Sweathouz Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Sweathouz franchise requires a total initial investment of $632K – $1.3M, including a $45K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 0.0% charge-off rate across 42 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $632K – $1.3M
- 54th pct Personal Care…
- Avg gross sales
- N/A
- Partial period
- Royalty
- 6.0%
- 12th pct Personal Care…
- Units
- 82
- 39th pct Personal Care…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $632K – $1.3M including a $45K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports revenue for a partial period rather than annual gross sales, so unit revenue is not directly comparable.
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better). SBA loan charge-off rate of 0.0% across 42 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- LS Franchisor LLC
- Parent company
- Legendary Sweat Intermediate, LLC (LS Intermediate)
- Ultimate parent
- Legacy Franchise Concepts, L.P. (LFC Topco)
- CEO title
- Chief Executive Officer
- Nico Varano, Jr.
- Incorporated in
- Georgia
- HQ
- 120 Interstate N. Pkwy SE, Suite 400, Atlanta, Georgia 30339
- Franchisor revenue
- $1.5M
- vs $105K prior year
Overview
About
Franchisor of private, individual wellness suites offering infrared sauna, cold plunge contrast therapies, and Vitamin C showers under the SWTHZ/SweatHouz brand.
- CEO
- Nico Varano, Jr.
- Headquarters
- Georgia
- Founded
- 2022
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 89% above the typical personal care & beauty franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $20K | $40K |
| Equipment, build-out, other | $567K | $1.2M |
| Total initial investment | $632K | $1.3M |
Source: Sweathouz 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $632K – $1.3M
- Middle of category vs category
- Liquid capital req'd
- $20K – $40K
- Top 40% of category vs category
- Franchise fee
- $45K – $45K
- Top 40% of category vs category
- Royalty
- 6.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $1K |
| Training fee | $4K |
| Transfer fee | $23K |
| Renewal fee | $23K |
| Inventory (initial) | $19K – $24K |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
No Item 19 revenue figure for Sweathouz is on file. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Sweathouz unit return on the cash you put in?
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.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2026 FDD
Financial Performance
Item 19 reports revenue for a partial period rather than annual gross sales, so unit revenue is not directly comparable. We omit it from rankings.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
6.0% royalty + 3.0% ad fund.
Disclosure
Item 19 reports revenue for a partial period rather than annual gross sales, so unit revenue is not directly comparable.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Personal Care & Beauty averages
How Sweathouz Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 82
- Opened
- 44
- 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
- N/A
- Company-owned
- 16
- Corporate units in the system
- % franchised
- 81%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 44
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 42
- Loan volume
- $27.3M
- Median loan
- $645K
- 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
- N/A
- Loans approved 2021+
- Active lenders
- 12
- Defaults
- 0
- Typical loan rate
- 10.2%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 8121
- Jobs supported
- 757
- 2.8 per loan
- Lender concentration
- 29%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Top lenders financing Sweathouz franchisees
Showing 3 of 12 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Sweathouz's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 42 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Three disclosed matters: (1) Walker Edison/WEH Liquidating fraudulent-transfer litigation against officer Kyle Casella arising from a 2023 leveraged recapitalization, consolidated, trial scheduled June 2026; (2) HotBox Enterprises/Jamie Weeks consolidated California litigation over a prior franchise system dispute, settled in 2022 for $2.7M to HotBox; (3) involuntary Chapter 7 bankruptcy filed against Honors Holdings LLC (a company where two officers previously served), pending.
Largest disclosed settlement: $2,700,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Until April 2024, two of the franchisor's officers (Jeffrey J. Teschke and Kyle Casella) were officers of Honors Holdings, LLC, a multi-unit Orangetheory Fitness franchisee. Approximately 7 months after they left, an involuntary Chapter 7 bankruptcy petition was filed against Honors Holdings, LLC on November 20, 2024 (Case No. 1-24-44875-ess, E.D.N.Y.); case remains pending.
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Within 50 miles of franchisor's (or successor's) principal place of business, currently Atlanta, Georgia |
| Litigation count | 3 |
View Item 3 litigation summary
Three disclosed matters: (1) Walker Edison/WEH Liquidating fraudulent-transfer litigation against officer Kyle Casella arising from a 2023 leveraged recapitalization, consolidated, trial scheduled June 2026; (2) HotBox Enterprises/Jamie Weeks consolidated California litigation over a prior franchise system dispute, settled in 2022 for $2.7M to HotBox; (3) involuntary Chapter 7 bankruptcy filed against Honors Holdings LLC (a company where two officers previously served), pending.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 40 hrs
- Training location
- Franchisor's Atlanta, GA headquarters (or virtual) for classroom; an affiliate-owned Business for on-the-job training
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- franchisor-assisted, franchisee ultimately responsible
- Franchisor financing
- Not offered
- Item 10
- POS system
- Mindbody
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Mindbody
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sweathouz franchise?
The total investment to open a Sweathouz franchise ranges from $632K – $1.3M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sweathouz franchise owners earn?
No average owner earnings figure for Sweathouz is on file. Item 19 — where a franchisor may disclose what its outlets earn — is voluntary under the FTC Franchise Rule, and we have not established what this brand's FDD says. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
What is Item 19 in the Sweathouz 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 Sweathouz FDD and qualifies whose outlets they describe.
What is Sweathouz's franchise failure rate?
Based on SBA 7(a) loan data, Sweathouz has a charge-off rate of 0.0% across 42 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 Sweathouz franchise locations are there?
As of their most recent FDD filing, Sweathouz has 82 total units in the United States, including 66 franchised units and 16 company-owned units. 44 new units were opened in the latest reporting year.
Is Sweathouz a good franchise to buy?
FranchiseVerdict rates Sweathouz as a A-grade franchise with a verdict score of 71 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.