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HOTWORX Franchise Cost: The Sauna Package, Approved Suppliers and Build-Out in the April 2026 FDD

Row of empty wood-paneled infrared sauna cabins in a dim fitness studio

The HOTWORX franchise cost for one studio outside California and New York is $288,890 to $830,380 under the April 1, 2026 FDD. The sauna and equipment package, bought from the franchisor or its affiliate, accounts for $121,510 to $194,000.

Key takeaways

  • Item 7, Table 1 of the HOTWORX Franchise Disclosure Document, issued April 1, 2026 totals $288,890 to $830,380 for one studio; California and New York studios use Table 2, at $374,860 to $1,083,310.
  • The HOTWORX sauna, software and workout equipment line costs $121,510 to $194,000 for a 6 to 10 sauna studio, and a $50,000 deposit is due within 60 days of signing (FDD Item 7, Note 3).
  • Item 8 estimates that required purchases make up 32% to 63% of the initial investment; HOTWORX reported $13,578,054 from franchisee purchases in 2025, or 25% of its $54,243,981 total revenue (FDD Item 8).
  • The royalty is a flat $695.00 a month, but local advertising carries a floor of $2,000 a month or 10% of gross revenue, whichever is greater (FDD Items 6 and 11).
  • Franchisees reported 2025 build-out costs from $50,330 to $418,350 across nine regions, with a Table 1 median of $145,000 (FDD Item 7, Note 5).

How much is a HOTWORX franchise once every Item 7 line is added?

Adding every Item 7 line gives $288,890 to $830,380 for one studio outside California and New York, per Table 1 of the April 1, 2026 HOTWORX FDD. The low end assumes financed third-party purchases and an inexpensive shell; the high end stacks the highest 2025 figure reported for each line. Traditional-model studios that opened in 2025 averaged $528,152 in total initial investment, with a $509,865 median (Item 7, Note 15).

Key numberFigure as printedSource
Total investment, one studio (Table 1)$288,890 to $830,380FDD Item 7
Total investment, California and New York (Table 2)$374,860 to $1,083,310FDD Item 7
Paid to the franchisor or its affiliates$162,660 to $236,350FDD cover page
Average and median total, traditional studios opened in 2025$528,152 average; $509,865 medianFDD Item 7, Note 15
Initial franchise fee$19,950FDD Item 5
Monthly royalty$695.00FDD Item 6
Saunas per studio6 to 10FDD Item 7, Note 3
Franchised studios at end of 2025797FDD Item 20, Table 1

The ledger below lists every Item 7 line in both tables. Each figure is copied from the filing; the “Paid to” column follows the FDD’s own “To whom payment is to be made” column.

Item 7 lineTable 1 (most states)Table 2 (California, New York)Paid to
Initial franchise fee$19,950$19,950Franchisor
HOTWORX sauna, software and workout equipment$121,510 to $194,000$121,510 to $194,000Franchisor and/or affiliate
Other required purchases from third parties$30,400 to $121,600 (printed; see note below)$30,400 to $121,060Approved vendors and others
CAD fee, engineering and architect fees$1,200 to $22,700$1,200 to $36,200Franchisor, approved vendor, architect or engineer
Lease deposit and rent$0 to $47,760$5,700 to $99,900Landlord
Utilities, phone, internet$0 to $8,600$600 to $8,200Local providers
Insurance, initial payment$0 to $11,200$1,000 to $6,150Insurance provider
Printing, marketing and advertising$10,000$10,000Various
HOTWORX wholesale goods and inventory$20,000$20,000Franchisor’s affiliate
Professional fees$0 to $15,850$1,500 to $12,500Various
Additional funds, first three months$35,500 to $54,500$71,000 to $109,000Not applicable
Training travel and lodging$0 to $2,500$0 to $3,000Airlines, hotels, restaurants
SBA loan packaging fees and closing costs$0 to $25,000$0 to $25,000Third-party lender
Subtotal before build-out$238,560 to $553,120$282,860 to $664,960
Leasehold improvements$50,330 to $277,260$92,000 to $418,350General contractor
Total$288,890 to $830,380$374,860 to $1,083,310

One figure in Table 1 does not reconcile. The “Other Required Purchases” row prints a high of $121,600, yet Note 4 describes those purchases as “totaling $121,060”, Table 2 prints $121,060, and the Table 1 subtotal of $553,120 only adds up with $121,060. We used $121,060 in the chart below; a buyer can ask HOTWORX which figure is intended before signing.

Figure 1HOTWORX Item 7, Table 1: low and high estimate by lineOne studio outside California and New York; totals $288,890 to $830,380
Sauna, software and workout equipment$121,510Other required purchases from third parties$30,400Leasehold improvements$50,330Additional funds, first three months$35,500Lease deposit and rent$0SBA loan packaging and closing costs$0CAD, engineering and architect fees$1,200HOTWORX wholesale goods$20,000Initial franchise fee$19,950Professional fees$0Insurance, initial payment$0Printing, marketing and advertising$10,000Utilities, phone, internet$0Training travel and lodging$0
Source: HOTWORX Franchise Disclosure Document issued April 1, 2026, Item 7, Table 1. Other required purchases shown at $121,060 (Note 4 and subtotal).

Equipment ($121,510 to $194,000) and leasehold improvements ($50,330 to $277,260) are the two largest Item 7 lines. Source: HOTWORX FDD issued April 1, 2026, Item 7, Table 1; accessed November 2, 2026.

How the franchisor note, ROBS and SBA routes are priced

Item 10 of the April 1, 2026 FDD describes three ways buyers fund the HOTWORX franchise cost, each with its own price tag and, in two cases, a referral payment to HOTWORX. None of the three is a recommendation, and this page is not legal, financial or investment advice.

  • Franchisor note: up to $212,000 for 37 months at 7% per annum, secured by the studio’s assets and a personal guaranty, with a confession of judgment, offered only “in exceptionally limited circumstances” (Item 10, Table 10.1).
  • Retirement rollover (ROBS): Guidant Financial charges $5,495 for its basic plan or $6,495 for its Pro plan, then $149 a month for 401(k) administration; HOTWORX receives a $1,000 referral fee per franchisee who uses it (Item 10).
  • SBA 7(a) loan: Item 7 budgets $0 to $25,000 for packaging fees and closing costs. Guidant charges a $2,500 SBA consulting fee, and Business Finance Depot pays HOTWORX a $300 referral fee per franchisee (Item 10).

SBA franchise code S2031 covers HOTWORX, and 490 SBA 7(a) loans carried that code from fiscal 2020 to June 30, 2026, according to SBA 7(a) FOIA loan data as compiled in our SBA Franchise Directory tracker.

What is inside the $121,510 to $194,000 sauna and equipment package?

The package is the Item 7 line called “HOTWORX Sauna, Software, and Workout Equipment”, paid as a lump sum to the franchisor or an affiliate. The low figure prices a 6-sauna studio without optional equipment such as the HIIT rope; the high figure includes up to 10 saunas and the options. Traditional-model franchisees paid an average of $144,153 and a median of $152,409 for branded equipment (Item 7, Note 3).

The affiliate behind the saunas is HWX, LLC. Item 1 says HWX “manufactures and distributes certain studio equipment and products that are offered to and required to be purchased by our franchisees”, and Item 8 calls it “the distributor of HOTWORX infrared saunas”. HWX reported $34,427,082 in fiscal 2025 revenue, 99% of it from sales or leases to HOTWORX franchisees, on unaudited figures. Item 8 also states that three HOTWORX officers hold an ownership interest in HWX.

Note 3 adds three details that change the cash plan. The range already includes the monthly technology, Marq, SAIL and POS fees paid to the franchisor group; it excludes sales tax; and franchisees must remit a $50,000 deposit for branded equipment within 60 days of signing. Item 6 sets a $1,000 penalty when that deposit is late.

Paid to the HOTWORX group before openingLowHighSource
Initial franchise fee$19,950$19,950FDD Item 5
Sauna, software and workout equipment$121,510$194,000FDD Items 5 and 7
Wholesale goods from the franchisor’s affiliate$20,000$20,000FDD Items 5 and 7
CAD layout fee (one or two spaces)$1,200$2,400FDD Item 5
Sum$162,660$236,350Matches FDD cover page

Item 8 puts a size on the whole supplier channel. HOTWORX estimates that 32% to 63% of the initial investment, and about 38% of operating costs after opening, go to required purchases. The franchisor’s own revenue from franchisee purchases, vendor incentives, royalties and referral payments was $13,578,054 in 2025, or 25% of its $54,243,981 total. HOT TECH, the affiliate that licenses the POS software, reported $3,316,036 in 2025 revenue, 74% from franchisees.

These disclosures exist because 16 CFR 436.5(h)(6) requires a franchisor to state its revenue from required purchases and the percentage of total revenue it represents. Our study of Item 8 supplier revenue across 259 FDDs shows how that disclosure reads in other systems.

Who receives a HOTWORX studio’s opening budget Item 7 Table 1 of the April 1, 2026 HOTWORX FDD split by payee. Who gets paid when one HOTWORX studio opens (Item 7, Table 1) Studio opening budget $288,890 to $830,380 Franchisor or affiliate (HWX, LLC distributes the saunas) Sauna, software and workout equipment: $121,510 to $194,000 $50,000 deposit by day 60 HOTWORX Franchising, LLC Franchise fee: $19,950 CAD fee: $1,200 to $2,400 Wholesale goods (affiliate): $20,000 Approved vendors (Exhibit 1 list and others) Other required purchases: $30,400 to $121,060 Below the line: costs you negotiate locally General contractor Leasehold improvements: $50,330 to $277,260 Landlord Deposit and rent: $0 to $47,760 Your working capital Additional funds, 3 months: $35,500 to $54,500 Source: HOTWORX FDD issued April 1, 2026, Items 5, 7 and 8. Smaller Item 7 lines not shown.
The franchisor group collects $162,660 to $236,350 of the Table 1 budget; contractor, landlord and working capital make up much of the rest. Source: HOTWORX FDD issued April 1, 2026, Items 5, 7 and 8.

Which vendor does Exhibit 1 name for each item you must buy?

Exhibit 1 to the HOTWORX single unit franchise agreement, the “Schedule of Authorized and Approved Products and Services”, names the current supplier for each category under Section 9.3. HWX, LLC is the only name beside the infrared sauna. Keiser supplies Total Body Trainers, Core Health and Fitness supplies cycles and the Nautilus cable machine, and insurance is written through Lockton Affinity.

What you buyApproved supplier namedSource
Infrared sauna, Thunder Row, private label products, fixtures, weights, FX Zone equipmentHWX, LLCFDD Exhibit F, Exhibit 1
Total Body TrainersKeiserFDD Exhibit F, Exhibit 1
Cycles, Nautilus cable machine, FX Zone itemsCore Health and FitnessFDD Exhibit F, Exhibit 1
Scan 24/7 cooler equipmentKoolmoreFDD Exhibit F, Exhibit 1
Lighting, flooring, interior building componentsS&F Fabrication or Build Point USAFDD Exhibit F, Exhibit 1
Exterior signageLocal sign company to HOTWORX specificationsFDD Exhibit F, Exhibit 1
Security system, public view monitor, network supportHome Park MaintenanceFDD Exhibit F, Exhibit 1
Chrome boxes, speakers, TVsBest BuyFDD Exhibit F, Exhibit 1
Music streamingRockbotFDD Exhibit F, Exhibit 1
DefibrillatorCardioPartnersFDD Exhibit F, Exhibit 1
Lobby chairs; hand dryerBizChair.com; Motors & Controls Inc.FDD Exhibit F, Exhibit 1
Cleaning and disinfecting productsZogics, Envirochem or MARQ labsFDD Exhibit F, Exhibit 1
InsuranceLockton AffinityFDD Exhibit F, Exhibit 1; Item 8
Payroll and workers’ compensationPaychex or WhirksFDD Exhibit F, Exhibit 1
Accounting software; card processingIntuit QuickBooks Online; Block (Square)FDD Exhibit F, Exhibit 1
Real estate portfolio managersMorrow Hill, Fransite or ColliersFDD Exhibit F, Exhibit 1
Paid social, search ads, SEOSocialMadeSimple, Drive, Higher Visibility, 14th & BoomFDD Exhibit F, Exhibit 1
Lead boxes; printed marketingLeadBox.com; VistaPrintFDD Exhibit F, Exhibit 1
Retail stock: food and drink, oils, supplements, apparelMuscle Foods USA, Cure Oils, Next Day Nutra, Fabletics and othersFDD Exhibit F, Exhibit 1
Mystery shopper program360 IntelFDD Exhibit F, Exhibit 1
HOTWORX FDD Exhibit 1 supplier list with HWX, Keiser and Core Health and Fitness boxed
Exhibit 1 to the HOTWORX single unit franchise agreement names HWX, LLC for the infrared sauna, Keiser for Total Body Trainers and Core Health and Fitness for cycles. Source: HOTWORX FDD issued April 1, 2026, Exhibit F, Exhibit 1 (PDF page 297); accessed November 2, 2026.

Item 8 lets a franchisee propose a new supplier by sending its name, address, email, phone number, the item and its price. HOTWORX says it will make a good faith effort to answer within 30 days, charges no fee, and treats silence as a rejection. Its approval criteria “are not available to franchisees”, and it reserves the right to be the only approved supplier of any product.

The FTC’s Consumer’s Guide to Buying a Franchise flags this pattern: a franchisor may require approved suppliers “even if you can buy similar goods elsewhere for less.” With HOTWORX, the Exhibit 1 list and the Item 8 percentages are the two documents to compare against outside quotes for TVs, flooring or payroll.

How does choosing 6 saunas instead of 10 change the budget?

Sauna count is the one design choice that moves several HOTWORX lines together. Item 7 sets a range of 6 to 10 saunas and prices the equipment at $121,510 to $194,000 across that span. Item 8 ties minimum contents insurance to the count, from $275,000 for 6 or 7 saunas to $335,000 for 10, and Item 6 bills the Virtual Instructor software at $20.00 per sauna each month.

Line6-sauna studio10-sauna studioSource
Sauna, software and workout equipment$121,510 (low, no optional items)$194,000 (high, with options)FDD Item 7, Note 3
Minimum contents coverage$275,000$335,000FDD Items 7 and 8
Virtual Instructor fee per month$120 (6 x $20.00)$200 (10 x $20.00)FDD Item 6
CAD sauna layout fee$1,200$1,200FDD Item 5
Space assumed in Table 1Up to 2,000 sq ftUp to 2,000 sq ftFDD Item 7, Note 1

Contents coverage steps up by $20,000 per sauna above seven: $295,000 for 8 saunas and $315,000 for 9 (Item 8). Liability policies stay at $1,000,000 per occurrence and $3,000,000 aggregate whatever the count, with business interruption cover of at least $300,000.

The FDD does not price each sauna count on its own. The $121,510 low pairs 6 saunas with no options and the $194,000 high pairs the top count with options, so a per-sauna price cannot be backed out of Item 7. The HOTWORX franchise page describes single-unit studios of 1,500 to 2,200 square feet holding 6 to 10 saunas; ask for the equipment quote for your exact layout before the 60-day deposit.

What does a 2,000 square foot shell cost to finish, by region?

Leasehold improvements are the widest HOTWORX line: $50,330 to $277,260 in Table 1 and $92,000 to $418,350 in Table 2. Both assume a vanilla shell of up to 2,000 square feet and a single general contractor without re-work or permit delays. In 2025, Table 1 franchisees averaged $149,850 out of pocket for construction and permits, with a $145,000 median (Item 7, Note 5).

Region (states in FDD note)2025 low2025 highSource
Atlantic Coast (CT, DE, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT, WV)$50,330$418,350FDD Item 7, Note 5
Midwest (IA, IL, IN, KY, MI, MN, MO, WI, OH)$70,000$208,861FDD Item 7, Note 5
Southeast (FL, GA)$89,592$239,934FDD Item 7, Note 5
South (AL, AR, LA, MS, TN)$76,653$241,849FDD Item 7, Note 5
Southwest (OK, TX)$74,784$277,260FDD Item 7, Note 5
Northwest (AK, ID, OR, WA)$88,124$168,925FDD Item 7, Note 5
Great Plains (KS, MT, ND, NE, SD, WY)$85,033$85,033FDD Item 7, Note 5
West (AZ, CO, HI, NM, NV, UT)$99,498$220,070FDD Item 7, Note 5
California$96,257$210,862FDD Item 7, Note 5
HOTWORX FDD Item 7 table of 2025 build-out costs by region, two rows boxed
Reported 2025 construction and permit costs ran from $50,330 to $418,350 on the Atlantic Coast and up to $277,260 in the Southwest. Source: HOTWORX FDD issued April 1, 2026, Item 7, Note 5 (PDF page 30); accessed November 2, 2026.

The regional table is thin in places. Great Plains shows the same $85,033 as its low and high, which points to a single report, and the notes list states with no 2025 data, including MN, MO and OH in the Midwest and KS, MT, ND, SD and WY in the Great Plains. The Table 1 high of $277,260 came from one Houston, Texas studio that reported $0 in permit costs.

Two levers move this line most. Tenant improvement allowances on 2025 leases ran from $0 to $136,000 in Table 1 and $0 to $108,000 in Table 2, and HOTWORX recommends negotiating at least five months of free rent between lease signing and opening (Item 7, Notes 5 and 7). HOTWORX also reserves the right to reject a site when the estimated build-out exceeds its estimate.

Why do California and New York studios get their own Item 7 table?

Note 1 to Item 7 says California and New York studios “do not comply with the traditional HOTWORX model due to localized commercial inventory and demographic factors.” The FTC rule allows this: 16 CFR 436.5(g) lets franchisors add expenditure tables for variations in site location and premises size.

The California and New York gaps sit in rent ($5,700 to $99,900 against $0 to $47,760), working capital ($71,000 to $109,000 against $35,500 to $54,500) and design fees, where the 2025 average for CAD, architect and engineer work was $20,760 against $7,130.

What do extra licenses cost, and how far does the territory reach?

A second HOTWORX license costs $15,000 under an area development agreement, and two or more additional licenses cost $10,000 each, compared with $19,950 for a single license (Item 5). The protected territory is a radius of 0.3 to 1.9 miles in densely populated areas or 2.0 miles elsewhere, and Item 12 states that “You will not receive an exclusive territory.”

TermFigureSource
Single-unit franchise fee$19,950; VetFran discount of $2,500FDD Item 5
One additional license$15,000FDD Item 5
Two or more additional licenses$10,000 eachFDD Item 5
Three licenses, as advertised by HOTWORX$39,950 ($19,950 + $10,000 + $10,000)HOTWORX franchise page; FDD Item 5
Minimum studios for an area developer2FDD Item 5
Investment for one additional studio$283,940 to $825,430 (Table 1); $369,910 to $1,078,360 (Table 2)FDD Item 7
Development clockNext agreement signed within 272 days of opening the prior studio; each studio open within 275 daysFDD Exhibit G, Appendix A
When a studio counts toward the scheduleAfter 6 months of continuous operationFDD Exhibit G, Appendix A
Protected territory radius0.3 to 1.9 miles (dense areas); 2.0 miles (other areas)FDD Item 12
Term and renewal10 years; 10-year renewals on the then-current agreementFDD Item 17

The territory excludes anything across a state line, river, highway or interstate, plus regional malls, athletic facilities, resorts and airports (Item 12). HOTWORX affiliates may place Planet Beach or SOL SPA outlets inside it, and those can offer HOTWORX saunas; Item 1 counts 15 Planet Beach and 2 SOL SPA locations in the United States at December 31, 2025. Our review of Item 12 territory terms shows how other franchisors word the same clause.

The area development agreement adds its own risk: missing a development deadline lets HOTWORX treat unexercised options as forfeited, and the license fees are “fully earned and non-refundable” when the agreement is signed (Items 5 and 17). Our area development agreement study compares those schedules across systems.

Which monthly bills begin before the first member walks in?

Several HOTWORX charges start before opening. The $150.00 technology fee bills from the month after signing, the $129.00 POS fee and $125.00 SAIL CRM fee start once software is installed for pre-sale, and DYNAMIX ($99) and SOCi ($35) bill about 3 to 4 months before opening. The $695.00 royalty begins the first calendar month after the studio opens (Item 6).

Item 6 feeAmountBilling starts
Royalty$695.00 per monthFirst calendar month after opening
Technology fee$150.00 per monthMonth after signing
POS software$129.00 per monthSoftware install for pre-sale
SAIL CRM$125.00 per monthSoftware install for pre-sale
DYNAMIX email marketing$99 per monthPre-marketing, 3 to 4 months before opening
Training TRAX$89 per monthMonth after opening
DIET TRAX$65.00 per monthFirst month after opening
SOCi$35 per monthAfter marketing onboarding call
Virtual Instructor$20.00 per sauna per monthFirst month after opening
Scan 24/7 access$20 per monthMonth after opening
Marq$85 set-up, then $15 per monthAfter marketing onboarding call
Annual convention$790.00 for 2 attendees, travel extraTwo installments before convention

Added together, the fixed monthly fees other than Virtual Instructor come to $1,422 ($695 + $150 + $129 + $125 + $99 + $89 + $65 + $35 + $20 + $15). Virtual Instructor brings that to $1,542 for 6 saunas or $1,622 for 10. The local advertising floor of $2,000 lifts the monthly minimum to $3,542 to $3,622 before rent, payroll, utilities or loan payments.

Figure 5Fixed monthly charges for a 10-sauna HOTWORX studioMinimums before rent, payroll and utilities: $3,622 a month
Local advertising floor$2,000Royalty$695Virtual Instructor (10 saunas)$200Technology fee$150POS software$129SAIL CRM$125DYNAMIX$99Training TRAX$89DIET TRAX$65SOCi$35Scan 24/7 access$20Marq$15
Source: HOTWORX Franchise Disclosure Document issued April 1, 2026, Items 6 and 11. Local advertising is the greater of $2,000 or 10% of gross revenue.

The $2,000 local advertising floor is larger than the $695.00 royalty; fixed charges total $3,622 a month for 10 saunas. Source: HOTWORX FDD issued April 1, 2026, Items 6 and 11; accessed November 2, 2026.

Item 11 sets the advertising rule: “$2,000 or 10% of gross revenue monthly on local advertising, whichever is greater”, dropping to 5% of gross revenue once monthly NET EFT reaches $30,000 and rising again if it falls back. HOTWORX has no national advertising fund, no advertising council and no cooperative, and it bans daily-deal sites such as Groupon with a $500.00 per day fine (Items 6 and 11). Our analysis of franchise advertising funds shows how flat floors compare with percentage-only funds.

Item 6 also lists penalties that can exceed the routine fees: up to $2,500 per incident per day for operations policy violations, $250 per day for a late monthly expense report and up to $25,000 per incident for breaking membership reciprocity. A 3% fee applies to card payments to HOTWORX or its affiliates.

What deadlines start the day the franchise agreement is signed?

The HOTWORX agreement runs on fixed clocks. The $50,000 equipment deposit is due within 60 days of signing, the site must be found and leased within 120 days, and the studio must open within 275 days unless HOTWORX extends the date in writing (Items 7 and 11). Training is 35 hours of online coursework plus one week of virtual training, at no tuition cost (Item 11).

HOTWORX deadlines from signing to renewal Contract clocks in the April 1, 2026 HOTWORX FDD, Items 6, 7, 11 and 17. The HOTWORX clock: what is due, counted from signing Day 0: sign Pay $19,950 fee; $150 tech fee next month Day 60 $50,000 equipment deposit due Day 120 Site found and lease signed 3 to 4 months out DYNAMIX $99 and SOCi $35 billing; pre-marketing Day 275 Opening deadline unless extended in writing Month after opening $695 royalty and $20 per sauna VI fee begin Year 10 Term ends; renew on then-current terms Source: HOTWORX FDD issued April 1, 2026, Items 6, 7 (Note 3), 11 and 17. Not to scale.
The $50,000 deposit is due by day 60, the lease by day 120 and the opening by day 275 after signing. Source: HOTWORX FDD issued April 1, 2026, Items 6, 7, 11 and 17.
WhenWhat happensMoney tied to itSource
Day 0Sign franchise agreement$19,950 fee; $150 technology fee from the next monthFDD Items 5 and 6
By day 60Branded equipment deposit$50,000; $1,000 penalty if lateFDD Items 6 and 7
By day 120Locate site and sign leaseLease deposit and rent, $0 to $47,760 (Table 1)FDD Items 7 and 11
About 3 to 4 months before openingPre-marketing beginsDYNAMIX $99 and SOCi $35 a month; $10,000 marketing budgetFDD Items 6 and 7
By day 275Studio openLeasehold work of $50,330 to $277,260 (Table 1) completeFDD Item 11
Month after openingOngoing fees begin$695.00 royalty; $20.00 per sauna Virtual InstructorFDD Item 6
Each opening anniversaryMandatory video inspection30 days to cure curable findingsFDD Item 11
Year 10Term endsRenewal on the then-current agreement, which may carry higher feesFDD Item 17

A 275-day window is tight when the lease alone can take 120 days. Our study of franchise opening timelines compares the signing-to-opening deadlines that other FDDs set.

What the Item 20 backlog says about timing

HOTWORX ended 2025 with 797 franchised studios, up from 712, after 95 openings, 9 reacquisitions and 1 closure (Item 20, Tables 1 and 3). At December 31, 2025 it had 220 signed agreements for studios not yet open and projected 108 new franchised openings in 2026 (Table 5).

Company-owned studios rose from 7 to 15 after an entity in which HOTWORX holds a minority interest bought 9 franchised outlets, and 40 studios changed hands between franchisees in 2025 (Table 2).

Which published HOTWORX cost numbers are stale?

Several HOTWORX cost pages still quote the 2025 filing or misread the fee table. The comparisons below set each claim against the April 1, 2026 FDD; we checked them on November 2, 2026 and describe them rather than link them. A page may have been updated since, and the 2026 FDD can itself be amended during the year.

Claim seenWhereWhat the April 1, 2026 FDD saysSource
Equipment $109,650 to $185,860A franchise news guide updated February 2026$121,510 to $194,000FDD Item 7
Total investment $252,200 to $901,440Same guide$288,890 to $830,380 (Table 1)FDD Item 7
Advertising fee of 0.00%An FDD data aggregatorNo national fund, but local spend of $2,000 or 10% of gross revenue a month, whichever is greaterFDD Item 11
Total $188,070 to $351,885; working capital $12,000 to $35,000A franchise listing site dated October 2026$288,890 to $830,380; additional funds $35,500 to $54,500FDD Item 7
Other required purchases up to $121,600The FDD’s own Table 1 row$121,060 in Note 4, in Table 2 and in the subtotal arithmeticFDD Item 7

Item 3 of the same FDD shows why the cost estimate draws scrutiny. A 2023 federal case (No. 3:23-5974, W.D. Washington) brought by franchisees alleged misrepresentation of the total investment and leasehold improvement costs; after the court compelled arbitration, the parties settled, with HOTWORX, without admitting liability, ending the franchise agreement and returning $39,950 in initial franchise fees held in escrow.

Which budget line should you pressure-test first?

The table below maps common buyer situations to the HOTWORX line that moves most and the figure that settles it, all from the April 1, 2026 FDD. It is general information about a disclosure document, not legal, financial or investment advice; a franchise attorney and an accountant can test each line against your lease draft and loan terms.

If this describes youTest this line firstThreshold from the FDD
Your best site is in California or New YorkBudget from Table 2, not Table 1$374,860 to $1,083,310; working capital $71,000 to $109,000
The landlord offers no tenant improvement allowanceLeasehold improvements2025 allowances ran $0 to $136,000; Table 1 high is $277,260
You want 10 saunasEquipment, insurance and Virtual Instructor togetherUp to $194,000; $335,000 contents cover; $200 a month
You cannot fund $50,000 within 60 days of signingEquipment financing, arranged before you sign$1,000 penalty for a late deposit
You plan 2 or 3 studiosArea development fees and the clock$15,000 or $10,000 per extra license; 272-day signing and 275-day opening deadlines
You need the franchisor to lendThe Exhibit J promissory noteUp to $212,000 at 7% over 37 months, with a confession of judgment
You would buy an existing studioTransfer fee and the seller’s actual records$19,950 for a new entrant; $10,000 if the buyer is already a franchisee

Item 19 of the April 1, 2026 FDD contains revenue, EBITDA and membership data for first-year and established franchised studios grouped into thirds. This page does not repeat those figures; read them in the filing itself, and see our Item 19 research for what such tables do and do not show. Item 7, Note 12 also excludes debt service and any owner salary or draw from the working capital estimate.

For category context, our fitness franchise statistics report puts the median Item 7 range across 18 fitness FDDs at $319,510 to $746,562. A larger-format gym runs on a different cost structure, set out in our Planet Fitness franchise cost breakdown. Our guide to reading a franchise disclosure document explains each of the 23 items cited here.

How we compiled this

We read the HOTWORX Franchise Disclosure Document issued April 1, 2026, as filed with the Minnesota Department of Commerce (CARDS document 35761-202604-15), including Items 1 to 12, 17 and 20, Exhibit 1 and the area development agreement, and checked the Item 7 arithmetic line by line. We also used 16 CFR 436.5, the FTC’s Consumer’s Guide, the HOTWORX franchise page and SBA 7(a) loan data, all accessed in October and November 2026. We excluded Item 19 figures, unit revenue and owner income by site policy, and we did not survey franchisees.

Frequently asked questions

How much does it cost to open a HOTWORX franchise?

Item 7 of the April 1, 2026 HOTWORX FDD puts one studio at $288,890 to $830,380 outside California and New York, and $374,860 to $1,083,310 in those two states. The biggest swings come from the $121,510 to $194,000 sauna and equipment package and from leasehold improvements, which 2025 franchisees reported between $50,330 and $418,350 depending on region.

What is the HOTWORX franchise fee?

The initial franchise fee is $19,950 for a single studio, paid in a lump sum when the franchise agreement is signed and non-refundable (Item 5). Qualified veterans can take $2,500 off through VetFran. Under an area development agreement, one additional license costs $15,000 and two or more cost $10,000 each, which is how HOTWORX arrives at $39,950 for three licenses.

How much do HOTWORX franchise owners make?

This site does not publish earnings figures. Item 19 of the April 1, 2026 FDD reports revenue, EBITDA and membership data for first-year and established franchised studios, split into thirds, and HOTWORX says written substantiation is available on request. What a studio keeps depends on that revenue minus the flat royalty, the fixed software fees, the local advertising floor, rent and payroll, all set out in Items 6, 7 and 11.

Is the HOTWORX royalty a percentage of sales?

No. Item 6 sets the HOTWORX royalty at a flat $695.00 per month, drafted automatically and starting the first calendar month after opening. The percentage charge sits in Item 11 instead: local advertising of $2,000 a month or 10% of gross revenue, whichever is greater, falling to 5% of gross revenue once monthly NET EFT reaches $30,000.

Can you buy an existing HOTWORX studio that is for sale?

Yes, with HOTWORX approval. Item 6 charges a $19,950 transfer fee when a new entrant buys a studio and $10,000 when the buyer is already a franchisee, and Item 11 requires virtual shadow training for buyers. Item 20 reports 40 transfers between franchisees in 2025. The FTC rule lets a franchisor share the actual records of a studio you are considering buying.

Does HOTWORX offer financing?

Only in limited cases. Item 10 describes a franchisor promissory note of up to $212,000 at 7% for 37 months, offered in exceptionally limited circumstances and carrying a confession of judgment. Most buyers use outside routes: Item 10 names Guidant Financial for retirement rollovers at $5,495 and Business Finance Depot for SBA loan packaging, and HOTWORX receives referral fees of $1,000 and $300 from those firms.

Sources

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