Bottom line
- Total investment $288K – $564K 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 CAUTION with a risk score of 72/100. SBA loan default rate of 0.0% across 2 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 The Sweat Shack unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
Overview
About
The Sweat Shack franchisees operate boutique fitness facilities, likely specializing in high-intensity workout classes (HIIT, functional training, or similar sweat-equity fitness concepts). Day-to-day operations include managing class schedules, instructing or supervising fitness classes, maintaining equipment, retaining members, and handling front-desk/membership administration.
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 · 4 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
The Sweat Shack presents HIGH RISK due to a micro-franchise system with going concern issues, undisclosed financials, and no track record of unit growth or profitability validation.
Score breakdown · what drove the 72 / 100 rating
- 01MINOROnly 3 units in system with unknown growth trajectory suggests stagnant or contracting franchise
- 02MINORNo Item 19 (average revenue/income) disclosure is major red flag for profitability assessment
- 03HIGHGoing Concern status is False, indicating material doubt about franchisor's ability to continue operations
- 04MINORHigh initial investment range ($288k-$564k) with minimal system size creates survivorship risk
- 05HIGHNo litigation disclosure combined with only 3 units may indicate franchisor too small to have public disputes or suggests selective disclosure
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
6 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Sweat Shack · FDD (2025) PDF