Brand Dossier

Hotworx

FDD-based analysis. Item-level data. No franchisor input.

Hotworx costs $288,890 to $830,380 to open (2026 FDD Item 7), with a Variable fee model fee structure and an average unit volume of $379,298 (median $354,221) disclosed in 2026 FDD Item 19. Deal-Specific reads on Fee Structure, Litigation History, Operator Validation, and Term & Exit Terms, Strength on Unit Economics. Independent analysis, no commissions, no franchisor revenue.
Rank #58 on Entrepreneur 2026FitnessFDD issued 3/31/2026
Ranking ContextRanking from Entrepreneur Media's 2026 Franchise 500. Zorzee is independent and not affiliated with Entrepreneur Media.
Source File2026 Franchise Disclosure Document
About the Brand

About Hotworx

Hotworx franchises 24-hour boutique fitness studios offering hot exercise services, a functional training area, and related retail fitness products to the general public. Each studio uses a small footprint of approximately 2,000 square feet with an automated entry system that gives members access around the clock, a model built for minimal overhead and labor costs. A franchisee operates one studio from an approved location, and area development agreements are available for candidates who want to open multiple studios.

Source: Entrepreneur 2026 ranking/profile data and Franchise Disclosure Document, rewritten by Zorzee

Investment Summary

The Numbers At a Glance

Total Investment Range
$288,890 to $830,380
FDD Item 7
Franchise Fee
$19,950
Development fee: No separate development fee disclosed in extracted Item 5 body.
FDD Item 5
Royalty + Fees
Variable fee model
Royalty: $695.00 per; Brand/ad fund: $99 per month prior to opening.
FDD Item 6
Earnings Claim
Yes
Average Unit Metric $379,298. Median Unit Metric $354,221.
FDD Item 19

Every value here comes straight from the FDD; anything not yet source-verified stays blank rather than estimated. The Pro figures and full interpretation unlock with a Pro membership.

The FDD Data Table

Everything the 2026 Filing Discloses

Every data point Zorzee tracks for this brand, in FDD Item order. Missing source data stays blank; Pro-only interpretation remains locked.

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ItemData PointValueSource
Item 3Litigation Actions (total) 2 actions disclosed FDD Item 3
Item 5Initial Franchise Fee The Initial Franchise Fee is $19,950 (Item 5, p.13). FDD Item 5
Item 5Development Fee No separate development fee disclosed in extracted Item 5 body. FDD Item 5
Item 6Royalty Fee $695.00 per month Monthly Royalty Fee. FDD Item 6
Item 6National Media Fund Pro FDD Item 6
Item 6Corporate Ad & Development Fund Pro FDD Item 6
Item 6Total Ongoing Fee Burden Pro Calculated (Item 6)
Item 7Total Investment (low) $288,890 FDD Item 7
Item 7Total Investment (high) $830,380 FDD Item 7
Item 8Required Purchases (food/supplies) Pro FDD Item 8
Item 11Franchisor Assistance Pro FDD Item 11
Item 12Exclusive Territory Pro FDD Item 12
Item 12Territory Size Pro FDD Item 12
Item 15Operating Participation Pro FDD Item 15
Item 17Initial Term Length Pro FDD Item 17(a)
Item 17Renewal Terms Pro FDD Item 17(b)-(c)
Item 17Required Remodel at Renewal Pro FDD Item 17(c)
Item 17Termination Triggers Pro FDD Item 17(f)-(h)
Item 17Transfer Fee Pro FDD Item 17(m), Item 6
Item 17ROFR Provisions Pro FDD Item 17(n)
Item 17Post-Termination Non-Compete Pro FDD Item 17(r)
Item 19Revenue Metric Disclosed Yes: Average Unit Metric $379,298 / Median Unit Metric $354,221 FDD Item 19
Item 20Total Franchised Units (2025) 797 FDD Item 20
Item 20Company-Owned Units (2025) 15 FDD Item 20
Item 20Total System Net Unit Growth (YoY) +93 FDD Item 20
Item 20Terminations Pro FDD Item 20
Item 20Agreements Signed, Not Yet Open Pro FDD Item 20
Item 21Audited Financials Pro FDD Item 21
Pro Data Points Locked
The free table maps every data point to its FDD source. Pro fills in the values and interpretation that require the full read.
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The Signal Tracker

Five Signals From the 2026 Filing

Each signal turns one part of the filing into a read a buyer can act on. Strength means the disclosed data is favorable. In Line means it is typical for the category. Deal-Specific means the term is populated but you still have to model it against your own deal. Concern means the disclosed data is a real risk. The read is free. The reasoning behind it is the Pro read.

Fee Structure
Deal-Specific
FDD Item 6
The Pro Read

Fee obligations for Hotworx are source-backed from Items 5 and 6.

Unit Economics
Strength
FDD Item 19
The Pro Read

HOTWORX discloses a full Item 19 with a combined All Locations row for all 700 fully-operational studios: average gross Total Revenue $379,298 and median $354,221 (fiscal 2025, unaudited), plus high/low, share above average, and a full expense/EBITDA breakdown. These are gross revenue figures, not profit; systemwide EBITDA averaged $107,306 (median $89,566). Only 42.9% of studios met or beat the average, so treat the $354,221 median as the reference point.

Litigation History
Deal-Specific
FDD Item 3
The Pro Read

FDD Item 3 discloses 2 actions. Case names, allegations, procedural posture, and source quotes are locked in Pro.

Operator Validation
Deal-Specific
FDD Item 20
The Pro Read

Item 20 unit trajectory is source-backed from the latest FDD tables for Hotworx.

Term & Exit Terms
Deal-Specific
FDD Item 17
The Pro Read

Ten-year initial term with a renewal right that may be exercised perpetually for franchisees in good standing. Transfer requires franchisor approval, a franchisor right of first refusal applies, and post-term non-compete provisions are disclosed.

Five Reads In. The Reasoning Is Locked.
You can see where each signal lands. Pro gives you the why: the math, the source detail, and what to validate before you act.
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Item 19: Earnings Disclosure

What the Earnings Claim Says, and What It Does Not

Item 19 earnings data is disclosed for Hotworx. The full disclosure is free below; Zorzee's read of what it means stays in Pro.

What the Claim Discloses
Average Unit Metric
$379,298
Median Unit Metric
$354,221
Sample Size & Coverage
See notecoverage detail
Table 19.2 All Locations combined row, p.77. Population = 700 franchised studios opened 2017-2024 that were fully operational for all 12 months of fiscal 2025 (excludes 2 partial-year studios); unaudited. Total Revenue is gross (not profit). High $901,879 = single top-EBITDA outlet (Midland, TX); low $163,899 = single lowest-EBITDA outlet (Ann Arbor, MI), both from the narrative on p.76. A separate first-year cohort (Table 19.1, 149 studios open a full first year) reported All Locations Total Revenue average $352,781 / median $336,613 on p.73. Systemwide EBITDA in Table 19.2 averaged $107,306 / median $89,566.
High / Low Range
$163,899 to $901,879
Met or Beat the Average
300 / 42.9%
What the Disclosure Excludes
Expenses, net income, owner compensation
Gross revenue is not profit
What the Number Doesn't Tell You
Free, because misreading Item 19 is one of the costliest mistakes a first-time buyer can make.
  • Item 19 reports the disclosed sales or revenue metric. That is not profit, and not a forecast of what you would personally take home.
  • An average and a median are not the same number. Know which you are shown and how far apart they sit.
  • What reaches you is whatever survives operating costs and debt service. Item 19 never shows that figure.
Earnings Read Locked
Pro turns the disclosed fields into a read: whether the average is trustworthy, what the disclosure leaves out, and the year-one revenue number Zorzee would underwrite.
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Unit Count and Trajectory

A System Still Expanding

Total Units
812
As of 2025, FDD Item 20
Franchised
797
As of 2025, FDD Item 20
Company-Owned
15
As of 2025, FDD Item 20
Total System Net Change (YoY)
+93
As of 2025, FDD Item 20
Total System Units, Latest Available FDD Years
582
2023
719
2024
812
2025

Hotworx trajectory is shown only where source-backed. Missing Item 20 fields stay blank inside the locked layout instead of removing the section.

Source: FDD Item 20 where present. Total system units, franchised plus company-owned. Not financial advice.

Beyond the Net Number
A net unit count is not the same as healthy stores. Pro breaks out openings, closures, terminations, and what the trajectory signals.
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Litigation History

What FDD Item 3 Discloses

2 actions disclosed in FDD Item 3. Case-level detail remains locked in Pro.

Case 01
Item 3 action disclosed
Case-level detail locked in Pro
The Read · Pro
Case 02
Item 3 action disclosed
Case-level detail locked in Pro
The Read · Pro
What a Litigation Count Doesn't Tell You
Free, because a raw lawsuit count is one of the most misread lines in any FDD.
  • A count means nothing without scale and time. Always compare it to system size and years covered.
  • The pattern matters more than the total. Repeated allegations matter more than isolated disputes.
  • Concluded and open matters are not the same weight. Open matters require different diligence than old resolved matters.
Litigation Read Locked
Pro gives the case-by-case read: allegations, status, scale context, and whether any pattern matters long before signing.
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Editorial Analysis

The Zorzee Read

The Zorzee Take
The editor's synthesis: what the filing actually means once the numbers, diligence, and operator reality are weighed against each other. The Take names what matters, what does not, and what must be validated before any decision.
The Read · Pro
The Inversion
Charlie Munger's rule: to understand a thing, study how it fails. Zorzee stress-tests every brand against forecasting, site selection, management depth, and exit math. The framework is free. Which modes bite hardest for this brand, and the fix for each, is the read.
The Failure-Mode Read · Pro
The Editorial Read Is Locked
Pro unlocks the full Zorzee read on Hotworx: the editorial synthesis, the math behind the numbers, and the failure modes the filing reveals. Zorzee briefs the decision; you make it.
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Zorzee editorial. Independent analysis. No franchisor review or approval. Not financial advice.

The Decision

You've Seen the Filing. The Read Is Still the Missing Piece.

The filing tells you what Hotworx costs to open. Pro adds the read on whether the numbers work for you, in your market, and whether this brand is a business or a job you bought.

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This Dossier
  • The full read behind all five Signal Tracker verdicts
  • Pro FDD data points from fee burden through Item 17 and audited financials
  • The Item 19 earnings read where disclosed
  • The litigation and system-health read
  • The Zorzee Take and failure-mode analysis
Your Pro Membership
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  • The full Signal Tracker across the portal
  • The Zorzee Files: FDD guides, DCF templates, and pro forma models (coming soon)
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FAQ

Hotworx Franchise Questions, Answered

How much does a Hotworx franchise cost?

A Hotworx franchise costs $288,890 to $830,380 to open, disclosed in FDD Item 7 of the 2026 filing, covering the franchise fee, buildout, equipment, and working capital to breakeven. No commissions, no franchisor revenue, independent analysis only.

What are the royalty and fees for Hotworx?

Hotworx uses a Variable fee model fee structure, disclosed in FDD Item 6.

What does Hotworx disclose in FDD Item 19?

Item 19 for Hotworx discloses an average unit volume of $379,298 (median $354,221) in the 2026 FDD. The figure is gross sales, not profit. Zorzee's read of what it excludes is in the Pro dossier.

What is Hotworx's average unit volume?

Hotworx's average unit volume is $379,298 (median $354,221) in the 2026 FDD. The figure is gross sales, not profit. Zorzee's read of what it excludes is in the Pro dossier.

Does Hotworx have any lawsuits or litigation?

Hotworx's FDD Item 3 discloses 2 legal actions. A raw count means little without scale and time, so weigh it against the system's 812 units and the years covered. The case-level detail is the Pro read.

Is Hotworx a good franchise investment?

Zorzee does not rate franchises good or bad; it reports what the filing discloses so you can judge fit. Hotworx shows Deal-Specific reads on Fee Structure, Litigation History, Operator Validation, and Term & Exit Terms, Strength on Unit Economics. Whether it fits depends on your capital, your market, and your operating style. Independent analysis, no franchisor revenue.