About Pause Franchise
Pause is a wellness studio franchise featuring cryogenic therapy, flotation therapy, vitamin infusion therapy, cold plunge/contrast therapy, sauna therapy, LED red-light therapy, compression therapy, NAD+ therapy, and other related services and products.
Franchisees operate a brick-and-mortar wellness studio serving the general adult public, particularly individuals who desire healthy, active lifestyles.
Customers can purchase services individually or in multi-packs for scheduled sessions, along with wellness retail products and merchandise.
Pause Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $60,000 | One-time payment upon signing |
| Royalty Fee | 7% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenue (Advertising Fund Contribution) | National brand fund |
| Total Investment Range | $826,500 – $1,200,167 | Includes build-out, inventory, working capital |
The investment range of $827K–$1.2M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Gross Revenue) and marketing fee (1% of Gross Revenue (Advertising Fund Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $60,000 | $60,000 |
| Leasehold Improvements | $500,000 | $700,000 |
| Project Management, Architecture & Engineering | $40,000 | $70,000 |
| Leased Equipment | $62,000 | $72,000 |
| Furniture and Fixtures | $25,000 | $40,000 |
| Rent (3 months) | $30,000 | $50,000 |
| Security Deposit | $10,000 | $16,667 |
| Signage | $7,500 | $15,000 |
| Startup Supplies | $10,000 | $20,000 |
| Insurance Deposits and Premiums | $1,000 | $2,500 |
| Business Licenses and Permits | $500 | $5,000 |
| Professional Fees | $15,000 | $25,000 |
| Training Expenses | $500 | $5,000 |
| Lease Review Fee | $0 | $1,500 |
| Grand Opening Marketing | $40,000 | $40,000 |
| Office Supplies and Computers | $5,000 | $7,500 |
| Additional Funds | $20,000 | $70,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then-current Initial Franchise Fee |
| Renewal Fee | 50% of the then-current Initial Franchise Fee |
| Technology Fee | $650 per month |
| Audit Fee | $2,500 plus underpayment plus interest at 1.5% per month |
| Local Marketing | Greater of $3,500/month or 5% of Gross Revenue |
| Late Fee | $100 per occurrence |
| Additional Training | $500 per person per day plus travel expenses |
| Conference Fee | $500 per person plus travel expenses |
| Management Fee | Expenses plus 15% of Gross Revenue |
| Manual Replacement | $250 |
| Insufficient Funds Fee | $100 per occurrence |
| Testing/Supplier Approval | Up to $1,500 per review |
| Interest on Late Payments | Lesser of 1.5% per month or highest rate allowed by law |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 40 hours classroom/in-person, 50 hours on-the-job training |
| Classroom Training | 40 hours |
| On-the-Job Training | 50 hours |
| Training Location | Online or Pause Headquarters in Los Angeles, CA or franchisee's location |
| Additional Training | Franchisor may require periodic additional courses, seminars, and training programs. Additional training charged at $500 per person per day plus expenses. Annual franchisee conference may be held. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected with significant reservations |
| Exclusive Territory | No |
| Territory Size | Approximately 3-mile radius from Accepted Location or population of about 100,000 residents |
| Description | Franchisor will not own, operate, or grant franchises for a Pause business within the Designated Territory during the term, provided franchisee is in full compliance. However, franchisor retains extensive rights including selling products through alternative channels, operating at Non-Traditional Sites, operating pop-up locations for up to 20 days, granting franchises outside the territory regardless of proximity, and developing other business concepts within the territory. Territory may be modified or eliminated for defaults. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two additional terms of 5 years each |
| Renewal Fee | 50% of the then-current Initial Franchise Fee |
| Renewal Conditions | Must have fully complied with franchise agreement during entire term; made necessary capital expenditures for System modifications; satisfied all monetary obligations; not in default; given written notice of intent to renew not earlier than 12 months but no later than 6 months prior to term end; execute then-current franchise agreement (may have materially different terms); comply with current qualifications and training requirements; execute general release; pay renewal fee. |
| Transfer Fee | 50% of the then-current Initial Franchise Fee |
| Transfer Conditions | Franchisor must not have exercised right of first refusal; all obligations paid; general releases signed by transferor and transferee; transferee meets business and financial standards; transferee signs then-current franchise agreement; copy of all transfer documents provided; transfer fee paid; transferee personally bound; transferor may be required to guarantee transferee; all third-party consents obtained; non-competition agreement signed; transferee's Operating Principal must complete training. |
| Termination for Cause | Immediate termination without cure for: failure to open on time, failure to complete training, material misrepresentation, felony conviction, unauthorized use of Marks or Confidential Information, abandonment (3+ consecutive days), unauthorized transfer, insolvency/bankruptcy, repeated breaches (3 in 12 months), and other specified defaults. Curable defaults: failure to maintain insurance (3 days to cure), failure to pay amounts due (5 days to cure), other defaults (30 days to cure). |
| Non-Compete Period | 2 years after termination or expiration |
| Non-Compete Details | For 2 years after termination or expiration, franchisee may not own, operate, or have interest in a Competitive Business within 15 miles of the franchised business, any other Pause business, or any affiliate-owned Pause business. May not solicit customers of former franchised business, contact suppliers/vendors for competitive purposes, or solicit franchisor's employees or other franchisees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | If franchisee is a business entity, an Operating Principal must own at least 5% of the entity and have full authority over operational decisions. Operating Principal's personal supervision is not required if a qualified full-time Manager who has completed training is employed. Operating Principal or Manager must devote full time and best efforts to the operation. Operating Principal must attend and complete training regardless of whether they will personally supervise daily operations. |
| Required Suppliers | Pause Supply Company Inc. (affiliate) is an Approved Supplier for products. Accelerator, Inc. (affiliate) is the preferred Approved Supplier for real estate brokerage services. Build'M is an Approved Supplier for project management. Zenoti is the designated POS System supplier. Franchisees must purchase from designated or approved suppliers for most products, equipment, and services. |
| Supply Restrictions | Franchisees must use only approved suppliers and may not use alternative suppliers without prior written approval from franchisor. If an exclusive supplier is designated, franchisee has no right to use alternatives. Evaluation fee of up to $1,500 for proposed alternative suppliers. |
| Franchisor Revenue from Suppliers | Franchisor may derive revenue from required purchases. Franchisor and affiliate Pause Supply may negotiate and retain discounts, rebates, or other benefits from suppliers. No revenue was derived in the last fiscal year as franchises were not yet being sold. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer direct or indirect financing and does not guarantee franchisee notes, leases, or obligations. |
Pause Franchise Earnings — Item 19
Pause does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Pause Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Pause System Growth
Pause currently operates 0 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 1 |
| 2020 | 0 | 0 | 1 |
| 2021 | 1 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 11 states: CA, HI, IL, IN, MD, MI, MN, ND, RI, SD, WI
Franchisor Financials (Item 21)
Pause Franchise — FAQ
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