SweatHouz Franchise Costs, Fees & Owner Salary (2023)

SweatHouz, a health and wellness franchise, was founded in 2019 and began franchising in 2022. The franchise is known for its infrared saunas and cold plunge tubs, offering a variety of wellness experiences and services. These include private infrared sauna sessions, red light, hydro massage, and cold plunge therapies. Each session at SweatHouz is designed to provide benefits such as calorie burn, metabolism boost, skin clearance, detox, and overall relaxation.

Headquartered in Atlanta, Georgia, SweatHouz presents a unique opportunity in the growing global wellness market. Their franchise model is based on a recurring revenue system with high margins, appealing to entrepreneurs interested in the health and wellness industry. 

SweatHouz is distinct for its emphasis on providing a luxurious and scientifically-backed wellness experience. Their studios are equipped with advanced technology and offer a range of therapies aimed at improving health and well-being. For franchisees, SweatHouz offers a simple business model with a focus on growth, predictable cash flow, and operational support from the franchisor. The brand is part of Legacy Franchise Concepts, which has a proven track record in the health, wellness, and lifestyle sectors.

Initial Franchise Fee

The initial franchise fee is set at $35,000. This fee is paid as a lump sum when signing the Franchise Agreement. The fee is non-refundable and fully earned by the franchisor upon the execution of the Franchise Agreement. It is uniformly imposed across franchises.

Royalty Fee

This fee is calculated at a rate identified on the attached data sheet and is payable weekly, based on gross sales generated during the preceding week. A temporary royalty of $750 per week is payable if the SweatHouz business is temporarily closed without consent.

Local Advertising Requirement

Franchisees must spend monthly, the greater of (a) $1,500 or (b) two percent (2%) of the prior month's Gross Sales to locally advertise and promote the SweatHouz Business. This amount is subject to adjustment by the franchisor.

Brand Fund Contribution

Currently set at 2% of Gross Sales, payable weekly along with the Royalty.

Development Fee

If a development agreement is signed, a nonrefundable development fee is paid in a lump sum, calculated as $35,000 multiplied by the number of SweatHouz businesses agreed to be developed.

Additional Training and Annual Convention Fees

There are fees for additional training and attending the annual convention. The training fee is currently $1,000 per day plus expenses, and the convention fee is up to $500 per attendee, subject to change.

The SweatHouz franchise provides a comprehensive initial training program for franchisees: 

1. Initial Training Program: This program covers a wide range of topics, such as orientation, company overview and core values, an overview of the franchise process, owner responsibilities, staffing / human resources, site selection, construction & design, facility and equipment training, pre-sales, sales and operations, benefits and studies, and more. The location for this training is typically at the franchisor's headquarters in Atlanta, GA, or it can be virtual.
2. Additional and Ongoing Training: The franchisor may require franchisees and their employees to attend annual conferences or additional, periodic, or refresher training courses. The franchisee is responsible for all costs associated with attending these training sessions.
3. Grand Opening Support: For the first or second SweatHouz Business, the franchisor provides support for the grand opening at their expense. For subsequent businesses, the franchisee is responsible for the costs associated with the training and opening team.
4. Employee Training: The franchisor requires that all employees of the SweatHouz Business complete an approved training program and meet the franchisor's minimum criteria for providing services.

The SweatHouz Franchise Disclosure Document states that franchisees will not receive an exclusive territory. However, as long as the franchisee is in compliance with the terms of the franchise agreement, the franchisor will not authorize another entity to operate a SweatHouz business within the protected territory designated in the franchise agreement. This protected territory is defined upon approval of the franchisee's proposed premises.

The SweatHouz franchise agreement does not allow for passive investment or absentee ownership. If the franchisee is an entity, they must identify one of their owners who is a natural person with at least a 10% ownership interest and voting power in the entity (the “Managing Owner"), to be responsible for the management, direction, and control of the SweatHouz Business. 

Additionally, a “Designated Manager” must be designated to supervise the management and day-to-day operations of the SweatHouz business on a full-time basis and continuously exert efforts to promote and enhance the business.