FDD Analysis 2025 FDD

HOTWORX Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from HOTWORX's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the HOTWORX FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$252,200 - $901,440
Franchise Fee$19,950

Investment Breakdown

Initial Franchise Fee (1, 2, 18)$19,950 - $19,950
HOTWORX Sauna, Software, and Workout Equipment (3, 18)$109,650 - $185,860
Other Required Studio Equipment, Software, Staff Uniforms, and Furniture (4, 18)$21,500 - $31,500
Other Required Studio Components (5, 18)$12,000 - $32,100
CAD Fee/Engineering, Architect Fees & Pre-Construction Coordination (7, 18)$1,200 - $28,100

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee—
Marketing/Advertising Fee—

Other Ongoing Fees

DMA or Development Area TransferVaries
Resale/Transfer FeeVaries
Annual ConventionVaries
Credit Card Processing FeeVaries
Technology FeeVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$291,281/year
Disclosure Year2025
Reporting Units—
Revenue VarianceHigh variance (wide performance range)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

719

Total Units

+137

Net Growth (YoY)

+23.5%

Growth Rate

Franchised Units712
Company-Owned Units7

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

HOTWORX Overview

Full franchise profile and details

Is HOTWORX Worth It?

Investment analysis and evaluation

Health & Fitness Revenue Rankings

Compare revenue across the industry

All Health & Fitness Franchises

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