HOTWORX

Item 7 outlines the initial investment from $288,890 to $830,380, with a modest $19,950 franchise fee. Ongoing fees skip traditional ad funds and percentage royalties—instead, a fixed $695 monthly royalty plus $847-$927 in tech fees for POS, CRM, virtual instructors, and access systems keeps costs predictable but adds up to about 2-3% of average sales. Item 19 shines with average gross revenue of $379,298 and median $354,221 across studios, yet flags a 0% EBITDA margin, hinting at tight profitability after fixed costs; estimated profits swing wildly from $495 to $554,589, likely separating top performers from break-evens.

System health looks robust: 797 locations (up 12% from 712 in 2024), 15 corporate-owned, 108 projected openings, and 40 transfers signal steady expansion without mass churn. SBA data bolsters confidence—476 loans averaging $349,777 with a mere 0.2% default rate crushes industry norms, suggesting franchisees secure financing and sustain operations. One settled franchisee dispute over costs and misrepresentations warrants caution, but overall metrics position HOTWORX as a low-labor fitness play worth modeling for cash-flow potential in under-2,000 sq ft spaces.