The Hot Spot
Franchise research report · reviewed 2026 disclosure data
Researching The Hot Spot franchise opportunities? Every figure below is cited to the FDD.
The Hot Spot franchise operates fitness studios specializing in hot yoga, Pilates, and heated workout classes that attract health-conscious consumers seeking in
Headline figures
Quick facts
- How much does it cost to open a The Hot Spot franchise?
- The The Hot Spot Franchise Disclosure Document reports an estimated initial investment of $82,600–$156,200 (2026 FDD, Item 7, PDF p. 14). This is the franchisor's disclosed estimate, not a quote. Details
- What is the The Hot Spot initial franchise fee?
- The disclosed initial franchise fee for a standard single unit is $39,500 (2026 FDD, Item 5, PDF p. 8). Other fee options (for example multi-unit or conversion) are listed separately in the report. Details
- What ongoing fees does The Hot Spot charge?
- The disclosed ongoing royalty is $100 (2026 FDD, Item 6, PDF p. 8). The brand or advertising fund contribution is $2 (2026 FDD, Item 6, PDF p. 9). Other recurring fees are listed in Item 6. Details
- Does The Hot Spot disclose financial performance (Item 19)?
- Yes. The The Hot Spot FDD includes an Item 19 financial performance representation (2026 FDD, Item 19, PDF p. 34). Figures apply only to the locations and period each one covers. Details
- How many The Hot Spot locations are there?
- The FDD reports 26 outlets at the end of 2025 (2026 FDD, Item 20, PDF p. 37). Existing locations do not indicate territory availability. Details
From reviewed FDD figures only. Not a recommendation or projection.
What the disclosures show
- 1Opening costs are estimated at $82,600 – $156,200 in the 2026 FDD (Item 7); several initial fee options apply.
- 2Item 19 covers 3 separate groups: other measures for 1 affiliate-owned locations; other measures for 1 affiliate-owned locations; other measures for 1 affiliate-owned locations. They are not combined.
- 3Outlets grew by 17 in 2025, to 26 (United States, as labeled in the FDD, Item 20).
From reviewed FDD figures only. Not a recommendation or projection.
Costs · Items 5–7
What does it cost to open?
Estimated opening costs and the fees payable to the franchisor.
Startup Investment — Item 7
Total estimated initial investment
2026 FDD · Item 7 · PDF p. 14
Standard single-unit franchise fee
2026 FDD · Item 5 · PDF p. 8
Discounted and multi-unit options are separate; see all fees.
Ongoing Fees — Item 6
Selected recurring charges; payment bases and conditions remain attached to each fee.
- Continuing royalty monthly minimum in second operating yearMain ongoing fee
28 reported fees, each with its payment basis, are listed below; they haven't been sorted into recurring, initial and occasional groups yet.
Financial Performance — Item 19
What results are disclosed—and for which locations?
3 separate populations, shown apart. Revenue is not owner income.
Locations counted: not stated in the reviewed record
Other measures · 1 locations
- Who is counted
- TahoeCalifornia opened2010
- Period
- Ordinary Income/Expense Income Income
- Excluded
- Affiliates exemptfrom$500minimumlocaladvertising andterritorialadvertising.
- Method
- Unaudited income lesssales tax/gratuities. Actualroyalty/brandfundincluded. Sourcesconflict:Tahoeowner-operated/no payroll stated but tableincludespayroll; Libertytable/SanDiegonarrative retained.
Locations counted: not stated in the reviewed record
Other measures · 1 locations
- Who is counted
- LibertyCalifornia opened2012
- Period
- Ordinary Income/Expense Income Income
- Excluded
- Affiliates exemptfrom$500minimumlocaladvertising andterritorialadvertising.
- Method
- Unaudited income lesssales tax/gratuities. Actualroyalty/brandfundincluded. Sourcesconflict:Tahoeowner-operated/no payroll stated but tableincludespayroll; Libertytable/SanDiegonarrative retained.
Locations counted: not stated in the reviewed record
Other measures · 1 locations
- Who is counted
- SparksNevada opened2019
- Period
- Ordinary Income/Expense Income Income
- Excluded
- Affiliates exemptfrom$500minimumlocaladvertising andterritorialadvertising.
- Method
- Unaudited income lesssales tax/gratuities. Actualroyalty/brandfundincluded. Sourcesconflict:Tahoeowner-operated/no payroll stated but tableincludespayroll; Libertytable/SanDiegonarrative retained.
These groups are never combined.
Outlet Changes — Item 20
How has the outlet count changed?
United States, as labeled in the FDD · counts as of 2025 of each year.
2026 FDD · Item 20 · PDF p. 37
Net +23 outlets, 2023–2025
Year-end counts reported in Item 20. The scale starts at zero; the labels between the dots show each year's change. Openings and closures for 2025 haven't been pulled from the Item 20 tables yet, so no turnover or churn is shown.
Questions to investigate
Prompts based on what this brand's reviewed disclosures do and don't show — not conclusions. Join free as a member to save questions to your research.
For the franchisor
Which line items in the 2026 Item 7 estimate ($82,600 – $156,200) vary most by market, and why?
Which initial fee option would apply to my situation, and what conditions or discounts affect it?
Which locations are included in the Item 19 figures, and which were excluded?
Reported units went from 9 to 26 in 2025. How many new units opened, closed or changed hands?
Is a territory available in my area, and how is it defined in my agreement?
For current and former owners
How did your actual startup costs and timeline compare with the Item 7 estimate?
How many hours a week do you work in the business, and in what role?
How do your results compare with the Item 19 figures, and what explains the difference?
What support from the franchisor has been most and least useful?
For your advisors
Ask a franchise attorney to review the territory, renewal, transfer and termination terms.
Ask an accountant to build a cash-flow plan using your own assumptions, not the franchisor's.
Sources & vintage history
Every displayed fact is retained with its disclosure vintage, item, page, and reviewed status. Prior vintages remain on file rather than being overwritten.
Citations (2026 FDD)
- [1]Estimated initial investment — Item 7 · PDF p. 14
- [2]Standard initial franchise fee — Item 5 · PDF p. 8
- [3]Item 19 — Locations counted not stated in the reviewed record — TahoeCalifornia opened2010 · PDF p. 34
- [4]Item 19 — Locations counted not stated in the reviewed record — LibertyCalifornia opened2012 · PDF p. 35
- [5]Item 19 — Locations counted not stated in the reviewed record — SparksNevada opened2019 · PDF p. 36
- [6]Outlet counts — Item 20, Table 1 · PDF p. 37
"PDF p." is the page in the PDF file; "printed p." is the number printed on the FDD page. Source document: FDD
Territory & operations
These are contract disclosures, not confirmation that any territory is currently available.
Legal & agreement
Franchisor financial statements
| Fiscal year | Measure | Reported value |
|---|---|---|
| 2025 | assets current assets cash and cash equivalents | $92,201 |
| 2025 | accounts receivable | $110,514 |
| 2025 | deferred commissions, current | $23,300 |
| 2025 | total non-current assets | $50,360 |
| 2025 | total assets | $276,375 |
| 2025 | unearned revenue, current | $229,500 |
| 2025 | non-current liabilities note payable to member | $108,399 |
| 2025 | unearned revenue, non-current | $502,600 |
| 2025 | total non-current liabilities | $610,999 |
| 2025 | total liabilities | $894,428 |
| 2025 | operating revenue initial franchise fees | $587,485 |
| 2025 | royalty fees | $111,413 |
| 2025 | total operating revenue | $743,171 |
| 2025 | professional fees | $37,588 |
| 2025 | advertising and marketing | $77,279 |
| 2025 | total operating expenses | $1,067,543 |
| 2025 | net loss from operations | -$324,372 |
| 2025 | other expenses interest expense | $7,053 |
| 2025 | total other expenses | $7,053 |
| 2025 | n et loss | -$331,425 |
| 2025 | net loss | -$306,801 |
| 2025 | operating cash-flow change in deferred commissions | -$33,350 |
| 2025 | net cash used in operating activities | -$37,181 |
| 2025 | financing cash inflow from member loan | $31,399 |
| 2025 | cash and cash equivalents at beginning of period | $90,813 |
| 2025 | cash and cash equivalents at end of period | $85,031 |
| 2025 | supplemental disclosures of cash flow cash paid for interest and taxes | $7,053 |
| 2025 | total current liabilities | $283,429 |
| 2025 | non-current assets deferred commissions, non-current | $50,360 |
| 2025 | total liabilities and members' equity | $276,375 |
| 2025 | commissions | $59,600 |
| 2025 | operating cash-flow change in accounts payable | $38,273 |
| 2025 | total current assets | $226,015 |
| 2025 | liabilities and members' equity | $53,929 |
| 2025 | members' equity | -$618,053 |
| 2025 | marketing fees | $44,273 |
| 2025 | operating expenses general and administrative | $893,076 |
| 2025 | operating cash-flow change in accounts receivable | -$68,803 |
| 2025 | operating cash-flow change in deferred revenue | $333,500 |
| 2025 | net cash provided by financing activities | $31,399 |
| 2025 | net change in cash and cash equivalents | -$5,782 |
| 2024 | assets current assets cash and cash equivalents | $90,813 |
| 2024 | accounts receivable | $78,543 |
| 2024 | deferred commissions, current | $25,850 |
| 2024 | total current assets | $195,206 |
| 2024 | non-current assets deferred commissions, non-current | $7,500 |
| 2024 | total non-current assets | $7,500 |
| 2024 | total assets | $202,706 |
| 2024 | liabilities and members' equity | $44,948 |
| 2024 | unearned revenue, current | $258,500 |
| 2024 | non-current liabilities note payable to member | $103,884 |
| 2024 | total non-current liabilities | $178,884 |
| 2024 | total liabilities | $482,332 |
| 2024 | members' equity | -$279,626 |
| 2024 | total liabilities and members' equity | $202,706 |
| 2024 | operating revenue initial franchise fees | $146,250 |
| 2024 | royalty fees | $22,625 |
| 2024 | marketing fees | $22,432 |
| 2024 | technology fees | $5,000 |
| 2024 | total operating revenue | $196,307 |
| 2024 | operating expenses general and administrative | $386,312 |
| 2024 | professional fees | $37,081 |
| 2024 | advertising and marketing | $56,691 |
| 2024 | commissions | $14,625 |
| 2024 | total operating expenses | $494,709 |
| 2024 | total other expenses | $8,399 |
| 2024 | n et loss | -$306,801 |
| 2024 | adjustments to reconcile net loss to net cash used in operating activities accrual of interest on loan from member | $8,399 |
| 2024 | operating cash-flow change in accounts receivable | -$68,803 |
| 2024 | operating cash-flow change in deferred revenue | $333,500 |
| 2024 | net cash used in operating activities | -$28,782 |
| 2024 | net cash provided by financing activities | $23,000 |
| 2024 | net change in cash and cash equivalents | -$5,782 |
| 2024 | cash and cash equivalents at end of period | $90,813 |
| 2024 | operating cash-flow change in accounts payable | $38,273 |
| 2024 | other expenses interest expense | $8,399 |
| 2024 | net loss | -$306,801 |
| 2024 | operating cash-flow change in deferred commissions | -$33,350 |
| 2024 | financing cash inflow from member loan | $23,000 |
| 2024 | total current liabilities | $303,448 |
| 2024 | unearned revenue, non-current | $75,000 |
| 2024 | net loss from operations | -$298,402 |
| 2024 | cash and cash equivalents at beginning of period | $96,595 |
| 2023 | accounts receivable | $9,740 |
| 2023 | total current assets | $106,335 |
| 2023 | total assets | $106,335 |
| 2023 | liabilities and members' equity | $6,675 |
| 2023 | total current liabilities | $6,675 |
| 2023 | non-current liabilities note payable to member | $72,485 |
| 2023 | total non-current liabilities | $72,485 |
| 2023 | total liabilities | $79,160 |
| 2023 | total liabilities and members' equity | $106,335 |
| 2023 | royalty fees | $30,964 |
| 2023 | total operating revenue | $35,204 |
| 2023 | professional fees | $37,974 |
| 2023 | advertising and marketing | $17,439 |
| 2023 | total operating expenses | $158,029 |
| 2023 | n et loss | -$122,825 |
| 2023 | net loss | -$122,825 |
| 2023 | operating cash-flow change in accounts payable | $6,675 |
| 2023 | net cash used in operating activities | -$125,890 |
| 2023 | financing cash inflow from member loan | $72,485 |
| 2023 | net cash provided by financing activities | $222,485 |
| 2023 | net change in cash and cash equivalents | $96,595 |
| 2023 | cash and cash equivalents at end of period | $96,595 |
| 2023 | assets current assets cash and cash equivalents | $96,595 |
| 2023 | operating cash-flow change in accounts receivable | -$9,740 |
| 2023 | net loss from operations | -$122,825 |
| 2023 | members' equity | $27,175 |
| 2023 | operating expenses general and administrative | $102,616 |
| 2023 | marketing fees | $4,240 |
| 2023 | cash flows from financing activities member contributions | $150,000 |
These figures describe the franchisor company, not individual franchise locations.
SBA-backed loans to franchisees
Loading…
Source: U.S. Small Business Administration 7(a) & 504 FOIA data. Loan volume is not a measure of franchisee success.
Related research
Brands in the same subcategory first, then the wider industry, ordered by shared business format and overlapping investment range. This is not a ranking or recommendation.
Head-to-head comparisons
At a glance
Business history
Not reviewed
Owner participation
Not reviewed
Territory language
Litigation disclosure
Not reviewed
Bankruptcy disclosure
Not reviewed
Agreement term
Not reviewed
Reader notes on wording
Our automated check found that these summaries may not match the FDD's exact wording. Read the FDD excerpt itself; it is the authoritative text. Core cost, fee, Item 19 and outlet figures are not affected.
Item 19 · PDF p. 34 · 2026 FDD
Our summary: TahoeCalifornia opened2010 — Rent Expense
“Rent Expense $9,106.32”
Note: P.34 lists Tahoe, CA (opened 2010), Rent Expense $9,106.32 for Jan–Dec 2025; p.33 says these representations are included as of Dec. 31, 2024. The reporting period conflicts, so context is unsettled.
Item 20 · PDF p. 37 · 2026 FDD
Our summary: Table1 Company – Owned* 2024 Start
“2024 3 3 0”
Note: This is the Company-Owned outlet-type row in Item 20, not the required national/systemwide Total Outlets row.
Independent analysis of franchisor-provided data. Not investment advice. Franopolis does not distribute FDDs.