True REST Franchise Cost, Revenue & Review 2026
- Investment
- $415K – $1.1M
- Disclosed sales
- $398K
- gross sales, not profit
- SBA charge-off
- 8.3%
- on 24 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
True REST is a wellness franchise offering sensory-deprivation float therapy in private flotation pods. Franchisees run the float spas, managing pod maintenance, appointments, staff, and retail wellness sales.
FranchiseVerdict summary · 2026
A True REST franchise requires a total initial investment of $415K – $1.1M, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $398K[2]. SBA 7(a) loans show a 8.3% charge-off rate across 24 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $415K – $1.1M
- 43rd pct Personal Care…
- Avg gross sales
- $398K
- 7th pct Personal Care…
- Royalty
- 6.0%
- 12th pct Personal Care…
- Units
- 44
- 32nd pct Personal Care…
- SBA charge-off
- 8.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $415K – $1.1M including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $398K/year.
- RISKVerdict C (Average), verdict score 45/100 (higher is better). SBA loan charge-off rate of 8.3% across 24 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +4 franchised outlets in the latest year (4 opened, 0 closed); 10 signed but not yet open (Item 20).
- GROWTHSystem growing at 29.0% CAGR over 3 years with 44 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- True REST Franchising, LLC
- Parent company
- None (no parent)
- Predecessor
- None
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- James W. Rowe
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Arizona
- HQ
- 1001 B Avenue, Suite 102, Coronado, California 92118
- Auditor
- Considine & Considine
- Audited financials
- Franchisor revenue
- $2.3M
- vs $2.4M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1
12 other brands on this site name None (no parent) as parent or ultimate parent in their own FDD.
- 9ROUNDC
- ADVANTAGE COLLEGE PLANNINGB
- AMRAMPA
- AlignLifeC
- Body Alive StudioC
- Ivybrook AcademyA
- JAN-PRO Commercial CleaningA
- ONEZOC
- Once Upon A ChildA
- Original Rainbow ConeC
- Pizza SchmizzaB
- SarahCareF
Grouped by the owner's name as each filing prints it (this page: the 2024 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- James W. Rowe
- Headquarters
- CA
- Founded
- 2014
- FDD year
- 2024
- States available
- 17
Can you afford it, and what does the money buy?
Entry cost runs 85% above the typical personal care & beauty franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown17 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Travel and Living Expenses While Training | $500 | $1K | |
| Real Estate/Lease (3 months + deposit) | $20K | $56K | |
| Leasehold Improvements | $194K | $600K | |
| Architectural Fees | $8K | $25K | |
| Float Podsnot refundable | $120K | $240K | |
| Float Pod Shipping Costs | $8K | $15K | |
| Initial Inventory of Salt and Related Misc. Expenses | $3K | $7K | |
| Signage | $3K | $15K | |
| Insurance | $450 | $3K | |
| Utility Deposits | $0 | $1K | |
| Business License and Permits | $0 | $175 | |
| Furniture, Fixtures and Related Supplies | $12K | $20K | |
| Computer System | $2K | $3K | |
| Code/Field Inspections | $0 | $10K | |
| Professional Fees | $0 | $5K | |
| Additional Funds - 3 months | $5K | $35K | |
| Total initial investment | $415K | $1.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $415K – $1.1M
- Middle of category vs category
- Liquid capital req'd
- $5K – $35K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 6.0%
- 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 | $550 |
| Training fee | $1K |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 24% below the personal care & beauty norm.
Source: FDD 2024 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for True REST until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$765K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one True REST unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
- Avg gross sales
- $398K
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 38 outlets
- vs category median 38
- Range (low → high)
- $123K→$886KCited, not corroborated — printed on page 50 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 177 Personal Care & Beauty brands
Revenue is only 0.5x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $398K/year in gross sales. Revenue-to-investment ratio: 0.5x.
Fee burden
Total ongoing fee load of 8.0% (near the Personal Care & Beauty median).
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 29.0% CAGR over 3 years across 44 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Personal Care & Beauty medians
How True REST Compares
Category median of published Personal Care & Beauty brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 44
- Opened
- 4
- 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
- N/A
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- +29.0%
- Net unit change over 3 years
- 3-yr CAGR
- +29.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Signed, not yet open
- 10
- 0.23 per open outlet · Item 20 Table 5
- Projected new
- 10
- Franchisor's next-year forecast
- Transfer rate
- 2.3%
- Owners selling to other franchisees
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.
Where the owners are · Item 20 owner list
7 current owners across 5 states.
- CA 2
- FL 2
- AZ 1
- NH 1
- PA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 24
- Loan volume
- $9.5M
- Median loan
- $402K
- 50th percentile
- Charge-off rate
- 8.3%
- on 24 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 91.7%
- 5-yr charge-off
- 50.0%
- Loans approved 2021+
- Active lenders
- 12
- Defaults
- 1
- Typical loan rate
- 5.7%
- avg rate to borrowers
- Franchised industry avg
- 17.4%
- brand beats franchise avg ↓
- Jobs supported
- 160
- 1.9 per loan
- Lender concentration
- 25%
- top lender's share
Borrower mix: 80% went to startups / new businesses, 20% to established operators
Franchise vs independent — in other personal care services, franchised businesses charge off at 17.4% vs 20.9% for independents — franchising is associated with 17% lower SBA default risk in this category.
Top lenders financing True REST franchisees
Showing 3 of 12 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for True REST from SBA 7(a) FOIA data.
- Principal loss rate
- 8.3%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 5.73%
- Avg chargeoff amount
- $702K
- Lender concentration
- 25.0%
- Job velocity
- 1.9 per $100K
- NAICS benchmark
- 5.1%
- NAICS 812199
- Jobs supported
- 160
Top SBA lendersTop lender holds 25% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 5 | $1.8M | 0.0% |
| 2 | The Huntington National Bank | 2 | $300K | 0.0% |
| 3 | Five Star Bank | 2 | $788K | 0.0% |
| 4 | Waterford Bank, National Association | 2 | $755K | 0.0% |
| 5 | Citizens Bank | 2 | $926K | N/A |
| 6 | First Westroads Bank, Inc | 1 | $475K | 0.0% |
| 7 | JPMorgan Chase Bank, National Association | 1 | $451K | 0.0% |
| 8 | Southwest Heritage Bank | 1 | $300K | N/A |
| 9 | PNC Bank, National Association | 1 | $482K | 0.0% |
| 10 | Capital Bank, National Association | 1 | $610K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| OHOhio | 6 | 1 | 20.0% |
| CACalifornia | 4 | 0 | 0.0% |
| AZArizona | 3 | 0 | 0.0% |
| MIMichigan | 2 | 0 | -- |
| FLFlorida | 1 | 0 | -- |
| NENebraska | 1 | 0 | 0.0% |
| NHNew Hampshire | 1 | 0 | -- |
| NMNew Mexico | 1 | 0 | -- |
| TXTexas | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 8.3% — 48% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Considine & Considine
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 45 / 100 verdict
- 01MINORNegative franchisor net worth: -$829,979
- 02MINORfinancial_distress flagged true
- 03MINORMitigating: no litigation, audited, +29% unit growth
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | San Diego County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 48 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- Franchisee selects; franchisor accepts/rejects within 30 days
- Franchisor financing
- Not offered
- Item 10
- POS system
- Boulevard
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Boulevard
Item 20 · call current owners
Franchisee Contacts
7 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a True REST franchise?
The total investment to open a True REST franchise ranges from $415K – $1.1M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do True REST franchise owners earn?
According to Item 19 of the True REST FDD, the average gross sales per unit is $398K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns True REST?
True REST is franchised by True REST Franchising, LLC. Its parent company is None (no parent). Source: FDD Item 1, 2024 filing.
What is Item 19 in the True REST FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the True REST FDD and qualifies whose outlets they describe.
What is True REST's franchise failure rate?
Based on SBA 7(a) loan data, True REST has a charge-off rate of 8.3% across 24 loans, meaning 8.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many True REST franchise locations are there?
As of their most recent FDD filing, True REST has 44 total units in the United States, including 40 franchised units and 4 company-owned units. 4 new units were opened in the latest reporting year.
Is True REST a good franchise to buy?
FranchiseVerdict rates True REST as a C-grade franchise with a verdict score of 45 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
Are you the franchisor?
If you represent True REST, you can request corrections or provide updated information.
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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.