Sauna House Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $1,634,400 to $3,980,400
• Franchise Fee: $49,500
• Royalty: 7% of Gross Sales
• Marketing / Ad Fee: 2% Brand Fund Fee, plus $2,000 per month local marketing commitment
• Key additional recurring fees: Technology fee of $1,000 per month; training fee of $200 per trainer per day plus travel for certain training; conference registration fee up to $1,000 per person per day
• Number of locations: 3 total at year-end 2024 (2 company-owned, 1 franchised)
• Best Fit: Manager-led owner with active oversight rather than passive ownership

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The estimated initial investment ranges from $1,634,400 to $3,980,400, which places this in a high-cost startup category. The midpoint is roughly $2.81 million.

Major cost drivers disclosed include:

• Initial franchise fee: $49,500
• Additional funds: $112,800 to $243,000
• Sauna-related equipment and furnishings: $175,000 to $395,000 total for certain sauna equipment, heated furniture, retail inventory, shipping, and taxes

The size of the investment suggests a buildout- and equipment-intensive model rather than a light-service concept. The range is also wide, which indicates location, buildout, and opening assumptions may materially affect required capital.

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Recurring fees disclosed include:

• Royalty fee: 7% of Gross Sales
• Brand Fund fee: 2% of Gross Sales
• Local Marketing Commitment: $2,000 per month
• Technology fee: $1,000 per month
• Training fee: $200 per trainer per day, plus travel expenses for onsite training in certain cases
• Conference registration fee: up to $1,000 per person per day when imposed
• Creative services fee: currently $75 per hour if requested

At a base level, the ongoing fee load includes a 9% percentage-of-sales component before the fixed local marketing and technology charges. That is not the full operating cost picture, but it does establish a recurring fee stack that franchisees would need to absorb on top of labor, rent, utilities, supplies, and other outlet expenses.

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Yes, Item 19 includes financial performance data, but it is limited.

The disclosure shows performance for one qualifying company-owned outlet. It also states there were 3 total outlets open at year-end 2024, but only 1 qualifying outlet for the Item 19 presentation, and 1 outlet was excluded from the outlet statistics table tied to qualification.

Reported figures for the qualifying outlet

2023 annual:

• Gross Sales: $1,712,223
• Net Income: $867,205
• Adjusted Net Income: $701,105

2024 annual:

• Gross Sales: $1,357,050
• Net Income: $427,880
• Adjusted Net Income: $293,745

2025 Q1:

• Gross Sales: $370,519
• Net Income: $173,285
• Adjusted Net Income: $136,938

Quarterly spread shown in the disclosure

2023 Gross Sales:

• Q1: $440,338
• Q2: $377,541
• Q3: $401,517
• Q4: $492,827
• Range: $377,541 to $492,827
• Average: $428,056
• Median: $420,928

2024 Gross Sales:

• Q1: $462,014
• Q2: $385,129
• Q3: $328,509
• Q4: $181,399
• Range: $181,399 to $462,014
• Average: $339,263
• Median: $356,819

What the spread suggests

The quarterly revenue pattern shows variability. In 2024, quarterly Gross Sales fell from $462,014 in Q1 to $181,399 in Q4, which is a wide spread within the same outlet. Adjusted Net Income also moved sharply, from $147,453 in Q1 2024 to $10,413 in Q3 2024 and $34,821 in Q4 2024.

That matters because the disclosure’s reported income figures are based on a single qualifying company-owned outlet and may not reflect franchisee results. The disclosure also states that Adjusted Net Income excludes interest, amortization and depreciation, taxes, owner draws, salary, benefits, and personal expenses, among other items. So even where the outlet shows positive net income or adjusted net income, those figures should not be treated as franchisee profit.

Revenue is not profit, and the Item 19 figures do not establish what a franchisee will earn. The disclosure does not clearly establish audited status for these Item 19 figures.

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• Primary model: B2C
• Revenue pattern: Primarily operating revenue from goods and services sold at the Bathhouse, with some potential ancillary revenue included in Gross Sales definitions
• Operational characteristics: Physical location-based business with meaningful equipment needs, recurring staffing, utilities, laundry, supplies, rent, and technology costs

The model appears to require an on-site operating structure rather than a simple administrative business. The disclosure indicates a Managing Owner must be designated, approved, trained, and responsible for management and operation, which points to a manager-led format with active oversight.

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Advantages

• Item 19 includes actual outlet-level revenue and expense data rather than revenue alone
• The disclosure provides annual and quarterly figures for Gross Sales, Net Income, and Adjusted Net Income for the qualifying outlet
• The system had no closures reported in 2024
• Core percentage fees are clearly identified: 7% royalty and 2% brand fund

Considerations

• Startup cost is high at $1.63 million to $3.98 million
• The system is very small, with only 3 outlets open at year-end 2024 and just 1 franchised outlet
• Item 19 is based on one qualifying company-owned outlet, which limits how much can be inferred about franchisee performance
• The disclosure states the territory is non-exclusive
• Fixed recurring charges, including $2,000 monthly local marketing and $1,000 monthly technology, add to the percentage-based fees

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This franchise may fit an investor or owner prepared for a high initial capital requirement and a manager-led operating model with ongoing oversight. It may also fit someone comfortable evaluating a concept with limited operating history at the franchise level.

It likely does not fit someone seeking a low-cost entry, a passive ownership structure, or a concept with a large base of franchised units to benchmark.

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• The disclosure indicates disputes must generally be handled in the county where the franchisor maintains its principal place of business, currently Buncombe County, North Carolina, subject to applicable state law
• Cure periods for defaults can be short, including 24 hours for health or safety hazards and 10 days for financial defaults
• Renewal includes a $10,000 renewal fee
• The disclosure references affiliates that may provide certain goods or services to franchisees, including equipment and inventory
• The disclosure does not clearly establish an exclusive protected territory

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Sauna House presents a high-investment, location-based bathhouse model with unusually specific Item 19 operating data for a qualifying company-owned outlet. The main tradeoff is clear: there is some real revenue and expense history to review, but it comes from a very small system and a limited sample, while the capital requirement and operational demands appear substantial.

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