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Open a Sweat440 Fitness Franchise: What You Need To Know
SWEAT440 is a unique HIIT-style concept with new classes starting every 10 minutes. This ultimate flexibility model is not only appealing to our customers but also to business owners as it leads to some incredible operational benefits.
In an increasingly competitive fitness market, we have a truly unique concept that has captured the attention of all those consumers with busy or unpredictable schedules. Efficiency is at the core of our operation philosophy and we have designed a business operation that is extremely simple to own and manage. We have focused heavily on our training and support as well as our data analytics and reporting to give our franchisees the tools they need for success.
Our first studio opened in 2018 in Miami Beach and has grown to 20 locations. 16 Of those locations have opened in the past 18 months. We chose not to sell franchises during this time to ensure successful openings and optimize the operations of our franchisees. We just reopened sales and already have another 20 units in the pipeline to open and hundreds of franchise inquiries. We are only selling multi-unit franchise deals to well-qualified franchisees with significant operation experience. We require a minimum of 5 unit commitments and are limiting our territories to being within the United States, for now. We are okay with growing slowly and strategically with the right franchise partners instead of growing quickly and recklessly. Our franchisees’ success is at the core of our focus.
What is your franchise’s unique selling proposition (USP)?
We are the most convenient fitness offering in the industry. With approximately 70 classes per day, we offer a great “no excuses” option for the busy consumer. Our members attend more classes on average than they can at a traditional fitness studio. Our pricing and labor models have significant built-in flexibility which allows for our studio to be hyper-granular in maximizing profitability. We have also focused heavily on implementing systems to optimize ownership and allow for multi-unit owners to have all the data and support they need to successfully operate their studios.
How many units do you currently have? How many new ones are opening per month and in which geographic areas are you most popular?
We currently have 20 open units and another 20 on the way. We are focused mostly on the East Coast with South Florida being our most dense area. We are opening about 1 studio a month currently but we expect that to double in 2025.
What are the key revenue streams for franchisees?
We are heavily focused on RMR (recurring monthly revenue). Our RMR memberships account for about 90% of our revenue which allows for significant revenue stability. The remaining is drop-ins and class packages as well as third-party booking systems.
How is your brand positioned for future growth and expansion in the next 5-10 years?
We chose to go slowly over the past two years so that we can go fast in the next few years. We have built out robust reporting and analytics platforms as well as training and support platforms. We recently made some key hires to our corporate team and are well-capitalized to ensure steady growth over the coming years. With several key territories still available we are excited to partner with experienced operators to expand the brand quickly yet strategically.
What training and support do you provide to franchisees, including marketing, advertising, technology, equipment and real estate?
We have a National site selection team with demographic analytics capabilities as well as lease negotiations etc. We have architects and project managers for your construction process. We recently purchased a marketing company and have ample support for all things marketing such as SEO, Social Media, Meta and Google ad management, and grassroots marketing support. For operational training and ongoing support, we have a comprehensive Learning Management Software as well as an internal communication system that connects all studios with the necessary support team. We also do in-person training at our HQ and also on-site when needed.
Do you grant exclusive rights to a specific geographic area or are there any limitations on competition from other franchisees?
Yes. During the franchise agreement process we design a protected territory and a development schedule. We aren’t in the business of selling franchises but rather in opening successful studios. So we don’t ever want to overcrowd a market and cannibalize our franchisees.
Can you provide any pertinent financial performance details that would assist potential franchisees?
Studio | Total Gross Revenue for FY 2021 (partially open due to Covid) | Total Gross Revenue for FY 2022 | Total Gross Revenue for FY 2023 |
Miami Beach | $388,689 | $889,583 | $1,232,848 |
Brickell | $545,024 | $1,116,848 | $1,403,945 |
NYC – Chelsea | $202,956 | $619,374 | $919,668 |
Coral Gables | $217,769 | $527,376 | $775,881 |
NYC – FIDI | N/A | N/A | $533,914 |
Miami Lakes | N/A | N/A | $718,651 |
Austin Highland | N/A | N/A | $245,356 |
Doral | N/A | N/A | $682,994 |
What are the key contact details for reaching out to your company and exploring potential collaboration?
You can email [email protected] but the best way to enter into consideration for a franchise is to visit our website and fill out the form.