Perspire Sauna Studio Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$112,000 - $331,500
Franchise Fee
$100,000
Total US Locations
50
Business Summary
Perspire Sauna Studio offers area representative franchises. These area representatives operate a business that focuses on soliciting, screening, recruiting, developing, training, servicing, and supporting third-party franchisees. These third-party franchisees then open and operate Perspire Sauna Studio businesses, offering infrared sauna sessions, chromotherapy, relaxation services, and related merchandise to their customers.
Corporate History
Sweat Equity Group, LLC, doing business as Perspire Sauna Studio, was formed as a California limited liability company on September 26, 2017. The company began offering franchises for its Perspire Sauna Studio businesses in December 2017. The underlying Perspire Sauna Studio concept was initially designed and developed by an affiliate, SweetSweat17, LLC, which has operated a studio in Costa Mesa, California, since 2010. Other affiliates also operate corporate-affiliated locations, with Rise FL LLC operating two studios in Florida since 2021, WCS 17, LLC operating studios in Irvine and Newport Beach, California, since 2023, and Perspire HB, LLC operating a studio in Huntington Beach, California, since 2016.
Financial Overview
Investment Range
$112,000 - $331,500
Franchise Fee (Low)
$100,000
Franchise Fee (High)
$300,000
Equipment Costs (High)
$5,000
Working Capital
$3,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Perspire Sauna Studio's financial condition, as reflected in its financial statements, raises questions about its financial ability to provide services and support to its area representatives. The company reported a significant members' deficit of approximately $3.86 million as of December 31, 2023. Additionally, its current liabilities of approximately $7.17 million significantly exceeded its current assets of approximately $1.78 million, indicating a negative working capital position.
Financing Details
Perspire Sauna Studio does not offer any direct or indirect financing to its area representatives. The company also does not guarantee any notes, leases, or other obligations for its area representatives.
Performance Metrics
Total US Locations
50
Franchised Units
44
Corporate Units
6
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Perspire Sauna Studio has no litigation history to report. According to Item 3, no litigation information is required to be disclosed.
Bankruptcy History
Perspire Sauna Studio has no bankruptcy history to report. According to Item 4, no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Area Representative agreement, Perspire Sauna Studio area representatives must not be in default under their current agreement or any other agreements with the franchisor or its affiliates. They must provide timely written notice of their desire to renew, negotiate a new development schedule, and sign the franchisor's then-current form of Area Representative agreement and all related documents (such as the Franchise Owner Agreement). Additionally, they are required to sign a general release and pay a renewal fee equal to 25% of the initial development fee.
Training & Support Program
Franchisor Assistance
Perspire Sauna Studio provides a range of assistance to its area representatives. Before opening, area representatives receive a license to use the brand marks, a copy of the AR Operations Manual, and an initial training program. They also get access to franchise marketing materials and a copy of the franchisor's Franchise Disclosure Document for selling units. Once operating, Perspire Sauna Studio pays commissions on collected initial franchise fees and royalty fees from third-party franchisees in the area. The franchisor also maintains a corporate website that generates leads, which are referred to area representatives for their development territory. Ongoing consultation, guidance, assistance, and support are provided to help area representatives market, develop, and support their underlying franchises. Additionally, the franchisor may offer further on-site training (for a fee), periodic refresher training, and mandatory national conferences.
Initial Training Hours
116
Training Location
Corporate offices in Costa Mesa, CA and online via Learning Management System (LMS)
Ongoing Support
Perspire Sauna Studio provides ongoing support to its area representatives by maintaining a corporate website that generates and refers franchise leads. They also offer reasonable levels of consultation, guidance, assistance, and support for marketing, developing, and supporting franchises. The franchisor may also provide additional on-site training upon request (for a fee), periodic refresher training programs, and mandatory national or regional conferences. They may also establish an area representative advisory council for suggestions.
Franchise Requirements
Ideal Candidate Profile
An ideal Perspire Sauna Studio Area Representative franchisee is an individual or entity with a designated Managing Owner who commits to dedicating full-time efforts to the business. This candidate should be capable of soliciting, screening, recruiting, developing, training, servicing, and supporting Perspire Sauna Studio franchisees within their Development Territory, ensuring these third-party franchisees meet the brand's minimum qualifications. Additionally, the Area Representative must meet the minimum qualifications required for a single-unit Perspire Sauna Studio franchisee, as they are obligated to own and operate at least one studio themselves throughout the term. The ideal candidate should possess strong management skills and business experience, demonstrating an ethical and responsible approach to franchise marketing and recruitment while complying with all applicable franchise laws.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Perspire Sauna Studio Area Representative territories are designated by the franchisor before the Area Representative Agreement is signed. The specific boundaries of the Development Territory are described in Attachment B of the Area Representative Agreement, which may include a map. While there is no specific minimum or maximum area defined, the smallest development territory would be capable of supporting a minimum of 10 Perspire Sauna Studios.
Staffing Notes
Perspire Sauna Studio area representatives must hire, train, and supervise honest, reliable, competent, and courteous employees, including franchise salespersons and field consultants, as needed to operate their area representative business. All staff must maintain any required licenses or certifications for offering or selling franchises. The area representative is responsible for all employee compensation and taxes. A sufficient number of trained employees must always be available to meet operational standards and provide adequate support to franchisees. Employees must comply with the AR Manual, but the franchisor does not control day-to-day employee activities, hiring, or firing.