
Source: FranopolisSweat440
Sweat440 franchise specializes in high-intensity interval training through 40-minute group fitness classes designed to maximize calorie burn and build strength.
Sources
The Franopolis report provides the source research. FDD page references identify the supplied excerpts when available.
What It Costs
SourcesWhere Your Startup Money Goes
| Cost | Disclosed Amount | Source |
|---|---|---|
| Lease Deposit and Rent — $25000 | $25,000 to $60,000 | 2026 FDD · PDF Page 14 Lease Deposit and Rent - 3 months See Note 4 $25,000 to $60,000 As Agreed Upon Before Opening Landlord, Various Third Parties |
| Market Introduction Plan — $25000 | $25,000 to $40,000 | 2026 FDD · PDF Page 14 Market Introduction Plan See Note 1 3 $25,000 to $40,000 As Incurred As Ordered Affiliate |
| TOTAL $ — $670800 | $670,800 to $1,471,800 | 2026 FDD · PDF Page 18 TOTAL $670,800 to $1,471,800 |
| Initial Franchise Fee See — $60000 | $60,000 | 2026 FDD · PDF Page 14 Initial Franchise Fee See Note 3 $60,000 Lump Sum When you sign the Franchise Agreement Us |
| Miscellaneous Pre-opening — $5750 | $5,750 to $18,500 | 2026 FDD · PDF Page 14 Miscellaneous Pre-opening Expenses See Note 1 5 $5,750 to $18,500 As Incurred Before Opening Various Third Parties and Us |
| Leasehold Improvements — $50000 | $50,000 to $300,000 | 2026 FDD · PDF Page 14 Leasehold Improvements See Note 4 $50,000 to $300,000 As Agreed Upon Before Opening Landlord, Various Third Parties |
| Additional Funds — $22500 | $22,500 to $52,500 | 2026 FDD · PDF Page 14 Additional Funds – First Three Months See Note 1 7 $22,500 to $52,500 As Incurred As Incurred Various Third Parties |
| Construction Management — $15000 | $15,000 to $17,500 | 2026 FDD · PDF Page 14 Construction Management See Note 7 $15,000 to $17,500 As Agreed Upon Before Opening Various Third Parties |
| Architect and Engineering — $15000 | $15,000 to $17,000 | 2026 FDD · PDF Page 14 Architect and Engineering Fees See Note 6 $15,000 to $17,000 As Agreed Upon Before Opening Various Third Parties |
| TOTAL See — $310400 | $310,400 to $710,900 | 2026 FDD · PDF Page 14 TOTAL See Note 1 8 $310,400 to $710,900 |
| Signage See — $10000 | $10,000 to $20,000 | 2026 FDD · PDF Page 14 Signage See Note 5 $10,000 to $20,000 As Agreed Upon Before Opening Various Suppliers |
| Furniture and Fixtures — $15000 | $15,000 to $25,000 | 2026 FDD · PDF Page 14 Furniture and Fixtures See Note 8 $15,000 to $25,000 As Agreed Upon Before Opening; Payable Upon Delivery Various Suppliers |
| Multi-Unit Development Fee See — $110000 | $110,000 | 2026 FDD · PDF Page 18 Multi-Unit Development Fee See Note 3 $110,000 Lump Sum When you sign the Multi-Unit Development Agreement Us |
| Equipment See — $50000 | $50,000 to $75,000 | 2026 FDD · PDF Page 14 Equipment See Note 9 $50,000 to $75,000 As Agreed Upon Before Opening Various Suppliers |
| Studio Permits and Licenses — $250 | $250 to $500 | 2026 FDD · PDF Page 14 Studio Permits and Licenses See Note 1 4 $250 to $500 As Incurred As Incurred Government Agencies |
| Storage Facility Expenses — $0 | $0 to $1,000 | 2026 FDD · PDF Page 14 Storage Facility Expenses See note 1 6 $0 to $1,000 As incurred As Incurred Various Third Parties |
| Professional Services — $3500 | $3,500 to $5,000 | 2026 FDD · PDF Page 14 Professional Services See Note 1 1 $3,500 to $5,000 As Agreed Upon As Incurred Various Professionals |
| Pre-Opening Travel — $3700 | $3,700 to $6,400 | 2026 FDD · PDF Page 14 Pre-Opening Travel, Labor See Note 1 2 $3,700 to $6,400 As Incurred Before Opening Various Third Parties |
| Initial Inventory — $4700 | $4,700 to $7,500 | 2026 FDD · PDF Page 14 Initial Inventory See Note 10 $4,700 to $7,500 As Agreed Upon As Ordered Various Suppliers |
| Initial Training Fee — $5000 | $5,000 | 2026 FDD · PDF Page 14 Initial Training Fee $5,000 Lump Sum When you sign the Franchise Agreement Us |
Line items are shown as disclosed. Some costs overlap or apply to different formats; do not add them together without reviewing the source.
SourcesFees And Payment Terms
| Fee | Disclosed Terms | Source |
|---|---|---|
| Development fee per Studio for six to nine Studios — $40,000 | Sweat440 FDD 2026 4 82111727v7 Total Number of Studios to be Developed 2 3-5 6-9 10 Multi-Unit Development Fee for E ach Studio $55,000 $45,000 $40,000 $35,000 During the year ending December 31, 2025, we collected initial franchise fees ranging from $35,000 to $55,000 and Multi-Unit Development Fees ranging from $110,000 to $385,000. You will not be required to pay an Initial Franchise Fee for those Studios you agreed to establish under the Development Schedule. If you request an extension of your development schedule under the Multi-Unit Development Agreement, we may grant you one 3-month extension for $5,000 per Studio; provided that you also must pay the minimum monthly royalty fee for that Studio during that extension period. If your landlord has comments to our standard lease rider, you must pay us a $600 lease review fee for | 2026 FDD · PDF Page 9 |
| Opening assistance expenses per day low — $500 | e Studio. You are responsible for the travel, lodging, and other reasonable costs we incur in providing the opening assistance, and we estimate our costs to conduct the opening assistance are between $500 and $1,000 per day. The amounts paid are not refundable. | 2026 FDD · PDF Page 9 |
| Lease review fee per revised rider — $600 | per Studio; provided that you also must pay the minimum monthly royalty fee for that Studio during that extension period. If your landlord has comments to our standard lease rider, you must pay us a $600 lease review fee for each revised lease rider that we review. For each SWEAT440® Studio you develop, you must use our affiliate and designated media vendor, LeadTeam, to implement our recommended “Market Introduction Plan” in conducting the Studio opening campaign and for ongoing local marketing. You must spend $25,000 to $40,000, as LeadTeam determines, in connection with the Market Introduction Plan. In addition, you must begin paying the Marketing Support Fee (currently $1,200 per month) to LeadTeam 5 months prior to your scheduled opening. 5 months of the Marketing Support Fee will be part of your Market Introduction Plan. For the first SWEAT440® Studio you develop, you must pay us | 2026 FDD · PDF Page 9 |
| Management weekly fee floor plus expenses — $2,000 | nce, including late charges, together with an administrative fee equal to 5% of the insurance premium. Audit Will vary under circumstances When incurred See Note 10. Management Fee The greater of (a) $2,000 per week, or (b) 20% of Gross Sales, plus our actual out-of- pocket costs for travel, meals and lodging When incurred Only applicable if the Studio Manager dies, is disabled, or their role terminates, and you fail to find a suitable replacement for the Studio Manager within 30 days. Liquidated Damages An amount equal to (i) the total amount of Royalty Fees and Brand Fund Fees payable by you over the previous 12 months (or the annualized amount of Royalty Fees and Brand Fund Fees if your Studio has not been open for at least 12 months or the minimum royalty and brand fund fees owed if the Studio did not open); (ii) divided by twelve (12); and then (iii) multiplied by the lesser of (a) | 2026 FDD · PDF Page 11 |
| Additional monthly local advertising after qualifying sales decline — $1,000 | you must spend an additional $1,000 of your required local advertising using LeadTeam. If the Studio’s monthly sales decrease by more than 5% in any 3-month period, then you must spend an additional $1,000 on required local advertising using LeadTeam, above the required local advertising, until sales either meet or exceed the monthly sales level prior to the decrease. We may increase the local advertising requirement up to $2,300 per month. (4) In addition to the amounts that you must spend on local advertising, you must pay Lead Team a Marketing Support Fee of $1,200 per month to manage your digital marketing. LeadTeam may increase the Marketing Support Fee, up to 10% per year. (5) You must obtain your software from our designated software provider and pay them or us a monthly software fee. Currently, you must pay us $695 per month for the Software License Fee. We may adjust the Softwa | 2026 FDD · PDF Page 12 |
| Military first Studio initial fee discount — $5,000 | ITEM 5 INITIAL FEES The “Initial Franchise Fee” for a Studio franchise is $60,000. The Initial Franchise Fee is paid to us when you sign the Franchise Agreement. The Initial Franchise Fee must be paid in lump sum, is non-refundable, and is fully earned when it is paid. If you are active, reserved or honorably discharges veteran of the United States Armed Forces (with evidence of enrollment), then we will give you a $5,000 discount off your Initial Franchise Fee for your first Studio. If you sign a Multi-Unit Development Agreement, you will pay us a “Multi-Unit Development Fee,” the amount of which varies depending upon the total number of Studios you agree to develop. The Multi-Unit Development Fee is paid to us in lump sum when you sign the Multi-Unit Development Agreement and is not refundable under any circumstances. The table below lists the amount of the Multi-Unit Development Fee based on the total number of Studios to be developed under the Development Schedule. | 2026 FDD · PDF Page 8 |
| Audit understatement termination trigger, at least — 5% | ess than 5%, you will immediately pay to us the Royalty Fees and other fees due, applicable interest, and the costs associated with the examination or audit. If the audit reveals an understatement of 5% or more we may terminate the franchise agreement and you may not have an opportunity to cure. (11) You must remodel your Studio within 90 days from notice from us. Any refurbishing must comply with our then-current standards for SWEAT440® businesses. The scope of refurbishing may range from simply painting the Studio to completely refurbishing the entire Studio, including replacement of fixtures, equipment, design, signs, supplies, and décor. We cannot estimate the current cost for a refurbishing project because the refurbishing requirements will vary from SWEAT440® business to business. You may make these payments in whole or in part to various third parties. If you relocate your Studio, | 2026 FDD · PDF Page 13 |
| Development fee per Studio for two Studios — $55,000 | Sweat440 FDD 2026 4 82111727v7 Total Number of Studios to be Developed 2 3-5 6-9 10 Multi-Unit Development Fee for E ach Studio $55,000 $45,000 $40,000 $35,000 During the year ending December 31, 2025, we collected initial franchise fees ranging from $35,000 to $55,000 and Multi-Unit Development Fees ranging from $110,000 to $385,000. You will not be required to pay an Initial Franchise Fee for those Studios you agreed to establish under the Development Schedule. If you request an extension of your development schedule under the Multi-Unit Development Agreement, we may grant you one 3-month extension for $5,000 per Studio; provided that you also must pay the minimum monthly royalty fee for that Studio during that extension period. If your landlord has comments to our standard lease rider, you must pay us a $600 lease | 2026 FDD · PDF Page 9 |
| Royalty percentage of weekly Gross Sales, subject to minimum — 7% | Sweat440 FDD 2026 5 82111727v7 ITEM 6 OTHER FEES Type of Fee Amount (See Note 1) Due Date Remarks Royalty Fee Greater of: (a) 7% of weekly Gross Sales; or (b) $500 per week. Payable weekly by electronic funds transfer (“EFT”). Due each Wednesday based on preceding week’s Gross Sales You must begin paying the Royalty Fee on the earlier of: (a) the date your Studio opens; or (b) the Studio opening deadline. See Note 2. Brand Fund Fee Currently $420 per month Payable by EFT at same time as Royalty Fee We may increase the Brand Fund Fee upon written notice, provided that we will not increase the Brand Fund Fee more than 10% each year after 2022. For example, if we do not increase the fee in 2025 or 2026, but increase it 2027, then we may account for a 10% increase for years 2025, 2026 and 2027. You must begin paying th | 2026 FDD · PDF Page 10 |
| Software License Fee overhead and administration share cap — 25% | se Fee attributable to our costs will not increase more than our costs increase and the portion of the Software License Fee attributable to our overhead and administrative costs will not be more than 25% of the Software License Fee. (6) We may hold an annual convention at a time, date, and location we select, and we may require you to attend. If you choose not to attend the convention, we may still require you to pay us a fee to cover the convention expense. All expenses, including your and your employees’ transportation to and from the Convention, as well as lodging, meals, and salaries during the Convention are your sole responsibility. (7) You pay the transfer fee when the Franchise Agreement, the Studio, or a material interest in you is transferred. You do not pay the transfer fee under the following circumstances: | 2026 FDD · PDF Page 12 |
| Current remedial training fee per day plus costs — $500 | ly $5,000 per person When incurred Transferee must pay the initial training fee for each employee that attends the initial training. Will not exceed $7,500 per person. Remedial Training Fee Currently $500 per day, plus costs When incurred We may require the Operating Principal and Studio Manager attend additional training up to 5 days each calendar year. You are responsible for all travel and living expenses for you and your employees. Will not exceed $1,000 per person. Costs and Attorneys’ Fees Will vary under circumstances When incurred We may recover costs and reasonable attorneys’ fees if you lose in a dispute with us. Collections Fees Will vary under circumstances When incurred You must pay us for any costs we incur in submitting any amounts due and owing to us under the Franchise Agreement to collections. Tech Support Fee Currently $300 per month Paid monthly We may change the Tech | 2026 FDD · PDF Page 10 |
| Monthly LeadTeam Marketing Support Fee — $1,200 | e. We may increase the local advertising requirement up to $2,300 per month. (4) In addition to the amounts that you must spend on local advertising, you must pay Lead Team a Marketing Support Fee of $1,200 per month to manage your digital marketing. LeadTeam may increase the Marketing Support Fee, up to 10% per year. (5) You must obtain your software from our designated software provider and pay them or us a monthly software fee. Currently, you must pay us $695 per month for the Software License Fee. We may adjust the Software License Fee, immediately upon written notice; provided that the portion of the Software License Fee attributable to our costs will not increase more than our costs increase and the portion of the Software License Fee attributable to our overhead and administrative costs will not be more than 25% of the Software License Fee. (6) We may hold an annual convention at | 2026 FDD · PDF Page 12 |
| Current successor fee — $10,000 | pent during each calendar month Currently includes social media management, content creation, CRM creation and management, website management, SEO, Meta and Google. See Note 4 Successor Fee Currently $10,000 At least 30 days before the initial franchise agreement expires We may increase the Successor Fee in the future, but it will not exceed 50% of our then-current initial franchise fee Testing and Evaluation Fee Reasonable cost of inspection will vary under circumstances Payable when you request our approval of a proposed supplier or product Includes wages, travel, and other reasonable expenses incurred by our employees or designees. Initial Training Fee – Transfer Currently $5,000 per person When incurred Transferee must pay the initial training fee for each employee that attends the initial training. Will not exceed $7,500 per person. Remedial Training Fee Currently $500 per day, plus | 2026 FDD · PDF Page 10 |
| First Studio initial training fee — $5,000 | ur scheduled opening. 5 months of the Marketing Support Fee will be part of your Market Introduction Plan. For the first SWEAT440® Studio you develop, you must pay us an initial training fee equal to $5,000 when you sign the Franchise Agreement. Finally, for each SWEAT440® Studio you develop we will provide you with the services of at least one of our employees or agents for three to five days to assist you in the opening and initial operations of the Studio. You are responsible for the travel, lodging, and other reasonable costs we incur in providing the opening assistance, and we estimate our costs to conduct the opening assistance are between $500 and $1,000 per day. The amounts paid are not refundable. | 2026 FDD · PDF Page 9 |
| Market Introduction Plan required spending low — $25,000 | our affiliate and designated media vendor, LeadTeam, to implement our recommended “Market Introduction Plan” in conducting the Studio opening campaign and for ongoing local marketing. You must spend $25,000 to $40,000, as LeadTeam determines, in connection with the Market Introduction Plan. In addition, you must begin paying the Marketing Support Fee (currently $1,200 per month) to LeadTeam 5 months prior to your scheduled opening. 5 months of the Marketing Support Fee will be part of your Market Introduction Plan. For the first SWEAT440® Studio you develop, you must pay us an initial training fee equal to $5,000 when you sign the Franchise Agreement. Finally, for each SWEAT440® Studio you develop we will provide you with the services of at least one of our employees or agents for three to five days to assist you in the opening and initial operations of the Studio. You are responsible f | 2026 FDD · PDF Page 9 |
| Monthly local advertising requirement maximum — $2,300 | ave been open (either under the Franchise Agreement or Multi-Unit Development Agreement). See Item 11. Local Advertising $1,200 per month Minimum amount must be spent during each calendar month Up to $2,300 per month. See Note 3. Marketing Support Fee Currently, $1,200 Minimum amount must be spent during each calendar month Currently includes social media management, content creation, CRM creation and management, website management, SEO, Meta and Google. See Note 4 Successor Fee Currently $10,000 At least 30 days before the initial franchise agreement expires We may increase the Successor Fee in the future, but it will not exceed 50% of our then-current initial franchise fee Testing and Evaluation Fee Reasonable cost of inspection will vary under circumstances Payable when you request our approval of a proposed supplier or product Includes wages, travel, and other reasonable expenses inc | 2026 FDD · PDF Page 10 |
| Current monthly Brand Fund Fee — $420 | based on preceding week’s Gross Sales You must begin paying the Royalty Fee on the earlier of: (a) the date your Studio opens; or (b) the Studio opening deadline. See Note 2. Brand Fund Fee Currently $420 per month Payable by EFT at same time as Royalty Fee We may increase the Brand Fund Fee upon written notice, provided that we will not increase the Brand Fund Fee more than 10% each year after 2022. For example, if we do not increase the fee in 2025 or 2026, but increase it 2027, then we may account for a 10% increase for years 2025, 2026 and 2027. You must begin paying the Brand Fund Fee the earlier of the date the Studio opens or the date the Studio should have been open (either under the Franchise Agreement or Multi-Unit Development Agreement). See Item 11. Local Advertising $1,200 per month Minimum amount must be spent during each calendar month Up to $2,300 per month. See Note 3. M | 2026 FDD · PDF Page 10 |
| Monthly local advertising maximum requirement — $2,300 | ertising using LeadTeam, above the required local advertising, until sales either meet or exceed the monthly sales level prior to the decrease. We may increase the local advertising requirement up to $2,300 per month. (4) In addition to the amounts that you must spend on local advertising, you must pay Lead Team a Marketing Support Fee of $1,200 per month to manage your digital marketing. LeadTeam may increase the Marketing Support Fee, up to 10% per year. (5) You must obtain your software from our designated software provider and pay them or us a monthly software fee. Currently, you must pay us $695 per month for the Software License Fee. We may adjust the Software License Fee, immediately upon written notice; provided that the portion of the Software License Fee attributable to our costs will not increase more than our costs increase and the portion of the Software License Fee attribut | 2026 FDD · PDF Page 12 |
| Management Gross Sales percentage alternative plus expenses — 20% | ges, together with an administrative fee equal to 5% of the insurance premium. Audit Will vary under circumstances When incurred See Note 10. Management Fee The greater of (a) $2,000 per week, or (b) 20% of Gross Sales, plus our actual out-of- pocket costs for travel, meals and lodging When incurred Only applicable if the Studio Manager dies, is disabled, or their role terminates, and you fail to find a suitable replacement for the Studio Manager within 30 days. Liquidated Damages An amount equal to (i) the total amount of Royalty Fees and Brand Fund Fees payable by you over the previous 12 months (or the annualized amount of Royalty Fees and Brand Fund Fees if your Studio has not been open for at least 12 months or the minimum royalty and brand fund fees owed if the Studio did not open); (ii) divided by twelve (12); and then (iii) multiplied by the lesser of (a) 36, or (b) the number of | 2026 FDD · PDF Page 11 |
| Current convention fee per participant plus costs — $1,000 | eater of 1.5% per month or the maximum rate permitted by law When due Payable if you do not timely pay Royalty Fee, Brand Fund Fee, or other amounts owed to us or our affiliates. Convention Currently $1,000 per participant, plus costs When incurred Will not exceed $1,500 per person. See Note 5. Transfer Fee (Single Unit) 25% of then-current standard Initial Franchise Fee, plus costs for reviewing transfer documents. Transferee must pay the initial training fee Before completion of transfer See Note 7. | 2026 FDD · PDF Page 10 |
| Transfer initial training fee per person — $5,000 | when you request our approval of a proposed supplier or product Includes wages, travel, and other reasonable expenses incurred by our employees or designees. Initial Training Fee – Transfer Currently $5,000 per person When incurred Transferee must pay the initial training fee for each employee that attends the initial training. Will not exceed $7,500 per person. Remedial Training Fee Currently $500 per day, plus costs When incurred We may require the Operating Principal and Studio Manager attend additional training up to 5 days each calendar year. You are responsible for all travel and living expenses for you and your employees. Will not exceed $1,000 per person. Costs and Attorneys’ Fees Will vary under circumstances When incurred We may recover costs and reasonable attorneys’ fees if you lose in a dispute with us. Collections Fees Will vary under circumstances When incurred You must pa | 2026 FDD · PDF Page 10 |
| Additional local advertising during first six months — $1,000 | l advertising and currently, we require you to spend your local advertising requirement on local digital marketing using LeadTeam. During the first 6 months of operation, you must spend an additional $1,000 of your required local advertising using LeadTeam. If the Studio’s monthly sales decrease by more than 5% in any 3-month period, then you must spend an additional $1,000 on required local advertising using LeadTeam, above the required local advertising, until sales either meet or exceed the monthly sales level prior to the decrease. We may increase the local advertising requirement up to $2,300 per month. (4) In addition to the amounts that you must spend on local advertising, you must pay Lead Team a Marketing Support Fee of $1,200 per month to manage your digital marketing. LeadTeam may increase the Marketing Support Fee, up to 10% per year. (5) You must obtain your software from ou | 2026 FDD · PDF Page 12 |
| Monthly Marketing Support Fee — $1,200 | ng local marketing. You must spend $25,000 to $40,000, as LeadTeam determines, in connection with the Market Introduction Plan. In addition, you must begin paying the Marketing Support Fee (currently $1,200 per month) to LeadTeam 5 months prior to your scheduled opening. 5 months of the Marketing Support Fee will be part of your Market Introduction Plan. For the first SWEAT440® Studio you develop, you must pay us an initial training fee equal to $5,000 when you sign the Franchise Agreement. Finally, for each SWEAT440® Studio you develop we will provide you with the services of at least one of our employees or agents for three to five days to assist you in the opening and initial operations of the Studio. You are responsible for the travel, lodging, and other reasonable costs we incur in providing the opening assistance, and we estimate our costs to conduct the opening assistance are betw | 2026 FDD · PDF Page 9 |
| Successor fee cap of then-current initial franchise fee — 50% | EO, Meta and Google. See Note 4 Successor Fee Currently $10,000 At least 30 days before the initial franchise agreement expires We may increase the Successor Fee in the future, but it will not exceed 50% of our then-current initial franchise fee Testing and Evaluation Fee Reasonable cost of inspection will vary under circumstances Payable when you request our approval of a proposed supplier or product Includes wages, travel, and other reasonable expenses incurred by our employees or designees. Initial Training Fee – Transfer Currently $5,000 per person When incurred Transferee must pay the initial training fee for each employee that attends the initial training. Will not exceed $7,500 per person. Remedial Training Fee Currently $500 per day, plus costs When incurred We may require the Operating Principal and Studio Manager attend additional training up to 5 days each calendar year. You a | 2026 FDD · PDF Page 10 |
| Remedial training fee maximum per person — $1,000 | e Operating Principal and Studio Manager attend additional training up to 5 days each calendar year. You are responsible for all travel and living expenses for you and your employees. Will not exceed $1,000 per person. Costs and Attorneys’ Fees Will vary under circumstances When incurred We may recover costs and reasonable attorneys’ fees if you lose in a dispute with us. Collections Fees Will vary under circumstances When incurred You must pay us for any costs we incur in submitting any amounts due and owing to us under the Franchise Agreement to collections. Tech Support Fee Currently $300 per month Paid monthly We may change the Tech Support Fee upon 90 days’ notice to you, provided that the Tech Support Fee will not increase more than 10% per year. Designated Software License Fee Currently $695 per month Paid monthly You must pay us or our designated software supplier a monthly softw | 2026 FDD · PDF Page 10 |
| Brand Fund Fee stated annual increase example — 10% | , provided that we will not increase the Brand Fund Fee more than 10% each year after 2022. For example, if we do not increase the fee in 2025 or 2026, but increase it 2027, then we may account for a 10% increase for years 2025, 2026 and 2027. You must begin paying the Brand Fund Fee the earlier of the date the Studio opens or the date the Studio should have been open (either under the Franchise Agreement or Multi-Unit Development Agreement). See Item 11. Local Advertising $1,200 per month Minimum amount must be spent during each calendar month Up to $2,300 per month. See Note 3. Marketing Support Fee Currently, $1,200 Minimum amount must be spent during each calendar month Currently includes social media management, content creation, CRM creation and management, website management, SEO, Meta and Google. See Note 4 Successor Fee Currently $10,000 At least 30 days before the initial franc | 2026 FDD · PDF Page 10 |
| Development fee per Studio for ten Studios — $35,000 | ios to be Developed 2 3-5 6-9 10 Multi-Unit Development Fee for E ach Studio $55,000 $45,000 $40,000 $35,000 During the year ending December 31, 2025, we collected initial franchise fees ranging from $35,000 to $55,000 and Multi-Unit Development Fees ranging from $110,000 to $385,000. You will not be required to pay an Initial Franchise Fee for those Studios you agreed to establish under the Development Schedule. If you request an extension of your development schedule under the Multi-Unit Development Agreement, we may grant you one 3-month extension for $5,000 per Studio; provided that you also must pay the minimum monthly royalty fee for that Studio during that extension period. If your landlord has comments to our standard lease rider, you must pay us a $600 lease review fee for each revised lease rider that we review. For each SWEAT440® Studio you develop, you must use our affiliate | 2026 FDD · PDF Page 9 |
| Current monthly Marketing Support Fee — $1,200 | it Development Agreement). See Item 11. Local Advertising $1,200 per month Minimum amount must be spent during each calendar month Up to $2,300 per month. See Note 3. Marketing Support Fee Currently, $1,200 Minimum amount must be spent during each calendar month Currently includes social media management, content creation, CRM creation and management, website management, SEO, Meta and Google. See Note 4 Successor Fee Currently $10,000 At least 30 days before the initial franchise agreement expires We may increase the Successor Fee in the future, but it will not exceed 50% of our then-current initial franchise fee Testing and Evaluation Fee Reasonable cost of inspection will vary under circumstances Payable when you request our approval of a proposed supplier or product Includes wages, travel, and other reasonable expenses incurred by our employees or designees. Initial Training Fee – Tra | 2026 FDD · PDF Page 10 |
| Initial franchise fee per Studio — $60,000 | ITEM 5 INITIAL FEES The “Initial Franchise Fee” for a Studio franchise is $60,000. The Initial Franchise Fee is paid to us when you sign the Franchise Agreement. The Initial Franchise Fee must be paid in lump sum, is non-refundable, and is fully earned when it is paid. If you are active, reserved or honorably discharges veteran of the United States Armed Forces (with evidence of enrollment), then we will give you a $5,000 discount off your Initial Franchise Fee for your first Studio. If you sign a Multi-Unit Development Agreement, you will pay us a “Multi-Unit Development Fee,” the amount of which varies depending upon the total number of Studios you agree to develop. The Multi-Unit Development Fee is paid to us in lump sum when you sign the Multi-Unit Development Agreement and is not refundable under any circumstances. The table below lists the amount of the Multi-Unit Development Fee based on the total number of Studios to be developed under the Development Schedule. | 2026 FDD · PDF Page 8 |
| Last fiscal year development fee collected low — $110,000 | E ach Studio $55,000 $45,000 $40,000 $35,000 During the year ending December 31, 2025, we collected initial franchise fees ranging from $35,000 to $55,000 and Multi-Unit Development Fees ranging from $110,000 to $385,000. You will not be required to pay an Initial Franchise Fee for those Studios you agreed to establish under the Development Schedule. If you request an extension of your development schedule under the Multi-Unit Development Agreement, we may grant you one 3-month extension for $5,000 per Studio; provided that you also must pay the minimum monthly royalty fee for that Studio during that extension period. If your landlord has comments to our standard lease rider, you must pay us a $600 lease review fee for each revised lease rider that we review. For each SWEAT440® Studio you develop, you must use our affiliate and designated media vendor, LeadTeam, to implement our recommen | 2026 FDD · PDF Page 9 |
| Marketing Support Fee annual increase cap — 10% | s that you must spend on local advertising, you must pay Lead Team a Marketing Support Fee of $1,200 per month to manage your digital marketing. LeadTeam may increase the Marketing Support Fee, up to 10% per year. (5) You must obtain your software from our designated software provider and pay them or us a monthly software fee. Currently, you must pay us $695 per month for the Software License Fee. We may adjust the Software License Fee, immediately upon written notice; provided that the portion of the Software License Fee attributable to our costs will not increase more than our costs increase and the portion of the Software License Fee attributable to our overhead and administrative costs will not be more than 25% of the Software License Fee. (6) We may hold an annual convention at a time, date, and location we select, and we may require you to attend. If you choose not to attend the co | 2026 FDD · PDF Page 12 |
| Single-unit transfer fee of then-current standard initial fee plus costs — 25% | und Fee, or other amounts owed to us or our affiliates. Convention Currently $1,000 per participant, plus costs When incurred Will not exceed $1,500 per person. See Note 5. Transfer Fee (Single Unit) 25% of then-current standard Initial Franchise Fee, plus costs for reviewing transfer documents. Transferee must pay the initial training fee Before completion of transfer See Note 7. | 2026 FDD · PDF Page 10 |
| Audit understatement threshold for fees and interest only, no more than — 2% | e method of financing before any offering or sale of securities, and (c) include the language we require in the offering. (10) If an examination or audit discloses an understatement of Gross Sales by 2% or less, you will immediately pay to us the Royalty Fees and other fees due plus applicable interest. If an examination or audit discloses an understatement of Gross Sales by more than 2% but less than 5%, you will immediately pay to us the Royalty Fees and other fees due, applicable interest, and the costs associated with the examination or audit. If the audit reveals an understatement of 5% or more we may terminate the franchise agreement and you may not have an opportunity to cure. (11) You must remodel your Studio within 90 days from notice from us. Any refurbishing must comply with our then-current standards for SWEAT440® businesses. The scope of refurbishing may range from simply pa | 2026 FDD · PDF Page 13 |
| Insurance procurement administrative fee on premium — 5% | l to obtain and maintain required insurance, we may immediately obtain insurance and you must promptly reimburse us for insurance, including late charges, together with an administrative fee equal to 5% of the insurance premium. Audit Will vary under circumstances When incurred See Note 10. Management Fee The greater of (a) $2,000 per week, or (b) 20% of Gross Sales, plus our actual out-of- pocket costs for travel, meals and lodging When incurred Only applicable if the Studio Manager dies, is disabled, or their role terminates, and you fail to find a suitable replacement for the Studio Manager within 30 days. Liquidated Damages An amount equal to (i) the total amount of Royalty Fees and Brand Fund Fees payable by you over the previous 12 months (or the annualized amount of Royalty Fees and Brand Fund Fees if your Studio has not been open for at least 12 months or the minimum royalty and | 2026 FDD · PDF Page 11 |
| Audit cost reimbursement understatement threshold, more than — 2% | ss Sales by 2% or less, you will immediately pay to us the Royalty Fees and other fees due plus applicable interest. If an examination or audit discloses an understatement of Gross Sales by more than 2% but less than 5%, you will immediately pay to us the Royalty Fees and other fees due, applicable interest, and the costs associated with the examination or audit. If the audit reveals an understatement of 5% or more we may terminate the franchise agreement and you may not have an opportunity to cure. (11) You must remodel your Studio within 90 days from notice from us. Any refurbishing must comply with our then-current standards for SWEAT440® businesses. The scope of refurbishing may range from simply painting the Studio to completely refurbishing the entire Studio, including replacement of fixtures, equipment, design, signs, supplies, and décor. We cannot estimate the current cost for a | 2026 FDD · PDF Page 13 |
| Annual Gross Sales uncollectible exclusion limit — 0.5% | d to customers on sales; (3) any proceeds from insurance with respect to property damage or liability; or (4) uncollectible amounts, subject to the limitation that uncollectible amounts cannot exceed 0.5% of Gross Sales for any fiscal year of the franchisee and subsequent collections of charged off amounts must be included in Gross Sales when they are collected. A sale is made at the earlier of delivery of the product or service, or receipt of payment. (3) You must spend at least $1,200 per month on approved local advertising. We may direct how you spend your local advertising and currently, we require you to spend your local advertising requirement on local digital marketing using LeadTeam. During the first 6 months of operation, you must spend an additional $1,000 of your required local advertising using LeadTeam. If the Studio’s monthly sales decrease by more than 5% in any 3-month pe | 2026 FDD · PDF Page 12 |
| Opening assistance expenses per day high — $1,000 | You are responsible for the travel, lodging, and other reasonable costs we incur in providing the opening assistance, and we estimate our costs to conduct the opening assistance are between $500 and $1,000 per day. The amounts paid are not refundable. | 2026 FDD · PDF Page 9 |
| Monthly Software License Fee — $695 | y increase the Marketing Support Fee, up to 10% per year. (5) You must obtain your software from our designated software provider and pay them or us a monthly software fee. Currently, you must pay us $695 per month for the Software License Fee. We may adjust the Software License Fee, immediately upon written notice; provided that the portion of the Software License Fee attributable to our costs will not increase more than our costs increase and the portion of the Software License Fee attributable to our overhead and administrative costs will not be more than 25% of the Software License Fee. (6) We may hold an annual convention at a time, date, and location we select, and we may require you to attend. If you choose not to attend the convention, we may still require you to pay us a fee to cover the convention expense. All expenses, including your and your employees’ transportation to and f | 2026 FDD · PDF Page 12 |
| Monthly sales decrease trigger for additional advertising, more than — 5% | ting using LeadTeam. During the first 6 months of operation, you must spend an additional $1,000 of your required local advertising using LeadTeam. If the Studio’s monthly sales decrease by more than 5% in any 3-month period, then you must spend an additional $1,000 on required local advertising using LeadTeam, above the required local advertising, until sales either meet or exceed the monthly sales level prior to the decrease. We may increase the local advertising requirement up to $2,300 per month. (4) In addition to the amounts that you must spend on local advertising, you must pay Lead Team a Marketing Support Fee of $1,200 per month to manage your digital marketing. LeadTeam may increase the Marketing Support Fee, up to 10% per year. (5) You must obtain your software from our designated software provider and pay them or us a monthly software fee. Currently, you must pay us $695 per | 2026 FDD · PDF Page 12 |
| Convention fee maximum per person — $1,500 | due Payable if you do not timely pay Royalty Fee, Brand Fund Fee, or other amounts owed to us or our affiliates. Convention Currently $1,000 per participant, plus costs When incurred Will not exceed $1,500 per person. See Note 5. Transfer Fee (Single Unit) 25% of then-current standard Initial Franchise Fee, plus costs for reviewing transfer documents. Transferee must pay the initial training fee Before completion of transfer See Note 7. | 2026 FDD · PDF Page 10 |
| Audit cost reimbursement applies below understatement threshold — 5% | less, you will immediately pay to us the Royalty Fees and other fees due plus applicable interest. If an examination or audit discloses an understatement of Gross Sales by more than 2% but less than 5%, you will immediately pay to us the Royalty Fees and other fees due, applicable interest, and the costs associated with the examination or audit. If the audit reveals an understatement of 5% or more we may terminate the franchise agreement and you may not have an opportunity to cure. (11) You must remodel your Studio within 90 days from notice from us. Any refurbishing must comply with our then-current standards for SWEAT440® businesses. The scope of refurbishing may range from simply painting the Studio to completely refurbishing the entire Studio, including replacement of fixtures, equipment, design, signs, supplies, and décor. We cannot estimate the current cost for a refurbishing proj | 2026 FDD · PDF Page 13 |
| Brand Fund Fee annual increase cap — 10% | nd Fund Fee Currently $420 per month Payable by EFT at same time as Royalty Fee We may increase the Brand Fund Fee upon written notice, provided that we will not increase the Brand Fund Fee more than 10% each year after 2022. For example, if we do not increase the fee in 2025 or 2026, but increase it 2027, then we may account for a 10% increase for years 2025, 2026 and 2027. You must begin paying the Brand Fund Fee the earlier of the date the Studio opens or the date the Studio should have been open (either under the Franchise Agreement or Multi-Unit Development Agreement). See Item 11. Local Advertising $1,200 per month Minimum amount must be spent during each calendar month Up to $2,300 per month. See Note 3. Marketing Support Fee Currently, $1,200 Minimum amount must be spent during each calendar month Currently includes social media management, content creation, CRM creation and mana | 2026 FDD · PDF Page 10 |
| Relocation fee or greater reimbursement amount — $5,000 | t) $5,000 for each unmet development obligation, plus costs for reviewing transfer documents. Transferee must pay the development training fee Before completion of transfer See Note 8. Relocation Fee $5,000 or such greater amount to reimburse us for services we provide in connection with the relocation We reserve the right to charge this fee if you desire to change the location of your Studio. Securities Offering Fee Greater of $10,000 or actual costs When incurred See Note 9. Securities Update Fee Actual costs When incurred Payable if you request information from us to update or otherwise satisfy any of your on - going securities reporting requirements. Insurance Cost of insurance. Payable before opening If you fail to obtain and maintain required insurance, we may immediately obtain insurance and you must promptly reimburse us for insurance, including late charges, together with an adm | 2026 FDD · PDF Page 11 |
| Securities offering fee minimum, or actual costs if greater — $10,000 | reimburse us for services we provide in connection with the relocation We reserve the right to charge this fee if you desire to change the location of your Studio. Securities Offering Fee Greater of $10,000 or actual costs When incurred See Note 9. Securities Update Fee Actual costs When incurred Payable if you request information from us to update or otherwise satisfy any of your on - going securities reporting requirements. Insurance Cost of insurance. Payable before opening If you fail to obtain and maintain required insurance, we may immediately obtain insurance and you must promptly reimburse us for insurance, including late charges, together with an administrative fee equal to 5% of the insurance premium. Audit Will vary under circumstances When incurred See Note 10. Management Fee The greater of (a) $2,000 per week, or (b) 20% of Gross Sales, plus our actual out-of- pocket costs | 2026 FDD · PDF Page 11 |
| Minimum weekly royalty — $500 | Sweat440 FDD 2026 5 82111727v7 ITEM 6 OTHER FEES Type of Fee Amount (See Note 1) Due Date Remarks Royalty Fee Greater of: (a) 7% of weekly Gross Sales; or (b) $500 per week. Payable weekly by electronic funds transfer (“EFT”). Due each Wednesday based on preceding week’s Gross Sales You must begin paying the Royalty Fee on the earlier of: (a) the date your Studio opens; or (b) the Studio opening deadline. See Note 2. Brand Fund Fee Currently $420 per month Payable by EFT at same time as Royalty Fee We may increase the Brand Fund Fee upon written notice, provided that we will not increase the Brand Fund Fee more than 10% each year after 2022. For example, if we do not increase the fee in 2025 or 2026, but increase it 2027, then we may account for a 10% increase for years 2025, 2026 and 2027. You must begin paying the Brand Fund Fee the earlier of t | 2026 FDD · PDF Page 10 |
| Transfer initial training maximum per person — $7,500 | designees. Initial Training Fee – Transfer Currently $5,000 per person When incurred Transferee must pay the initial training fee for each employee that attends the initial training. Will not exceed $7,500 per person. Remedial Training Fee Currently $500 per day, plus costs When incurred We may require the Operating Principal and Studio Manager attend additional training up to 5 days each calendar year. You are responsible for all travel and living expenses for you and your employees. Will not exceed $1,000 per person. Costs and Attorneys’ Fees Will vary under circumstances When incurred We may recover costs and reasonable attorneys’ fees if you lose in a dispute with us. Collections Fees Will vary under circumstances When incurred You must pay us for any costs we incur in submitting any amounts due and owing to us under the Franchise Agreement to collections. Tech Support Fee Currently | 2026 FDD · PDF Page 10 |
Some fees apply only to a specific event or service. These are not all monthly expenses.
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