Sweat440
Sweat440 Franchise Systems, LLC offers franchises for operating membership-based fitness studios that provide 40-minute workout classes combining mobility training, cross-training, strength training, and HIIT to burn fat and boost metabolism. The studios feature four stations where clients rotate every ten minutes, allowing flexible join times for busy schedules and catering to both beginners and experienced fitness enthusiasts. The business model is based on membership sales, with franchisees adhering to the Sweat440 system standards for operations, training, marketing, and equipment.
Franchise Costs
7% royalty (min $350/wk) + $420/mo brand fund + $1,200/mo marketing management fee + $695/mo software license fee
Financial Performance
Item 19 Financial Performance
Data Based On: Data for 17 studios (13 franchised, 2 parent-owned, 2 officer-operated) open for the full 12 months ending December 31, 2024, as presented in the '2024 Studio Gross Revenue' table and 'Parent Studios 2024 Income Statement' table.
* Average gross revenue, median gross revenue, and revenue quartiles were calculated from the 2024 Fiscal Year Gross Revenue of 13 franchised units: [$1,105,235, $729,327, $889,303, $336,138, $936,282, $1,074,000, $137,328, $314,313, $540,846, $670,576, $334,515, $557,542, $565,175]. - Average gross revenue = $630,044.62 - Median gross revenue = $565,175.00 - Revenue bottom quartile (average of lowest 25%) = $262,052.00 - Revenue top quartile (average of highest 25%) = $1,038,505.67 The average Adjusted EBITDA margin was calculated from the two Parent Studios (South Beach and Miami-Brickell) whose income statements were provided. Average Adjusted EBITDA for parent studios was $553,863.50 and average gross revenue was $1,373,566.00, resulting in an average Adjusted EBITDA margin of 40.32%. This margin was applied to the average gross revenue of the franchised units to estimate average EBITDA for franchisees ($630,044.62 * 0.4032 = $254,053.11). The best guess profit range (low and high) was estimated by taking 85% and 115% of the estimated average EBITDA for franchisees.
Extracted Item 19 Section
How Sweat440 Compares
Key Insights
- Higher than average SBA loan default rate in Fitness Studios
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Sweat440 Current | $288K – $686K | $60K | 7.0% | 17 |
| 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 |
| HOTWORX | $259K – $878K | $20K | N/A | 578 |
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 (2024)
Outlets by state across the United States
SBA Loan History
Historical SBA 7(a) loan data for Sweat440 franchisees (2022 – 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
23 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 |
23 Contacts Available
Unlock all Sweat440 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 Sweat440 franchise ranges from $287,900 to $685,900. This includes a franchise fee of $60,000. Ongoing royalty fees are 7.0% of gross sales.
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