MetaMeta
Mandatorylocal marketing and advertising expenditures for 4 to 6 months before the Studio opens. You must spend between $1,000 and $4,000 per month, primarily on digital marketing through Meta ads, with the am
From the filings
HQ-led decisions
Red Light Method Franchising
FitnessSoftware purchasing decisions at Red Light Method Franchising appear centralized at the headquarters level, led by Co-Founder and CFO Chris Beardsley and CEO Eric Tepper. The franchisor mandates a business management and POS system alongside studio management and POS software, though specific vendor names are not disclosed in the 2025 FDD. The total addressable market is extremely small, with only 4 total units (2 franchised, 2 company-owned) across five states.
For software vendors selling into US franchise brands.
Live signals
Total units
4
2 franchised
Unit growth YoY
—
vs prior filing
AUV
—
Item 19, 2025
Royalty
6%
of gross sales
Ad fund
2%
national + local
Initial fee
$50K
per unit
Investment range
$199K–$821K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
8%of gross sales (FY2025)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
FacebookMeta
content. We reserve the right to "occupy" any social media websites/pages and be the sole provider of information regarding the Studio on such websites/pages (e.g., a system-wide Facebook page). At ou
QuickBooksIntuit
ling and POS system through our approved supplier is $475 per month. You are solely responsible for obtaining your own employee-scheduling software. Accounting software, such as, “QuickBooks,” will co
Franchisor behaviours
What the franchisor requires
21 requirements the franchisor states in this filing, each in its own words; 7 explicit no's; 6 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesFranchise agreement
Franchisee shall use accounting software designated by Franchisor (currently, “Quick Books”), and maintain its books, including expense line items, in the format designated by Franchisor.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have independent access to information you generate and store on your Computer System.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
These suppliers may include, and may be limited to, us or an affiliate of ours.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may periodically update and alter our standards and specifications and add to or delete from the list of products and services authorized for sale at the Studio; notification of such changes will be provided to you in writing by us.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
14575Item 8
For the fiscal year ended June 30, 2025, our revenues from franchisees’ purchases or leases of required products/services from us, including Technology Fees, were $14,575, or 2.08% of our total revenues of $699,060.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
10Item 8
about 10% to 20% of your purchases to continue the operation of the Studio.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We may charge you a fee of $1,500 per day for any personnel we engage in evaluating a supplier at your request.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
You can request the approval of an item, product, service, or supplier by notifying us in writing and submitting such information and/or materials we may request.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
To the extent Franchisee stores, processes, transmits, or otherwise accesses or possesses cardholder data in connection with the sale of products and services at the Studio, Franchisee is required to maintain the security of cardholder data and adhere to the then-current credit card A-21 Red Light Method FA 2025-2026…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor reserves the right to supervise, A-18 Red Light Method FA 2025-2026 determine and approve the standards of appearance, quality and service pertinent to the Studio including, without limitation, the right at any reasonable time and without prior notice to Franchisee to: (1) inspect and examine the business…
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisee acknowledges that Franchisor may from time to time revise its System as well as the contents of the Manual, and Franchisee agrees to comply with each new or changed standard and specification upon notice from Franchisor.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
Franchisor must approve Franchisee’s site selection.
Marketing
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesFranchise agreement
Franchisee agrees to spend each month on local marketing, advertising, and promotion of the Studio an amount sufficient to achieve the lead generation targets established by Franchisor, with a minimum monthly spend of $1,000 and an estimated range of $1,000 to $4,000 per month.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase from Approved Suppliers and suppliers who meet our quality specifications.
Must equipment be purchased from designated or approved suppliers?
YesFranchise agreement
Franchisee agrees that all equipment, including the red light therapy, Power Plate and Pilates equipment, must be purchased exclusively from approved suppliers, and must be maintained according to manufacturer or Franchisor specifications, as applicable.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 11
You must acquire a computer for use in the operation of the Studio and install the electronic data processing and communications hardware and software, including voicemail, business management systems, and a point-of-sale (“POS”) reporting system that we designate (collectively, the “Computer System”).
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Currently, all such amounts (including fees, interest, and other payments required under this Agreement) must be paid via automatic debit from Franchisee’s point-of- sale (“POS”) operating account, administered by the approved supplier of POS services designated by Franchisor, on a monthly basis throughout the term…
Must the franchisee participate in a gift card program?
YesItem 11
You must participate in the Gift Card Program by offering Red Light Method Studio gift cards to your customers and/or honoring all Red Light Method Studio gift cards presented to you as payment for products and services, regardless of whether the gift card was sold or issued by you or another Studio.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must acquire a computer for use in the operation of the Studio and install the electronic data processing and communications hardware and software, including voicemail, business management systems, and a point-of-sale (“POS”) reporting system that we designate (collectively, the “Computer System”).
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have independent access to information you generate and store on your Computer System.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
From time to time, we may offer system-wide ongoing or refresher training to our franchisees for a reasonable fee, such training may include courses, meetings, seminars and conventions.
The filing answers no to 7 questions
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Item 11
- Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Franchise agreement
- Is a minimum grand opening advertising spend required?Item 7
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
- Does the franchisor require minimum staffing levels or specific roles?Franchise agreement
- Must the franchisee use a CRM system designated or approved by the franchisor?Franchise agreement
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
The franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.
OwnerCEOPresidentPrincipal
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The vendor opportunity at Red Light Method
Red Light Method Franchising presents a micro-cap opportunity for software vendors. The most recent 2025 Franchise Disclosure Document reports just 4 total units—split evenly between 2 franchised locations and 2 company-owned studios. The operator footprint consists of 6 mapped operators, all single-unit owners, with no multi-unit operators on file. Locations are scattered across five states: Oklahoma (1), Georgia (1), Tennessee (1), Utah (1), and Arizona (1). Year-over-year unit growth is not disclosed, and the system’s average unit volume (AUV) is not reported in the FDD. For a vendor, the immediate addressable market is these 4 units, with any expansion dependent on the franchisor’s undisclosed growth trajectory.
Who controls software purchasing
Based on the FDD Item 1 disclosures, software purchasing authority sits at the headquarters level. The executive team listed includes Chris Beardsley, Co-Founder and Chief Financial Officer, and Eric Tepper, Chief Executive Officer and National Sales Director. A vendor pitching financial, operational, or sales-enablement software would likely engage one or both of these individuals. Allison Beardsley, Co-Founder and President of Education, may also hold sway over studio-level operational or training technology. The brand appears independently owned, with no parent company on file, meaning decisions are not filtered through a larger corporate hierarchy. Given the tiny unit count, the buying center is likely tight-knit and founder-led.
Mandated and current tech stack
The 2025 FDD mandates two categories of technology for franchisees. Item 11 requires a “business management and POS System” and “Studio management and POS software.” Both are listed as mandated, meaning every franchised and company-owned location must use the specified systems. However, the FDD does not name the specific vendors or software products in the extract provided. For a vendor selling complementary or replacement tools—such as scheduling, CRM, or billing software—this mandate signals that any new solution must either integrate with the existing mandated stack or displace a system that headquarters has already standardized.
Procurement, renewals, and timing
Procurement signals from Item 8 are absent from the available data, leaving the designated-supplier versus approved-supplier model unclear. The franchise agreement carries a 10-year initial term. Renewal conditions, outlined in Item 17, require the franchisee to be in full compliance, execute a then-current form of agreement, and sign a general release. Notice of renewal must be given no fewer than 90 days and no more than 180 days before expiration. With only 2 franchised units and a decade-long term, natural contract renewal windows that might trigger technology re-evaluation are extremely rare. Vendors should view this as a relationship-driven sale to headquarters rather than a volume play timed to unit-level renewals.
How to read the Red Light Method FDD
The full 2025 FDD is embedded below. Focus on Item 1 for the executive roster and ownership structure, Item 11 for the complete list of mandated technology systems and any named vendors, and Item 17 for renewal terms that might create future decision points. Because the system is small and founder-operated, the FDD is the most reliable source for understanding who holds the purse strings and what technology is already locked in across the estate. For a ranked target list of franchise systems that match your software’s ideal customer profile, FranCloud can help you prioritize where to point your outbound motion.
Questions vendors ask
Red Light Method Franchising, answered from the filing
The buying center likely includes Chris Beardsley (Co-Founder, CFO) and Eric Tepper (CEO, National Sales Director). Allison Beardsley (Co-Founder, President of Education) may influence operational tech decisions.
The 2025 FDD mandates a 'business management and POS System' and 'Studio management and POS software.' Specific vendor names are not disclosed in the filing.
The system has 4 total units: 2 franchised and 2 company-owned. All 6 mapped operators are single-unit owners, with locations in OK, GA, TN, UT, and AZ.
The procurement model is not detailed in the provided FDD extract. Item 8 signals regarding designated or approved suppliers were not available.
With a 10-year initial term and renewal notice required 90–180 days before expiration, windows are infrequent. Given only 4 units and no disclosed growth, near-term churn is minimal.
The 2025 FDD is filed with state franchise regulators. You can review the embedded PDF viewer below for the full Item 11 tech mandates and Item 1 executive list.
Source
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FDD alert
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Operator footprint
Who runs the locations
6 operators run 6 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit6
Top states by locations
| OK | 1 |
|---|---|
| GA | 1 |
| TN | 1 |
| UT | 1 |
| AZ | 1 |
Ownership
The portfolio behind Red Light Method Franchising
unknown of red lite gym.
Related Fitness brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.