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.
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
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)
Franchise Stats
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 to Other Specialized Fitness Franchises
| Franchise | Investment Range | Franchise 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
* 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)
No litigation involving franchisees reported in the FDD.
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 Red Light Method franchise?
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.
How much revenue does a Red Light Method franchise make?
According to the 2025 FDD, the average gross revenue for a Red Light Method franchise is $46,406.25.
How much profit can you make with a Red Light Method franchise?
Based on the financial performance data in the FDD, estimated profit for a Red Light Method franchise ranges from $-13,613 to $48,350 per year. Actual results vary based on location, management, and market conditions.
How many Red Light Method franchise locations are there?
As of the 2025 FDD, Red Light Method has 2 franchise locations. The company has been franchising since 2024.
Can you get an SBA loan for a Red Light Method franchise?
Yes, SBA loans are available for Red Light Method franchises. Historical data shows 1 SBA 7(a) loans have been approved for Red Light Method franchisees, with an average loan amount of $416,600. The historical default rate is 0.0%.
Is Red Light Method a good franchise to buy?
Red Light Method shows several positive indicators: 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.
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