HOTWORX franchise unit economics
HOTWORX franchisees run 24-hour infrared sauna studios that sell monthly memberships for virtual-instructor workout sessions, plus retail and vending.
HOTWORX in the news
- HOTWORX Signs Multi-Unit Franchise Agreement to Enter Alaska Market · Franchising.com ·
The HOTWORX headline above is the publisher's own and links to the publisher. Averan Advisors checked this HOTWORX link on 11 October 2026. Franchise news lists news on 95 brands, including HOTWORX. HOTWORX is in the Group Training Studios franchise guide.
HOTWORX franchise at a glance
HOTWORX’s Item 19 reports 2025 revenue and expenses by third for 700 franchised studios open all year and for 149 studios in their first full year, plus pre-sale results.
HOTWORX franchisees averaged $379,298 of sales in 2025, according to Item 19 of HOTWORX’s 2026 FDD, issued 1 April 2026. The 700 in that group are 88%* of HOTWORX’s 797 locations. A HOTWORX franchise costs $288,890 to $830,380 to open, including a $19,950 initial franchise fee.
- A HOTWORX franchise costs $288,890 to $830,380 to open, including a $19,950 initial franchise fee, according to the brand's 2026 FDD.
- HOTWORX's 2026 FDD reports average profit of $107,306 (28.3%).
These figures come from HOTWORX's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Move your books and accounting to Averan →- Revenue runs from $251,925 to $529,788 across the thirds while total expenses run from $225,483 to $270,792. A $277,863 revenue gap against a $45,309 cost gap produces a 22.5 times difference in profit.
- The bottom third pays $3,160 more rent than the top third. At HOTWORX, the bottom third pays $69,816 in rent and the top third pays $66,656, which is 27.7% of revenue against 12.6%.
- HOTWORX royalty is a flat monthly fee, so reported royalty costs the top third 1.24% of revenue and the bottom third 2.64%. In dollars, the HOTWORX royalty is $6,587 a year at the top third and $6,648 at the bottom third.
- Membership revenue is $337,306 from an average 490 members, $57.36 a member a month. Monthly cancellation averages 6.17%, which is 16.2 months of member life.
- The bottom third of first-year studios loses $5,093 on average. The top third of the same 149 first-year HOTWORX studios earns $172,270.
How much does a HOTWORX franchise make?
The average HOTWORX unit reported $379,298 of revenue in the 2026 FDD. Item 19 of the HOTWORX FDD publishes revenue, costs and EBITDA by third for 149 franchised studios in their first full year, and what an owner keeps depends on the costs set out below. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Members
Membership and cancellation by group
| Measure | 700 mature studios | 149 first-year studios | 15 corporate studios |
|---|---|---|---|
| Average members | 490 | 458 | 554 |
| Median members | 456 | 430 | 527 |
| Highest / lowest members | 1,253 / 243 | 718 / 229 | 1,451 / 290 |
| Monthly cancellation, average | 6.17% | 6.48% | 5.81% |
| Monthly cancellation, median | 6.29% | 6.57% | 5.70% |
| Monthly cancellation, high / low | 6.98% / 5.28% | 7.44% / 5.53% | 7.71% / 4.77% |
| Months a member stays, on the average rate | 16.2 | 15.4 | 17.2 |
| Membership revenue per member a month | $57.36 | $55.32 | n/a |
The member counts and cancellation rates are as the brand reported it; the last two rows are marked *.
A member is worth $57.36 a month and stays 16.2 months. At the average rate, a HOTWORX member brings $929 of lifetime membership revenue. At the studio that keeps members longest, with 5.28% monthly cancellations, the figure is $1,086*, and at the studio with the highest cancellations, 6.98%, it is $821. On a cost base that changes by less than a tenth, the 321-point member gap between the average studio and the 1,253-member leader is worth $220,982 a year of membership revenue.
Cancellation runs 6.17% a month at mature studios and 6.48% in the first year. The corporate studios do better still at 5.81%. That first-year figure means a studio replacing 6.48% of its base every month needs roughly 30 new members a month at 458 members just to hold position, before any growth.
The lowest-profit studio in the mature group has 243 members and the highest has 1,253. Those two HOTWORX studios report $163,899 and $901,879 of revenue, and a loss of $92,530 against a profit of $554,589. Both pay roughly the same rent, the same royalty, the same virtual instructor fee and similar utilities. The member count is the business.
Top performers
What separates the top HOTWORX performers
HOTWORX splits its locations into groups instead of publishing one average. The top group averaged $529,788 a year. The lowest averaged $251,925. Both run the same brand, on the same agreement, paying the same fees.
Decided before you open
- Site and trade area.The top band sells 2.1× the bottom band. Catchment, daytime population and neighboring businesses affect where a location falls.
- Capacity.Capacity is the floor space, times the hours it is open, times how full it runs. The build sets how much you can sell.
- Opening cost range.Opening costs $288,890 to $830,380, a 2.9× range inside one brand.
- Cash needed in the first year.This filing shows how a new location builds up: the month sales cover costs, and how much cash you fund before then.
Live operating levers
- Membership drives the model.Track how many members join, how many cancel, and what each member spends beyond the plan.
- Service and retail mix.Retail sales and the share of customers on higher service tiers raise revenue per hour without adding hours or rooms.
Context you underwrite around
- Locations included.These figures cover 700 of 797 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded.
- What the filing does not include.Item 19 of the HOTWORX FDD publishes revenue, costs and EBITDA by third for 149 franchised studios in their first full year. Ask the franchisor or current owners for any cost line the filing leaves out.
Profit and loss
Revenue and expenses by third, 2025
| Line | Top third | Middle third | Bottom third | All 700 |
|---|---|---|---|---|
| Membership revenue | $470,150 | $315,867 | $225,332 | $337,306 |
| Retail | $59,638 | $39,668 | $26,593 | $41,992 |
| Total sales | $529,788 | $355,535 | $251,925 | $379,298 |
| Wholesale goods purchased | $38,243 | $25,227 | $16,628 | $26,716 |
| Gross profit | $491,545 | $330,307 | $235,298 | $352,582 |
| Wages and taxes | $97,135 | $79,683 | $69,211 | $82,031 |
| Rent | $66,656 | $65,600 | $69,816 | $67,357 |
| Marketing and advertising | $29,723 | $28,864 | $27,051 | $28,548 |
| Utilities | $20,330 | $17,825 | $17,601 | $18,588 |
| Bank charges | $15,403 | $10,451 | $7,762 | $11,211 |
| Royalties | $6,587 | $6,681 | $6,648 | $6,638 |
| Insurance | $6,980 | $6,454 | $6,002 | $6,479 |
| Supplies | $5,523 | $4,347 | $3,235 | $4,370 |
| Telephone and internet | $4,440 | $4,414 | $4,285 | $4,380 |
| Maintenance and repairs | $4,215 | $3,290 | $2,549 | $3,353 |
| Accounting | $2,969 | $2,599 | $2,270 | $2,613 |
| Miscellaneous | $2,651 | $2,208 | $2,365 | $2,408 |
| Travel | $2,417 | $1,702 | $1,500 | $1,874 |
| Virtual instructor fee | $1,897 | $1,890 | $1,961 | $1,916 |
| Point of sale fee | $1,584 | $1,582 | $1,556 | $1,574 |
| Taxes and licenses | $1,497 | $1,219 | $1,233 | $1,316 |
| Staff incentives | $784 | $633 | $440 | $619 |
| Expense totals | $270,792 | $239,443 | $225,483 | $245,276 |
| profit | $220,753 | $90,865 | $9,814 | $107,306 |
| profit share of revenue | 41.7% | 25.6% | 3.9% | 28.3% |
| Median profit | $194,828 | $89,276 | $16,288 | $89,566 |
As the brand reported it, reordered by size of the all-700 column. The profit share row is marked *, dividing filed profit by filed revenue.
A $277,863 revenue gap produces a $210,939 profit gap because costs, including wholesale goods, differ by only $66,924*. The top third of HOTWORX studios has 2.1 times the revenue, 1.2 times the cost and 22.5 times the profit of the bottom third. That is as clean a demonstration of operating leverage as any filing in this category produces. It cuts both ways, a studio losing members loses margin at the same rate.
The bottom third pays more rent than the top third in actual dollars. The HOTWORX bottom third pays $69,816 in rent and the top third pays $66,656. So the lowest-selling studios are in the most expensive boxes, and rent moves from 12.6% of revenue at the top to 27.7% at the bottom. Rent is the one HOTWORX cost line that is higher in dollars at the bottom third than at the top.
Wages run $69,211 at the bottom third and $97,135 at the top. $97,135 at the top third against $69,211 at the bottom, 40% more cost for 110% more revenue, which is 18.3% of revenue against 27.5%. A studio that is open 24 hours with virtual instruction has a staffing minimum it has to cover whatever the membership does.
Retail is 11.1% of revenue and holds that share across every third. HOTWORX retail sales by third are $59,638, $39,668 and $26,593, against wholesale goods of $38,243, $25,227 and $16,628, a gross profit on goods of 35.9%, 36.4% and 37.5%. It is the one line here that behaves like a normal variable business, and it tracks membership.
Utilities are $18,588 and change little between thirds. HOTWORX utilities by third are $20,330, $17,825 and $17,601, which is 3.8% of revenue at the top and 7.0% at the bottom. Heating saunas around the clock is a fixed cost. On the bottom third it is larger than the entire disclosed profit of $9,814.
Fees and what it costs to open
Royalty and advertising by group
| Group | Revenue | Royalty as the brand reported it | Royalty share | Marketing as the brand reported it | Marketing share |
|---|---|---|---|---|---|
| Top third | $529,788 | $6,587 | 1.24% | $29,723 | 5.6% |
| Middle third | $355,535 | $6,681 | 1.88% | $28,864 | 8.1% |
| Bottom third | $251,925 | $6,648 | 2.64% | $27,051 | 10.7% |
| All 700 | $379,298 | $6,638 | 1.75% | $28,548 | 7.5% |
The revenue, royalty and marketing figures are as the brand reported it; the share columns are marked *.
A flat $695 monthly royalty costs the bottom third twice what it costs the top third. The HOTWORX royalty takes 2.64% of revenue at the bottom third and 1.24% at the top third. That is the opposite of every percentage royalty in this category. The flat fee costs higher-selling HOTWORX owners a smaller share of revenue. Grow from $251,925 to $529,788 and the brand's own fee stays exactly where it is.
The advertising requirement halves once monthly net transfers reach $30,000. That threshold is $360,000 a year of membership draft, close to the $337,306 of membership revenue at the average HOTWORX studio. Below it the requirement is the greater of $2,000 a month or 10% of sales; above it, 5%. On the bottom third's $251,925 that is the difference between $27,051 and about $12,600.
Marketing is 10.7% of revenue at the bottom third and 5.6% at the top. $27,051 against $29,723 in dollars, so the lower-selling studio spends almost as much in cash and twice as much as a share, because the requirement is written as a minimum.
Cost to open
| Line | Low | High |
|---|---|---|
| Sauna, software and workout equipment | $121,510 | $194,000 |
| Building work | $50,330 | $277,260 |
| Other required purchases from third parties | $30,400 | $121,600 |
| Additional funds, three months | $35,500 | $54,500 |
| Wholesale goods and inventory | $20,000 | $20,000 |
| Initial franchise fee | $19,950 | $19,950 |
| Real estate deposit and rent | $0 | $47,760 |
| Loan packaging fees and closing costs | $0 | $25,000 |
| Design, engineering and architect fees | $1,200 | $22,700 |
| Professional fees | $0 | $15,850 |
| Insurance, utilities, phone and internet | $0 | $19,800 |
| Printing, marketing and advertising | $10,000 | $10,000 |
| Initial training travel | $0 | $2,500 |
| Total | $288,890 | $830,380 |
As the brand reported it, except one grouped line, which is marked *: insurance with utilities, phone and internet service.
Discounts available
- HOTWORX takes $2,500 off the fee for qualified veterans under VetFran.
- HOTWORX charges $15,000 for one additional studio license, or $10,000 each for two or more, under an Area Development Agreement.
From Item 5 of the HOTWORX 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
Saunas, software and workout equipment cost $121,510 to $194,000. HOTWORX saunas, software and workout equipment cost $121,510 to $194,000, which is 42% of the low total investment. Building work swing $226,930 on top of that, and they are the line that decides whether the build lands at $288,890 or $830,380.
The franchise fee is $19,950, less than the opening inventory. The HOTWORX franchise fee is less than the $20,000 of opening inventory and less than the $35,500 minimum working capital. Combined with a flat $695 monthly royalty, this is a franchisor taking its money from equipment supply.
Three months of additional funds is $35,500 to $54,500. A pre-sale averages 111 days and brings in $26,181, and the first-year cost base is $243,478, about $20,290 a month. The reserve and the pre-sale together cover roughly three months of that. So the pre-sale membership count is the number that decides the first year.
Units opened and closed, 2023 to 2025
| Year | Franchised start | Opened | Reacquired by franchisor | Ceased for other reasons | Franchised end | Company | Total |
|---|---|---|---|---|---|---|---|
| 2023 | 405 | 171 | 0 | 0 | 576 | 6 | 582 |
| 2024 | 576 | 141 | 0 | 5 | 712 | 7 | 719 |
| 2025 | 712 | 95 | 9 | 1 | 797 | 15 | 812 |
As the brand reported it.
407 studios opened in three years and six left. HOTWORX recorded 171, 141 and 95 openings, five departures in 2024, one in 2025 and zero terminations across the three years. That is an exceptionally low departure rate, and it sits beside a bottom third of the mature system earning $9,814 and a bottom third of first-year studios losing money.
Openings have halved, from 171 to 95. The system is still adding roughly two studios a week. The 149 first-year studios are the 2024 group finishing their first full year. Each new group enters the averages at $352,781 against $379,298, which holds those averages down while the network keeps growing.
First year
First full year of operation, 2025
| Line | Top third | Middle third | Bottom third | All 149 |
|---|---|---|---|---|
| Membership revenue | $407,725 | $289,989 | $212,661 | $304,068 |
| Retail | $66,095 | $47,850 | $31,860 | $48,714 |
| Total sales | $473,820 | $337,839 | $244,520 | $352,781 |
| Wages and taxes | $93,660 | $82,056 | $72,151 | $82,693 |
| Rent | $65,189 | $61,107 | $68,261 | $64,829 |
| Marketing and advertising | $30,150 | $29,434 | $27,471 | $29,029 |
| Utilities | $18,406 | $18,303 | $19,479 | $18,724 |
| Expense totals | $261,716 | $237,559 | $230,909 | $243,478 |
| profit | $172,270 | $72,714 | −$5,093 | $80,535 |
| profit share of revenue | 36.4% | 21.5% | −2.1% | 22.8% |
| Median profit | $156,338 | $71,377 | −$176 | $72,161 |
As the brand reported it, showing the largest expense lines from a table that has the same seventeen categories as the mature one. The profit share row is marked *.
The bottom third of first-year studios loses $5,093 on average. On $244,520 of revenue against $230,909 of costs, and its median is a loss of $176. So about half that group sits at or below break-even after a full year of trading. Against a build costing $288,890 to $830,380, that is the real downside case.
A first-year studio averages $352,781 and a mature one $379,298. The gap is $26,517, or 7.5%, and the profit is $80,535 against $107,306. So most of what a studio will ever earn, it earns in its first full year. The maturity premium here is one third of the first year's own profit.
First-year studios pay $64,829 of rent against mature studios' $67,357. Nearly identical, as are marketing at $29,029 against $28,548 and utilities at $18,724 against $18,588. Almost the entire cost base arrives fully formed on day one. That is why the bottom third of a first-year group can be underwater at a revenue level the top third turns into $172,270.
Pre-sale results, 2025
96 studios ran a pre-sale in 2025, averaging 111 days and 314 memberships. The median pre-sale lasted 84.5 days and sold 294 memberships, generating an average $26,181 of revenue from discounted enrollment fees and retail, with a median of $22,846. Every location ran one before opening.
The top pre-sale sold 837 memberships and the lowest-selling 198. Grand Island, Nebraska took $79,015.83 on those 837; a studio in Davenport, Florida took the highest revenue at $81,012 on 609 memberships. Brentwood, Tennessee sold the fewest at 198. Richmond, Texas took the least revenue at $3,982. Against a first-year average membership base of 458, a 314-member pre-sale is roughly two-thirds of the year-one base signed before the doors open.
Questions we get asked
Questions owners ask.
How much does a HOTWORX franchise make?
HOTWORX franchisees averaged $379,298 of sales in 2025, according to Item 19 of HOTWORX’s 2026 FDD, issued 1 April 2026. The 700 in that group are 88%* of HOTWORX’s 797 locations. A HOTWORX franchise costs $288,890 to $830,380 to open, including a $19,950 initial franchise fee.
What should a HOTWORX studio be billing?
Across 700 studios open all of 2025, average total sales was $379,298, $337,306 of membership and $41,992 of retail. By third the averages were $529,788, $355,535 and $251,925. The 149 studios in their first full year averaged $352,781. The highest-selling mature studio turned $901,879 and the lowest-selling $163,899; in the first-year group the range was $696,487 to $147,932.
What does the cost structure look like at HOTWORX?
At the all-700 average: wholesale goods $26,716, wages and taxes $82,031, rent $67,357, marketing and advertising $28,548, utilities $18,588, bank charges $11,211, royalties $6,638, insurance $6,479, supplies $4,370, telephone and internet $4,380, maintenance $3,353, accounting $2,613, miscellaneous $2,408, virtual instructor fee $1,916, point of sale $1,574, taxes and licenses $1,316, travel $1,874 and staff incentives $619, total expenses $245,276. That leaves profit of $107,306, or 28.3%, with a median of $89,566. The key feature is how little that total moves: $225,483 at the bottom third against $270,792 at the top, on revenue that differs by 2.1 times.
What do HOTWORX's fees add up to?
HOTWORX charges a flat royalty of $695 a month at current rates, and studios on older agreements pay $550 or $595. A virtual instructor fee of $20 a sauna a month and a diet application fee are also charged. HOTWORX also charges a point of sale fee and an annual convention fee of $790 for two attendees. Local advertising is required at the greater of $2,000 a month or 10% of gross monthly revenue, falling to 5% once monthly net electronic funds transfer reaches $30,000. As the brand reported it, royalties cost 1.24% of revenue at the top third and 2.64% at the bottom. Opening costs $288,890 to $830,380 outside California and New York, including a $19,950 franchise fee.
How many members does a HOTWORX studio need?
The average mature studio has 490 members producing $337,306 of membership revenue, which is $57.36 a member a month. The median is 456, the highest 1,253 and the lowest 243. Monthly cancellation averages 6.17%, so a member stays about 16.2 months; first-year studios run 6.48% and average 458 members. Pre-sale matters: the 96 studios in pre-sale during 2025 averaged 314 memberships sold over 111 days before their first draft. That is roughly two-thirds of a first-year membership base signed before opening.
Who does bookkeeping for a HOTWORX franchise?
Three things shape the close here. First, this is an almost entirely fixed cost base. So contribution per member beats a percentage-of-revenue benchmark. At $57.36 a month against costs that move $45,309 across a $277,863 revenue range, the marginal member is worth close to its full value. A monthly variance report built on percentages will hide that. Second, the required local advertising spend steps between 10% and 5% at $30,000 of monthly net electronic funds transfer. That makes net EFT an operating metric with a direct cash consequence, tracked monthly. Third, membership revenue is drafted monthly with cancellations running above 6%. So billed, collected, failed and canceled need to be four separate numbers reconciling to the member count, measured on month-end actives so the benchmark holds. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
- The filing gives no median. Only an average is published, which a few large locations can lift on their own.
Questions worth putting to HOTWORX
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- How would wages and rent at a new HOTWORX location compare with the figures in the filing? Item 19 of the HOTWORX FDD publishes revenue, costs and EBITDA by third for 149 franchised studios in their first full year.
- Which factors does HOTWORX see in its highest-selling locations, such as trade area, years open and size?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- What do the fees add up to as a share of sales at the average location, once minimums and technology charges are counted?
- How many HOTWORX locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It checks whether you are ready to open another one. It is free and it runs in your browser.
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Talk to AveranWhere these figures come from.
Every figure here comes from HOTWORX Franchising, LLC's disclosure document dated 1 April 2026, covering the 2025 fiscal year. The figures are unaudited by us and by the franchisor. We are unaffiliated with HOTWORX. The figures describe past performance at other HOTWORX studios. Calculations of our own are labeled where they appear. The HOTWORX mature figures cover 700 studios opened 2017 to 2024, and the first-year figures cover 149 studios. This page is an educational summary and is not legal or tax advice. HOTWORX® is a registered trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: HOTWORX Franchising, LLC, 2026 Franchise Disclosure Document, issued 1 April 2026.
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- BFT
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- F45 Training
- Farrell’s eXtreme Bodyshaping
- Orangetheory Fitness
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The group training studios guide compares all of them on the same figures.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?It shows how to tell whether payroll is rising or revenue is falling.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.