How much is a HotWorx Franchise ? Franchise Cost, Profit Margin
HotWorx Franchise
“Do you know why Japanese people take a hot bath before sleeping at night? Japanese people are known to be industrious and hardworking people in the world. They love working and not mind working beyond the office time. Despite hardworking, and working at stretched hours, they never feel tired the next day. The mystery of their good health is the hot bath, which is known as Ofuro in Japanese.
If you are not Japanese and want to live like a Japanese person, HotWorx has brought you an artificial Infrared generated heat environment just like ofuro for you to burn your extra calories, detoxify your blood and relax your muscles. Since its inception, it is rapidly growing. If you love workout and wants to start a new business, Hotworx franchise is a great option for you.
About HotWorx Franchise
HowWorx provides a virtually instructed exercise program which is done under an artificially infrared created hot environment. Infrared creates a hot environment for sweating and warming up the body. Many benefits of artificially infrared created exercise which is known as Hot Worx has been recorded like - pain relief, Muscles recovery, weight loss etc.
There are two types of exercise programs under the HotWorx program. The first is a 30-minute Isometric workout and the 2nd is a 15-minute-High Intensity Interval Training (HIIT), sessions. The exercise consists of Yoga, Pilates, Barre, Indoor Cycling, Indoor Rowing, Personal Training, Resistance Bands, All Other Forms of Isometrics, Athletic Stretching, and TRX and Suspension Training.
Foundation and history of HotWorx Franchise
Stephen P. Smith is the founder of HotWorx. He has served as Chief Executive Officer and Chairman of the Board of Directors since April 1996.
He got a B.A. degree in Political Science from the University of Mississippi, a Master in Organizational Management from the University of Phoenix, and the Distinguished Certified Franchise Executive Designation from the International Franchise Association. Furthermore, he received his Personal Training certification through AFAA and Suspension Training certification through TRX.
He was an athlete in his college football team and a team member of Arena Football team. During his career he received many bodybuilding titles including NPC National Collegiate Champion.
Mr. Smith began his entrepreneurship career in 1986. He opened and operated Bodyplex Fitness Centre in 1986. Then, Bay Street Tanning Boutique from 1988 to 1989. He opened three Gold’s Gyms and operated successfully till 1995. Mr. Smith founded Planet Beach Franchising Corporation in 1996 and began franchising that same year.
Mr. Smith invented a new infrared fitness sauna and founded HOTWORX in 2014. Its Head office is located in Marrero, Louisiana, United States of America
HotWorx introduced a 24-Hour exercise program in 2017. It started franchising its business in the same year.
Advantages of HotWorx Exercise Programs
The training and exercise are done under an artificially infrared generated hot environment. As the infrared heat penetrates the body, the body starts sweating. The isometric postures further accelerate detoxification by physically removing the toxins from the body organs through muscle contraction. The whole exercise program consists of Heat, infrared and exercise and has a 3D like effect on the body. This is also called 3D training at HotWorx.
HotWorx Franchise Outlets
HotWorx started franchising its business in 2017. Since then, it has been rapidly growing in many countries. As of now, the company has a total 298 Franchise outlets.
HotWorx has revolutionized the fitness industry by providing the ultimate hot exercise experience, bringing the concept of Infrared artificial environment. Its franchise business model creates a unique opportunity for entrepreneurs to achieve their personal and professional goals by offering convenient and affordable access to a 24 -Hour Infrared Fitness Studio. It helps users to achieve their health and fitness goals.
HotWorx Franchise Revenue Details
HotWorx's company has been growing very fast and all franchises are doing profitable business. The company has currently 529 Employees and their average revenue per employee is $337,500. Hotworx expansion led to growth of employees 38% in 2021.
Hot Worx franchisor revenue was $1.3 million in 2018 and increased to $3.3 million in 2020. The average total revenue of all Hotworx franchises is $341,000 for the 2021 year. It has been consistently growing.
Advantage of HotWorx 3D Training
- Heat: Raise core body temperature and speeds up metabolism.
- Infrared Energy: Activates and strengthens the regenerative process in the Human body.
- Exercise: Increases heart rate and minimizes calories burn.
Benefits of HotWorx Exercise Program
- Muscles recovery
- Pain Relief
- stress Reduction
- Weight Loss
- Increased Calories Burn
- Detoxification
- Lower Blood Pressure
- Cellulite Reduction
- Anti- aging, and Skin Rejuvenation
- Improve Circulation
HotWorx’s Franchise Cost
The initial franchise fee is $19,950 for a single-unit licence and for an express studio the franchise cost is $12,950.
For a HotWorx franchise, an estimated initial investment details are as below -
| Type of Expenditure | Estimated Amounts Range |
| Initial Franchise Fee | $12,950 to $19,950 |
| Sauna and workout equipment, computer, phone, and internet equipment, exterior, signage, security cameras, water fountain, vending, machine, chairs, and washer/dryer | $110,500 to $169,500 |
| Leasehold Improvements | $15,000 to $225,000 |
| CAD Fee/Engineering & Architect Fees | $3,200 to $12,000 |
| Trade Dress Items and Finish Out | $28,000 to $45,000 |
| Utility, phone, real estate, and real estate lease deposits | $5,000 to $19,000 |
| Insurance initial payment | $2,000 to $18,750 |
| Printing, Marketing, and Advertising | $10,000 |
| Wholesale Goods/Inventory to begin operating | $20,000 |
| Professional Fees | $1,000 to $3,000 |
| Additional funds during startup period, such as for first three months, initial operations, and working capital | $35,500 to $54,500 |
| Out-of-Pocket initial training expenses, including travel and lodging | $600 to $3,500 |
| Totals | $240,750 to $600,200 |
HotWorx’s Ongoing Cost and Fee
There are certain ongoing expenses incurred while operation of HotWorx Franchise outlets. Find the details of ongoing cost and fees.
| Type of Fee | Amount |
| DMA or Development Area Transfer | $5,000 |
| Resale/Transfer Fee | $10,000 – $19,950 |
| Monthly Royalty Fee | $550.00 per month |
| Annual Convention | $590.00 – $790.00 |
| Credit Card Processing Fee | 3% of Amount Charged |
| Technology Fee | $0 – $150.00 per month or $1,800 lump sum |
| POS Software Fee | $129.00 per month |
| Virtual Instructor Software Fee | $10.00 per sauna per month |
| “SAIL” – Customer Relations Management (CRM) Fee | $125.00 per month per studio location |
| Secret Shop Inspections | $100.00 per month per studio location |
| Site Visit Fee | $200.00 per day |
Hotworx Franchise Royalty Fee
Royalty fee is a recurring fee which is charged usually per month or yearly as per agreement. The royalty model differs from franchisor to franchisor. Some fix a certain minimum amount or a certain percentage of total sale/revenue amount Or whichever is higher.
HotWorx per month royalty fee is $550.
Space Required for HotWorx Franchise Studio
For and ideal HotWorx Infrared hot studio space required is between 1,500-2,500 square feet.
How to apply for Hotworx Franchise procedure
HOTWORX has been providing the ultimate hot exercise experience with patent, infrared workout sauna. Its franchise business model creates a unique opportunity for entrepreneurs to achieve their personal and professional goals. The Hotworx infrared Fitness Studio offers 24 Hour hours services to its members to achieve their health and fitness goals.
Hotworx provides the following support and business models to the franchisee for successful full operation and growth.
- Innovative Fitness Technology.
- Membership Driven Business Model
- Multiple Revenue Streams
- Ongoing Training and Support.
An interested candidate should take the following steps to get HotWorx franchise Studio.
- Visit its official website https://www.hotworx.net
- On the home page, there are two tabs- Franchising and Request Franchise Info.
- Click on any tab and a franchise form will appear to apply.
- Enter your details correctly and then submit.
- An authorized member of the Franchise team will respond to you.
- After the first round talk, One to one meeting will be held and the rest will be followed and so on.
Conclusion
Hotworx Started offering franchise business to its eligible partners in 2017 and since then, it has been consistently growing. There were 298 franchise studios in 2021. There are another 490 in the early stages of development. The company is expecting to open a total number of 1,000 studios by the end of 2022.
HotWorx franchisor revenue was $1.3 million in 2018 and increased to $3.3 million in 2020. The average total revenue of all Hotworx franchises was $341,000 in 2021. And it has been consistently growing. Though, its investment amount is very high and takes time to get ROI. However, due to its innovative business model and continuous support from franchisors, franchisees succeed in making much profit.