Risk Score
Pending analysis
Investment Range
$1,553,100 - $3,828,300
Franchise Fee
$20,000
Total US Locations
1
Business Summary
Sweat Ventures, LLC offers SAUNA HOUSE® franchises for the operation of modern bathhouses. Each Bathhouse features traditional saunas, infrared saunas, cold-plunge pools, hot pools, and red-light therapy. The business focuses on enhancing bathing culture and social wellness by providing a space for communal bathing, connection, and healing, offering private rooms and communal areas for customers.
Corporate History
Sweat Ventures, LLC was organized as a North Carolina limited liability company on February 8, 2022, originally under the name "Sauna House Community Baths, LLC". SAUNA HOUSE® began offering franchises in 2022. The company's primary business activity is offering SAUNA HOUSE® franchises and administering the franchise system. While Sweat Ventures, LLC has never directly owned and operated a Bathhouse, its affiliate, Alpine Mutt, LLC, has operated the original company-owned Bathhouse in Asheville, North Carolina, since February 2018.
Financial Overview
Investment Range
$1,553,100 - $3,828,300
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$50,000
Royalty %
7%
Equipment Costs (Low)
$512,500
Equipment Costs (High)
$885,000
Working Capital
$176,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The audited financial statements for Sweat Ventures, LLC for the fiscal years ended December 31, 2023, and December 31, 2022, include an unqualified opinion from the independent auditor, indicating that the financial statements present fairly, in all material respects, the financial position. The audit report notes that the company shares certain administrative expenses with related parties and does not have an operating agreement with these entities to share these expenses, which could result in a non-arms-length transaction. The auditors did not identify any material weaknesses in internal control.
Financing Details
SAUNA HOUSE® does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any of the franchisee's notes, leases, or other financial obligations. Franchisees are responsible for securing their own financing through third-party lenders.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Avg Square Footage
5,500
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Sweat Ventures, LLC has no litigation to disclose in Item 3 of its Franchise Disclosure Document. This means the SAUNA HOUSE® brand has a clean legal record with no lawsuits or legal disputes to report.
Bankruptcy History
Sweat Ventures, LLC has no bankruptcy history to disclose in Item 4 of its Franchise Disclosure Document. This indicates that neither the franchisor nor its key personnel have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their SAUNA HOUSE® franchise agreement, franchisees must notify the franchisor in writing between 210 and 540 days before the current term expires. They must not be in default under any agreement, sign the then-current version of the franchise agreement, and execute a general release. Franchisees also need to pay a $10,000 renewal fee, remodel their Bathhouse, and upgrade its furniture, fixtures, and equipment to meet current brand standards. Additionally, they must extend the term of their lease for the duration of the renewal term.
Training & Support Program
Franchisor Assistance
Before a SAUNA HOUSE® Bathhouse opens, the franchisor provides access to its Manual for establishment and operation, and offers an initial training program. They assist with site review and approval, sell a Startup Package of fixtures and equipment, and offer Project Management Services for design, construction, and development. The franchisor also helps with the initial setup of point-of-sale systems, Google Workspace, and social media platforms. They provide a marketing plan, review and approve Bathhouse design and build-out, and send a representative for 5 days of onsite training and assistance during the grand opening. During operation, the franchisor offers guidance for improvement, periodic training, maintains a corporate website with a local webpage for each Bathhouse, administers a Brand Fund (when established), and provides suggested retail pricing. They may also conduct field visits for onsite consultation, provide access to various software and technology, develop new retail products, negotiate purchase agreements with suppliers, and hold periodic conferences.
Initial Training Hours
85
Training Location
Online & Your Bathhouse
Ongoing Support
After opening, SAUNA HOUSE® provides ongoing support through general guidance and recommendations to improve Bathhouse operations. Franchisees receive periodic training programs, and the franchisor maintains a corporate website along with a local webpage for each Bathhouse. The franchisor also administers the Brand Fund (once established) and provides suggested retail pricing. They may conduct periodic field visits for onsite consultation, provide access to software and technology systems, develop new retail products, negotiate purchase agreements with suppliers for favorable pricing, and hold periodic conferences.
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
SAUNA HOUSE® territories are defined based on the square footage of the Bathhouse. Each territory will include a minimum population calculated by multiplying the interior square footage of the Bathhouse by 9. For example, a 5,000 square-foot Bathhouse would be granted a territory with a minimum population of 45,000 people. The franchisor determines the boundaries of the territory to ensure it meets or exceeds this minimum population, using current census data.
Staffing Notes
SAUNA HOUSE® requires franchisees to determine appropriate staffing levels for their Bathhouse to ensure compliance with the agreement and system standards. Franchisees are responsible for hiring, training, and supervising their employees, including paying all wages, benefits, and taxes. Employees are exclusively the franchisee's responsibility, and the franchisor does not control day-to-day activities or employment decisions. Franchisees must use their legal business entity name for all employee-related documents and ensure employees sign an acknowledgment form explaining the franchise relationship. Franchisees may hire approved managers who must successfully complete required training and dedicate full-time efforts to onsite management and supervision. Either the Managing Owner or a trained manager must be present during normal business hours.