SWEAT440 franchise unit economics
SWEAT440 franchisees run HIIT group fitness studios that sell unlimited monthly memberships and class packs.
SWEAT440 franchise at a glance
Item 19 of SWEAT440's 2026 FDD prints revenue, expenses and profit for each quartile of the 19 franchised studios and for two company studios in 2025.
SWEAT440 franchisees averaged $689,037 of sales in 2025, according to Item 19 of SWEAT440’s 2026 FDD, issued 30 April 2026. The 19 in that group are 95%* of SWEAT440’s 20 locations. Fees paid to SWEAT440 come to about 7%* of sales. A SWEAT440 franchise costs $310,400 to $710,900 to open. SWEAT440 charges a royalty of 7% of sales.
- A SWEAT440 franchise costs $310,400 to $710,900 to open, including a $60,000 initial franchise fee, according to the brand's 2026 FDD.
- Work out SWEAT440's fees at your own sales with the minimum fee calculator.
- SWEAT440's bottom-quartile rent of 40.1% of revenue compares with a health and wellness norm near 10%.
These figures come from SWEAT440'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 →- The bottom quartile lost $112,347 of profit on $311,864 of revenue. Those are five of nineteen SWEAT440 studios, spending $1.36 for every dollar billed, and the highest-earning of them made $14,233.
- Rent runs 21.0% of revenue at the top quartile and 40.1% at the bottom. And the second quartile pays $21,751 more rent than the top quartile on $272,552 less revenue.
- Both company studios earn higher margins than every franchised quartile, at 32.9% and 32.3% profit. That compares with 31.1% at the franchised top quartile, and the company figures already have an imputed royalty.
- $56,580 a year of cost is fixed whatever you bill. That is 5.21% of top-quarter revenue and 18.14% of bottom-quarter revenue, before the 7% royalty.
- Members rise with years open: 350 at the 2024 openings and 724 at the 2018 studio. That is 430 for 2023, 508 for 2022, 611 for 2019, a clean curve across 21 locations.
How much does a SWEAT440 franchise make?
The average SWEAT440 unit reported $689,037 of revenue in the 2026 FDD. The brand’s disclosure document discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. Fees come off the top first, at about 7% of sales across royalty, brand fund and the rest of the stack. 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 & the network
Members by studio opening year
| Opening year | Studios | Average members | Highest | Lowest |
|---|---|---|---|---|
| 2018 | 1 | 724 | 724 | 724 |
| 2019 | 3 | 611 | 702 | 497 |
| 2022 | 4 | 508 | 652 | 252 |
| 2023 | 7 | 430 | 702 | 232 |
| 2024 | 6 | 350 | 465 | 181 |
| All 21 | 21 | 462 | 724 | 181 |
Every studio is filed individually with its opening year, its member count at 31 December 2025 and its member count on opening day. The grouping and the averages are marked *.
Member counts run 350, 430, 508, 611, 724 from newest to oldest. Each additional year open adds roughly 80 to 100 members, and the build-up is still running at six years. An owner modeling year one should plan on about 350 members and expect the business to be a different one by year four.
Presale studios open with 247 members and reach 412 by year end. Across the sixteen studios that used it, membership on opening averaged 247 and stood at 412 at the year end. So more than half of a young studio's eventual base is signed before the doors open. That makes the $25,000 to $40,000 Market Introduction Plan the first real operating decision.
A member is worth $1,583 a year, or $131.92 a month. That is franchised revenue of $13,091,696 over the 8,270 members at franchised studios. That figure lands inside the franchisor’s own recommended pricing table. That puts a Tier 1 unlimited monthly membership at $129 for a studio with 200 to 299 members and $149 at 300 to 399. The top quartile’s $1,086,739 of revenue implies 686 members, and the four highest member counts in the location table average 695.
The brand recommends raising price as the studio fills. Tier 1 runs $89 a month at under 100 members and $189 at 500 or more; Tier 3 runs $149 to $249 across the same range. That is the reverse of the usual instinct to discount into capacity, and it means a studio's revenue per member should climb alongside its member count.
Studios opened and closed, 2023 to 2025
| Year | Franchised start | Opened | Terminations | Franchised end | Company end | Total end |
|---|---|---|---|---|---|---|
| 2023 | 5 | 9 | 0 | 13 | 5 | 18 |
| 2024 | 13 | 5 | 1 | 17 | 5 | 22 |
| 2025 | 17 | 3 | 0 | 20 | 4 | 24 |
As the brand reported it.
Openings fell from 9 to 5 to 3 while the system grew from 5 to 20. The pace has slowed each year even as the base has quadrupled. Against a filing showing a quarter of studios at negative profit, that slowdown is worth reading as information.
Florida holds 12 of the 20 franchised studios. Both company studios and the brand's home office in Miami Beach are there too. A system this concentrated shares a labor market, a rent market and a seasonal pattern. So the quarter range above says more about individual sites than about regional variation.
What territory you get
Your protected territory is the lesser of a three-mile radius or 50,000 people. It is exclusive, drawn by the franchisor as a radius, polygon or other area once you sign a lease, and much smaller in a dense downtown. It may be altered only with your agreement, and keeping it does not depend on any sales volume or market penetration target.
Before you have a site you hold a search area carrying no territorial rights. It limits where you may look. The franchisor keeps the right to operate studios anywhere outside your territory, to sell memberships and merchandise through other channels including direct mail and electronic means. The brand can also develop other business systems under the marks, with no rights flowing to you.
Top performers
What separates the top SWEAT440 performers
SWEAT440 splits its locations into groups instead of publishing one average. The top group averaged $1,086,739 a year. The lowest averaged $311,864. 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 3.5× the bottom band. Catchment, daytime population and neighboring businesses affect where a location falls.
- Capacity.Locations run 2,500 to 3,500 square feet. 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 $310,400 to $710,900, a 2.3× range inside one brand.
- Fees and the minimum.Fees run about 7.0% of sales. A minimum fee also applies, so lower-selling locations pay a higher effective rate. Work out the sales level where the percentage overtakes the minimum.
Live operating levers
- Membership drives the model.Track how many members join, how many cancel, and what each member spends beyond the plan.
Context you underwrite around
- Locations included.These figures cover 19 of 20 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, as are locations under the brand’s current size standard.
- What the filing does not include.SWEAT440’s Item 19 gives no count of locations that reached the average.
Profit and loss
Revenue, expenses and profit by quartile, 2025
| quartile | Studios | Revenue | Total expenses | Expenses as a share | profit | margin | Median profit |
|---|---|---|---|---|---|---|---|
| Top quartile | 4 | $1,086,739 | $749,027 | 68.9% | $337,712 | 31.1% | $303,946 |
| Second quartile | 5 | $814,187 | $687,128 | 84.4% | $127,058 | 15.6% | $82,973 |
| Third quartile | 5 | $622,897 | $540,941 | 86.8% | $81,956 | 13.2% | $96,268 |
| Bottom quartile | 5 | $311,864 | $424,211 | 136.0% | −$112,347 | −36.0% | −$71,066 |
| All 19 studios | 19 | $689,037 | n/a | n/a | $96,536 | 14.0% | n/a |
Revenue, expenses, profit and medians are as the brand reported it for each quartile.
The bottom quartile spends $1.36 for every dollar it bills. That is $424,211 of expenses against $311,864 of revenue. Its highest-earning studio reaches $14,233 of profit and its lowest-selling loses $240,407 in a single year. Five studios of nineteen, 26% of the reporting system, sit in this SWEAT440 quartile, which loses $112,347 on average.
The drop from the top quartile to the second is 15.5 points of margin on 25% less revenue. Margin falls from 31.1% to 15.6%, while revenue falls from $1,086,739 to $814,187. So margin in this model collapses far faster than revenue does, which is what a cost base dominated by rent and wages produces. Between the second and third quartiles it moves 2.4 points, 15.6% to 13.2%, and then it falls to minus 36.0% at the bottom quartile.
Two quartiles have a median above their own average and two below. The third quartile's median profit of $96,268 sits above its $81,956 average, because one studio in it lost $44,034. The top quartile runs the other way, a $303,946 median against a $337,712 average, because one studio earned $504,024. In a nineteen-studio system, single units move every figure on the page.
System-wide profit works out at $96,536 a studio, a 14.0% margin. That is weighted across all nineteen studios. For an owner that is the number to hold against the $310,400 to $710,900 cost of building one, and against the fact that a quarter of the system sits below zero.
Fees and what it costs to open
Royalty and fees by quartile
| quartile | Revenue | Royalty at 7% | Flat fees and required spend | Total | Share of revenue | Flat portion alone |
|---|---|---|---|---|---|---|
| Top quartile | $1,086,739 | $76,072 | $56,580 | $132,652 | 12.21% | 5.21% |
| Second quartile | $814,187 | $56,993 | $56,580 | $113,573 | 13.95% | 6.95% |
| Third quartile | $622,897 | $43,603 | $56,580 | $100,183 | 16.08% | 9.08% |
| Bottom quartile | $311,864 | $21,830 | $56,580 | $78,410 | 25.14% | 18.14% |
We built this from SWEAT440's filed rates, which set a royalty of the greater of 7% of weekly gross sales or $500 a week. SWEAT440 also charges a $420 monthly brand fund fee. It requires a $1,200 monthly local advertising minimum. That minimum may reach $2,300. A $1,200 monthly marketing support fee is paid to the franchisor's affiliate LeadTeam. It charges a $300 monthly tech support fee. It also charges a $695 monthly designated software license fee and a $900 monthly call center fee.
$56,580 a year lands on every studio regardless of what it bills. That is 5.21% of top-quarter revenue and 18.14% of bottom-quarter revenue. Add the royalty and the all-in rate runs 12.21% to 25.14%. For a studio in the bottom quartile, the flat portion alone is half the size of its entire profit shortfall.
The royalty has a $500 weekly minimum, which is $26,000 a year. That binds on any studio billing under $371,429, which describes most of the bottom quartile. The filed royalty line for that quartile averages $14,088 with a minimum of $79. So the studios in it are on reduced or deferred royalty arrangements, worth asking about directly, because the modeled figure and the paid figure differ.
Three of the seven recurring charges go to the franchisor's affiliate or its designated suppliers. Those are the marketing support fee to LeadTeam, the software license fee and the call center fee, $2,795 a month between them. The franchisor also requires LeadTeam to run the $25,000 to $40,000 Market Introduction Plan before opening. That concentration matters because those are exactly the costs that stay flat while revenue falls.
Cost to open a studio
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $60,000 | $60,000 |
| Initial training fee | $5,000 | $5,000 |
| Lease deposit and three months' rent | $25,000 | $60,000 |
| Building work | $50,000 | $300,000 |
| Signage | $10,000 | $20,000 |
| Architect and engineering | $15,000 | $17,000 |
| Construction management | $15,000 | $17,500 |
| Furniture and fixtures | $15,000 | $25,000 |
| Equipment | $50,000 | $75,000 |
| Initial inventory | $4,700 | $7,500 |
| Professional services | $3,500 | $5,000 |
| Pre-opening travel and labor | $3,700 | $6,400 |
| Market Introduction Plan | $25,000 | $40,000 |
| Permits and licenses | $250 | $500 |
| Miscellaneous pre-opening | $5,750 | $18,500 |
| Storage facility | $0 | $1,000 |
| Additional funds, first three months | $22,500 | $52,500 |
| Total | $310,400 | $710,900 |
As the brand reported it.
Discounts available
- SWEAT440 takes $5,000 off the first studio's fee for active, reserve or honorably discharged U.S. Armed Forces veterans.
- SWEAT440 charges a per-studio development fee of $55,000 for 2 studios, $45,000 for 3-5, $40,000 for 6-9 and $35,000 for 10 under a Multi-Unit Development Agreement.
From Item 5 of the SWEAT440 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
The filed rents imply $42 to $83 a square foot on a 3,000 foot studio. The bottom quartile’s $125,095 is $41.70 and the second quartile’s $249,804 is $83.27, above the top of the $25 to $80 estimate. An owner reading the investment table alone would size rent from the three-month deposit line at $25,000 to $60,000. The quartile tables show what a year of it actually costs.
Building at the low end costs 29% of what a top-quarter studio bills and 100% of what a bottom-quarter one does. That is $310,400 against $1,086,739 and $311,864. At the high end, $710,900 is more than two years of bottom-quarter revenue. The difference between the two columns is $400,500, and $250,000 of it is building work alone. That is the line a landlord can be asked to fund.
$90,000 reaches the franchisor and its affiliate before opening at the low end. That is a $60,000 franchise fee, a $5,000 training fee and a $25,000 Market Introduction Plan, rising to $105,000 where the plan costs $40,000. Add five months of the marketing support fee starting before opening, and the pre-opening commitment to the brand is fixed while the revenue is still zero.
Rent & wages
Rent and wages by quartile, 2025
| quartile | Revenue | Rent | Rent share | Wages | Wages share | Both together |
|---|---|---|---|---|---|---|
| Top quartile | $1,086,739 | $228,053 | 21.0% | $249,435 | 23.0% | 43.9% |
| Second quartile | $814,187 | $249,804 | 30.7% | $194,004 | 23.8% | 54.5% |
| Third quartile | $622,897 | $147,229 | 23.6% | $197,599 | 31.7% | 55.4% |
| Bottom quartile | $311,864 | $125,095 | 40.1% | $158,018 | 50.7% | 90.8% |
| Company studio, Brickell | $1,264,008 | $307,189 | 24.3% | $231,953 | 18.4% | 42.7% |
| Company studio, South Beach | $1,213,704 | $283,053 | 23.3% | $203,196 | 16.7% | 40.0% |
Dollar figures as the brand reported it; the share columns are marked *.
Rent is 21% to 40% of revenue. Across the health and wellness brands with occupancy cost figures, the line lands between 9.68% and 11.3%. This concept sits in vibrant, high traffic, downtown areas, on 2,500 to 3,500 square feet at $25 to $80 a foot. That choice is the single largest economic fact about the model, and it is made once, at lease signing, for the length of the term.
The second quartile pays more rent than the top quartile, in dollars. The second quartile pays $249,804 against $228,053 ($21,751 more) on revenue that is $272,552 lower. Those five studios are carrying a top-quarter lease on second-quartile traffic, and their rent share is 9.7 points higher.
Wages run 23.0% at the top quartile and 50.7% at the bottom on $91,417 less spend. A studio has to be staffed to run classes whatever the attendance. So the bottom quartile spends $158,018 against the top's $249,435, 63% of the money for 29% of the revenue. That is the shape of a business with a staffing minimum.
The company studios hold wages at 16.7% and 18.4%. That is four to six points below the franchised top quartile, on higher revenue, while carrying rent at 23.3% and 24.3%. Whatever the parent does with staffing model and scheduling in those two studios, it is worth $68,465 a year at top-quarter volume and is the most transferable lever on the table.
Questions we get asked
Questions owners ask.
How much does a SWEAT440 franchise make?
SWEAT440 franchisees averaged $689,037 of sales in 2025, according to Item 19 of SWEAT440’s 2026 FDD, issued 30 April 2026. The 19 in that group are 95%* of SWEAT440’s 20 locations. Fees paid to SWEAT440 come to about 7%* of sales. A SWEAT440 franchise costs $310,400 to $710,900 to open. SWEAT440 charges a royalty of 7% of sales.
What should a SWEAT440 studio be billing?
The 19 franchised studios trading all of 2025 averaged $689,037. By quartile, SWEAT440 locations averaged $1,086,739 across four studios, $814,187, $622,897 and $311,864 across five each. The single highest was $1,177,559 and the lowest $194,019. The two company studios billed $1,264,008 and $1,213,704, both above the franchised top quartile.
What does a SWEAT440 studio earn?
SWEAT440 profit was $337,712 at the top quartile, $127,058 at the second, $81,956 at the third and minus $112,347 at the bottom, margins of 31.1%, 15.6%, 13.2% and minus 36.0%. Weighted across all nineteen that is $96,536 a studio, a 14.0% margin. The measure excludes owner compensation, debt service and depreciation, and it includes every fee and all local marketing. The company studios ran 32.9% and 32.3% with royalty imputed.
Why does the bottom quartile lose money at SWEAT440?
The bottom-quartile SWEAT440 studios pay rent at 40.1% of revenue and wages at 50.7%, 90.8% between them before anything else. On top sits $56,580 of flat fees and required spend, which is another 18.14%. Those five studios average 241 members at the low end of the location table against 695 at the four highest-selling studios. A SWEAT440 studio has to be staffed and housed whether 200 people come or 700.
What does SWEAT440 cost a franchisee each year?
The royalty is the greater of 7% of weekly gross sales or $500 a week. SWEAT440 charges $4,715 a month of brand fund, local advertising minimum, marketing support fee to the franchisor's affiliate, tech support, software license and call center, $56,580 a year. All in that is 12.21% of revenue at the top quartile and 25.14% at the bottom. Three of those recurring charges are paid to the franchisor's affiliate or designated suppliers.
Who does bookkeeping for a SWEAT440 franchise?
The franchisor has done half the work for you here by publishing a seventeen-line expense format. So the monthly close should report to that same shape and benchmark line by line against the quarter a studio actually sits in. Two ratios belong at the top of the pack. The first is SWEAT440 rent as a percentage of trailing twelve-month revenue, tested against 21.0% at the top quartile. The second is wages as a percentage, tested against 23.0%. Below about 400 members those two ratios turn a profitable studio into a losing one within a quarter, and they move slowly enough to see coming. Membership reporting matters alongside them (count, joins, cancellations and revenue per member against $131.92 a month) because the recommended pricing rises with member count. So a studio that fills without repricing is leaving the increase on the table. Royalty is debited weekly by electronic transfer on the preceding week's gross sales. So the cash calendar runs weekly while the books run monthly. The reconciliation between them belongs in the close. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
- The filing gives no attainment figure. The filing does not say how many locations reached the average it publishes.
Questions worth putting to SWEAT440
These are questions the SWEAT440 filing leaves open. An owner or a buyer can put them to SWEAT440 directly.
- What do locations at the median spend on wages and rent as a share of sales?
- Which factors does SWEAT440 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?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many SWEAT440 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. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →What are rent and wages costing you at SWEAT440?
We review your unit economics, cash forecast and reporting, built around the two lines that decide this model.
Talk to AveranWhere these figures come from.
Every figure here comes from Sweat440 Franchise Systems, LLC's 2026 FDD, covering the 2025 calendar year. The figures are unaudited by us and by any certified public accountant. The figures come from information that SWEAT440 franchisees and the franchisor's parent provided. We are unaffiliated with SWEAT440. The figures describe past performance at other SWEAT440 studios. Calculations of our own are labeled where they appear. Profit as the brand’s disclosure document defines it excludes owner compensation, debt service and depreciation. This page is an educational summary and is not legal or tax advice. SWEAT440® 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: Sweat440 Franchise Systems, LLC, 2026 Franchise Disclosure Document, issued 30 April 2026.
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SWEAT440 reads against the rest of the group training studios group: 9ROUND · BFT · Burn Boot Camp · D1 Training · F45 Training · Orangetheory Fitness. 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.
- At what point do spreadsheets stop coping?It explains what changes at around ten units and why lenders care.
- I run several locations. Which ones actually make money?It shows each location's contribution to profit and the reporting it takes to see it.