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HOTWORX

HOTWORX

The total investment to open a HOTWORX franchise ranges from $252,000 to $1.2M. The initial franchise fee is $19,950. Ongoing royalties are 7%.

What is the HOTWORX franchise?

The modern fitness industry has a basic business problem. Many members pay for memberships they rarely use, cannot find convenient workout times, or feel uncomfortable on crowded gym floors. Traditional gyms need large spaces, continuous staffing, and ongoing equipment maintenance, while much of their revenue comes from members who join in January and stop attending by March. Boutique studios provide more specialized experiences, but their higher prices and fixed class schedules limit access and capacity. HOTWORX addresses these issues with infrared sauna workouts, virtual instruction, and 24 hour unmanned access.

Stephen Smith founded HOTWORX in 2017 in Marrero, Louisiana. The company created a patented infrared sauna workout system that combines infrared heat therapy with guided isometric workouts such as yoga, Pilates, and barre, along with high intensity interval training including Hot Cycle, Hot Blast, and Hot Thunder. Studios generally contain approximately 10 to 15 patented infrared workout sauna units. Members follow sessions shown on screens inside each sauna, without a live instructor. A studio can handle up to 576 appointments per day and has theoretical capacity to serve over 1,700 members daily. HOTWORX began franchising in 2017 and has grown to over 500 locations across 44 states in less than seven years.

Consumers increasingly seek personalized, technology enhanced, results oriented workouts, flexible scheduling, and individual or semi private settings instead of crowded gym floors. Interest has also increased in recovery services such as infrared therapy, cryotherapy, and assisted stretching. HOTWORX combines these preferences through flexible access and infrared exercise. Infrared heat has been studied for muscle recovery, joint pain relief, circulation, and caloric burn. The brand presents heat enhanced exercise as a science based part of its offering, giving it a position that traditional gyms and yoga studios may not easily duplicate.

The estimated initial investment for a HOTWORX franchise is approximately $252,000 to $1,182,000. This includes the $19,950 franchise fee, leasehold improvements, equipment packages with proprietary infrared sauna units, technology systems, signage, and working capital. Actual costs vary with real estate and construction needs. A premium urban site with extensive tenant improvements may fall near the high end, while an existing suburban strip center space may be closer to the low end. Franchisees pay a continuing royalty of 7 percent of gross sales. Virtual workouts and digital key access allow studios to operate with limited staff handling front desk work, member onboarding, cleaning, and sales. The 24 hour format also creates appointment capacity during periods when traditional gyms and studios are closed.

HOTWORX grew from its 2017 launch to more than 500 locations by mid 2023 and operates in 44 states. Its largest concentration remains in the southern United States, although growth in northern and western markets has accelerated through social media, influencer partnerships, and member referrals. Those figures include newer studios that are still developing, while mature locations in strong markets may produce higher revenue. The company has also developed a member app for scheduling and workout tracking, a franchise management platform, and a virtual instruction library that receives new programming.

HOTWORX provides approximately two weeks of initial training at its Corporate Training Center in Cincinnati, Ohio. The program covers studio operations, member sales and onboarding, equipment maintenance, marketing strategy, and brand standards. Before opening, franchisees receive help with site selection, lease negotiation guidance, architectural planning, and construction management. Ongoing resources include field visits, webinar training, a resource library, and corporate assistance with marketing, operations, and technology. Each franchisee receives exclusive territory protection against competing HOTWORX studios in the designated area. The company supports multi unit ownership but recommends stabilizing the first location before adding more studios.

The best fit for a HOTWORX owner is someone who understands a technology based, low labor model and can build membership through sales and local community engagement. Fitness industry experience is not required because the systems and technology deliver the workouts. Candidates should have an interest in health and wellness, be comfortable with consultative sales, and be able to manage a small team and physical retail location. Franchise owners include corporate executives, fitness enthusiasts, real estate professionals, and multi unit operators. The concept is suited to markets with health conscious residents, active lifestyle communities, and enough population density to support 500 to 1,500 or more members per studio.

PeerSense tracks HOTWORX performance data, including SBA lending activity, unit growth trends, investment benchmarks, and competitive positioning in the fitness and wellness sector. HOTWORX has a Loan Activity Score of 80 out of 100, reflecting lending confidence and market momentum tied to its growth and differentiated concept. PeerSense helps prospective franchisees compare HOTWORX with other fitness franchises, boutique wellness concepts, and technology based service businesses. PeerSense is a commercial capital advisory firm, not a lender, and can provide data and introductions to financing sources for buyers evaluating a franchise investment.

Loan Activity Score

80/100

SBA Default Rate

0.4%

Active Lenders

115

According to its Franchise Disclosure Document or public business records, HOTWORX has 386 locations, all owned by franchisees. Public SBA loan records show 115 lenders made 482 loans to franchisees of HOTWORX. PeerSense calculates HOTWORX's score as 80 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2026 Franchise Disclosure Document.

2026 FDD VERIFIEDFitness & Wellness

Franchising since 2017 · 386 locations

Investment

$252,000 to $1.2M

Franchise Fee

$19,950

Total Units

386

386 franchised

Loan Activity Score
Very high
80
SBA Lending
25
Lender Quality
15
Transparency
8
Reach
10
Momentum
22

Proprietary PeerSense metric

Excellent
Capital Sources
115SBA lenders

Distinct lenders in public SBA records for HOTWORX

482

Total SBA loans

$352K

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

Referral fee at closing

SBA Lending Activity for HOTWORX

Loan Activity Score Breakdown

Major Brand (100+ loans)

Very High Confidence
80out of 100
Excellent
Market Momentum22/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety25/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence15/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency8/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint10/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

0.4%

vs 10.8% peer avg

SBA Loans

482

Total Volume

$169.8M

Active Lenders

115

27 selective

States

41

vs. SBA Sector Average

+10.4%lower default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

Low SBA default rate (0.4%)
386 locations nationwide

Data Insights

Key performance metrics for HOTWORX based on SBA lending data

SBA Default Rate

0.4%

10.4% below peer avg

SBA Loan Volume

482 loans

Across 115 lenders

Lender Diversity

115 lenders

Avg 4.2 loans per lender

Investment Tier

Significant investment

$252,000 to $1,182,000 total

HOTWORX: Deep SBA Data

Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2023

116 approvals. The best year on record for HOTWORX.

Top SBA State

Texas

115 SBA financed HOTWORX locations, the densest operator footprint.

Average Loan Size

$351K

Median $350K. Use as a sizing anchor when modeling your own HOTWORX unit.

Lender Concentration

40.1%

Concentrated

Share of HOTWORX approvals captured by the top 3 SBA lenders.

HOTWORX's SBA lending pipeline peaked in 2023 (116 approvals). The last five fiscal years account for 84% of cumulative volume ($147M approved). Operator density is highest in Texas with 115 SBA financed locations. Average funded ticket sits at $351K, with the median at $350K. Lender mix is concentrated: the top three SBA lenders account for 40.1% of approvals. Credit decisions concentrate with a small group of incumbents.

Payment Estimator

Loan Amount$202K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$2,609

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

HOTWORX, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

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3 FDDs Available for HOTWORX

Review franchise fees, investment ranges, royalties, Item 19 financial data, and year over year trends. Request complimentary access through your PeerSense funding advisor.

HOTWORX

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

  • PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
  • Edward L. Freeman founded PeerSense in January 2020.
  • He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
  • His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
  • In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed LinkedIn profileAbout Edward Freeman