Hotworx vs The Back Nine: franchise research comparison

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Franchise fees and ongoing costs

Franchise fee

$14,950 to $19,950 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

flat $695/month per studio

Marketing contribution

Not captured

Technology fee

$150.00 per month, billed starting the month after signing the Franchise Agreement (covers tech costs such as Google Workspace access)

Other fees

POS Software Fee $129/mo; SAIL CRM Fee $125/mo; Virtual Instructor Fee $20/sauna/mo

Working capital (FDD Item 7)

$35,500 to $54,500 (standard Table 1) / $71,000 to $109,000 (California/New York Table 2) for first three months of operations and working capital

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Total Revenue and EBITDA (unaudited) for franchised and company-owned outlets, plus membership counts and cancellation rates

Reporting period

Fiscal year 2025 (January 1 - December 31, 2025)

Sample

149 first-year franchised outlets (Table 19.1); 700 all fully-operational franchised outlets opened 2017-2024 (Table 19.2); 15 company-owned/managed outlets (Table 19.3)

Reported average

Not captured

Reported median

Not captured

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

712

Year-end outlets

797

Net change

+85

Derivation

ending minus starting outlets

Openings

95

Terminations

0

Non-renewals

0

Other closures

1

Reacquisitions

9

Transfers

40

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

SBA loan history

Loan activity

418 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$448,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

287 loans

Historical charge-off share

0.00%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

0 / 41

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Franchise fees and ongoing costs

Franchise fee

$50,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

8% · 8% of monthly Gross Revenues, paid monthly via ACH on the 15th

Marketing contribution

1% (basis not captured; see original filing)

Technology fee

$350/month Internal Systems Fee (may increase up to 5% annually), starting 60 days after franchise agreement effective date

Other fees

Marketing System Fee $250/month to SQRD Media (CRM); Full Swing Simulator Software & Maintenance Fee $2,000/simulator/year; Annual Convention Fee $500/person

Working capital (FDD Item 7)

$8,000 to $25,000 estimated minimum additional funds needed for the first 3 months after opening, covering initial payroll/payroll taxes, repairs and maintenance, bank charges, and staff recruiting; excludes owner compensation and debt service.

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Total Revenue (historical financial performance representation) for qualifying operating franchise outlets

Reporting period

Not captured

Sample

45 operating franchised outlets (of 120 total franchised outlets; excluded 4 outlets with fewer than 3 simulator bays and 75 outlets open less than 6 months)

Reported average

Not captured

Reported median

Not captured

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

25

Year-end outlets

120

Net change

+95

Derivation

ending minus starting outlets

Openings

95

Terminations

0

Non-renewals

0

Other closures

0

Reacquisitions

0

Transfers

2

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

SBA loan history

Loan activity

146 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$350,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

146 loans

Historical charge-off share

Suppressed: fewer than 10 seasoned loans

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

0 / 0

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.