The Hot Room
Formerly known as THR Fitness
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.
- Rated CAUTION 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
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 The Hot Room unit return on the cash you put in?
Unlevered ROIC · per unit
24%
Below typical band (30–60%)
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.
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 · 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 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.
No SBA loan data available for this brand.
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.
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
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
5 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Hot Room · FDD (2025) PDF