The Sweat ShackFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A The Sweat Shack franchise requires a total initial investment of $288K – $564K, including a $45K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $314K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $288K – $564K
- 30th pct Retail
- Avg gross sales
- $314K
- 1st pct Retail
- Royalty
- 6.0%
- 17th pct Retail
- Units
- 3
- 2nd pct Retail
- SBA default
- N/A
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail 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.
Bottom line
- Total investment $288K – $564K including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $314K/year.
- Verdict A (Top Quintile) with a risk score of 52/100.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- The Sweat Shack Franchising LLC
- Incorporated in
- TN
- HQ
- 2012 Tollgate Boulevard, Thompson Station, Tennessee 37179
- Auditor
- Divine, Blalock, Martin & Sellari, LLC
- Audited financials
- Franchisor revenue
- $79K
- vs $174K prior year
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.
- CEO
- Mark Felan
- Headquarters
- TN
- Founded
- 2019
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $5K | $10K |
| Equipment, build-out, other | $238K | $509K |
| Total initial investment | $288K | $564K |
Source: The Sweat Shack 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
$22K
7.0% margin
Unlevered ROIC
5%
EBITDA / total invested capital
Payback
19.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $288K – $564K
- Better than avg vs category
- Liquid capital req'd
- $5K – $10K
- Better than avg vs category
- Franchise fee
- $45K – $45K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $250 |
| Transfer fee | $14K |
| Renewal fee | $3K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $314K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- gross_sales
- Sample size
- 3 units
- vs category median 49 · small
- Range (low → high)
- $213K→$416K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 0 / 5
- vs category median 2 / 5 · below
Compared against 304 Retail 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 Retail averages
How The Sweat Shack Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 0
- 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
- 1
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
- Multi-unit owners
- 15.4%
- Net growth (yr3)
- +0.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 1
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 33.3%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
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 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 loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $400K
- Median loan
- $400K
- 50th percentile
- Charge-off rate
- N/A
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
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Sweat Shack's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Divine, Blalock, Martin & Sellari, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- 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 52 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius/Area |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Williamson County, Tennessee |
| Jury trial waiver | Yes |
| Governing law | Tennessee |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 20 hrs
- On-the-job training
- 32 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- POS system
- POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POS System
Item 20 · call current owners
Franchisee Contacts
6 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
The Sweat Shack · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a The Sweat Shack franchise?
The total investment to open a The Sweat Shack franchise ranges from $288K – $564K, 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 The Sweat Shack franchise owners earn?
According to Item 19 of the The Sweat Shack FDD, the average gross sales per unit is $314K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is The Sweat Shack's franchise failure rate?
SBA 7(a) loan charge-off data is not available for The Sweat Shack (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 Sweat Shack franchise locations are there?
As of their most recent FDD filing, The Sweat Shack has 3 total units in the United States, including 2 franchised units and 1 company-owned units.
Is The Sweat Shack a good franchise to buy?
FranchiseVerdict rates The Sweat Shack as a A-grade franchise with a risk score of 52 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.