.8M, including a $50K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.4M[2]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.6M – $3.8M
- 78th pct Healthcare
- Avg gross sales
- $1.4M
- 35th pct Healthcare
- Royalty
- 7.0%
- 34th pct Healthcare
- Units
- 3
- 11th pct Healthcare
- SBA default
- N/A
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 0.5x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $1.6M – $3.8M including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $1.4M/year.
- Verdict B (Above Average) with a risk score of 57/100.
- 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 Ventures, LLC
- Parent company
- Sauna Party, LLC
- CEO title
- Founder and Chief Executive Officer
- Andrew Lachlan Nehlig
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- NC
- HQ
- 2000 Riverside Drive, Ste. 27, Asheville, North Carolina 28804
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $55K
- vs $0 prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Sauna House franchisees operate upscale sauna wellness facilities offering infrared and traditional sauna experiences, often bundled with complementary services like massage, skincare, or fitness. Day-to-day operations involve membership management, facility maintenance, staff scheduling, marketing to drive recurring visits, and ensuring regulatory compliance for health/safety codes.
- CEO
- Andrew Lachlan Nehlig
- Headquarters
- NC
- Founded
- 2022
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 20 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Property Surveysnot refundable | $3K | $25K | |
| Lease Deposit & 3 Months' Rent | $34K | $105K | |
| Architect Review Feenot refundable | $2K | $2K | |
| Architect Feesnot refundable | $65K | $150K | |
| Project Management Feenot refundable | $25K | $25K | |
| Build Out & Improvementsnot refundable | $750K | $2.2M | |
| Startup Packagenot refundable | $175K | $395K | |
| Signagenot refundable | $5K | $30K | |
| Decorating, Furniture & Furnishingsnot refundable | $30K | $65K | |
| Technology Systemsnot refundable | $24K | $54K | |
| Systems Setup Feenot refundable | $2K | $2K | |
| Equipment and Fixtures (excluding Startup Package)not refundable | $250K | $400K | |
| Initial Inventory (excluding Startup Package)not refundable | $3K | $6K | |
| Grand Opening Advertisingnot refundable | $15K | $15K | |
| Utility Depositsnot refundable | $6K | $11K | |
| Professional Feesnot refundable | $7K | $8K | |
| Insurancenot refundable | $6K | $14K | |
| Additional Funds (3 months)not refundable | $113K | $243K | |
| Development Feenot refundable | $121K | $192K | |
| Total initial investment | $1.7M | $4.0M |
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
$217K
16.0% margin
Unlevered ROIC
8%
EBITDA / total invested capital
Payback
13.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.6M – $3.8M
- Below avg, review vs category
- Liquid capital req'd
- $113K – $243K
- Below avg, review vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1K |
| Training fee | $200 |
| Transfer fee | $25K |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $1.4M
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Company-Owned
- Sample size
- 1 units
- vs category median 12 · small
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 201 Healthcare brands
Revenue is only 0.5x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Healthcare averages
How Sauna House Compares
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
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 18
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 3 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 3
- Loan volume
- $7.9M
- Median loan
- $2.4M
- 50th percentile
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Sauna House's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage, unproven franchise with high capital requirements, thin unit count, unprotected territory, and unclear financial sustainability despite going concern status.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 57 / 100 rating
- 01MINOROnly 3 units in system with unknown growth trajectory suggests minimal scale and unproven replicability
- 02MINORNo territory protection creates direct competition risk from other franchisees or corporate expansion
- 03MINORHigh capital requirement ($1.56M–$3.84M) with modest average net income ($293,745) yields 7–19% ROI — below market expectations for this investment tier
- 04MINORSignificant gap between gross revenue ($1,357,050) and net income ($293,745) indicates 78% cost structure, raising sustainability questions
- 05MINOR7% royalty on gross sales (not net) penalizes profitability and assumes consistent revenue without protection
- 06HIGHUndisclosed litigation status and lack of Item 19 financials in FDD limits due diligence confidence
- 07MINORExtremely small franchisee base (3 units) provides almost no performance validation or peer support network
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 9 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Buncombe County, North Carolina |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 41 hrs
- On-the-job training
- 20 hrs
- Training location
- Online & your Bathhouse or Company-Owned Bathhouse
- Ongoing training
- Required
- Field support
- 20 hrs/yr
- On-site visits per year
- POS system
- Boulevard
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Boulevard
Item 20 · call current owners
Franchisee Contacts
14 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
SAUNA HOUSE · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SAUNA HOUSE franchise?
The total investment to open a SAUNA HOUSE franchise ranges from $1.6M – $3.8M, 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 SAUNA HOUSE franchise owners earn?
According to Item 19 of the SAUNA HOUSE FDD, the average gross sales per unit is $1.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is SAUNA HOUSE's franchise failure rate?
SBA 7(a) loan charge-off data is not available for SAUNA HOUSE (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 SAUNA HOUSE franchise locations are there?
As of their most recent FDD filing, SAUNA HOUSE 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 SAUNA HOUSE a good franchise to buy?
FranchiseVerdict rates SAUNA HOUSE as a B-grade franchise with a risk score of 57 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.