Bottom line
- Total investment $285K – $668K including a $60K franchise fee.
- Average unit revenue of $718K/year (median $671K). Estimated payback in 0.9 years.
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 18 loans (below the industry average).
- System growing at 240.0% CAGR over 3 years with 22 total units — strong expansion trajectory.
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 SWEAT440 unit return on the cash you put in?
Unlevered ROIC · per unit
41%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 SWEAT440 units return on equity?
Equity IRR · 5-yr
33.2%
4.19× MOIC
Year-1 DSCR
2.44×
EBITDA ÷ debt service
Equity required
$6.1M
on $15.8M purchase
Total debt
$9.7M
SBA $5.0M + senior + seller note
Overview
About
SWEAT440 franchisees operate high-intensity interval training (HIIT) fitness studios offering 40-minute group workout classes. Daily operations include managing class schedules, instructor recruitment/training, member retention programs, facility maintenance, and sales/marketing to drive membership subscriptions and class attendance.
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 · 5 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage boutique fitness franchise with unsubstantiated financial claims, high capital requirements, and aggressive growth trajectory presenting moderate-to-high risk for franchisee capital recovery.
Score breakdown · what drove the 42 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed - cannot independently verify claimed $718k avg revenue and $553k avg net income
- 02MINORHigh initial investment ($284.9k-$667.9k) with dual royalty structure (7% or $350/week minimum) creates significant fixed cost burden
- 03MINORRapid unit growth (30.8% YoY) from small base (22 units) suggests early-stage system vulnerability - growth sustainability unproven
- 04MINORMinimum royalty of $350/week ($18.2k annually) represents 2.5% floor even on lower-performing locations, limiting downside protection
- 05HIGHGoing Concern status is FALSE but financial stability of franchisor not independently verified
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
12 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SWEAT440 · FDD (2025) PDF