Sweatheory franchise
2022 filing · April 18, 2022Growing
Sweatheory at a glance
An infrared-heated studio offering yoga and fitness classes or infrared sauna sessions. At the end of 2021 there were 2 Sweatheory locations in the US, 1 franchised and 1 company-owned.
The business
- Franchisor
- The Sweatheory Group, LLC
- The company that sells the franchises
- Franchising since
- 2019
- 3 years of selling franchises
- Franchisor based in
- Los Angeles, California
What you pay
- Cost to open
- $193K–$408K
- A Sweatheory studio offering yoga and fitness
- Franchise fee
- $35,000
- Paid once, when you sign
- Royalty
- 5%
- 5% of gross revenue, paid monthly. A marketing fund of up to 2% may be added later
- Brand fund
- None now
- No brand fund
- Renewal fee
- $5,000
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2021
- 2
- Franchised and company-owned
- Franchised
- 1
- Company-owned
- 1
- Change in 3 years
- +1
- Franchised locations, 2019–2021
- States
- 2
- Most in California and Missouri
From The Sweatheory Group, LLC’s 2022 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Sweatheory among all franchises with the same figure.
| Figure | Sweatheory | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $300,325 | Costs less than 56% of franchises |
| Franchise feePaid once, when you sign | $35,000 | Lower than 61% of franchises |
| RoyaltyShare of sales paid to the franchisor | 5% | Lower than 69% of brands with a set rate |
| US locationsFranchised and company-owned | 2 | Fewer than 82% of franchises |
How much a Sweatheory franchise costs
Opening a Sweatheory studio offering yoga and fitness costs an estimated $192,545 to $408,105. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold/construction ($70,000 to $150,000) and FURNITURE, FIXTURES, EQUIPMENT sweatheoryEquipment (yoga & fitness services) ($30,000 to $70,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $35,000 | ||
| BUILD-OUT COSTS Pre-Construction Cost (Architect, Plans, Permits) | $1,500 | $15,000 | |
| Leasehold/Construction | $70,000 | $150,000 | |
| Signage (interior & exterior) | $3,500 | $10,000 | |
| FURNITURE, FIXTURES, EQUIPMENT SweatheoryEquipment (Yoga & Fitness Services) | $30,000 | $70,000 | |
| POS System, Computer Equipment and Software | $3,500 | $10,000 | |
| Furniture, Fixtures and Equipment (other than Sweatheory Equipment) | $1,000 | $10,000 | |
| OPENING INVENTORY Opening Inventoryof Sweatheory Branded Products | $10,000 | $20,000 | |
| Opening Inventory-Non-Proprietary Products | $2,500 | $5,500 | |
| OTHER EXPENSES Grand Opening Marketing Expenses | $1,500 | $3,000 | |
| Security Deposit/3 months’ rent for Sweatheory Studio Premises | $14,000 | $32,000 | |
| Insurance-Liability & Workers Compensation (initial deposit) | $450 | ||
| Legal Fees/Organizational Expenses | $1,000 | $4,000 | |
| Training Expenses (Salaries, Transportation, Food and Lodging Expenses) | $1,000 | $6,000 | |
| Monthly fee for Mindbody services for the first 3 months of operations | $1,185 | ||
| ADDITIONAL FUNDS (3 months) | $16,410 | $35,970 | |
| Total | $192,545 | $408,105 | |
Source: The Sweatheory Group, LLC, 2022 filing, page 19
Sweatheory franchise fee
The franchise fee is $35,000. You pay it when you sign the franchise agreement.
Source: The Sweatheory Group, LLC, 2022 filing, page 12
Royalty and ongoing fees
| Royalty | 5% of gross revenue, paid monthly. A marketing fund of up to 2% may be added later. |
|---|---|
| Brand or marketing fund | No brand fund |
| Transfer Fee (Franchise Agreement) | $7,500 |
| Renewal Fees (Franchise Agreement) | $5,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: The Sweatheory Group, LLC, 2022 filing, pages 13 and 14
Other fees as filed, from page 15. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Sweatheory does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: The Sweatheory Group, LLC, 2022 filing, page 63
How Sweatheory compares
Of the 121 spa franchises on this site, Sweatheory is the 23rd cheapest to open and the 85th largest by number of locations.
| Figure | Sweatheory | Typical spa brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $193K | $334K | $222K |
| Cost to open, high end | $408K | $670K | $477K |
| Franchise fee | $35K | $50K | $40K |
| Royalty | 5% | 6% | 6% |
| US locations | 2 | 9 | 21 |
| Closed or left per year | 0% | 2.1% | – |
| Shares earnings figures | No | 85 of 121 | 2,147 of 3,352 |
Typical is the median across the 121 brands in spa franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2019 | 1 (+1) | 1 | +1 | 0 |
| 2020 | 1 (0) | 1 | 0 | 0 |
| 2021 | 1 (0) | 1 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: fitness franchise costs and franchise failure rates.
Source: The Sweatheory Group, LLC, 2022 filing, page 64
Where Sweatheory locations are
At the end of 2021, Sweatheory had locations in 2 states. The most are in California and Missouri.
- California1
- Missouri1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 0 | 1 | 1 |
| Missouri | 1 | 0 | 1 |
Source: The Sweatheory Group, LLC, 2022 filing, page 64
Who owns Sweatheory?
Sweatheory franchises are sold by The Sweatheory Group, LLC.
From The Sweatheory Group, LLC’s 2022 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: The Sweatheory Group, LLC, 2022 filing, litigation on page 11, bankruptcy on page 11
Sweatheory filings
The figures on this page come from The Sweatheory Group, LLC’s 2022 filing, issued April 18, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | April 18, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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