What if you could combine the expertise of an instructor from a fitness app with the community of a small private group similar to in-person classroom instruction?

Enter Hotworx, the fitness studio known for their infrared heat absorption technology. Or in simpler terms, you’re working out in a small sauna. Hotworx provides virtual instructors that guide members through workouts inside a sauna. Weight loss and endurance are only a couple of the health benefits Hotworx offers fitness goers. The fitness center is open 24 hours and 7 days a week. And to top it all off, they’re open for franchising.

How much does it cost to open Hotworx? To franchise this fitness studio, you’ll need a liquid capital of $12,000 – $35,000. The investment range to start a Hotworx franchise is $240,750 – $600,200 and the franchise fee is $12,950 – $19,950.

But is Hotworx a worthwhile investment or passing workout trend already on the way out? Keep reading to understand more about the profitability in addition to the advantages and challenges operating this unique fitness studio. Take our 7-minute franchise quiz to get paired with a business opportunity that meets your criteria and skills.

Financial Requirements and Fees

Here is a breakdown of Hotworx’s investment for a single unit fitness studio.

In addition, Hotworx requires a monthly royalty fee of $550 per month. The desired size for a Hotworx location is around 2,000 square feet.

Average Sales / Revenue per Year

A Hotworx locations average revenue in 2021 was $341,000. But one location in West Jordan Utah only saw gross sales of $400,164 in a year. The asking price for this business was $600,000 and came with the following equipment as part of the sale: 10 Infrared Saunas, 6 Schwinn Cycles, 3 Keiser Total Body Trainers, 3 Thunder Water Rowers, and FX Zone with free weights for cross training.

Your Goal as a Franchise Owner

Similar to other gyms, your goal as a franchise owner is to get new members and retain existing members as long as possible.

Monthly memberships start at $99 per month with VIP memberships at $149 per month. There are discounted rates for families that allow you to bring another member onboard for and additional $30 month. Non-members can drop in for $20 per class. Hotworx also generates revenue by renting and selling towels and mats for workouts.

In the West Jordan location, the owner was able to recruit 550 members into their gym. Considering this location generated $59,164 above the average revenue of a HotWorx unit this is a good member number to aim for. The business also had 4 employees to help manage the business operations.

Stepping into the workout box.

Hotworx Franchise Facts

Hotworx was founded by Stephen Smith in 2016. The concept of the fitness studio is using infrared heat absorption technology in order for one to lose weight (among many things). Fitness enthusiasts go inside a sauna room that contains video screens inside where Virtual Instructors can coach you on the workout of your choice. Workouts can be a 15-minute High Intensity Interval Training (HIIT) or a 30-minute Isometric workout.

Hotworx patented their sauna and they also refer to their workouts as 3D Training: heat, infrared, exercise. Along with the consistency of these workouts and cross-training, the workout combined with the heat in the sauna can provide the several results or benefits:

• Muscle Recovery
• Pain Relief
• Stress Reduction
• Weight Loss
• Increased Calorie Burn
• Detoxification
• Lower Blood Pressure
• Cellulite Reduction
• Anti-Aging & Skin Rejuvenation
• Improved Circulation

The fitness studio has many locations in the United States as well as in Australia, Ireland, Saudi Arabia, and the United Arab Emirates. Last June 23, 2023, Hotworx opened their 500th studio with a goal to open 1,000 fitness studios in two years.

Working on your fitness.

To franchise Hotworx, you may start by completing the form here and submitting it to them. A franchise representative will reach out to you once they have received your inquiry.

At present, the Chief Executive Officer and Chairman of the Board of Directors of Hotworx remain to be Stephen Smith. Their headquarters is located at Louisiana, United States.

How Much Does Hotworx Make in Profit?

Each Hotworx location generates $276,499 – $288,623 in annual profit after expenses according to reports. The would mean the average profit margin is an extremely high 81% – 84%. This is an incredible amount of annual profit based on $341,000 in average revenue.

It makes sense that Hotworx would have a high profit margin. The company leverages virtual trainers that cost a lot less than hiring an in person trainer. They also charge fees for equipment like towels and mats.

Still, keep in mind that the number of employees you hire and monthly lease payments is going to impact your profitability. If you want to hire a full-time manager or two that’s really going to cut into profits. Monthly lease payments can vary significantly depending on location as well.

Advantages of a Hotworx Franchise

Hotworx can provide you with many advantages if you choose to franchise with them. Here are the following to expect:

Concept

Hotworx’s concept is one-of-a-kind wherein it’s combined with infrared heat and working out at the same time. The workouts aren’t as long as one would expect as well with only 15 minutes dedicated to High Intensity Interval Training (HIIT) or 30 minutes for Isometric workouts. The benefits and results as mentioned above are plenty. In addition, the fitness studio is open 24/7 so anyone can just choose to workout any time.

So if you do decide to put up a Hotworx in your area, your concept would be interesting for many that it’ll pique they’re curiosity and sign up to try Hotworx out.

Accommodating

Hotworx may be a small gym or fitness center as compared to many but it can accommodate so many workouts and people in just one day. They have provided the following data for reference:

• 11 workout options
• 576 group sessions
• 1,728 individual sessions

Global Presence

Hotworx has over 500 locations and plans to grow to 1,000 in two years. Their locations are all over the United States, and in Australia, Ireland, Saudi Arabia, and the United Arab Emirates. This is a concept that’s experienced rapid growth and has broad appeal.

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Affordable

Hotworx is considered one of the affordable fitness centers in the industry due to its low maintenance and small scale franchise setup.

Challenges of a Hotworx Franchise

Though Hotworx is successful, there are still some challenges to expect. Here are the big ones you should know about.

No Coach

Though a Virtual Instructor is fine and all, some mistakes that are made when just following a video is that there is no one physically there to check on your form. So gym goers who aren’t as experienced won’t get the personalized feedback and attention that some members craze.

Repetitive Videos

As mentioned above, the workouts are done via videos and a review posted on Reddit claims that the video workouts get repetitive quickly. And if you do these workouts repetitively for weeks so some members could get bored easily.

Hotworx locations in the United States.

Few Free Amenities

On the same Reddit post, you can also read how gym goers would appreciate if there were basic free amenities such as towels or filtered water. Even low-cost gyms include these basic amenities and it’s surprising that any workout facility wouldn’t provide this.

Post-Pandemic Friendly?

The aftermath of the pandemic has led many to change the way they workout. Some consumers want to work out in a solo environment while others seek to connect with other members. Hotworx aims to provide a workout option for those who want to workout in a safer, small group setting. But will this approach really resonate?

One sauna can fit three people and there is no need for a coach present. As you can see from the images these saunas can get pretty tight with three members. As a result, member who want a more private experience aren’t really getting it. For members that are still concerned about being exposed, they might just prefer to stay at home.

Is this a fad? 

The concept is relatively new and there is a lot of excitement around it. If people start to see HOTWORX as a fad, they may be less likely to sign up for memberships. This could lead to declining revenue for investors who operate and manage Hotworx studios.

Is the Hotworx Franchise Right For You?

On the business side, Hotworx seems like an affordable fitness studio franchise you can get into. It’s also low maintenance wherein you don’t need to hire coaches or virtual instructors to oversee the training since they’re all done via videos. With the help of security features, Hotworx is also open 24/7 to official members so you don’t need security personnel on standby at night.

On the customer side, Hotworx isn’t for everyone. Gym goers who are looking to properly sculpt and tone their body may not go to Hotworx but those who want a low intensity workout will prefer Hotworx over the others.

What is an alternative Hotworx franchise?

The gym industry is very familiar with Anytime Fitness. It’s a global brand of gym and fitness centers that are popularly known for their operating hours which is 24/7. The gym is equipped with all the necessary equipment and coaches are there if you need them.

To franchise Anytime Fitness, expect the investment to be around $474,552 to $970,097.

If you want to bring a new kind of fitness center in your area than Hotworx could be a good option to explore. I hope this guide was helpful in beginning your franchise research process.