Hydrogen Fitness Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$474,000 - $2,789,500
Franchise Fee
$34,000
Total US Locations
2
Business Summary
Hydrogen Fitness businesses are luxury fitness facilities that offer fitness classes, free weights, cardio equipment, a hydro bar, and other related services and products under the Hydrogen Fitness brand and business system.
Corporate History
Hydrogen Franchising, LLC was formed on January 3, 2024, as a Connecticut limited liability company and began offering franchises as Hydrogen Fitness in March 2024. The company operates under its corporate name and the trade name "Hydrogen Fitness". Its affiliates include DJ Gym Westchester LLC, which has operated a Hydrogen Fitness business in Hartsdale, NY since 2019, and DJ Gym Port Chester LLC, operating in Port Chester, NY since 2023, both serving as model stores. Another affiliate, EGOpharma LLC, acts as a supplier of dietary supplements for the Hydrogen Fitness system.
Financial Overview
Investment Range
$474,000 - $2,789,500
Franchise Fee (Low)
$34,000
Franchise Fee (High)
$49,500
Royalty %
4%
Marketing %
2%
Equipment Costs (Low)
$310,000
Equipment Costs (High)
$2,100,000
Working Capital
$150,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The financial condition of Hydrogen Franchising, LLC, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees.
Financing Details
Hydrogen Fitness does not offer any direct or indirect financing to its franchisees. Additionally, Hydrogen Fitness does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
2
Franchised Units
0
Corporate Units
2
Avg Square Footage
25,000
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Hydrogen Fitness has no litigation history that is required to be disclosed.
Bankruptcy History
Hydrogen Fitness has no bankruptcy history to disclose for itself or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew a Hydrogen Fitness franchise agreement, franchisees must have complied with all provisions of the Franchise Agreement and any other agreements with Hydrogen Franchising, LLC, and be in good standing (not in default). Franchisees must bring their business into full compliance with Hydrogen Fitness's current standards and image, including renovations and modernizations, at their own expense. They must provide written notice of their intent to renew between 90 and 180 days before the initial term expires. Upon renewal, franchisees are required to sign Hydrogen Fitness's then-current standard franchise agreement, which may contain materially different terms and conditions, and execute a general release in favor of Hydrogen Franchising, LLC. A renewal fee, equal to the greater of $10,000 or 25% of the then-current initial franchise fee, must also be paid.
Training & Support Program
Franchisor Assistance
Hydrogen Fitness provides various forms of assistance to its franchisees. Before opening, Hydrogen Fitness assists with site selection guidelines and approval, although the franchisee is ultimately responsible for securing the location. Hydrogen Fitness provides initial training for up to three people, including the Operating Principal and Key Manager, at its corporate headquarters or a designated facility. Franchisees receive a confidential Operations Manual, specifications for the facility's layout, design, equipment, furnishings, and signs, along with a list of approved suppliers and the Opening Inventory Package. Hydrogen Fitness also grants a license to use its trademarks and may advise on grand opening advertising and promotion. During ongoing operations, Hydrogen Fitness continues to specify or approve equipment and suppliers, offers additional or remedial training (which may incur fees), and can obtain required insurance coverage on the franchisee's behalf if not maintained. It also manages the Brand Fund for advertising and marketing, may conduct customer satisfaction audits, and provides access to a Management and Technology System for business operations and data tracking.
Initial Training Hours
88
Training Location
Hydrogen Fitness's corporate headquarters, online, or another designated location.
Ongoing Support
Hydrogen Fitness provides ongoing support through various means after the business opens. This includes specifying and approving equipment and suppliers and offering additional or remedial training to franchisees and their staff upon request, potentially for a fee. Hydrogen Fitness may also procure necessary insurance coverage for franchisees if they fail to maintain it. The franchisor may implement customer satisfaction audits and quality control measures. Hydrogen Fitness administers a Brand Fund for national and regional advertising, requires local advertising spending, and may establish advertising cooperatives for franchisees to participate in. Franchisees must also participate in gift card, loyalty, and membership programs implemented by Hydrogen Fitness. Technical support is provided for the Management and Technology System, which franchisees are required to use, and Hydrogen Fitness has unrestricted electronic access to its data. Hydrogen Fitness also provides social media guidelines and may organize periodic refresher training programs and annual conventions, which may be mandatory.
Franchise Requirements
Ideal Candidate Profile
Hydrogen Fitness seeks franchisees who, if an entity, must designate an Operating Principal with at least a 20% ownership interest. This Operating Principal needs authority over all business decisions and the power to bind the franchisee. Hydrogen Fitness strongly recommends that the franchisee or Operating Principal personally participate in the day-to-day operation of the business, or appoint an approved, trained Key Manager for direct on-premises supervision. Successful candidates are expected to be skilled business owners. All owners, including the Operating Principal, must sign a personal guarantee, committing to the franchisee's obligations and restrictive covenants.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
exclusive
Territory Size Requirements
Hydrogen Fitness territories are generally defined as approximately a two-mile radius around the approved location. The specific boundaries, such as zip codes, streets, towns, or counties, will be identified on Attachment A of the Franchise Agreement.
Staffing Notes
Hydrogen Fitness franchisees are solely responsible for hiring, training, compensating, managing, promoting, and overseeing all employees of their franchised business. Franchisees must ensure that their employees are clearly informed that the franchisee is their sole employer, not Hydrogen Franchising, LLC. All employees are required to sign a Confidentiality Agreement in a form provided by Hydrogen Fitness.