The Hot RoomFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A The Hot Room franchise requires a total initial investment of $835K – $1.1M, including a $60K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $835K – $1.1M
- 92nd pct Health & Fitn…
- Avg gross sales
- N/A
- 59th pct Health & Fitn…
- Royalty
- N/A
- Units
- 6
- 29th pct Health & Fitn…
- SBA default
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness 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
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $835K – $1.1M including a $60K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 72/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- THR Fitness and Wellness Corporation d/b/a THR Fitness Franchise Company
- Parent company
- THR Holdings, LLC
- Incorporated in
- IN
- HQ
- 3855 E 96th Street Suite N, Indianapolis, IN 46240
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
The Hot Room appears to be a heated fitness or wellness studio concept where franchisees operate a studio location, manage membership/class scheduling, hire instructors, and handle daily facility operations and member services. Franchisees are responsible for local marketing, staff management, and maintaining the branded experience across classes and amenities.
- CEO
- Hye Jin Kalgaonkar
- Headquarters
- IN
- Founded
- 2024
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $30K | $50K |
| Equipment, build-out, other | $745K | $942K |
| Total initial investment | $835K | $1.1M |
Source: The Hot Room 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
- $835K – $1.1M
- Below avg, review vs category
- Liquid capital req'd
- $30K – $50K
- Near category avg vs category
- Franchise fee
- $60K – $60K
- Below avg, review vs category
- Royalty
- The greater of 7% Gross Sales per week or $3,000
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $30K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Health & Fitness averages
How The Hot Room Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 6
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage concept with undisclosed unit economics, questionable franchisor financial health, and high fixed royalty obligations poses substantial investment risk.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $60,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
No audited financials on file
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 72 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed — impossible to validate ROI on $835k–$1.05M investment
- 02MINOROnly 6 units system-wide with unknown growth trajectory suggests early-stage or stalled expansion
- 03HIGHGoing Concern status is FALSE, indicating potential financial instability at franchisor level
- 04MINORHigh royalty floor of $3,000/week ($156k annually) creates significant break-even threshold regardless of sales performance
- 05MEDNo disclosed average revenue or net income makes it impossible to assess profitability or payback period
- 06MEDFranchise fee ($60k) combined with $3k weekly minimum royalty creates upfront and recurring financial burden with no disclosed unit economics
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 | exclusive |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Indiana |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 645 hrs
- On-the-job training
- 40 hrs
- Training location
- Franchisor location and on-site
- Franchisor financing
- Offered
- Item 10
- POS system
- Mindbody
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Mindbody
Item 20 · call current owners
Franchisee Contacts
5 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Hot Room · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Hot Room franchise?
The total investment to open a The Hot Room franchise ranges from $835K – $1.1M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do The Hot Room franchise owners earn?
The Hot Room 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 The Hot Room's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Hot Room (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 The Hot Room franchise locations are there?
As of their most recent FDD filing, The Hot Room has 6 total units in the United States, including 0 franchised units and 6 company-owned units.
Is The Hot Room a good franchise to buy?
FranchiseVerdict rates The Hot Room as a D-grade franchise with a risk score of 72 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.
For franchisors
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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.