Sweathouz Franchise Cost, Revenue & Review 2026
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Sweathouz franchise requires a total initial investment of $632K – $1.3M, including a $35K – $45K franchise fee. The latest FDD does not disclose unit-level revenue (no Item 19). 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
Overview
- Investment
- $632K – $1.3M
- 51st pct Personal Care…
- Avg gross sales
- N/A
- 41st pct Personal Care…
- Royalty
- N/A
- Units
- 82
- 37th 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
- Total investment $632K – $1.3M including a $35K franchise fee.
- Item 19 discloses "raw outlet-level historical monthly Gross Sales tables (no averages/medians/quartiles disclosed)" rather than annual gross sales, so unit revenue is not directly comparable.
- Verdict A (Strongest tier), verdict score 70/100 (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).
- Bankruptcy 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 $4.2M 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
Can you afford it, and what does the money buy?
Entry cost runs 85% above the typical personal care & beauty franchise.
Source: FDD · Items 5–7
FDD Item 7
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $20K | $40K |
| Equipment, build-out, other | $577K | $1.2M |
| Total initial investment | $632K | $1.3M |
Source: Sweathouz 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
- $35K – $45K
- Top 40% of category vs category
- Royalty
- Tiered by Business age: 6% of Gross Sales for months 1-24…
- Ad fund
- 3.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| 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 · Item 19
Financial Performance
This brand's FDD disclosed "raw outlet-level historical monthly Gross Sales tables (no averages/medians/quartiles disclosed)" in Item 19 rather than annual gross sales. This metric cannot be directly compared across brands, so we omit it from rankings.
vs Personal Care & Beauty averages
How Sweathouz Compares
Is the system healthy?
Source: FDD · 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
- 0.0%
- 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: 0% went to startups / new businesses, 100% 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.
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)
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?
Source: FDD · 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 $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sweathouz franchise owners earn?
Sweathouz does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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 70 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
If you represent Sweathouz, you can request corrections or provide updated information.
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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.