ur approved suppliers of hosted software services for a monthly amount of $1,000, which includes the cost for Mindbody, FranConnect, and Microsoft Power BI, Axle CRM, Ceterus, and Canva. We estimate y
From the filings
SweatHouz
Personal servicesSoftware purchasing at SweatHouz is controlled at the corporate level, with President & CEO Mike Tan and CFO Susan Grubb among the key decision-makers. The brand currently mandates a tightly integrated stack including Mindbody, FranConnect, Axle CRM, and Ceterus. With 37 total units (22 franchised, 15 company-owned), the addressable market for vendors is modest but concentrated at a single Georgia headquarters.
For software vendors selling into US franchise brands.
Live signals
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.
9%of gross sales (FY2025)
15% reference
Mandated & recommended tech
The systems vendors compete with
4 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.
r access to our approved suppliers of hosted software services for a monthly amount of $1,000, which includes the cost for Mindbody, FranConnect, and Microsoft Power BI, Axle CRM, Ceterus, and Canva.
provides. You will be responsible for paying for access to our approved suppliers of hosted software services for a monthly amount of $1,000, which includes the cost for Mindbody, FranConnect, and Mic
designee provides. You will be responsible for paying for access to our approved suppliers of hosted software services for a monthly amount of $1,000, which includes the cost for Mindbody,
Franchisor behaviours
What the franchisor requires
28 requirements the franchisor states in this filing, each in its own words; 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?
YesItem 8
we mandate single source Vendors for customer engagement and data visualization software services, certain site selection and leasing services, accounting and bookkeeping services, payroll and human relations services, and certain flooring and décor items.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have unlimited access to your Computer System and independent access to the information generated and stored therein.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
(3) within 90 days after the end of each fiscal year, annual profit and loss and source and use of funds statements and a balance sheet for your Business as of the end of that calendar year, prepared in accordance with generally accepted accounting principles or, at our option, international accounting standards and
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Currently, (i) our affiliate, Ego, is an approved supplier of hair products; (ii) our affiliate, LS Sourcing, is the designated supplier of the Initial Equipment Package;
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may change, delete, or modify any of our standards and specifications, and those changes might require that you make additional expenditures.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We and our affiliates may derive revenue and other consideration from selling products and services to our franchisees and from approved Vendors based on their sales of products and services to our franchisees.
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?
70Item 8
We estimate that 70% to 80% of your initial investment and 70% to 80% of your ongoing expenditures will be directed to purchase products and services that will be restricted by us in some manner.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We may charge you a fee if you ask us to evaluate any proposed alternative supplier in the amount of costs we incur in inspecting and testing such products.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you would like us to consider approving a Vendor that is not then approved, you must submit your request in writing before purchasing any items or services from that Vendor.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 17
cease using all telephone numbers, directory listings, contact information associated with your Business, and Online Presences
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
You must secure and maintain in force throughout the Term all required licenses, permits and certificates relating to the operation of your Business and operate your Business in full compliance with all applicable laws, ordinances and regulations, including PCI compliance standards.
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
You agree to present to your customers the evaluation forms that we may prescribe and to participate (and request your customers to participate) in any surveys performed by or for us.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
We (or our designee) may at all times and without prior notice to you inspect, photograph, record activity in, and observe your Business and its operations for consecutive or intermittent periods we deem necessary;
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
We may periodically modify the Operations Manual, including in the form of memoranda and newsletters, to reflect changes in System Standards.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
Before you sign a lease for or otherwise commit to taking possession of a site for your Business, you must have our written approval of the site, and you must have our written approval of your proposed lease or other document under which you will take possession of the site.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
You may not, without our prior written consent, develop, maintain or authorize any Online Presence that mentions your Business, links to any System Website, or displays any of the Marks.
Is a minimum grand opening advertising spend required?
YesItem 11
You must, at your expense and on the dates we designate before, conduct the Pre-Opening Marketing Program for your Business that complies with the requirements set forth in the Operations Manual.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
you must spend, monthly, the greater of (a) $2,000 or (b) two percent (2%) of the prior month’s Gross Sales to locally advertise and promote your Business (the “Local Advertising Requirement”).
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
You will sign any documents we require to become a member of a Local Advertising Cooperative and, subject to the Marketing Expenditure Cap, contribute to and participate in the activities of the designated Local Advertising Cooperative.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
we mandate single source Vendors for customer engagement and data visualization software services, certain site selection and leasing services, accounting and bookkeeping services, payroll and human relations services, and certain flooring and décor items.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You are required to purchase only the items that we approve or that meet our standards and specifications and, as described below, to purchase those items only from Vendors that we approve or otherwise allow.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
We currently collect all amounts you owe us or our affiliates via electronic transfer from your designated bank account.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
You must designate a person, who may, but need not, be your Managing Owner or one of your other owners, to serve as the “Designated Manager” of your Business.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesFranchise agreement
You must incur the costs of obtaining the Computer System (or additions and modifications) and required service or support, payable to us and/or our affiliates through the Technology Fee.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have unlimited access to your Computer System and independent access to the information generated and stored therein.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 11
You will be responsible for paying for access to our approved suppliers of hosted software services for a monthly amount of $1,000, which includes the cost for Mindbody, FranConnect, and Microsoft Power BI, Axle CRM, Ceterus, and Canva.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may require your Required Trainees and other previously trained and experienced employees to attend an annual franchise conference and additional, periodic or refresher training courses at such times and locations that we designate or virtually, as determined by us.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
We may require your Required Trainees and other previously trained and experienced employees to attend an annual franchise conference and additional, periodic or refresher training courses at such times and locations that we designate or virtually, as determined by us.
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 franchisor's owner/CEO decides; an ops or franchise-development lead may evaluate.
- With 298 active personal services brands, I can't see which ones are growing or have the tech gaps my product fills, so I waste weeks chasing the wrong targets.A rep burning 10 hours/week on manual research at $50/hr loses $26,000/year. FranCloud's fit_scoring and corpus_search surface high-fit brands in seconds, reclaiming that time for selling.
- 63.5% of personal services brands mandate no POS system, but I can't identify the 108 that do without digging through hundreds of FDDs.Manually reviewing one FDD takes 3+ hours. At 108 targets, that's 324 hours. FranCloud's tech_landscape reveals POS mandates instantly, turning a $16,200 research slog into a single query.
- 91.6% of brands don't mandate a CRM, but the 25 that do are hidden in static reports, delaying my outreach to high-intent prospects.Landing one CRM-displacing deal in this segment can yield $30k+ ARR. FranCloud's find_lookalikes pinpoints those 25 brands and their peers, accelerating pipeline by months.
The vendor opportunity at SweatHouz
SweatHouz operates 37 locations in the personal services segment, with 22 franchised and 15 company-owned units. The brand is headquartered in Georgia and led by President & CEO Mike Tan. For software vendors, the total addressable market is small but centralized: all purchasing decisions flow through a single corporate office rather than a dispersed operator base. No parent company is on file, meaning SweatHouz appears independently owned and makes its own technology decisions without a larger corporate hierarchy.
Average unit volume is not disclosed in the most recent FDD. The royalty rate is 6.0%, and the initial franchise term runs 10 years. While year-over-year unit growth is not reported, the current unit count gives vendors a clear ceiling for initial deployment. The absence of a mapped operator footprint in our corpus reinforces that this is an HQ-driven organization where a handful of executives control the tech stack.
Who controls software purchasing
The 2025 FDD lists five key executives in Item 1. Mike Tan serves as President & Chief Executive Officer and is the most likely ultimate decision-maker for enterprise software. Susan Grubb, Chief Financial Officer, will be central to any purchase involving material cost. Tracey Walsh, Chief Administrative Officer, may oversee operational tools and vendor relationships. Jeffrey J. Teschke (Vice President & Secretary) and Kyle Casella (Treasurer & Assistant Secretary) round out the leadership team and could be involved in contract review.
Because SweatHouz mandates specific systems across its network, the buying center is likely small and concentrated. Vendors should prepare to engage directly with the C-suite rather than a decentralized procurement function.
Mandated and current tech stack
SweatHouz requires franchisees to use four named systems. Mindbody by Mindbody, Inc. is the core operational platform, covering client scheduling, point-of-sale, and reporting through MindBody Operations and MindBody Reports. FranConnect by FranConnect handles franchise management. Axle CRM is mandated for customer relationship management, and Ceterus provides financial and accounting support.
This stack leaves limited room for displacement in core operational categories. However, adjacent opportunities may exist in areas like payroll, HR, marketing automation, or business intelligence that integrate with Mindbody and FranConnect. Any vendor pitching SweatHouz must demonstrate seamless compatibility with this mandated ecosystem.
Procurement, renewals, and timing
Item 8 of the FDD does not include a procurement extract, so the formal supplier designation process is not publicly documented. Vendors should clarify whether SweatHouz uses a designated supplier model, an approved supplier list, or an open procurement approach before investing in a sales cycle.
Renewal terms offer a potential window for software evaluation. Franchisees in substantial compliance can extend their 10-year initial term for two successive 5-year periods. These renewal inflection points, combined with any upcoming compliance or system upgrade mandates, may create natural opportunities for vendors to introduce new solutions. Monitoring franchise agreement cycles and corporate technology refresh timelines will be key.
How to read the SweatHouz FDD
The 2025 SweatHouz Franchise Disclosure Document is embedded below. Item 1 identifies the executives listed above. Item 11 details the mandated systems, including the specific vendors and products named in this page. Item 17 outlines the renewal conditions and successive 5-year terms. Because Item 8 lacks a procurement extract, vendors should use the FDD as a starting point and supplement with direct discovery.
For a ranked target list of franchise systems aligned with your software category, FranCloud can help you prioritize based on tech mandates, unit counts, and decision-maker access.
Questions vendors ask
SweatHouz, answered from the filing
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment SweatHouz files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
1 operators run 1 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| WI | 1 |
|---|
Ownership
The portfolio behind SweatHouz
unknown of legendary sweat intermediate.
Related Personal services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.