Swthz Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
SWTHZ (SweatHouz) is a wellness franchise offering private infrared sauna and cold-plunge contrast therapy sessions. Franchisees run the studios, managing suites, memberships, scheduling, and retail.
FranchiseVerdict summary · 2026
A SWTHZ franchise requires a total initial investment of $570K – $1.2M, including a $45K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 48 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $570K – $1.2M
- 73rd pct Healthcare
- Avg gross sales
- N/A
- Incl. company outlets
- Royalty
- 6.0%
- 11th pct Healthcare
- Units
- 37
- 50th pct Healthcare
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare 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 $570K – $1.2M including a $45K franchise fee, 6.0% ongoing royalty.
- RETURNSItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
- RISKVerdict A (Strongest tier), verdict score 63/100 (higher is better). SBA loan charge-off rate of 0.0% across 48 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
- President & Chief Executive Officer
- Mike Tan
- Incorporated in
- Georgia
- HQ
- 120 Interstate N. Pkwy SE, Suite 400, Atlanta, Georgia 30339
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $105K
- vs $1.5M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Affiliated brands
- Legendary Sweat
- Ego for Women
- LS Product Sourcing
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Mike Tan
- Headquarters
- GA
- Founded
- 2022
- FDD year
- 2025
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost runs 112% above the typical healthcare franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $20K | $40K |
| Equipment, build-out, other | $505K | $1.1M |
| Total initial investment | $570K | $1.2M |
Source: SWTHZ 2025 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
- $570K – $1.2M
- Bottom third — review 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%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
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) | $15K – $19K |
| Total fee load | 9.0% of rev |
What do units actually make?
Source: FDD 2025 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
SWTHZ did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one SWTHZ unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
Below the 30–60% attractive-franchise band
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: 2025 FDD
Financial Performance
Includes company-owned outlets
- Item 19 type
- gross sales
- Sample size
- 50
- vs category median 20 · large
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 0 / 10
- vs category median 3 / 10 · below
Compared against 162 Healthcare brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Healthcare average).
Disclosure
Item 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands.
Multi-unit rate
Only 9% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Healthcare averages
How Swthz Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 37
- Opened
- 20
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.5%
- Company-owned
- 15
- Corporate units in the system
- % franchised
- 60%
- vs corporate-owned
- Multi-unit owners
- 9.1%
3-year detail · Item 20
- Opened (3yr)
- 20
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 94
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 15 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.
Available to sell in · Item 12
- Michigan
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 48
- Loan volume
- $29.3M
- Median loan
- $611K
- average
- 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)
- N/A
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 12
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
With a 0.0% charge-off rate across 48 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
Parent-level financials show a large negative net worth -$10.18M (parent leverage, not fully brand-specific), though operations are profitable ($495,926 net income on $1.52M revenue). Two Item-3 suits involve fraudulent-transfer/civil-conspiracy claims tied to a 2023 leveraged deal against an officer — more severe than routine. Negative parent equity plus fraud-flavored litigation stack.
Litigation (Item 3)
Walker Edison Furniture Company, LLC and Blue Owl Capital Corporation v. Bonham, et al. (Consolidated Case No. 230902160, Third Judicial District Court, Salt Lake County, Utah) - consolidated May 23, 2024, currently in discovery. Walker Edison alleges insolvency and constructive fraudulent transfer related to leveraged recapitalization and dividend. Blue Owl alleges civil conspiracy, fraudulent inducement of loans, and constructive/fraudulent transfer. HotBox Enterprises, LLC v. Legendary Sweat, LLC, et al. (No. 20GDCV00469, consolidated with Jamie Weeks v. Jessica Mortarotti, et al., No. 20STCV20681, California Superior Court, Los Angeles County) - filed June 1, 2020.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
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
- 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 63 / 100 verdict
- 01HIGHTwo suits with fraudulent-transfer/civil-conspiracy claims against Treasurer
- 02MINORLarge negative parent net worth -$10.18M (parent-level)
- 03MINORProfitable operations: net income $495,926
- 04MEDNo going-concern; Item 19 disclosed; rapid growth +516.7%
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 | Radius or map boundaries |
| Protected territory | Yes |
| 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 | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Atlanta, Georgia |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 2 |
View Item 3 litigation summary
Walker Edison Furniture Company, LLC and Blue Owl Capital Corporation v. Bonham, et al. (Consolidated Case No. 230902160, Third Judicial District Court, Salt Lake County, Utah) - consolidated May 23, 2024, currently in discovery. Walker Edison alleges insolvency and constructive fraudulent transfer related to leveraged recapitalization and dividend. Blue Owl alleges civil conspiracy, fraudulent inducement of loans, and constructive/fraudulent transfer. HotBox Enterprises, LLC v. Legendary Sweat, LLC, et al. (No. 20GDCV00469, consolidated with Jamie Weeks v. Jessica Mortarotti, et al., No. 20STCV20681, California Superior Court, Los Angeles County) - filed June 1, 2020.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 40 hrs
- Training location
- On-site at franchisee's restaurant and corporate training facility
- POS system
- Mindbody
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Mindbody
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
SWTHZ · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SWTHZ franchise?
The total investment to open a SWTHZ franchise ranges from $570K – $1.2M, 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 SWTHZ franchise owners earn?
SWTHZ 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 Item 19 in the SWTHZ 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 SWTHZ FDD and qualifies whose outlets they describe.
What is SWTHZ's franchise failure rate?
Based on SBA 7(a) loan data, SWTHZ has a charge-off rate of 0.0% across 48 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 SWTHZ franchise locations are there?
As of their most recent FDD filing, SWTHZ has 37 total units in the United States, including 22 franchised units and 15 company-owned units. 20 new units were opened in the latest reporting year.
Is SWTHZ a good franchise to buy?
FranchiseVerdict rates SWTHZ as a A-grade franchise with a verdict score of 63 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 SWTHZ, you can request corrections or provide updated information.
Other Healthcare franchises
Compare similar franchise opportunities in the Healthcare category
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.