Swthz Franchise Cost, Revenue & Review 2026
- Investment
- $570K – $1.2M
- Disclosed sales
- partial, no system average
- SBA charge-off
- Limited · 48 loans
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 on file does not yield a unit-revenue figure we can publish. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $570K – $1.2M
- 73rd pct Healthcare
- Avg gross sales
- N/A
- Incl. company outlets
- Royalty
- 6.0%
- 14th pct Healthcare
- Units
- 37
- 49th pct Healthcare
- SBA charge-off
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare median · 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 B (Above average), verdict score 53/100 (higher is better).
- GROWTHNegative, pipeline stalled: 43 agreements signed but not yet open against 37 open outlets (Item 20).
- DATAItem 19 reports outlet revenue, but not in a form that yields a per-outlet average we can compare across brands. Ask franchisees directly for full unit-level revenue.
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)
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- Legacy Franchise Concepts, L.P. (LFC Topco)
- FDD Item 1, page 8 of the 2025 FDD
- 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
- $1.5M
- vs $105K 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).
Same owner · FDD Item 1, page 8
1 other brand on this site name Legacy Franchise Concepts, L.P. (LFC Topco) as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 175% 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%
- Tiered by sales volume · 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
No Item 19 revenue figure for SWTHZ 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 SWTHZ 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: 2025 FDD
Financial Performance
Includes company-owned outlets
- Item 19 type
- gross sales
- Sample size
- 50
- vs category median 20 · large
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
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 median).
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 medians
How Swthz Compares
Category median of published Healthcare brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 37
- Opened
- 21
- 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
- 2.7%
- Company-owned
- 15
- Corporate units in the system
- % franchised
- 60%
- vs corporate-owned
- Multi-unit owners
- 9.1%
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 1
- Franchisor bought back
- Signed, not yet open
- 43
- 1.16 per open outlet · Item 20 Table 5
- 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).
Where the owners are · Item 20 owner list
25 current owners across 16 states.
- OH 3
- TX 3
- CA 2
- CO 2
- FL 2
- GA 2
- NC 2
- IN 1
- KS 1
- MA 1
- MD 1
- NJ 1
- +4 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Limited · 48 loans
- Limited SBA coverage: 48 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 48 loans
- 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.
What could kill this investment?
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)
Subject: the franchisor is a named party (defendant).
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)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor revenue includes revenue from franchised studios (royalties), Brand Fund contributions, technology fees, and license fees; affiliates LS Sourcing ($4,605,490.19) and Ego ($150,651.56) received revenue from required product sales to franchisees in FY2024 (not counted in franchisor's own revenue)
ⓘ 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: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 53 / 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 | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Radius or map boundaries |
| Online sales rightsℹ | 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 |
| Curable defaultsℹ | 6 |
| 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
- Ongoing training
- Required
- Site selection
- franchisor approval required; franchisee sources site within designated Search Area
- Franchisor financing
- Not offered
- Item 10
- 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
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?
Item 19 of the SWTHZ FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns SWTHZ?
SWTHZ is franchised by LS Franchisor LLC. Its parent company is Legendary Sweat Intermediate, LLC (LS Intermediate). The ultimate parent named in the FDD is Legacy Franchise Concepts, L.P. (LFC Topco). Source: FDD Item 1, 2025 filing.
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?
SBA 7(a) loan charge-off data is not available for SWTHZ (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 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. 21 new units were opened in the latest reporting year.
Is SWTHZ a good franchise to buy?
FranchiseVerdict rates SWTHZ as a B-grade franchise with a verdict score of 53 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.
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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.