Risk Score
Pending analysis
Investment Range
$906,700 - $1,347,100
Franchise Fee
$50,000
Total US Locations
1
Business Summary
Vaura Incorporated offers franchises for Vaura Studios, which are fitness centers specializing in group fitness and low-impact Pilates exercise training. These studios utilize a distinctive system of exercise training and can also offer optional recovery amenities such as cold plunges, infrared saunas, massage guns, and compression therapy. The business provides approved services and products related to the studio operations.
Corporate History
Vaura Incorporated was founded in Delaware on November 20, 2023. The company operates under its corporate name and as "Vaura," specializing in selling franchises for Vaura Studios. These studios offer group fitness and low-impact Pilates exercise training using a distinctive system. Vaura Incorporated began offering its franchises in a very limited capacity in December 2023, expanding its offer more widely in April 2024. As of December 31, 2024, Vaura Incorporated had one franchised studio operating in the United States. The company is part of a larger corporate family, with Vaura Holdings Incorporated as its immediate parent and F45 Training Holdings Inc. dba FIT House of Brands as its ultimate parent. Its affiliates also operate and grant franchises for other fitness brands such as F45 Training and FS8.
Financial Overview
Investment Range
$906,700 - $1,347,100
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$100,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$256,500
Equipment Costs (High)
$354,600
Working Capital
$80,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial condition of Vaura Incorporated, as indicated in its financial statements (Item 21) and highlighted in the Special Risks section of the FDD (page iv), raises questions about the franchisor's financial ability to provide services and support to its franchisees. The company reported a net operating loss of $181,093 for the year ended December 31, 2024, and has a total stockholder's deficit of $180,993. Furthermore, a valuation allowance of $38,030 has been recorded against deferred tax assets, indicating that Vaura Incorporated does not believe these assets are likely to be realized. While the auditor issued an unqualified opinion on the financial statements, these factors suggest that Vaura Incorporated is in an early stage of development with limited operating history and current financial challenges.
Financing Details
Vaura Incorporated does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other obligations. However, Vaura Incorporated has an arrangement with Swoop Funding, a third-party business funding platform, to help franchisees find lending sources. Vaura Incorporated is eligible to earn a fee equal to 20% of any commission generated if Swoop Funding assists a franchisee in securing third-party financing. Vaura Incorporated does not provide the financing itself and does not have information regarding the terms of any financing obtained through Swoop Funding.
Performance Metrics
Total US Locations
1
Franchised Units
1
Corporate Units
0
Avg Square Footage
2,850
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
Vaura Incorporated has no litigation cases of its own to disclose. However, there are five legal matters involving an officer and affiliates of Vaura Incorporated, specifically concerning F45 Training Incorporated, which is an affiliate. One case, filed in January 2022 by an F45 franchisee against F45 Training Incorporated and certain officers, including Vaura Incorporated's Chief Revenue Officer, Luke Armstrong, involved claims like breach of contract and fraudulent inducement. Luke Armstrong was dismissed from the case in September 2023. This matter was confidentially settled in June 2024, with the parties dismissing all claims, the franchisee continuing to operate one F45 studio, and F45 Training Incorporated making monthly payments to the franchisee. Four other matters involved F45 Training Incorporated with state regulators: 1. A Washington State Consent Order from October 2022 addressed allegations that F45 Training Incorporated's prior franchise disclosure documents were non-compliant with state law. F45 Training Incorporated was accused of making untrue statements, taking payments before providing FDDs, and restricting franchisee associations. F45 Training Incorporated paid $15,437.50 and offered rescission to seven franchisees. 2. Another Washington State Consent Order from December 2023 concerned allegations that F45 Training Incorporated provided FDDs with inaccurate descriptions of the earlier 2022 Consent Order. F45 Training Incorporated paid $2,675 in investigative costs. 3. A Settlement Agreement with the Michigan Department of Attorney General from August 2023 arose from allegations that F45 Training Incorporated employees made unlawful financial performance representations. F45 Training Incorporated agreed to pay $95,000 for franchisee compensation and make rescission offers to certain Michigan franchisees. 4. A California State Consent Order from October 2023 involved allegations that F45 Training Incorporated made unlawful financial performance representations and failed to disclose agreements with public figures promoting franchise sales. F45 Training Incorporated paid an administrative penalty of $152,500 and offered rescission to certain California franchisees.
Bankruptcy History
Vaura Incorporated has no bankruptcy history to disclose in this FDD document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Vaura Studio franchise, franchisees must provide written notice to Vaura Incorporated between six and nine months before the initial term ends. They must also refurbish, repair, or replace all equipment and upgrade the studio to meet current brand standards. Franchisees and their affiliates must not be in default of any agreements with Vaura Incorporated, and all monetary obligations must be paid on time. They need to show they can stay in their current location or get approval for a new one, pay a renewal fee of $25,000, and sign a general release of claims against Vaura Incorporated. Additionally, franchisees must comply with Vaura Incorporated's then-current qualification and training requirements and sign a new franchise agreement, which may have different terms, including higher fees.
Training & Support Program
Franchisor Assistance
Vaura Incorporated provides pre-opening and ongoing support to its franchisees. Before opening, Vaura Incorporated assists with site selection, offering guidelines, demographic analysis, and visits, and provides access to prototypical design plans. It also makes the Equipment Pack available for purchase, arranges for its delivery, and provides a list of approved suppliers. Franchisees receive an initial online training program and must attend an induction seminar in Austin, Texas. New Studio Project Management services, included in the establishment fee, cover site due diligence, architectural design, construction budgeting, and project closeout. Ongoing support includes periodic operational evaluations, management of marketing fees and the Brand Fund, and provision of advertising materials. Vaura Incorporated offers operational advice through its Manuals and other written materials, and may make additional merchandise, supplements, and customer programs available. It also provides updated lists of approved suppliers and optional additional training programs.
Initial Training Hours
116
Training Location
Austin, Texas
Ongoing Support
After a Vaura Studio opens, Vaura Incorporated provides various ongoing support services. This includes conducting periodic evaluations of the studio's operations and managing funds from the Marketing Fee and Brand Fund to provide advertising and promotional materials for local advertising. Vaura Incorporated also offers advice and written materials on managing and operating the franchise business, including access to updated Manuals. At its discretion, Vaura Incorporated may make certain merchandise, sporting goods, equipment, nutritional and protein supplements, and prepared meals available for resale. The franchisor may also provide access to certain systems and programs for customers and updated lists of approved suppliers. Additionally, Vaura Incorporated may offer additional training programs and seminars at its option. Franchisees must participate in loyalty programs, customer retention programs, and special promotional programs that Vaura Incorporated implements.
Franchise Requirements
Ideal Candidate Profile
Vaura Incorporated seeks franchisees with strong business skills, financial capacity, and personal character. An ideal candidate, or their designated Key Person, must maintain at least a 10% ownership interest in the franchise. The Key Person is expected to devote full time and best efforts to supervising operations, unless a General Manager is appointed, in which case the Key Person remains ultimately responsible. The Key Person and any General Manager must meet Vaura Incorporated's qualifications and complete required training programs. Franchisees are expected to operate the business with a high standard of conduct, promoting and protecting the Vaura brand, ensuring equipment is well-maintained, and complying with all laws and specified standards.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Protected
Staff Count
4
Territory Size Requirements
Vaura Incorporated defines its protected areas for studios based on a population of at least 15,000, as determined by the most recent U.S. census data. However, the exact size and shape of each protected area will vary for individual franchisees.
Staffing Notes
Vaura Incorporated requires franchisees to staff each studio with at least one Studio Manager to coordinate day-to-day operations and a minimum of three certified trainers at all times. If a General Manager is not appointed, the Key Person (owner) must devote full time to supervising operations. If a General Manager is appointed, they must devote full time, and the Key Person remains ultimately responsible. Franchisees are solely responsible for all employment decisions, including hiring, firing, and compensation, and must ensure employees provide competent, courteous service in line with Vaura Incorporated's standards. Vaura Incorporated provides minimum employee standards solely for maintaining system quality and customer relations, not to establish a joint employer relationship.