Risk Score
Pending analysis
Investment Range
$504,000 - $796,100
Franchise Fee
$32,500
Total US Locations
1
Business Summary
HaloHeat Franchising, LLC offers franchises for HALOHEAT SAUNA STUDIOSTM locations, which are described as revitalizing salt+sauna studios. These studios are designed to provide a holistic rejuvenation of the mind, body, and spirit. They feature suites offering unique wellness experiences, self-directed fitness routines, and amenities like slipper and towel service, in-suite entertainment, and in-suite fitness tools. Additionally, studios include a cooling and recovery lounge with zero-gravity massage chairs and vibroacoustic loungers for sound bath relaxation, along with tea service featuring proprietary tea blends. The core services provided are in a state-of-the-art, personal sauna setting, enhanced by therapeutic benefits of halotherapy, red-light, chromotherapy, and aromatherapy.
Corporate History
HaloHeat Franchising, LLC was formed on January 16, 2025, in Illinois. The company began offering franchises as of the FDD's issuance date, March 5, 2025. HaloHeat Franchising, LLC itself has not conducted the type of business franchisees will operate. Its parent company, WellZen, Corp., which was organized on May 15, 2023, in Illinois, operates one HALOHEAT SAUNA STUDIOSTM branded location similar to what franchisees will establish.
Financial Overview
Investment Range
$504,000 - $796,100
Franchise Fee (Low)
$32,500
Franchise Fee (High)
$42,500
Royalty %
5.5%
Marketing %
2%
Equipment Costs (Low)
$358,000
Equipment Costs (High)
$550,000
Working Capital
$45,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
HaloHeat Franchising, LLC is a newly formed company, organized on January 16, 2025, and has only just begun franchising as of March 5, 2025. Its audited opening balance sheet as of January 31, 2025, shows total assets and owner's equity of $50, which represents the initial contributions to open a bank account. HaloHeat Franchising, LLC has had no other transactions as of this date, indicating it is in the very early stages of its business operations as a franchisor. The company's financial health reflects its status as a startup entity with minimal financial activity to date.
Financing Details
HaloHeat Franchising, LLC does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other financial obligations incurred by its franchisees.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
2,750
Franchising Since
2025
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
HaloHeat Franchising, LLC reports that it has no litigation required to be disclosed. This means HaloHeat Franchising, LLC, its predecessors, parents, or affiliate companies, and its executives have not been involved in any material legal disputes or lawsuits that would need to be reported to prospective franchisees.
Bankruptcy History
HaloHeat Franchising, LLC has no bankruptcy history to report. Neither HaloHeat Franchising, LLC nor its parent, WellZen, Corp., nor any of their executives have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their HALOHEAT SAUNA STUDIOSTM franchise, franchisees must have substantially complied with all provisions of their agreement during its term. They must maintain possession of their studio location or secure an approved substitute location that meets current standards. Franchisees need to notify HaloHeat Franchising, LLC of their intent to renew between 9 and 12 months before their agreement expires. All monetary obligations to HaloHeat Franchising, LLC and its affiliates must be satisfied. Franchisees will be required to sign HaloHeat Franchising, LLC's then-current franchise agreement, which may have materially different terms, including varying percentages for Royalty Fees and Brand Fund Fees. They must also meet current qualification and training requirements, execute a general release of claims against HaloHeat Franchising, LLC, and upgrade their studio to conform to the then-current HALOHEAT System standards at their own expense. If HaloHeat Franchising, LLC determines a franchisee does not meet these requirements, it will provide written notice at least six months prior to expiration, specifying the reasons.
Training & Support Program
Franchisor Assistance
HaloHeat Franchising, LLC provides extensive assistance to its franchisees both before and after opening their studios. Before opening, HaloHeat Franchising, LLC helps with designating the site selection territory, consulting on site evaluation criteria, and approving the proposed site and lease. It reviews architectural plans, provides specifications for furniture, fixtures, and equipment, and approves signage vendors. Franchisees receive a confidential System Standards Manual and initial training for themselves and their General Manager. HaloHeat Franchising, LLC also provides information on required computer systems and designates the initial inventory. It may also establish regional advertising cooperatives and approve all marketing materials. After opening, HaloHeat Franchising, LLC furnishes ongoing support services, which may be on-site, off-site, by phone, or through other means, depending on personnel availability. It provides specifications for required products and services, reserves the right to set pricing requirements, and administers the Brand Fund. HaloHeat Franchising, LLC also makes commercially reasonable efforts to correct any failures in the required computer systems and software. Franchisees may attend additional training programs or annual conferences, for which fees and expenses apply.
Initial Training Hours
40
Training Location
Company-owned location in Aurora, IL, or virtually/on-site
Ongoing Support
After opening, HaloHeat Franchising, LLC provides ongoing support and assistance to its franchisees. This includes furnishing support services as deemed advisable, which may be delivered in person, by telephone, or through other means, with timing dependent on personnel availability. HaloHeat Franchising, LLC also furnishes specifications for required products and services and administers the Brand Fund. The company makes commercially reasonable efforts to correct or cause vendors to correct any failures in the required computer systems and software. Franchisees may be required or can request to attend additional training programs, seminars, or advanced management training at designated locations, with associated fees and expenses. HaloHeat Franchising, LLC also provides individual or group advice, consultation, guidance, and assistance based on inspections and franchisee reports, delivered in person, by phone, or through newsletters. An annual conference is mandatory for franchisees and their General Managers, with a registration fee and coverage of travel and living expenses.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
HaloHeat SAUNA STUDIOSTM offers a Site Selection Territory, which is the geographic area where a franchisee may identify a location. Once a site is approved, a Protected Territory is granted, which is typically smaller than the Site Selection Territory. HaloHeat Franchising, LLC will not establish another studio within a franchisee's Protected Territory, except for specific excluded locations like educational campuses, sports/leisure venues, and transport locations. The size of the Site Selection Territory and Protected Territory can vary, with no minimum geographic size. Generally, it is the lesser of a 2-mile radius or an area with at least 15,000 households earning an annual income of $85,000 or more per year. Territories can range from a site-specific address to a block, zip code, or a defined measurable area, depending on the market. Studios in metropolitan areas typically receive smaller territories than those in suburban/rural areas.
Staffing Notes
HaloHeat SAUNA STUDIOSTM franchisees must staff their studios according to criteria and directions provided by HaloHeat Franchising, LLC in its System Standards Manual. Franchisees are responsible for hiring, training, and supervising honest, reliable, competent, and courteous employees. They must ensure a sufficient number of trained employees are available to meet operational standards at all times and that employees comply with System Standards. While HaloHeat Franchising, LLC does not control the day-to-day activities or hiring/firing of franchisee employees, it requires that the studio always be under the direct, on-site supervision of the franchisee or an approved General Manager. If the General Manager changes, a new qualified General Manager must be hired within 30 days and successfully complete the Initial Training Program. The System Standards Manual includes job descriptions for roles such as Studio Manager and Studio Associate.