About Perspire Sauna Studio Franchise
Perspire Sauna Studio is a health and wellness franchise offering infrared sauna sessions, chromotherapy, red light therapy, and relaxation services to health-conscious consumers.
Franchisees operate retail studio locations where customers sign up for membership packages and single-use sessions, enjoying the therapeutic benefits of infrared sauna technology including detoxification, calorie burning, improved skin quality, reduced blood pressure, lower stress, and muscle and joint pain relief.
Studios also sell ancillary merchandise including t-shirts, caps, towels, and creams.
Perspire Sauna Studio Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $45,000 | One-time payment upon signing |
| Royalty Fee | 6% of Total Gross Revenue (minimum $500/month) of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of monthly gross sales | National brand fund |
| Total Investment Range | $370,890 – $562,230 | Includes build-out, inventory, working capital |
The investment range of $371K–$562K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Total Gross Revenue (minimum $500/month)) and marketing fee (2% of monthly gross sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Initial Equipment Package (Saunas) | $48,580 | $59,240 |
| Travel Expenses During Training | $0 | $2,500 |
| Training at your studio | $5,000 | $5,000 |
| Three Months' Rent and Deposits | $18,000 | $30,000 |
| Audio | $3,000 | $4,500 |
| Leasehold Improvements | $140,000 | $250,000 |
| Construction Management | $15,000 | $17,000 |
| Millwork | $20,000 | $28,000 |
| Architecture Fees | $6,000 | $12,000 |
| Permits, etc. | $3,000 | $5,000 |
| Office/Spa Furniture and Equipment | $2,500 | $4,500 |
| Computer System & Receipt Printer | $2,500 | $3,500 |
| Opening Inventory and Supplies | $1,000 | $2,500 |
| In Room TVs | $2,610 | $3,190 |
| Pre-Sale Marketing and Grand Opening Advertising | $15,000 | $20,000 |
| Insurance | $2,000 | $3,500 |
| Miscellaneous Pre-Opening and Organization Costs | $3,000 | $4,000 |
| Estimated Shipping and Sauna Install | $7,200 | $13,800 |
| Signage | $6,000 | $12,000 |
| Site Visits | $0 | $2,000 |
| Additional Funds 3-6 months | $25,000 | $35,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of current franchise fee |
| Renewal Fee | 25% of initial franchise fee, not to exceed $10,000 |
| Technology Fee | $408.90/month (MindBody Software) |
| Audit Fee | Cost of inspection or audit if understatement exceeds 2% |
| Webpage Support | Not to exceed $350 per year |
| GSuite Email | $8.40 per month per email account |
| Online Waiver/Consent Forms | $0.15 per form signed |
| Towels | $2,000 - $4,500 monthly |
| Intranet Access | Not to exceed $50 per month |
| Site Review | $0 first review, $2,000 each additional |
| Additional Training | $1,000 per day plus travel expenses |
| Local Advertising | Minimum $2,500 per month |
| Bi-annual Convention | $500 per convention |
| Equipment Upgrades (every 4 years) | $48,580 - $59,240 |
| Facility Upgrades (every 4 years) | $10,000 - $25,000 |
| Advertising Cooperative | As determined by cooperative bylaws |
| Transfer Fee Under Area Development Agreement | $10,000 |
| Relocation Fee | $2,000 |
| Interest on Late Payments | Lesser of highest contract rate or 18% per annum |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 46 hours classroom, 15 hours on-the-job, plus 5 days on-site for new studio opening |
| Classroom Training | 46 hours |
| On-the-Job Training | 15 hours |
| Training Location | Corporate headquarters in Newport Beach, CA; Corporate Studio in Orange County, CA; Virtual Video via Zoom; and at franchisee's location |
| Additional Training | Refresher training may be required, not to exceed two people attending more than two sessions of up to five days per calendar year. Additional training available at $1,000 per day plus travel expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive with population-based density restrictions |
| Exclusive Territory | No |
| Territory Size | One Perspire Sauna Studio for every 12,000 or more qualified households within a specific area with a population density of 3,200+ people per square mile |
| Description | You will receive a specific territory defined by maps, streets, roads and zip codes based on 12,000+ qualified households (combined household income of $70,000) per square mile with 3,200+ population density. However, you will not receive an exclusive territory. The franchisor retains rights to operate and grant others the right to operate under the Marks, sell products through any distribution channels, and develop other concepts. Under a Development Agreement, the Development Area is exclusive during the development term. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Customary term then being offered to new franchisees |
| Renewal Fee | 25% of then-current initial franchise fee, not to exceed $10,000 |
| Renewal Conditions | Must have substantially complied with franchise agreement during its term, cure all identified deficiencies, remodel leasehold as required, pay successor franchise fee, sign general release (subject to state law), and may be required to sign new franchise agreement with materially different terms |
| Transfer Fee | 50% of current franchise fee |
| Transfer Conditions | Transferee must meet character requirements, complete initial training, sign then-current franchise agreement; transferor must pay all amounts owed, pay transfer fee, sign general release, agree to confidentiality and non-competition covenants, subordinate security interest |
| Termination for Cause | Material uncured breaches including failure to open as required, abandonment, unauthorized transfer, material misrepresentation, lease cancellation, felony conviction, unauthorized use of confidential information, failure to comply with specifications, failure to make timely payments, repeated defaults (3+ in 12 months) |
| Non-Compete Period | 2 years |
| Non-Compete Details | No direct or indirect involvement in any infrared sauna, chromotherapy, or similar wellness facility offering sauna services within 15 miles of the Location or within 15 miles of any other Perspire Sauna Studio business for 2 years after termination, expiration, or transfer |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You (or your Responsible Owner) must personally manage and operate the franchise as your primary occupation unless an Approved Operator is approved by the franchisor. The business must at all times be managed by you, one of your owners, an Approved Operator, or a manager/shift supervisor who has completed the training program. |
| Required Suppliers | Perspire branded infrared saunas from approved/preferred supplier, MindBody online membership software, approved towel supplier, approved construction management supplier, approved architect for first location |
| Supply Restrictions | Franchisees must purchase services, supplies, fixtures, equipment, merchandise, goods, and inventory only from approved suppliers. Franchisor reserves the right to limit number of vendors and designate single source suppliers. Approximately 98% of initial purchases and 19-33% of ongoing costs must be from approved sources. |
| Franchisor Revenue from Suppliers | In the period ending December 31, 2020, we did not receive any payments or commissions from any suppliers that our franchisees made purchases from. We reserve the right to receive commissions in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Perspire Sauna Studio Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Perspire Sauna Studio Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Perspire Sauna Studio System Growth
Perspire Sauna Studio currently operates 13 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 2 | 0 | 2 |
| 2019 | 4 | 0 | 6 |
| 2020 | 7 | 0 | 13 |
Transfers: 2 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Schild & Co., Inc. for year ending December 31.
Perspire Sauna Studio Franchise — FAQ
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