Safe Sweat

Emre Ozgur and Andrea Kloegman of Vancouver, BC asked for $525,000 for 7% equity in Safe Sweat, a fitness studio concept with 2,700 square feet and eight private fit suites offering climate and lighting control, recovery technology and air purification. Members pay an average of $205 per month, and the business has almost 200 members after eight months, with capital costs of $900,000 to open. Over 20% of members work with personal trainers at $110 per session, generating about $25,000 per month in personal training revenue, with potential capacity revenue around $1.5 million a year at over 35% margins and 85% retention at nine months. The founders plan to launch a franchise model by the end of 2023 with interest from groups in Canada, the US, and Dubai, though no franchises have been sold yet.

Vincenzo Guzzo offered $525,000 for 33% equity, citing the high valuation as the main sticking point, while Wes Hall, Arlene Dickinson, Robert Herjavec and Manjit Minhas all went out over concerns about the business plan, valuation, and unproven franchise model. The founders countered at $525,000 for 15%, but Vincenzo Guzzo held firm at 33%, and the founders declined the offer.

Safe Sweat is still operating and sells through its website.