From First Franchisee to Interim CEO: Nico Varano Takes the Helm at SweatHouz

Moving from franchisee to the CEO hot seat isn’t the typical workplace trajectory, but that is exactly what Nico Varano has accomplished.

Varano, who was the first SweatHouz franchisee, has been named CEO. It’s a shift that places a longtime operator in charge of helping to sustain the brand’s rapid growth. That decision puts a proven operator at the helm of the broader organization — someone who has worked inside the contrast-therapy studios and managed his own locations.

From Early Investor to First Franchisee

Varano’s connection to SWTHZ predates wider awareness of the brand. While working in private equity at Prospect Hill Growth Partners, he attended a conference where SWTHZ founder Jamie Weeks was presenting. At the time, Varano was gearing up for a charity boxing match and searching for ways to offset the physical strain of training.

That’s when the concept actually caught his attention. SWTHZ is a rapidly expanding contrast-therapy franchise known for its private infrared sauna, cold-plunge and vitamin C shower suites. Beyond the basic appeal of wellness, Varano saw a business model that made sense on paper: low variable costs and a straightforward four-wall structure.

That realization helped him move beyond mere interest, building out Boston-area locations as the brand’s first franchisee. During his first year, Varano worked directly in the studio, learning daily operational demands. It was a profound experience and one that would later inform his role on the company’s board of directors.

"Every day is different," Varano said. "The challenges we see out in the field are the challenges we need to focus on at HQ. And that’s what’s given me a unique perspective. I know the daily challenges that exist, whether it’s equipment issues or anything else.”

A CEO Who Understands Operations

Elevating an active franchisee to CEO delivers a very intentional signal to the broader system. Varano continues to operate his own studios, so he’s familiar with managing the same costs and pressures as other franchise owners in the system. It’s the type of dual role that helps shape how he views decision-making at the corporate level.

Efficient buildouts, strong membership growth and disciplined unit economics are all familiar to Varano. As a franchisee, the question is always about payback and how quickly invested capital can generate returns.

"Franchise owners should feel confident they have somebody in the CEO role who wears both the franchisee and CEO hat," Varano said. "Every decision is made through the lens of, ‘Does this benefit the studios in the field? Does this make the day of an operator easier? Is this going to help me get a return on my investment quicker?’"

In Boston, Varano’s operational approach delivered significant dividends fast. His South Boston studio reached $1.5 million in revenue in its first year. Across the broader system, three additional studios that opened in late 2024 each surpassed $1 million in average unit volume during their opening year.

A Focus on Sustained Momentum

Varano stepped into the CEO role in early January, at the start of the industry’s busiest season. Regardless, his focus is on continuity rather than overhaul. Varano is also in the midst of expanding his own territory from five to eight Boston-area studios.

SWTHZ is also approaching a significant milestone: the opening of its 100th studio, slated for Kansas City’s Power & Light District. It’s the type of expansion pace that tends to stand out in the franchising space.

"We’re six weeks away from opening studio 100," Varano said. "And I believe only about 1% of franchise brands get to that point. So, having the opportunity to say we hit that mark only two years after we opened our first contrast-therapy studio is pretty awesome."

Even as the unit count climbs, Varano cites the importance of maintaining growth that’s disciplined.

"You can’t grow if your house isn’t in order," he said. "It’s about fixing the pieces first, then hitting the growth button. So, right now, we’re focused on returning to the basics of what SWTHZ is here for and why we exist, without overcomplicating it. Once we simplify, then we’ll multiply."

As the SWTHZ brand moves forward, leadership is now firmly in the hands of someone with a level of operational familiarity that can only come from a boots-on-the-ground approach built on troubleshooting equipment, managing staff and driving local memberships.

"My journey started with fighting in a charity boxing match,” Varano said. “I came down here and raised my hand for this role for one reason. That was to create the best system for franchisees to succeed in."

To find out more information on costs to buy this franchise, please visit https://1851franchise.com/sweathouz.