Risk Score
Pending analysis
Investment Range
$284,900 - $667,900
Franchise Fee
$35,000
Total US Locations
22
Business Summary
Sweat440 Franchise Systems, LLC operates membership-based fitness studios that offer 40-minute workout classes. These classes combine small group training with flexible workout times, allowing clients to join every ten minutes. The workouts integrate mobility training, cross-training, strength training, and high-intensity interval training (HIIT) across four stations to help members burn fat, boost metabolism, and sweat. Sweat440 aims to provide convenience and motivation for both beginners and experienced fitness enthusiasts.
Corporate History
Sweat440 Franchise Systems, LLC was formed in November 2018 as a Florida limited liability company. The Sweat440 Studio concept was originally created in 2018 by Brickhouse Athletics, LLC, which is the franchisor's predecessor and parent company. Brickhouse Athletics, LLC operates two Sweat440 Studios in Florida. Sweat440 Franchise Systems, LLC began offering franchises for Sweat440 Studios in July 2019. In January 2024, the parent company acquired a majority interest in LeadTeam, LLC, which became an affiliate of Sweat440 Franchise Systems, LLC.
Financial Overview
Investment Range
$284,900 - $667,900
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$60,000
Royalty %
7%
Equipment Costs (Low)
$137,000
Equipment Costs (High)
$424,000
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial health of Sweat440 Franchise Systems, LLC raises concerns about its ability to provide services and support to franchisees. The company has reported ongoing net losses, with a net loss of $59,056 for the fourteen-month period ending December 31, 2024, and larger losses in prior fiscal years. As a result, Sweat440 Franchise Systems, LLC has a significant and increasing member's deficit, reaching $(608,338) as of December 31, 2024, indicating negative equity. These financial conditions suggest that Sweat440 Franchise Systems, LLC may face challenges in providing adequate support to its franchise system.
Financing Details
Sweat440 Franchise Systems, LLC does not offer any direct or indirect financing options to its franchisees. Additionally, Sweat440 Franchise Systems, LLC does not guarantee any notes, leases, or other obligations that a franchisee might incur. Franchisees will need to secure their own funding without assistance from Sweat440 Franchise Systems, LLC.
Performance Metrics
Total US Locations
22
Franchised Units
17
Corporate Units
5
Avg Square Footage
3,000
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Sweat440 Franchise Systems, LLC has no litigation history to report.
Bankruptcy History
Sweat440 Franchise Systems, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Sweat440 franchisees must satisfy several conditions. Sweat440 must still be offering franchises in the franchisee's area. The franchisee needs to provide written notice of their intent to renew between 9 and 6 months before the current agreement ends. They must be in full compliance with their current franchise agreement and all other agreements, including paying all monetary obligations and adhering to operating and quality standards. The franchisee and their Studio Manager must meet Sweat440's then-current requirements for new and renewing franchisees and complete any new or refresher training programs to Sweat440's satisfaction. They must also sign Sweat440's then-current standard Franchise Agreement, which may have materially different terms, and remodel, modernize, and redecorate their Studio to meet current physical appearance standards for new Sweat440 businesses. Proof of continued possession of the Studio premises and all necessary licenses, permits, and insurance for the renewal term is required. Finally, the franchisee must pay a renewal fee, which will not exceed 50% of the then-current initial franchise fee, and the franchisee and each Principal Owner must sign a general release of claims against Sweat440 and its affiliates.
Training & Support Program
Franchisor Assistance
Sweat440 Franchise Systems, LLC provides a range of assistance to its franchisees. Before opening, Sweat440 helps with site selection and provides basic layout and specification plans for the Studio. They offer an on-site visit to the location for a franchisee's first or second Studio, assist in developing a Market Introduction Plan, and provide pre-training materials and an initial training program. Franchisees also gain access to the confidential Operations Manual. After opening, Sweat440 offers up to five days of on-site opening assistance. They provide ongoing advisory services for Studio operations, covering aspects like product and service offerings, purchasing, marketing, sales promotion, and administrative procedures. Updates to the Operations Manual are provided periodically. Sweat440 also operates a Brand Fund for general promotion and conducts Quality Assurance Audits. Franchisees receive a designated Computer System with proprietary software and access to approved suppliers lists. Initial training is provided to the Operating Principal and Studio Manager, and ongoing, supplemental training is required.
Initial Training Hours
46
Training Location
Corporate headquarters in Miami, FL or virtually
Ongoing Support
Sweat440 Franchise Systems, LLC provides ongoing support to its franchisees after their Studios open. This includes up to five days of on-site opening assistance at Sweat440's discretion. Franchisees receive advisory services on Studio operations, covering aspects like product and service offerings, purchasing, marketing, sales promotion, and administrative procedures. Updates to the Operations Manual are provided periodically. Sweat440 also manages a Brand Fund for general marketing and development. The franchisor may conduct Quality Assurance Audits to ensure compliance with standards. Franchisees receive ongoing support, maintenance, and upgrades for the designated Computer System. Additionally, the Operating Principal and Studio Manager may be required to attend supplemental and refresher training programs for up to five days each calendar year.
Franchise Requirements
Ideal Candidate Profile
Sweat440 seeks individuals who are either willing to serve as a hands-on Studio Manager for a single unit, or as an Operating Principal who actively oversees general management. For multi-unit franchisees, a full-time Regional Manager is required to oversee the development and operations of up to five studios. Candidates, and specifically Principal Owners, must have a good business reputation and credit rating, demonstrate aptitude and ability to conduct the franchised business, and meet Sweat440's managerial, financial, and business standards. They should be prepared to adhere to confidentiality and non-compete covenants.
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
Exclusive
Territory Size Requirements
Sweat440 Franchise Systems, LLC defines its Protected Territory for franchisees as a geographic area encompassing the Authorized Location. This territory will be the lesser of a 3-mile radius or an area with a population of up to 50,000 people. In densely populated metropolitan areas, the Protected Territory may be smaller.
Staffing Notes
Sweat440 Franchise Systems, LLC requires franchisees to hire all Studio employees and manage all aspects of their employment, including compensation, scheduling, and benefits. Franchisees must implement a training and certification program for their staff, ensuring that only certified employees perform specific services as outlined in the Operations Manuals. Studios must always be under the direct, on-site supervision of an approved Studio Manager. All fitness instructors are required to meet Sweat440's current certification and continuing education requirements. If a Studio Manager's role terminates due to death, disability, or other reasons, the franchisee must appoint a replacement acceptable to Sweat440 within 30 days, and this new manager must complete the designated training program. Failure to appoint an approved manager within this timeframe may result in Sweat440 appointing one, with the franchisee incurring associated costs.