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Sauna House
Sauna House, operated by Sweat Ventures, LLC, offers franchises for state-of-the-art bathhouses featuring traditional saunas, infrared saunas, cold-plunge pools, hot pools, red-light therapy, and other wellness services to enhance communal bathing culture and social wellness. Franchisees operate independent bathhouses using the SAUNA HOUSE® marks and system, where customers reserve private HOT.COLD.RELAX.® rooms or use communal areas. The business model involves franchising to multi-unit developers in the competitive health, wellness, and spa industry, targeting health-conscious individuals seeking modern relaxation experiences.
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Franchise Costs
7% royalty + 2% brand fund + $3,000/mo ($2,000 local marketing + $1,000 technology)
Financial Performance
Item 19 Financial Performance
Data Based On: Data from 1 Company-Owned Outlet that was open and operating throughout the Measuring Period (January 1, 2023 to December 31, 2023).
* The data is for a single Company-Owned Outlet. average_gross_revenue is the Annual Gross Sales ($1,712,224). average_gross_profit was calculated as Annual Gross Sales ($1,712,224) minus Cost of Goods Sold (4.83% of Gross Sales). average_net_profit is the reported Annual Adjusted Net Profit ($701,105), which is more representative of a franchisee's experience as it deducts imputed fees and costs that franchisees would incur. Given only one unit and a specific 'Adjusted Net Profit' figure, this value is used for both best_guess_profit_low and best_guess_profit_high.
Extracted Item 19 Section
Avg. Revenue: $1,712,224
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Unlock financial performance dataSauna House Franchise Analysis
Imagine stepping into the steamy world of modern bathhouses where wellness meets community—Sauna House is betting big on reviving communal bathing with saunas, cold plunges, and red-light therapy. Their 2024 FDD discloses Item 19 earnings data for existing units, painting a picture of robust performance despite franchising only since 2022. But with sky-high startup costs and a single corporate location, does this sizzling opportunity hold up under scrutiny, or is it more hype than heat?
Item 7 lays out the steep entry: initial franchise fee of $49,500, with total investment ranging $1,553,100 to $3,828,300, covering build-out for state-of-the-art facilities in prime locations. Ongoing fees from Item 6 include 7% royalty on gross sales, 2% brand fund, plus a flat $3,000 monthly for local marketing ($2,000) and technology ($1,000). Item 19 shines brightest, reporting average gross revenue of $1,712,224 across units, with estimated profits pegged at $701,105—implying healthy 41% margins after fees, a standout for wellness franchises. Three SBA loans average $2,629,767 signal lender confidence in the model's viability.
System health metrics reveal a nascent brand: one corporate location, three projected new units, and franchising since 2022 under parent Sauna Party, LLC from Asheville, NC. No contraction signals like high terminations, but limited scale means higher risk for early adopters versus proven giants. For multi-unit developers eyeing $700K+ profits in the booming $5T wellness market, Sauna House offers tantalizing returns if execution matches the vision—but that massive capex demands flawless site selection and rapid ramp-up.
Analysis based on the 2024 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Sauna House Compares
Key Insights
- Higher investment than 88% of Health & Wellness Centers franchises
- Lower than average SBA loan default rate in Health & Wellness Centers
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Sauna House Current | $1.6M – $3.8M | $50K | 7.0% | 0 |
| Club Pilates | $385K – $839K | $65K | 8.0% | 1,029 |
| GOLD'S GYM | $1.8M – $4.5M | $40K | 5.0% | 159 |
| OSTEOSTRONG | $276K – $616K | $35K | 7.0% | 153 |
| HEALTHSOURCE CHIROPRACTIC | $310K – $535K | $60K | 7.0% | 130 |
| HEALTHSOURCE CHIROPRACTIC | $83K – $635K | $60K | 7.0% | 129 |
Health & Wellness Centers Average 17 franchises | $599K – $1.3M | $65K | 7.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 17 Health & Wellness Centers franchises by location count.
SBA Loan History
Historical SBA 7(a) loan data for Sauna House 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.
3 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
17 franchisee contacts on file from official FDD filings.
17 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a Sauna House franchise ranges from $1,553,100 to $3,828,300. This includes a franchise fee of $49,500. Ongoing royalty fees are 7.0% of gross sales.
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