Red Light Method
Red Light Method offers franchises for hybrid spa-gym boutique fitness studios providing red light therapy spa treatments using FDA-cleared medical-grade pad-based devices for inch loss, pain relief, and circulation improvement, along with group Power Plate classes and optional Pilates reformers. Franchisees operate under a standardized system including specific equipment, interior design, operations manuals, and marketing procedures. The target market includes adults 18+ focused on wellness, athletes, body contouring, pain management, and health improvement.
Franchise Costs
6% royalty (Year 1; Years 2-10: greater of 6% or $2,000/mo) + 2% marketing fund (greater of 2% or $500/mo) + $780/mo fixed fees (technology, POS software, music licensing)
Financial Performance
Item 19 Financial Performance
Data Based On: Projections based on experience of two company-owned affiliates (Bentonville Studio for 3 years, Reno Studio for 6 months) and information from two franchised outlets open for less than a year.
* Average gross revenue calculated by taking the mean of Gross Sales from all 12 projected scenarios (125, 275, 425 members across different membership rates and rent categories: $150 with $2k-$4k rent, $150 with $4k-$6k rent, $175 with $4k-$5k rent, and $200 with $4k-$6k rent). Average net profit calculated by taking the mean of Net Profit from all 36 projected scenarios (12 tables * 3 expense models: High, Medium, Low). Best guess profit low and high are the minimum and maximum net profit values across all 36 scenarios, respectively.
Extracted Item 19 Section
How Red Light Method Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Red Light Method Current | $199K – $821K | $50K | 6.0% | 2 |
| JAZZERCISE | $2K – $3K | $1K | 20.0% | 5,251 |
| F45 Training | $294K – $719K | $60K | 7.0% | 789 |
| Stretch Lab | $269K – $610K | $65K | 8.0% | 485 |
| Stretch Zone | $139K – $320K | $60K | 7.0% | 377 |
| BRITISH SWIM SCHOOL | $122K – $168K | $60K | 10.0% | 258 |
Specialized Fitness Average 35 franchises | $316K – $642K | $51K | 7.5% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 35 Specialized Fitness franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2025)
Outlets by state across the United States
SBA Loan History
Historical SBA 7(a) loan data for Red Light Method franchisees (2025 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
20 franchisee contacts on file from official FDD filings.
| Name | SBA Loan |
|---|---|
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
John Smith ABC Franchise LLC | $350,000 2023 · Active |
20 Contacts Available
Unlock all Red Light Method franchisee contacts with verified contact information
Due Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
The total initial investment to open a Red Light Method franchise ranges from $199,175 to $821,050. This includes a franchise fee of $50,000. Ongoing royalty fees are 6.0% of gross sales.
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