Source: FranopolisPause
The Business
SourcesPause Holdings is a Delaware corporation formed on January 29, 2021.
2025 FDD · PDF Page 11 · Item 1 · View Source
Read More About The Business
The franchisor began offering franchises for Pause studios on July 27, 2022.
2025 FDD · PDF Page 9 · Item 1 · View Source
The franchisor’s affiliate, Pause Clinic West Hollywood LLC, a California limited liability company formed on November 11, 2019, operates a Pause studio in the West Hollywood neighborhood of Los Angeles, California.
2025 FDD · PDF Page 11 · Item 1 · View Source
Read Source Excerpts
Pause Holdings is a Delaware corporation formed on January 29, 2021.
We began offering franchises for Pause studios on July 27, 2022.
Source NotesOur affiliate, Pause Clinic West Hollywood LLC, a California limited liability company formed on November 11, 2019, operates a Pause studio in the West Hollywood neighborhood of Los Angeles, California.
What It Costs
SourcesWhere Your Startup Money Goes
| Cost | Disclosed Amount | Source |
|---|---|---|
| Total Estimated Initial Investment — ten studios | $8,556,000 to $15,149,000 | 2025 FDD · PDF Page 31 Total Estimated Initial Investment for Ten Pause Studio Businesses (Note 5) $8,556,000 to $15,149,000 |
| MUDA development fee — ten units | $315,000 | 2025 FDD · PDF Page 30 Development Fee for the Additional Units Upon Signing MUDA for Ten Units (Note 2) $315,000 |
| Training Expenses | $1,000 to $5,000 | 2025 FDD · PDF Page 26 Training Expenses (Note 12) $1,000 to $5,000 |
| Insurance Deposits and Premiums | $1,400 to $1,900 | 2025 FDD · PDF Page 26 Insurance Deposits and Premiums (Note 9) $1,400 to $1,900 |
| Business Licenses and Permits | $7,500 to $15,000 | 2025 FDD · PDF Page 26 Business Licenses and Permits (Note 10 ) $7,500 to $15,000 |
| Audio Video/Information Technology/Security | $6,500 to $16,000 | 2025 FDD · PDF Page 27 Audio Video/Information Technology/Security (Note 14) $6,500 to $16,000 |
| Total Estimated Initial Investment — two studios | $1,751,200 to $3,109,800 | 2025 FDD · PDF Page 31 Total Estimated Initial Investment for Two Pause Studio Businesses (Note 5) $1,751,200 to $3,109,800 |
| Furniture and Fixtures | $20,000 to $25,000 | 2025 FDD · PDF Page 26 Furniture and Fixtures $20,000 to $25,000 |
| Professional Fees | $15,000 to $25,000 | 2025 FDD · PDF Page 26 Professional Fees (Note 11) $15,000 to $25,000 |
| Equipment | $170,000 to $382,000 | 2025 FDD · PDF Page 26 Equipment (Note 4 ) $170,000 to $382,000 |
| Security Deposit | $32,100 to $66,000 | 2025 FDD · PDF Page 26 Security Deposit (No te 6 ) $32,100 to $66,000 |
| Total Estimated Initial Investment — single studio | $880,600 to $1,534,900 | 2025 FDD · PDF Page 27 Total Estimated Initial Investment (Note 16) $880,600 to $1,534,900 |
| Project Management, Architecture & Engineering | $45,000 to $55,000 | 2025 FDD · PDF Page 26 Project Management, Architecture & Engineering (Note 3) $45,000 to $55,000 |
| Additional Funds (3 months) | $20,000 to $70,000 | 2025 FDD · PDF Page 27 Additional Funds (3 months) (Note 1 5 ) $20,000 to $70,000 |
| Leasehold Improvements | $410,000 to $670,000 | 2025 FDD · PDF Page 26 Leasehold Improvements (Note 2) $410,000 to $670,000 |
| MUDA reduced initial franchise fee — two units | $55,000 | 2025 FDD · PDF Page 30 Reduced Initial Franchise Fee Upon Signing FA and MUDA for T wo U nits (Note 1) $55,000 |
| Initial Investment for first studio excluding initial franchise fee | $820,600 to $1,474,900 | 2025 FDD · PDF Page 31 Initial Investment for the first Pause Studio Business (Note 4) $820,600 to $1,474,900 |
| Rent (3 months) | $32,100 to $66,000 | 2025 FDD · PDF Page 26 Rent (3 months) (Note 5 ) $32,100 to $66,000 |
| MUDA Additional Funds (3 months) | $0 to $50,000 | 2025 FDD · PDF Page 30 Additional Funds (3 months) (Note 3 ) $0 to $50,000 |
| Signage | $10,000 to $18,000 | 2025 FDD · PDF Page 26 Signage (Note 7 ) $10,000 to $18,000 |
| Initial Franchise Fee | $60,000 | 2025 FDD · PDF Page 26 Initial Franchise Fee (Note 1) $60,000 |
| MUDA development fee — two units | $55,000 | 2025 FDD · PDF Page 30 Development Fee for the Additional Units Upon Signing MUDA for Two Units (Note 2 ) $55,000 |
| MUDA reduced initial franchise fee — ten units | $35,000 | 2025 FDD · PDF Page 30 Reduced Initial Franchise Fee Upon Signing FA and MUDA for Ten Units (Note 1) $35,000 |
| Startup Supplies | $10,000 to $20,000 | 2025 FDD · PDF Page 26 Startup Supplies (Note 8) $10,000 to $20,000 |
Line items are shown as disclosed. Some costs overlap or apply to different formats; do not add them together without reviewing the source.
SourcesKey Franchise Fees
- Royalty
View Disclosed Terms
Royalty Fee (Note 3) 7% of Gross Revenue (the “ Royalty Fee ”) Monthly, payable by the 7 th of each month
2025 FDD · PDF Page 17 · Item 6
Review Fee Sources- Marketing & Advertising
View Disclosed Terms
Advertising Fund Contribution (Note 4) 1% of Gross Revenue Per Month Monthly, payable by the 7 th of each month You must pay this fee to us. We may from time to time change the rate required to be paid by you but the amount of such payment that is based on Gross Revenue will not exceed 2% of your Gross Revenue, and no change in the rate will take effect unless we provide you with at least three months written notice.
2025 FDD · PDF Page 17 · Item 6
Review Fee Sources
Fees And Payment Terms
| Fee | Disclosed Terms | Source |
|---|---|---|
| Advertising Fund Contribution | Advertising Fund Contribution (Note 4) 1% of Gross Revenue Per Month Monthly, payable by the 7 th of each month You must pay this fee to us. We may from time to time change the rate required to be paid by you but the amount of such payment that is based on Gross Revenue will not exceed 2% of your Gross Revenue, and no change in the rate will take effect unless we provide you with at least three months written notice. | 2025 FDD · PDF Page 17 |
| Right to Remedy Default | Right to Remedy Default Our expenses plus an administrative fee of 15% Each month that it applies | 2025 FDD · PDF Page 21 |
| Interest | Interest (Note 8) The lesser of 1.5% per month or the highest commercial contract interest rate allowed by law As incurred | 2025 FDD · PDF Page 19 |
| Additional Training and Assistance | Additional Training and Assistance Currently $500 per person per day (plus hotel, air fare, and other expenses incurred by our trainer) for each person attending When training or assistance begins | 2025 FDD · PDF Page 20 |
| Development Fee — two-studio MUDA | For the development of two Pause studios, you will pay an Initial Franchise Fee of $55,000 for the first Franchised Business plus a Development Fee in the amount of $55,000 at the time you sign the MUDA. | 2025 FDD · PDF Page 15 |
| Initial Franchise Fees collected in fiscal 2024 | In our last fiscal year, ended December 31, 2024, we collected Initial Franchise Fees ranging from $35,000 to $60,000. | 2025 FDD · PDF Page 15 |
| Technology Fee | Technology Fee (Note 6) Then-current fee, currently, $800 per month Monthly, payable by the 7 th of each month | 2025 FDD · PDF Page 18 |
| Initial Franchise Fee — ten or more studios | For the development of ten or more Pause studios, you will pay an Initial Franchise Fee of $35,000 for the first Franchised Business plus a Development Fee in the amount of $35,000 multiplied by the number of Pause studios we grant to you at the time you sign the MUDA. | 2025 FDD · PDF Page 16 |
| Management Fee | Management Fee (Note 10) Our expenses plus an administrative fee of 15% of Gross Revenue As incurred | 2025 FDD · PDF Page 21 |
| Initial Franchise Fee — single business | The initial franchise fee for a single Franchised Business is $60,000 (the “ Initial Franchise Fee ”). | 2025 FDD · PDF Page 15 |
| Late Fee | Late Fee $100 per occurrence As incurred | 2025 FDD · PDF Page 19 |
| Initial Franchise Fee — six to nine studios | For the development of six to nine Pause studios, you will pay an Initial Franchise Fee of $40,000 for the first Franchised Business plus a Development Fee in the amount of $40,000 multiplied by the number of Pause studios we grant to you at the time you sign the MUDA. | 2025 FDD · PDF Page 16 |
| Local Marketing | Local Marketing (Note 5) $3,500 per month As arranged You pay this amount directly to third- parties subject to our approval, but you may be required to pay this amount to us if you do not meet your minimum spend requirements. This is the minimum amount that you must spend for local marketing. | 2025 FDD · PDF Page 18 |
| Audit Fee | Audit Fee (Note 7) $1,000 plus the amount of underpayment plus interest from the date such amount was due until it is received by Franchisor, paid at the rate of the lesser of 1.5% per month or the highest commercial contract interest rate allowed by law; plus cost of inspection | 2025 FDD · PDF Page 19 |
| Initial Franchise Fee — two-studio MUDA | For the development of two Pause studios, you will pay an Initial Franchise Fee of $55,000 for the first Franchised Business plus a Development Fee in the amount of $55,000 at the time you sign the MUDA. | 2025 FDD · PDF Page 15 |
| Grand Opening retail items and event supplies purchased from franchisor | You may purchase retail items and event supplies from us to use for your grand opening. Depending on whether you chose to purchase these items from us, we estimate the costs will be between $0 to up to $5,000. | 2025 FDD · PDF Page 16 |
| Manual Replacement | Manual Replacement (Note 14) $250 As incurred Payable to us if you lose or destroy the Manual. | 2025 FDD · PDF Page 21 |
| Liquidated Damages | waivers or other reductions) owed by you to us beginning with the date you open your Franchised Business through the date of early termination, multiplied by the lessor of: (i) 36; or (ii) the number of full months remaining in the term of the Franchise Agreement, except that liquidated damages will not, under any circumstances, be less than $30,000. | 2025 FDD · PDF Page 25 |
| Veterans discount | We currently discount the Initial Franchise Fee by $5,000 for United States Veterans who have been honorably discharged. This discount is applied once in connection with a qualified Veteran’s purchase of his or her first Franchised Business. | 2025 FDD · PDF Page 15 |
| Grand Opening marketing | You must spend $40,000 on local advertising, promotion, and other marketing activities through vendors that we specify or approve in connection with your grand opening. | 2025 FDD · PDF Page 16 |
| Insufficient Funds | Insufficient Funds (Note 16) $100 As incurred Due if you have insufficient funds in your designated bank account to cover a payment, or if any other payment instrument you use is rejected for insufficient funds. | 2025 FDD · PDF Page 22 |
| Initial Franchise Fee — three to five studios | For the development of three to five Pause studios, you will pay an Initial Franchise Fee of $45,000 for the first Franchised Business plus a Development Fee in the amount of $45,000 multiplied by the number of Pause studios we grant to you at the time you sign the MUDA. | 2025 FDD · PDF Page 16 |
| Testing of Products or Approval of new Suppliers | Testing of Products or Approval of new Suppliers (Note 11) All reasonable costs not to exceed $1,500 per review When billed | 2025 FDD · PDF Page 21 |
| Royalty Fee | Royalty Fee (Note 3) 7% of Gross Revenue (the “ Royalty Fee ”) Monthly, payable by the 7 th of each month | 2025 FDD · PDF Page 17 |
| Conference Fee | Conference Fee Then-current fee, currently $500 per person (plus hotel, air fare, and other expenses) Prior to the conference or at the time of training | 2025 FDD · PDF Page 20 |
| MUDA Transfer Fee | Transfer Fee $50,000 At the time of transfer The transfer fee and all other fees paid to us are non-refundable. | 2025 FDD · PDF Page 25 |
| Total paid to franchisor or affiliates — two businesses | Amounts paid to us or affiliates before all businesses are operating $60,000 $65,000 $110,000 $120,000 $350,000 $400,000 | 2025 FDD · PDF Page 17 |
| Development Fee — ten-studio MUDA, table | Development Fee n/a n/a $55,000 $55,000 $315,000 $315,000 | 2025 FDD · PDF Page 17 |
| Total paid to franchisor or affiliates — ten businesses | Amounts paid to us or affiliates before all businesses are operating $60,000 $65,000 $110,000 $120,000 $350,000 $400,000 | 2025 FDD · PDF Page 17 |
| Renewal Fee | Renewal Fee $10,000 At the time of renewal | 2025 FDD · PDF Page 20 |
| Total paid to franchisor or affiliates — single business | Amounts paid to us or affiliates before all businesses are operating $60,000 $65,000 $110,000 $120,000 $350,000 $400,000 | 2025 FDD · PDF Page 17 |
Some fees apply only to a specific event or service. These are not all monthly expenses.
SourcesYour Role As An Owner
SourcesThe Operating Principal must own at least 5% of the voting and ownership interests in the franchisee entity.
2025 FDD · PDF Page 58 · Item 15 · View Source
Read The Disclosed Requirements
You are not restricted as to whom you may hire as a Manager, except that your Manager must be approved by the franchisor.
2025 FDD · PDF Page 58 · Item 15 · View Source
You, your Operating Principal or your Manager must devote full time and best efforts to the operation of your Franchised Business.
2025 FDD · PDF Page 58 · Item 15 · View Source
Your personal supervision is not required if the day-to-day operation of your Franchised Business is performed by a Manager who has successfully completed the franchisor’s required training program and has, at the franchisor’s sole discretion, the appropriate experience and training.
2025 FDD · PDF Page 58 · Item 15 · View Source
Read Source Excerpts
The Operating Principal must own at least 5% of the voting and ownership interests in the franchisee entity.
You are not restricted as to whom you may hire as a Manager, except that your Manager must be approved by us.
You, your Operating Principal or your Manager must devote full time and best efforts to the operation of your Franchised Business.
Source NotesYour personal supervision is not required if the day-to-day operation of your Franchised Business is performed by a Manager who has successfully completed our required training program and has, at our sole discretion, the appropriate experience and training.
Territory
SourcesThe franchise does not come with an exclusive territory. Other franchisees, company-owned businesses and franchisor-controlled sales channels may compete in your area.
2025 FDD · PDF Page 52 · Item 12 · View Source
Read Source Excerpts
Source NotesYou will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
A disclosed territory policy does not confirm that your preferred area is available. Ask the franchisor about the specific area you are considering.
Training & Support
SourcesIf you do not open your Franchised Business within 12 months of signing your Franchise Agreement, the franchisor may terminate the Franchise Agreement.
2025 FDD · PDF Page 41 · Item 11 · View Source
Read Source Excerpts
Source NotesIf you do not open your Franchised Business within 12 months of signing your Franchise Agreement, we may terminate the Franchise Agreement.
Inside The FDD
SourcesPlain-language summaries of the available FDD information. Each summary links to its source, with original excerpts available to review.
Sources
The Franopolis report provides the source research. FDD page references identify the supplied excerpts when available.
01The Business And Its Ownership
Pause Holdings is a Delaware corporation formed on January 29, 2021.
2025 FDD · PDF Page 11 · Item 1 · View Source
The franchisor began offering franchises for Pause studios on July 27, 2022.
2025 FDD · PDF Page 9 · Item 1 · View Source
The franchisor’s affiliate, Pause Clinic West Hollywood LLC, a California limited liability company formed on November 11, 2019, operates a Pause studio in the West Hollywood neighborhood of Los Angeles, California.
2025 FDD · PDF Page 11 · Item 1 · View Source
Read Source Excerpts
Pause Holdings is a Delaware corporation formed on January 29, 2021.
We began offering franchises for Pause studios on July 27, 2022.
Source NotesOur affiliate, Pause Clinic West Hollywood LLC, a California limited liability company formed on November 11, 2019, operates a Pause studio in the West Hollywood neighborhood of Los Angeles, California.
02The Leadership Team
The leadership team listed in the FDD includes Jeff Ono (President) and John Klein (Chief Executive Officer).
2025 FDD · PDF Page 14 · Item 2 · View Source
Read Source Excerpts
03Disclosed Legal Proceedings
This FDD reports no litigation that requires disclosure under Item 3.
2025 FDD · PDF Page 15 · Item 3 · View Source
Read Source Excerpts
Source NotesNo litigation is required to be disclosed in this Item.
04Bankruptcy Disclosure
This FDD reports no bankruptcy matters that require disclosure under Item 4.
2025 FDD · PDF Page 15 · Item 4 · View Source
Read Source Excerpts
Source NotesNo bankruptcy information is required to be disclosed in this Item.
05Fees Paid To Get Started
For one Franchised Business, the initial franchise fee is $60,000.
2025 FDD · PDF Page 15 · Item 5 · View Source
Read Source Excerpts
Source NotesThe initial franchise fee for a single Franchised Business is $60,000 (the “ Initial Franchise Fee ”).
08Suppliers And Required Purchases
You must use the franchisor’s exclusive suppliers, including the franchisor’s exclusive supplier of equipment.
2025 FDD · PDF Page 33 · Item 8 · View Source
The franchisor’s President, Jeff Ono and the franchisor’s Chief Executive Officer, John Klein, have an ownership interest in the franchisor’s affiliate Pause Supply.
2025 FDD · PDF Page 33 · Item 8 · View Source
Read Source Excerpts
You must utilize our exclusive suppliers, including our exclusive supplier of equipment.
Source NotesOur President, Jeff Ono and our Chief Executive Officer, John Klein, have an ownership interest in our affiliate Pause Supply.
11Support, Training And Advertising
If you do not open your Franchised Business within 12 months of signing your Franchise Agreement, the franchisor may terminate the Franchise Agreement.
2025 FDD · PDF Page 41 · Item 11 · View Source
Read Source Excerpts
Source NotesIf you do not open your Franchised Business within 12 months of signing your Franchise Agreement, we may terminate the Franchise Agreement.
12Territory
The franchise does not come with an exclusive territory. Other franchisees, company-owned businesses and franchisor-controlled sales channels may compete in your area.
2025 FDD · PDF Page 52 · Item 12 · View Source
Read Source Excerpts
Source NotesYou will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
14Patents, Copyrights And Proprietary Information
The franchisor claims common law copyright protection in the Manual, the franchisor’s website, the franchisor’s marketing materials, training manuals or videos, and other copyrightable items that are part of the System.
2025 FDD · PDF Page 56 · Item 14 · View Source
You may only use the trade secrets and other confidential information for the purpose of operating your Franchised Business. You may only disclose Confidential Information to employees who must have access to it to operate your Franchised Business.
2025 FDD · PDF Page 57 · Item 14 · View Source
Read Source Excerpts
We claim common law copyright protection in the Manual, our website, our marketing materials, training manuals or videos, and other copyrightable items that are part of the System.
Source NotesYou may only use the trade secrets and other confidential information for the purpose of operating your Franchised Business. You may only disclose Confidential Information to employees who must have access to it to operate your Franchised Business.
15Owner Participation
The Operating Principal must own at least 5% of the voting and ownership interests in the franchisee entity.
2025 FDD · PDF Page 58 · Item 15 · View Source
You are not restricted as to whom you may hire as a Manager, except that your Manager must be approved by the franchisor.
2025 FDD · PDF Page 58 · Item 15 · View Source
You, your Operating Principal or your Manager must devote full time and best efforts to the operation of your Franchised Business.
2025 FDD · PDF Page 58 · Item 15 · View Source
Your personal supervision is not required if the day-to-day operation of your Franchised Business is performed by a Manager who has successfully completed the franchisor’s required training program and has, at the franchisor’s sole discretion, the appropriate experience and training.
2025 FDD · PDF Page 58 · Item 15 · View Source
Read Source Excerpts
The Operating Principal must own at least 5% of the voting and ownership interests in the franchisee entity.
You are not restricted as to whom you may hire as a Manager, except that your Manager must be approved by us.
You, your Operating Principal or your Manager must devote full time and best efforts to the operation of your Franchised Business.
Source NotesYour personal supervision is not required if the day-to-day operation of your Franchised Business is performed by a Manager who has successfully completed our required training program and has, at our sole discretion, the appropriate experience and training.
16Products And Services You Can Sell
The franchisor may periodically add, delete and modify the Services and Products you will offer at your Franchised Business.
2025 FDD · PDF Page 58 · Item 16 · View Source
You may be required to retain the services of Authorized Care Providers approved and licensed in your state to administer certain Services.
2025 FDD · PDF Page 59 · Item 16 · View Source
The franchisor may periodically establish maximum and/or minimum prices or provide a range of prices for Services and Products that your Franchised Business will offer.
2025 FDD · PDF Page 59 · Item 16 · View Source
Read Source Excerpts
We may periodically add, delete and modify the Services and Products you will offer at your Franchised Business.
You may be required to retain the services of Authorized Care Providers approved and licensed in your state to administer certain Services.
Source NotesWe may periodically establish maximum and/or minimum prices or provide a range of prices for Services and Products that your Franchised Business will offer.
17Renewal, Transfer And Ending The Agreement
The initial term of the Franchise Agreement is 10 years.
2025 FDD · PDF Page 60 · Item 17 · View Source
The franchisor may terminate the Franchise Agreement and MUDA only if you default.
2025 FDD · PDF Page 61 · Item 17 · View Source
You have the right to renew the Franchise Agreement for an additional term of ten years.
2025 FDD · PDF Page 60 · Item 17 · View Source
Read Source Excerpts
The initial term of the Franchise Agreement is 10 years.
We may terminate the Franchise Agreement and MUDA only if you default.
Source NotesYou have the right to renew the Franchise Agreement for an additional term of ten years.
18Public Figures
The franchisor says it does not use public figures to promote this franchise.
2025 FDD · PDF Page 66 · Item 18 · View Source
Read Source Excerpts
Source NotesWe do not use any public figures to promote our franchise.
21Franchisor Financial Statements
The franchisor’s financial reporting year ends on December 31st.
2025 FDD · PDF Page 76 · Item 21 · View Source
Exhibit E contains the franchisor’s audited financial statements covering 2024, 2023, 2022. These statements describe the franchisor’s finances, not a franchise owner’s earnings.
2025 FDD · PDF Page 76 · Item 21 · View Source
Read Source Excerpts
Our fiscal year end is December 31st.
Source NotesAttached as Exhibit E are our audited financial statements as of December 31, 2024, December 31, 2023, and December 31, 2022.
Find The Right Business For The Life You Want.
You don’t have to compare every brand on your own. A franchise consultant can help narrow your options and work through what ownership would ask of you.
Bring your questions about this brand, your priorities and the kind of business you want to run.
Your Role
Understand the hours, sales and people responsibilities behind the ownership model.
Your Shortlist
Spend less time sorting through brands and more time on options worth exploring.
Your Market
Check territory options with franchisors and identify the next questions to ask.
Keep Exploring
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