Risk Score
Pending analysis
Investment Range
$150,800 - $207,800
Franchise Fee
$25,000
Total US Locations
4
Business Summary
The Sensory Club, Inc. franchises a health club business that offers a sensory gym and multi-sensory environment. The Sensory Club provides these specialized services to individuals of all ages with mental or physical disabilities, offering membership access to occupational therapy equipment and operating under its brand names and system.
Corporate History
The Sensory Club, Inc. was incorporated in Wisconsin in March 2017. Before establishing its franchise system, the company gained experience by designing, opening, and operating a Sensory Club location in Pewaukee, WI, from 2016 until it was sold in 2021. The Sensory Club began offering franchises in February 2022.
Financial Overview
Investment Range
$150,800 - $207,800
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Royalty %
5%
Equipment Costs (Low)
$37,000
Equipment Costs (High)
$46,000
Working Capital
$2,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial condition of The Sensory Club, Inc. raises questions about its ability to provide services and support to franchisees, as noted in the Special Risks section of the FDD. The Sensory Club has reported net losses for the years ending December 31, 2024, 2023, and 2022. Its stockholder's equity has been in a deficit position, reaching negative $134,017 in 2024. The cash balance was very low at $149 in 2024.
Financing Details
The Sensory Club, Inc. does not offer any direct or indirect financing options to its franchisees. Franchisees are responsible for securing their own funding, and The Sensory Club, Inc. does not guarantee any leases or other financial obligations that franchisees may incur for their business.
Performance Metrics
Total US Locations
4
Franchised Units
4
Corporate Units
0
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Sensory Club, Inc. reports no litigation that needs to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
The Sensory Club, Inc. has no bankruptcy information to disclose.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, The Sensory Club, Inc. franchisees must not be in default of their current agreement and must have paid all outstanding monetary obligations. They need to provide The Sensory Club, Inc. with 9 months' written notice before the agreement's expiration. Franchisees are also required to sign the then-current standard Franchise Agreement, pay a renewal fee equal to 10% of the initial franchise fee, and attend any training programs provided for renewing franchisees.
Training & Support Program
Franchisor Assistance
Before opening, The Sensory Club, Inc. helps franchisees by designating their territory, approving the selected site, advising on staff training methods, and assisting with club design for efficient space and equipment use. The company also provides an initial start-up equipment package and operations manuals. Initial training, totaling up to 7 hours, is conducted at The Sensory Club, Inc.'s headquarters in Delafield, Wisconsin, or another designated location (including online or phone). After opening, The Sensory Club, Inc. assists with promotions on its website, advises on equipment and supply sources, and may conduct annual meetings for additional training and assistance. The company also offers support in developing products/services, improving the business, establishing prices, and managing administrative, bookkeeping, accounting, and inventory control procedures.
Initial Training Hours
7
Training Location
Delafield, WI
Ongoing Support
The Sensory Club, Inc. provides ongoing assistance to franchisees by helping with promotions for their club on The Sensory Club® website and advising on sources for equipment, services, supplies, and products. The company will also assist in developing products/services, improving the franchised business, establishing prices, setting up administrative, bookkeeping, accounting, and inventory control procedures, and resolving operating problems. If the system grows sufficiently, The Sensory Club, Inc. may hold annual meetings, requiring franchisee attendance. Specific frequencies for most of these ongoing support elements are not detailed beyond 'upon request' or 'as Franchisor deems appropriate and necessary'.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Exclusive
Territory Size Requirements
The Sensory Club, Inc. grants franchisees an exclusive territory that is a minimum of a 5-mile radius from their location. The maximum territory can extend up to two adjoining counties. Territories are defined by municipal boundaries and aim to include at least 20,000 registered families with special needs. If this information is not readily available, the territory will encompass a population of no less than 500,000 people. If any single county in a proposed territory has over 200,000 registered families with special needs, the territory will be limited to that county. Area franchisees have requirements to open additional locations if certain revenue targets are met: a second location if one club earns $250,000, a third if two combined earn $500,000, and a fourth if three combined earn $750,000.