HOTWORX
HOTWORX franchises operate 24-hour boutique-style fitness studios offering hot exercise services, functional training areas, and retail fitness products under the HOTWORX brand. The business model emphasizes a small footprint of approximately 2000 square feet with automated 24/7 member access, enabling minimal overhead and labor costs. It targets the general public in the competitive health, wellness, and fitness market, competing with yoga studios, gyms, and similar outlets.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
$595/mo royalty + $150/mo technology + $129/mo POS + $120-$200/mo virtual instructor (6-10 saunas) + $65/mo DIET TRAX + $125/mo SAIL CRM + $99/mo DYNAMIX + $35/mo SOCi + $15/mo Marq (total fixed excl. royalty: $738-$818/mo)
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: Data for 169 first full-year franchised outlets operational for the full 2023 fiscal year, with supplementary overall EBITDA range from 401 operational franchised studios.
* EBITDA margin calculated as average_ebitda / average_gross_revenue for first-year studios. Best guess profit range (low and high) is derived from the lowest and highest EBITDA reported across all 401 operational franchised studios.
Extracted Item 19 Section
How HOTWORX Compares to Other Fitness Studios Franchises
Key Insights
- Top 10 largest franchise system in Fitness Studios
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
HOTWORX Current | $259K - $878K | $20K | N/A | 578 |
| Planet Fitness | $1.5M - $5.2M | $20K | 7.0% | 2,298 |
| ANYTIME FITNESS | $459K - $908K | $43K | N/A | 2,290 |
| F45 Training | $349K - $786K | $60K | 7.0% | 751 |
| Pure Barre | $314K - $629K | $60K | 7.0% | 617 |
| Snap Fitness Club | $431K - $1.1M | $40K | N/A | 484 |
Fitness Studios Average 55 franchises | $425K - $1.0M | $47K | 6.9% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 55 Fitness Studios franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2023)
Outlets by state across the United States
+27 more states
SBA Loan History
Historical SBA 7(a) loan data for HOTWORX franchisees (2017 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
Franchisees alleging unconscionability, illegality, fraud, misrepresentation, and violations of state franchise and consumer protection laws regarding franchise agreement terms, investment costs, leasehold improvements, and fees.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a HOTWORX franchise?
The total initial investment to open a HOTWORX franchise ranges from $258,500 to $877,750. This includes a franchise fee of $19,950.
How much revenue does a HOTWORX franchise make?
According to the 2024 FDD, the average gross revenue for a HOTWORX franchise is $327,392.37. The median revenue is $317,934.96.
How much profit can you make with a HOTWORX franchise?
Based on the financial performance data in the FDD, estimated profit for a HOTWORX franchise ranges from $-102,147 to $518,786 per year. Actual results vary based on location, management, and market conditions.
How many HOTWORX franchise locations are there?
As of the 2024 FDD, HOTWORX has 578 franchise locations. The company has been franchising since 2017.
Can you get an SBA loan for a HOTWORX franchise?
Yes, SBA loans are available for HOTWORX franchises. Historical data shows 476 SBA 7(a) loans have been approved for HOTWORX franchisees, with an average loan amount of $349,777. The historical default rate is 0.2%.
Is HOTWORX a good franchise to buy?
HOTWORX shows several positive indicators: established brand with 578+ locations, transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
Interested in HOTWORX?
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