Swthz
Formerly known as SweatHouz
Bottom line
- Total investment $570K – $1.2M including a $45K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 96 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one SWTHZ unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 64 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
30 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SWTHZ · FDD (2025) PDF