HOTWORX
HOTWORX operates as a 24-hour hot fitness studio offering specialized exercise services and products. Known for its unique approach to fitness, HOTWORX franchises range from $288,890 to $1,083,310, making it a significant investment in the fitness industry.
About HOTWORX
HOTWORX franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment to open one studio ranges from approximately $378,750 to $680,215, depending on factors such as location and additional features. This range includes costs for equipment, franchise fees, and other initial expenses but does not include insurance premiums or financing costs [p.7, p.32].
What is the initial franchise fee?
The initial franchise fee is $19,950 for a single unit license [p.13]. This fee is deemed fully earned and non-refundable upon signing the Franchise Agreement [p.275]. Discounts on this fee may be available under certain conditions, such as being part of the VetFran Program or through specific promotions [p.13, p.275].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is $695 per month, starting from the month your HOTWORX ® Studio opens [p.275]. Additionally, after opening, you must spend at least 10% of gross revenue or $2,000 per month on local advertising, whichever is greater [p.273].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. Regarding renewal, the agreement states that Franchisor has no obligation to renew if certain conditions are not met, as outlined in the Operational Systems Checklist [p.270]. Additionally, changes to the business model and franchise agreement can occur without your consent, potentially requiring additional investments or harming your franchise business [p.4].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can transfer ownership of your franchise, but it requires approval from the franchisor. The franchisor must be notified in writing within 30 days of a proposed transfer, and they have the right to approve or disapprove it for good cause [p.357]. Good cause includes scenarios like refusing to permit transfers except for valid reasons, such as exercising a right of first refusal [p.344].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on any grounds available by law [p.368]. Additionally, if you or your principal(s) or owner(s) own more than 25% of another HOTWORX ® studio franchise or corporate or limited liability company franchisee and there is a breach of their franchise agreement, this can be considered a breach of the current agreement, allowing for termination [p.289].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a franchisee, you must have tangible net worth that meets the criteria outlined in [p.304], though the exact amount is not specified in these excerpts. Additionally, you will need sufficient liquid capital to cover start-up expenses during the initial three months of operation, as detailed in [p.32], which includes paying employees, purchasing supplies, and covering rent and other fees.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory as an Area Developer [p.55]. However, you are granted a Protected Territory that is generally defined around your Approved Location, though the exact size and dimensions may vary based on specific factors of your location [p.299].
What training and ongoing support does the franchisor provide?
The franchisor provides general advisory assistance and support in areas like marketing, operations, and promotion [p.44]. Additionally, they have the right to provide continuing education training programs or seminars for previously-trained franchisees and managers, though attendance is mandatory and franchisees are responsible for related expenses such as travel and accommodation [p.272].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD indicates that as of 2025, there were 700 franchised outlets fully operational in the year, in addition to the 149 first-year franchise outlets. However, this document does not specify the number of outlets that have closed or been terminated [p.77, p.83].
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations other than the EBITDA measure provided [p.88]. For existing outlets, actual records might be shared if purchased directly from an existing franchisee, but the franchisor itself does not provide general financial projections or past earnings data [p.89].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling all services that the franchisor has approved. You must also offer and sell initial inventory goods as approved by the franchisor unless otherwise advised. The franchise agreement may prohibit you from operating a similar business during the term of the franchise, which includes restrictions on what you can sell [p.4]. For supplies, you typically have to purchase items that adhere to the franchisor's minimum standards and requirements, including start-up equipment, inventory, signs, insurance, marketing materials, and more [p.36].