Red Effect Infrared Fitness Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

3
+
-63%
-63%
Investment required

?

$185,000 - $278,000
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$20,000
Royalty fees

?

7.00%
+
6% - 8%
Operating Profit

?

n.a.

Pro
Franchisees

?

3
+
-63%
-63%
Investment required

?

$185,000 - $278,000
Franchise fee

?

$20,000
Royalty fees

?

7.00%
+
6% - 8%
Revenue (AUV)

?

$0
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

n.a.

Pro

Red Effect Infrared Fitness: Where Wellness Meets Innovation in Boutique Fitness

Red Effect Infrared Fitness is a pioneering boutique fitness franchise that seamlessly blends high-intensity interval training (HIIT) with the therapeutic benefits of infrared technology.

Founded in 2016 by seasoned entrepreneur Allie T. Mallad—also the visionary behind Massage Green Spa—the brand was established in Dearborn, Michigan, where its headquarters remain today. Red Effect began franchising in the same year, offering a unique fitness model that integrates wellness and performance.

At the heart of Red Effect's offering is a diverse range of fitness classes, including strength training, cycling, yoga, barre, and water rowing, all conducted within infrared-heated studios. This innovative approach not only enhances calorie burn but also promotes detoxification, improved circulation, and accelerated muscle recovery.

What sets Red Effect apart in the competitive fitness landscape is its holistic approach to health and wellness. By combining cutting-edge infrared therapy with a variety of workout modalities, the franchise caters to individuals seeking comprehensive fitness solutions that address both physical performance and overall well-being.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $20,000
Pre-Opening/Grand Opening Advertising $10,000
Initial Lease Payments $4,000 to $14,000
Leasehold Improvements and Construction Costs $40,000 to $60,000
Reception Desk, Retail Displays, and Interior Signage $4,000 to $6,000
Fitness Equipment and Infrared Saunas $75,000 to $120,000
AED and First Aid Equipment and Supplies $1,000 to $1,500
Exterior Signage $5,000 to $7,000
Initial Inventory and Operating Supplies $2,000 to $4,000
Audio/Video Equipment, Other Equipment and Supplies $2,500 to $5,000
Computer Systems $2,000 to $3,000
Travel and Living Expenses while Training $2,000 to $3,000
Insurance Deposits $1,000 to $2,000
Business Licenses, Professional Fees, and Miscellaneous Pre-opening Expenses $1,000 to $2,000
Additional Funds (three months) $15,000 to $20,000
TOTALS $184,500 to $277,500

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

3

+
-63%
-63%
No growth
New

$20,000

$185,000

-

$278,000

n.a.

$0

Pro

n.a.

Pro

n.a.

Pro

Fitness

Training

Red Effect International Franchise, LLC provides a comprehensive training program for its franchisees through several structured components:

  1. Initial Training Program: This is provided at no extra charge for up to three Designated Owners or the Manager (if the Designated Owner is not the Manager), plus the lead trainer and three additional trainers. The training must be completed at least 21 days before starting introductory classes. Attendance requires prior notice of at least 30 days. Franchisees must secure a location and sign a lease before scheduling this training.
  2. Management and Lead Trainer Training: All managers must complete the management training program, including any refreshers. If a previously trained manager has not worked in a studio for six months, retraining is required. The lead trainer and their successors must complete a specific training program before starting their duties.
  3. Annual Training for Lead Trainers: At least once a year, the lead trainer must complete the then-current training program. While this program is offered at no charge, the franchisee must cover travel, lodging, and wages.

Territory Protection

Red Effect International Franchise, LLC does offer limited territorial protection to its franchisees through what is termed a "Protected Area." This area typically spans a five-mile radius from the front door of the franchise location, although it may vary based on population density or other business reasons.

Within this Protected Area, the franchisor agrees not to establish or authorize another franchise using the Red Effect marks, as long as the franchisee remains in compliance with the agreement. However, the protection is confined strictly to location and does not extend to exclusivity in customer base or marketing efforts.

Franchisees are not guaranteed freedom from competition by other channels the franchisor may use, such as e-commerce or non-franchise locations. Additionally, under certain conditions—like failure to meet minimum sales requirements—the franchisor reserves the right to reduce or revoke the Protected Area, underscoring that territorial protection is conditional and not absolute.

Number of units

2024
Franchised units

8

4

3

Company-owned units

2

1

1

Total units

10

5

4

Competitors

Iron Bodyfit

Investment required
$276,000
-
$535,000
Franchisees
2
+
n.a.
n.a.

Purvelo

Investment required
$356,000
-
$512,000
Franchisees
2
+
n.a.
n.a.

Volofit

Investment required
$399,000
-
$735,000
Franchisees
6
+
500%
500%

Curves

Investment required
$72,000
-
$101,000
Franchisees
154
+
-39%
-39%

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