Reality Check: Inside the 2025 Perspire Sauna Studio FDD
Executive Summary
Perspire Sauna Studio offers a wellness franchise focused on infrared saunas and related therapies. The brand’s 2025 Franchise Disclosure Document (FDD) details a business model with moderate investment costs, thorough operational guidance, and a management team experienced in franchising.
While several of Perspire’s contractual terms might sound alarming, most fall squarely into normal practices across the franchise industry, even if franchisees sometimes find them challenging once enforced. However, two areas in Perspire’s FDD stand out as genuinely worrisome: an explicit warning about the franchisor’s financial stability, and language allowing ACH withdrawals for fees beyond those listed in the original agreements.
Prospective franchisees should examine these issues carefully; and recognize that part of franchise success lies in fully understanding the fine print before signing.
About the Franchise
Perspire Sauna Studio franchises are offered by Sweat Equity Group, LLC, formed in 2017 and headquartered in Costa Mesa, California. The brand began franchising in December 2017. It offers infrared sauna sessions, red light therapy, halotherapy, contrast showers, chromotherapy, and related merchandise.
Several affiliated entities also operate Perspire locations, but the franchisor itself does not directly operate company-owned outlets beyond these affiliated businesses.
Investment Snapshot
Initial Franchise Fee: $50,000
Total Estimated Investment Range: $565,538 – $989,638
Royalty Fee: 7% of Gross Revenues (minimum $600/month)
Brand Fund Contribution: 2% of Gross Revenues (may increase to 3%)
Technology Fee: $185/month initially; then $1,040.50/month starting with pre-sale marketing
Digital Marketing Signage Fee: $50/month
Area Development (multi-unit): Minimum 3 units; total initial investment $1,106,076 – $1,954,276
Normal Franchisor Practices (Even if They’re Difficult in Practice)
Signing a New Agreement for Each Unit
Perspire’s FDD states:
“You will be required to sign a separate Franchise Agreement, in our then-current form, for each additional Perspire Sauna Studio Business…”
This is normal.
In virtually every franchise system, including brands like Domino’s, Subway, or McDonald’s, new locations require signing the then-current version of the franchise agreement. Terms inevitably change over time to reflect:
Updated fees
New technology systems
Revised branding or build-out standards
It’s understandable that franchisees feel frustration when new terms differ from what they signed initially but this practice is standard and legally permissible. The key is to ask:
How different are the new terms?
Do they significantly impact profitability or operating obligations?
Franchisees should plan for evolving contracts if they intend multi-unit development.
Required Suppliers and Potential Markups
Perspire’s FDD makes clear that franchisees must purchase:
Specific saunas and equipment
Signage
Software
Retail products
Architectural services
Construction management for first units
The franchisor can also act as a pass-through collector for vendor payments.
This is a generally accepted practice.
Required purchasing ensures brand consistency and quality.
Many franchisors receive rebates or commissions from approved vendors.
It’s a core part of the franchise business model.
However, Perspire discloses that:
“Perspire reports that 35.4% of its total revenue in the last fiscal year came from franchisees’ required purchases of products, services, and equipment.”
This is a significant proportion of the franchisor’s income. It suggests that the system’s economics are substantially tied to franchisee spending on required goods and services, not just royalties or franchise fees.
Where problems arise:
If required products are marked up excessively.
If franchisees cannot confirm whether pricing is competitive.
When the cost of required products contribute to the financial failure of franchisee units.
Franchisees should always ask for:
A clear list of required suppliers
Transparent pricing comparisons
Disclosure of any rebates or financial benefits received by the franchisor
Just because required purchases are common in franchising does not mean the costs are always fair or competitive. Franchisees should examine how much of the franchisor’s revenue depends on these purchases, and what impact that has on their own profitability.
Minimum Royalties and Fees
Perspire imposes:
A minimum royalty of $600/month
Ongoing brand fund fees
Technology fees
This is normal.
Most franchisors enforce minimum royalties, even if sales are slow, to ensure the franchisor covers its support infrastructure. However, franchisees should be realistic about cash flow planning, especially in the early months or during downturns.
Changing Standards and Specifications
Perspire reserves the right to:
“…modify our written standards and specifications, and you must comply with any modifications.”
This is normal.
Most franchisors retain this flexibility. It allows:
Updated store designs
New required equipment
Technology upgrades
However, significant changes can become financially burdensome, especially if imposed on existing stores without sufficient lead time or ROI justification.
Practices That Deserve Closer Scrutiny
While most of Perspire’s FDD reads like a typical franchise relationship, two elements stand out as potentially worrisome:
Explicit Financial Condition Warning
The FDD states:
“The franchisor’s financial condition, as reflected in its financial statements (see Item 21), calls into question the franchisor’s financial ability to provide services and support to you.”
This is concerning.
It’s somewhat uncommon for an FDD to admit doubts about the franchisor’s financial health. I see this most commonly in emerging franchisors and franchisors that do not operate any (or operate just a few) corporate locations.
This signals possible under-capitalization or operational stress.
Franchisees could face:
reduced support
delays in services
risk of the franchisor failing altogether
Franchisees should scrutinize Perspire’s Item 21 financials in depth before proceeding.
ACH Withdrawals for Unspecified Fees
Perspire’s FDD allows:
“We have the right to increase any fees due from you, as well as any charges for products, materials, and services provided to you, based on our reasonable judgment…”
Combined with mandatory ACH withdrawals, this gives the franchisor:
The ability to add new fees at its discretion.
Direct access to franchisee bank accounts for those fees.
This practice is partly normal because franchisors do reserve rights to adjust fees for legitimate reasons. However, it becomes troubling if:
New charges appear without clear contractual language.
Franchisees have no chance to object or budget.
This concern is echoed by an anonymous Perspire franchisee who stated:
“They also collect fees (via automatic withdrawal) on items that are not listed in a franchisee’s Franchise Agreement.”
Franchisees must carefully monitor bank withdrawals and insist on detailed explanations for any new fees.
Franchisee Perspective, and Shared Responsibility
An anonymous Perspire franchisee expressed frustration that:
“…many franchisees signed for territories and the build-out/design of the concept (and therefore cost) rose significantly, and they are requiring the franchisees to sign a NEW FDD to tie into a license originally tied to an FDD from years ago.”
This reflects a very real problem in franchising:
Many franchisees do not fully grasp the implications of contract language.
They’re surprised later when terms are enforced, terms that were always there.
This doesn’t excuse overreaching franchisors. But it’s a reminder that:
✅ Franchisees must read every clause.
✅ Work with experienced franchise counsel.
✅ Understand how “normal” franchising practices will impact daily operations.
✅ Plan financially for obligations like minimum royalties, evolving standards, and required purchases.
Reality Check Summary
Perspire Sauna Studio’s 2025 FDD contains many terms and conditions that are normal in franchising, even if challenging in practice. These include required suppliers, evolving standards, minimum royalties, and the need to sign updated agreements for new locations.
However, two items deserve genuine caution:
The franchisor’s financial stability warning, which raises the question of how well Perspire can support franchisees in the future.
The potential for ACH withdrawals for new, unspecified fees, which could erode trust and financial predictability.
Ultimately, franchising always involves significant obligations; and it’s critical for prospective owners to understand what they’re signing. Many franchisees’ frustrations stem not from unfair agreements, but from not fully appreciating what those agreements demand once operations begin.
It’s also important to realize that what is generally considered “normal” or generally accepted business practice in franchise contracts does not necessarily make it right.
Many franchising practices, such as required purchases, evolving brand standards, and mandatory new agreements, are widespread because they protect the franchisor’s brand and business interests. Yet these same practices can place significant financial and operational strain on franchisees, especially if used without fairness or transparency. Just because something is common in franchising doesn’t mean it is equitable or in the best interests of those investing their savings and livelihoods into a brand.
Prospective franchisees should not assume that “standard” provisions are harmless or automatically fair. Each clause deserves careful scrutiny to understand how it might affect day-to-day operations, profitability, and the long-term sustainability of the business relationship. Ultimately, a contract’s legality and its ethics are not always the same; and franchisees owe it to themselves to challenge terms that seem one-sided, even if those terms are widespread in the industry.
Suggested Questions for Prospective Franchisees
Can Perspire provide historical examples of significant changes to build-out costs or design standards?
Under what conditions has Perspire required existing franchisees to sign new FDDs?
How frequently have new fees been imposed via ACH withdrawals?
What proportion of Perspire’s revenue comes from franchisee purchases, and are those prices competitive?
What specifically in Item 21 creates concerns about Perspire’s financial stability?
Bottom line: For prospective Perspire franchisees, the business model appears credible and aligned with industry norms, but caution is warranted around the franchisor’s financial strength and the possibility of unexpected fees. As always, due diligence and legal review are essential.
The information in this report is provided for informational purposes only and is based solely on the contents of the Perspire Sauna Studio 2025 Franchise Disclosure Document (FDD) and anonymous franchisee feedback. It does not constitute legal, financial, or business advice. Franchise Disclosure Documents are complex legal documents, and individual circumstances vary. Prospective franchisees should conduct their own independent research and consult qualified professionals, including an experienced franchise attorney and financial advisor, before making any investment decisions. The opinions expressed are those of the author and do not represent any endorsement or disapproval of the franchise brand. No guarantee is made as to the accuracy or completeness of the information provided.
