Is Urban Float Still in Business? Did Mark Cuban Make a Mistake?
Modern life keeps the human nervous system constantly wired, leading to poor sleep, chronic anxiety, and severe burnout. Scott Swerland and Joe Beaudry pitched a surprisingly quiet solution to this loud problem: entering a dark, silent tank filled with 1,000 pounds of Epsom salt.
Their company, Urban Float, promised to bring sensory deprivation therapy to the masses, catching the attention of the Sharks in Season 10 with impressive multimillion-dollar revenue figures.
The Bottom Line (Executive Summary)
- The On-Air Win, Off-Air Walk: Despite securing a $500,000 handshake deal with guest Shark Matt Higgins for 12.5% equity, Swerland and Beaudry walked away from the investment during the off-camera due diligence phase.
- Expansion Meets Reality: Pre-show, the founders boasted agreements to open 30 additional locations. However, the COVID-19 pandemic severely restricted franchise growth.
- Current Status: Urban Float is still operational. As of the most recent industry data, they manage a scaled-down footprint of roughly four active locations, generating around $2 million in annual revenue. They have also diversified their in-house wellness offerings to stay competitive.
What is Urban Float?
Urban Float is a chain of wellness centers specializing in sensory deprivation therapy, utilizing specialized pods filled with skin-temperature water and 1,000 pounds of Epsom salt. The high salt concentration allows users to float effortlessly, removing external stimuli to promote deep physical recovery and mental relaxation.
Sensory deprivation tanks gained initial popularity in the 1970s, but early models felt claustrophobic and difficult to clean. Urban Float modernized the experience by designing sleek, futuristic pods housed in private rooms equipped with individual showers.
The user controls the environment, choosing to leave soft lighting on or float in absolute darkness. The water matches the exact temperature of human skin, creating a sensation where the floater loses track of where their body ends and the water begins.
Beyond the psychological benefits of unplugging from digital noise, the physical advantages attract a wide demographic. The weightless environment relieves joint pressure, making it a highly sought-after recovery tool for professional athletes, chronic pain sufferers, and stressed business executives.
Business Overview Table
| Feature | Details |
| Industry | Health, Wellness & Relaxation Services |
| Founder(s) | Scott Swerland and Joe Beaudry |
| Core Product | Sensory Deprivation Float Tanks (Isopods) |
| Average Retail Price | ~$40 – $90 per individual float (varies by location/membership) |
| Target Audience | Athletes, professionals, anxiety sufferers, wellness enthusiasts |
The Founders Behind Urban Float
The concept for Urban Float emerged when Joe Beaudry searched for a way to gain a competitive edge in his corporate career. Working long hours in the telecommunications sector for Verizon Wireless, Beaudry suffered from stress and mental fatigue. He needed a recovery method that offered stress relief, sharp focus, and improved memory.
During his research, Beaudry stumbled upon an online forum of “floaters”—passionate advocates of sensory deprivation therapy. Intrigued by the science, he booked a session. The experience hooked him immediately.
Beaudry noted that his mental clarity spiked, and he even felt his vision seemed sharper after emerging from the tank. Convinced of the business potential, he decided to leave Verizon Wireless behind and dedicate himself to the floatation industry.
To scale the business, Beaudry knew he needed a partner with deep retail and wellness experience. He teamed up with Scott Swerland, an entrepreneur with a proven track record in building salon and wellness storefronts.
Together, they launched the first Urban Float salon in Seattle. The demand was immediate. Their initial pods operated 22 hours a day just to keep up with consumer bookings. This intense local success gave Swerland and Beaudry the confidence to push for national franchising and eventually step onto the Shark Tank stage.
Urban Float’s Shark Tank Pitch & Deal
Swerland and Beaudry walked into the Tank during Season 10, seeking a $500,000 investment in exchange for 5% equity in Urban Float. This assigned their wellness brand a massive $10 million valuation, a number that immediately put the Sharks on high alert.
The pitch started strong. The founders explained the mechanics of the Epsom salt pods and handed out impressive financials. They revealed that the business generated $2.5 million in sales the previous year across their four existing locations, yielding a healthy cash flow of $600,000.
Furthermore, they shared their aggressive franchising model. Opening a new Urban Float location required a $500,000 investment from franchisees, and the founders claimed they had deals in the pipeline for thirty new locations.
Guest Shark Matt Higgins understood the value of the therapy, noting that professional sports teams, including the Miami Dolphins, utilized float tanks for player recovery.
However, the Sharks quickly identified cracks in the foundation. Lori Greiner expressed concern over intellectual property, pointing out that Urban Float’s pods were not proprietary, leaving the door wide open for competitors.
Mark Cuban discovered the founders were carrying $1 million in Small Business Administration (SBA) loans. Cuban also questioned the longevity of the trend, passing on the deal alongside Greiner and Daymond John.
Kevin O’Leary, living up to his “Mr. Wonderful” moniker, offered a complex debt-and-equity structure: a $100,000 equity investment coupled with a $400,000 loan at 9.5% interest for 36 months, all for a 15% stake in the company. Matt Higgins stepped in with a cleaner offer: a straight $500,000 investment for 15% equity.
Swerland and Beaudry attempted to negotiate, countering with 7.5%, and then 10%. Greiner and John vocalized their frustration, stating the founders were undervaluing Higgins’s operational expertise.
Heeding the warning, the founders squeezed out a final compromise. Higgins agreed to drop his equity demand to 12.5%, and the entrepreneurs accepted the handshake deal on national television.
Pitch & Offers Table
| Shark Tank Data | Pitch Details |
| Season / Episode | Season 10 |
| Initial Ask | $500,000 for 5% equity |
| Initial Valuation | $10,000,000 |
| Sharks Present | Mark Cuban, Kevin O’Leary, Lori Greiner, Daymond John, Matt Higgins |
| Notable Offers | Kevin O’Leary ($100k for 15% + $400k loan at 9.5%), Matt Higgins ($500k for 15%) |
| Final On-Air Deal | Matt Higgins: $500,000 for 12.5% equity |
Did the Urban Float Deal Actually Close?
No, the deal between Urban Float and Matt Higgins failed to cross the finish line.
While the on-air handshake makes for great television, the real business occurs during the off-camera due diligence process. According to the founders, they engaged in discussions with Higgins and his team in the months following the taping.
However, as they combed through the finalized terms, Swerland and Beaudry decided to walk away. The exact sticking points remain private, but it is common for founders to reject a Shark’s final term sheet if it requires relinquishing too much operational control or if the business experiences a sudden revenue spike from the “Shark Tank Effect” that makes outside capital less necessary.
True to form, Urban Float experienced a 60% to 70% surge in brand awareness immediately after the episode aired, fielding a massive influx of franchise inquiries.
Urban Float After Shark Tank: The Current Update
If the immediate aftermath of Shark Tank looked bright, the subsequent years tested the founders’ resilience.
Prior to their television appearance, Swerland and Beaudry claimed they had agreements to open thirty new locations. The COVID-19 pandemic brought those ambitious plans to an abrupt halt.
A business model requiring clients to lie in enclosed pods inside a public retail space faced severe regulatory and consumer hurdles throughout 2020 and 2021. As a result, the rapid franchise expansion stalled. A prominent franchise location in Texas permanently closed by 2021, and another location in Ohio subsequently shut its doors.
To survive the changing economic environment, Urban Float pivoted its service model. Recognizing that sensory deprivation alone might not sustain the high overhead costs of retail spaces, the company transformed its remaining locations into comprehensive recovery centers. They integrated high-margin, trending wellness services such as infrared saunas, red light therapy, and BEMER Pulsed Electromagnetic Field Therapy. This strategy successfully stabilized their cash flow by increasing the average transaction value per customer.
As of today, the global isolation tank market continues to grow, with industry projections estimating a jump from $118.9 million in 2024 to $123.8 million in 2025, driven by rising demand for mental wellness and stress relief.
However, Urban Float operates as a regional authority rather than the massive national franchise the founders once envisioned. Tracxn and recent corporate profiles indicate the company operates with a lean team of approximately 18 employees. By mid-2024, they had stabilized at four active locations, generating roughly $2 million in annual revenue.
What is the Net Worth and Valuation of Urban Float?
Determining the exact net worth of a privately held, unfunded company requires analyzing their current cash flow against industry multiples.
When Swerland and Beaudry pitched in Season 10, they demanded a $10 million valuation based on $2.5 million in revenue across four locations. That represented a multiple of four times their revenue, which is highly aggressive for a brick-and-mortar retail franchise.
Fast forward to today. The company’s footprint has shrunk from its peak, and annual revenues sit closer to the $2 million mark. Brick-and-mortar wellness centers typically sell for 1.5 to 2.5 times their annual revenue, provided their cash flow margins remain healthy. Therefore, industry estimates place the valuation of Urban Float between $3 million and $5 million.
While this is a significant step down from their Shark Tank aspirations, Swerland and Beaudry maintain 100% ownership of their equity. Retaining their shares rather than giving up 12.5% to Matt Higgins ensures they keep full control over profit distributions. The founders’ personal net worths are tied directly to these remaining profitable locations and any franchise royalties they continue to collect.
Is Urban Float Still in Business?
Yes, Urban Float remains in business. The company maintains an active website and manages bookings across its remaining locations, primarily anchored in the Pacific Northwest.
While they are no longer experiencing the hyper-growth phase they projected on national television, the business has found a sustainable equilibrium. They successfully diversified their revenue streams by adding saunas and light therapy, allowing them to ride out the challenges that forced many niche wellness centers into bankruptcy over the last few years.
Urban Float Franchise Costs & Market Outlook
For entrepreneurs looking to enter the wellness space, Urban Float still offers franchising opportunities. However, the barrier to entry remains steep, ensuring only well-capitalized operators join the brand.
According to recet franchise disclosure data, opening a new Urban Float requires a substantial financial commitment. Prospective owners must possess a minimum net worth of $650,000 and at least $200,000 in liquid cash. The total initial investment ranges from $525,250 to $819,100, heavily dependent on real estate build-out costs and plumbing modifications required to install the massive Epsom salt pods. Franchisees also pay a $40,000 initial franchise fee, an ongoing 7.5% royalty on gross sales, and up to 4% for national advertising funds.
The broader health and wellness landscape supports this type of premium recovery business. The Global Wellness Institute projects the overall wellness economy will reach $7 trillion shortly, with consumers actively seeking out non-pharmaceutical interventions for stress and chronic pain. While the sensory deprivation market is highly competitive, with rival independent operators and new smart-tank home installations like the Dreampod entering the residential space, commercial spas continue to capture the luxury demographic.
Urban Float’s survival strategy relies heavily on maximizing the utilization of their existing tanks. The math of a float center is unforgiving: empty pods generate zero revenue but still cost money to heat and filter. By bundling float sessions with infrared sauna access, Urban Float locks customers into higher-tier monthly memberships. This recurring revenue model shields the company from seasonal dips and provides the founders with predictable cash flow.
Swerland and Beaudry may not have secured a Shark, but they learned a vital lesson in corporate survival. They abandoned the dangerous strategy of growing purely for the sake of location counts, choosing instead to protect their margins, diversify their services, and maintain a profitable regional stronghold in the American wellness market.
