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 number | Figure as printed | Source |
|---|---|---|
| Total investment, one studio (Table 1) | $288,890 to $830,380 | FDD Item 7 |
| Total investment, California and New York (Table 2) | $374,860 to $1,083,310 | FDD Item 7 |
| Paid to the franchisor or its affiliates | $162,660 to $236,350 | FDD cover page |
| Average and median total, traditional studios opened in 2025 | $528,152 average; $509,865 median | FDD Item 7, Note 15 |
| Initial franchise fee | $19,950 | FDD Item 5 |
| Monthly royalty | $695.00 | FDD Item 6 |
| Saunas per studio | 6 to 10 | FDD Item 7, Note 3 |
| Franchised studios at end of 2025 | 797 | FDD 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 line | Table 1 (most states) | Table 2 (California, New York) | Paid to |
|---|---|---|---|
| Initial franchise fee | $19,950 | $19,950 | Franchisor |
| HOTWORX sauna, software and workout equipment | $121,510 to $194,000 | $121,510 to $194,000 | Franchisor and/or affiliate |
| Other required purchases from third parties | $30,400 to $121,600 (printed; see note below) | $30,400 to $121,060 | Approved vendors and others |
| CAD fee, engineering and architect fees | $1,200 to $22,700 | $1,200 to $36,200 | Franchisor, approved vendor, architect or engineer |
| Lease deposit and rent | $0 to $47,760 | $5,700 to $99,900 | Landlord |
| Utilities, phone, internet | $0 to $8,600 | $600 to $8,200 | Local providers |
| Insurance, initial payment | $0 to $11,200 | $1,000 to $6,150 | Insurance provider |
| Printing, marketing and advertising | $10,000 | $10,000 | Various |
| HOTWORX wholesale goods and inventory | $20,000 | $20,000 | Franchisor’s affiliate |
| Professional fees | $0 to $15,850 | $1,500 to $12,500 | Various |
| Additional funds, first three months | $35,500 to $54,500 | $71,000 to $109,000 | Not applicable |
| Training travel and lodging | $0 to $2,500 | $0 to $3,000 | Airlines, hotels, restaurants |
| SBA loan packaging fees and closing costs | $0 to $25,000 | $0 to $25,000 | Third-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 $418,350 | General 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.
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 opening | Low | High | Source |
|---|---|---|---|
| Initial franchise fee | $19,950 | $19,950 | FDD Item 5 |
| Sauna, software and workout equipment | $121,510 | $194,000 | FDD Items 5 and 7 |
| Wholesale goods from the franchisor’s affiliate | $20,000 | $20,000 | FDD Items 5 and 7 |
| CAD layout fee (one or two spaces) | $1,200 | $2,400 | FDD Item 5 |
| Sum | $162,660 | $236,350 | Matches 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.
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 buy | Approved supplier named | Source |
|---|---|---|
| Infrared sauna, Thunder Row, private label products, fixtures, weights, FX Zone equipment | HWX, LLC | FDD Exhibit F, Exhibit 1 |
| Total Body Trainers | Keiser | FDD Exhibit F, Exhibit 1 |
| Cycles, Nautilus cable machine, FX Zone items | Core Health and Fitness | FDD Exhibit F, Exhibit 1 |
| Scan 24/7 cooler equipment | Koolmore | FDD Exhibit F, Exhibit 1 |
| Lighting, flooring, interior building components | S&F Fabrication or Build Point USA | FDD Exhibit F, Exhibit 1 |
| Exterior signage | Local sign company to HOTWORX specifications | FDD Exhibit F, Exhibit 1 |
| Security system, public view monitor, network support | Home Park Maintenance | FDD Exhibit F, Exhibit 1 |
| Chrome boxes, speakers, TVs | Best Buy | FDD Exhibit F, Exhibit 1 |
| Music streaming | Rockbot | FDD Exhibit F, Exhibit 1 |
| Defibrillator | CardioPartners | FDD Exhibit F, Exhibit 1 |
| Lobby chairs; hand dryer | BizChair.com; Motors & Controls Inc. | FDD Exhibit F, Exhibit 1 |
| Cleaning and disinfecting products | Zogics, Envirochem or MARQ labs | FDD Exhibit F, Exhibit 1 |
| Insurance | Lockton Affinity | FDD Exhibit F, Exhibit 1; Item 8 |
| Payroll and workers’ compensation | Paychex or Whirks | FDD Exhibit F, Exhibit 1 |
| Accounting software; card processing | Intuit QuickBooks Online; Block (Square) | FDD Exhibit F, Exhibit 1 |
| Real estate portfolio managers | Morrow Hill, Fransite or Colliers | FDD Exhibit F, Exhibit 1 |
| Paid social, search ads, SEO | SocialMadeSimple, Drive, Higher Visibility, 14th & Boom | FDD Exhibit F, Exhibit 1 |
| Lead boxes; printed marketing | LeadBox.com; VistaPrint | FDD Exhibit F, Exhibit 1 |
| Retail stock: food and drink, oils, supplements, apparel | Muscle Foods USA, Cure Oils, Next Day Nutra, Fabletics and others | FDD Exhibit F, Exhibit 1 |
| Mystery shopper program | 360 Intel | FDD Exhibit F, Exhibit 1 |
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.
| Line | 6-sauna studio | 10-sauna studio | Source |
|---|---|---|---|
| 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 | $335,000 | FDD 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 | $1,200 | FDD Item 5 |
| Space assumed in Table 1 | Up to 2,000 sq ft | Up to 2,000 sq ft | FDD 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 low | 2025 high | Source |
|---|---|---|---|
| Atlantic Coast (CT, DE, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT, WV) | $50,330 | $418,350 | FDD Item 7, Note 5 |
| Midwest (IA, IL, IN, KY, MI, MN, MO, WI, OH) | $70,000 | $208,861 | FDD Item 7, Note 5 |
| Southeast (FL, GA) | $89,592 | $239,934 | FDD Item 7, Note 5 |
| South (AL, AR, LA, MS, TN) | $76,653 | $241,849 | FDD Item 7, Note 5 |
| Southwest (OK, TX) | $74,784 | $277,260 | FDD Item 7, Note 5 |
| Northwest (AK, ID, OR, WA) | $88,124 | $168,925 | FDD Item 7, Note 5 |
| Great Plains (KS, MT, ND, NE, SD, WY) | $85,033 | $85,033 | FDD Item 7, Note 5 |
| West (AZ, CO, HI, NM, NV, UT) | $99,498 | $220,070 | FDD Item 7, Note 5 |
| California | $96,257 | $210,862 | FDD Item 7, Note 5 |
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.”
| Term | Figure | Source |
|---|---|---|
| Single-unit franchise fee | $19,950; VetFran discount of $2,500 | FDD Item 5 |
| One additional license | $15,000 | FDD Item 5 |
| Two or more additional licenses | $10,000 each | FDD 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 developer | 2 | FDD 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 clock | Next agreement signed within 272 days of opening the prior studio; each studio open within 275 days | FDD Exhibit G, Appendix A |
| When a studio counts toward the schedule | After 6 months of continuous operation | FDD Exhibit G, Appendix A |
| Protected territory radius | 0.3 to 1.9 miles (dense areas); 2.0 miles (other areas) | FDD Item 12 |
| Term and renewal | 10 years; 10-year renewals on the then-current agreement | FDD 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 fee | Amount | Billing starts |
|---|---|---|
| Royalty | $695.00 per month | First calendar month after opening |
| Technology fee | $150.00 per month | Month after signing |
| POS software | $129.00 per month | Software install for pre-sale |
| SAIL CRM | $125.00 per month | Software install for pre-sale |
| DYNAMIX email marketing | $99 per month | Pre-marketing, 3 to 4 months before opening |
| Training TRAX | $89 per month | Month after opening |
| DIET TRAX | $65.00 per month | First month after opening |
| SOCi | $35 per month | After marketing onboarding call |
| Virtual Instructor | $20.00 per sauna per month | First month after opening |
| Scan 24/7 access | $20 per month | Month after opening |
| Marq | $85 set-up, then $15 per month | After marketing onboarding call |
| Annual convention | $790.00 for 2 attendees, travel extra | Two 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.
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).
| When | What happens | Money tied to it | Source |
|---|---|---|---|
| Day 0 | Sign franchise agreement | $19,950 fee; $150 technology fee from the next month | FDD Items 5 and 6 |
| By day 60 | Branded equipment deposit | $50,000; $1,000 penalty if late | FDD Items 6 and 7 |
| By day 120 | Locate site and sign lease | Lease deposit and rent, $0 to $47,760 (Table 1) | FDD Items 7 and 11 |
| About 3 to 4 months before opening | Pre-marketing begins | DYNAMIX $99 and SOCi $35 a month; $10,000 marketing budget | FDD Items 6 and 7 |
| By day 275 | Studio open | Leasehold work of $50,330 to $277,260 (Table 1) complete | FDD Item 11 |
| Month after opening | Ongoing fees begin | $695.00 royalty; $20.00 per sauna Virtual Instructor | FDD Item 6 |
| Each opening anniversary | Mandatory video inspection | 30 days to cure curable findings | FDD Item 11 |
| Year 10 | Term ends | Renewal on the then-current agreement, which may carry higher fees | FDD 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 seen | Where | What the April 1, 2026 FDD says | Source |
|---|---|---|---|
| Equipment $109,650 to $185,860 | A franchise news guide updated February 2026 | $121,510 to $194,000 | FDD Item 7 |
| Total investment $252,200 to $901,440 | Same guide | $288,890 to $830,380 (Table 1) | FDD Item 7 |
| Advertising fee of 0.00% | An FDD data aggregator | No national fund, but local spend of $2,000 or 10% of gross revenue a month, whichever is greater | FDD Item 11 |
| Total $188,070 to $351,885; working capital $12,000 to $35,000 | A franchise listing site dated October 2026 | $288,890 to $830,380; additional funds $35,500 to $54,500 | FDD Item 7 |
| Other required purchases up to $121,600 | The FDD’s own Table 1 row | $121,060 in Note 4, in Table 2 and in the subtotal arithmetic | FDD 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 you | Test this line first | Threshold from the FDD |
|---|---|---|
| Your best site is in California or New York | Budget 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 allowance | Leasehold improvements | 2025 allowances ran $0 to $136,000; Table 1 high is $277,260 |
| You want 10 saunas | Equipment, insurance and Virtual Instructor together | Up to $194,000; $335,000 contents cover; $200 a month |
| You cannot fund $50,000 within 60 days of signing | Equipment financing, arranged before you sign | $1,000 penalty for a late deposit |
| You plan 2 or 3 studios | Area 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 lend | The Exhibit J promissory note | Up to $212,000 at 7% over 37 months, with a confession of judgment |
| You would buy an existing studio | Transfer 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
- HOTWORX Franchise Disclosure Document, issued April 1, 2026, HOTWORX Franchising, LLC, via Minnesota Department of Commerce CARDS (document 35761-202604-15). Accessed November 2, 2026.
- 16 CFR 436.5, Disclosure items, Electronic Code of Federal Regulations. Accessed November 2, 2026.
- A Consumer’s Guide to Buying a Franchise, Federal Trade Commission. Accessed November 2, 2026.
- HOTWORX franchise information page, HOTWORX. Accessed November 2, 2026.
- 7(a) and 504 FOIA loan data, as of June 30, 2026, U.S. Small Business Administration. Accessed October 5, 2026.