Franchisel.com — FDD Diligence Memo
PURE SWEAT SAUNA STUDIO AND PURE SWEAT + FLOAT STUDIO
Generated 2026-04-06 · 2026 FDD · Government-filed source
PURE SWEAT SAUNA STUDIO AND PURE SWEAT + FLOAT STUDIO
2026 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
7
Contract
5
Red Flags & Key Signals
Double-digit active lawsuits is unusual. Review whether franchisee-initiated cases dominate (signals system dissatisfaction) vs regulatory actions.
You waive the right to sue in court. Arbitration typically favors the franchisor. Review the venue and arbitrator selection process.
After leaving the franchise, you cannot operate a competing business in this radius. Evaluate the real-world impact on your exit options.
Item 2 shows multiple executives hired within 2 years of this FDD filing. Leadership instability can affect franchisee support quality during transitions.
Avg $624,413 from government-filed FDD. Transparent disclosure is a positive signal.
At least one key executive has disclosed prior franchise system experience — associated with better franchisee support and system discipline.
Investment Overview
Items 5, 6, 7Total investment range: Not disclosed. Initial fee: $0. Royalty: —. Marketing fund: —.
Item 19 — Revenue
Item 19 — 2026 FDD (government-filed)Item 19 discloses avg revenue of $624,413 (Annual).
Sample: WeakThe FDD does not specify how many units were included in this figure.
Item 20 — System Health
Item 20 — 2026 FDDSystem flat — net 0 units in reporting period.
→ StableUnit count essentially unchanged. 4046 units closed (0% of system).
Total Units
0
Net Growth
+0
Turnover
0%
Year-over-Year Trends
2026 FDDOpened
+2023
Closed
-4046
Net
+0
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2026 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Gross sales
Figure represents gross sales — standard basis for cross-brand comparison.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
All units included
Revenue figure includes all reporting units — broadest, most conservative sample basis.
Sample size not specified
The FDD does not state how many units contributed to this figure.
Current data (2025)
Revenue figures are from 2025 — recent and relevant.
Medium extraction confidence
Revenue figure extracted with medium confidence. Cross-check with source FDD before relying on this number.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
4046 units closed in the most recent FDD period (2023 were forced terminations). Ask franchisees: what actually drove those closures — was it market conditions, operations, or franchisor decisions?
Look for: Franchisees who left voluntarily vs. those terminated. Any pattern by region, years in system, or franchisee profile.
The agreement requires mandatory arbitration. Ask: have you ever had a dispute with the franchisor — how was it handled? Did you feel you had recourse?
Look for: Franchisees who've been through disputes. Understand if the arbitration process felt fair or heavily stacked toward the franchisor.
The agreement includes a 2-year, 25-mile post-termination non-compete. Ask franchisees: did you fully understand this when you signed — and do you feel it's fair?
Look for: Whether franchisees feel trapped. High non-compete terms reduce exit flexibility.
Cure period is only 10 days. Ask: have you ever received a default notice? How did the franchisor handle it — were they reasonable?
Look for: A short cure period combined with aggressive enforcement is a serious risk. Look for franchisees who feel supported vs. managed by threat.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
The FDD does not include audited financial statements. Ask: do you have any visibility into the franchisor's financial health? Have you ever been concerned about the company's stability?
Look for: Even anecdotal signals — changes in leadership, delays in royalty statement processing, reduced marketing fund activity.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Management Team — Item 2 (Business Experience)
Leadership has prior franchise system experience; long-tenured executives (5+ years); recent leadership changes detected.
Item 2 · 2026 FDD · confidence: medium
Supplier Dependence — Item 8
Low Supplier Lock-In · 3/10Franchisee may source freely if specifications are met.
Item 8 · 2026 FDD
Data sources: 2026 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2026 FDD filed with MN CARDS (file #10277). Source: 10277-2026.pdf. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.