SwthzFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Per the 2025 FDD, average unit revenue was $618K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 48 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $570K – $1.2M
- 69th pct Healthcare
- Avg gross sales
- $618K
- 17th pct Healthcare
- Royalty
- 6.0%
- 14th pct Healthcare
- Units
- 37
- 50th pct Healthcare
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.7x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Only 0.0% of 48 SBA loans charged off, well below the 16% franchise average.
Bottom line
- Total investment $570K – $1.2M including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $618K/year.
- Verdict A (Top Quintile) with a risk score of 6/100. SBA loan charge-off rate of 0.0% across 48 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- LS Franchisor LLC
- Parent company
- Legendary Sweat Intermediate, LLC
- Ultimate parent
- Legacy Franchise Concepts, L.P.
- CEO title
- President & Chief Executive Officer
- Mike Tan
- Incorporated in
- GA
- HQ
- 120 Interstate N. Pkwy SE, Suite 400, Atlanta, GA 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
SWTHZ operates boutique fitness studios (likely infrared sauna/wellness concept based on brand name). Franchisees manage daily studio operations including class scheduling, client membership management, staff training, and marketing to drive recurring membership revenue and add-on service sales.
- CEO
- Mike Tan
- Headquarters
- GA
- Founded
- 2022
- FDD year
- 2025
- States available
- 11
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$99K
16.0% margin
Unlevered ROIC
11%
EBITDA / total invested capital
Payback
9.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $570K – $1.2M
- Below avg, review vs category
- Liquid capital req'd
- $20K – $40K
- Better than avg vs category
- Franchise fee
- $45K – $45K
- Better than avg 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 |
Financial Performance
- Avg gross sales
- $618K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 50 units
- vs category median 12 · large
- Range (low → high)
- $23K→$1.2M
- Cohort dispersion (min → max)
- Quartile band
- $429K→$743K
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 201 Healthcare brands
Revenue is only 0.7x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Healthcare averages
How Swthz Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 37
- Opened
- 21
- 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
- 15
- Corporate units in the system
- % franchised
- 60%
- vs corporate-owned
- Multi-unit owners
- 9.1%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 94
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
SWTHZ presents a high-risk investment opportunity with franchisor going concern warnings, active litigation, explosive unproven unit growth, and complete lack of financial performance transparency.
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)
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 6 / 100 rating
- 01HIGHGoing concern warning indicates serious financial distress at franchisor level
- 02HIGHTwo active litigation cases including allegations of fraudulent transfer and franchise rights disputes signal operational/legal instability
- 03MINORNo average revenue or net income disclosure (Item 19) prevents validation of investment ROI claims
- 04MINORExtreme unit growth of 1000% YoY is unsustainable and suggests aggressive expansion without profitability proof
- 05MEDHigh initial investment ($569K-$1.2M) combined with undisclosed unit economics creates significant financial risk
- 06MINORRecent settlement of HotBox dispute (2022) indicates unresolved franchisor-franchisee relationship issues
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 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
30 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?
According to Item 19 of the SWTHZ FDD, the average gross sales per unit is $618K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 0 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 A-grade franchise with a risk score of 6 out of 100, 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.
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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.